Sumo Logic IPO Aims to Raise Up to $311 Million

Sumo Logic, a data-analysis-software producer, plans an initial public offering of 14.8 million shares at an estimated $17 to $21 apiece.
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Sumo Logic said it planned to raise as much as $311 million in its initial public offering.

In a Securities and Exchange Commission filing, the Redwood City, Calif., data-analysis-software producer said it would offer 14.8 million shares at an estimated $17 to $21 apiece.

The underwriters have an option on 2.22 million additional common shares to cover overallotments. 

Sumo Logic expects to use the funds for general purposes, including working capital, operating expenses and capital expenditures.

The underwriters include Morgan Stanley, JPMorgan, RBC Capital Markets, Jefferies, William Blair, Cowen, Piper Sandler and BTIG.

Sumo expects the shares to trade on the Nasdaq Global Select Market under the symbol SUMO.

Sumo calls itself a provider of continuous intelligence, a method to automate collection and analysis of application, infrastructure, security and internet-of-things data and "derive actionable insights within seconds."

For the six months ended July 31 Sumo Logic's net loss widened to $35.8 million from $29 million in the year-earlier quarter. 

On a per-share basis the loss narrowed to $1.93 from $2.13 as shares outstanding climbed 36% to 18.5 million.

Revenue advanced 38% to $96.6 million from $70.2 million.

The company, founded in 2010, has grown its client base to 2,131 as of April 30, 2020, from 1,626 on Jan. 31, 2018. 

Over that period the number of clients that generated average revenue greater than $100,000 grew to 329 from 187. Clients that generated average revenue of more than $1 million grew to 27 from 17.

Sumo Logic's president and chief executive is Ramin Sayar, whose resume includes more than four years as senior vice president at a cloud-management unit of VMWare.  (VMW) - Get Report