SUMO - Sumo Logic

[Spekulatius]

SUMO seems to be a busted IPO, trading around its IPO price of $22 with very little buzz compared to SNOW etc. Their products seems to compete with Splunk and Datadog, I think. Growth has somewhat slowed down and that why it has a lower multiple in terms of P/S.

 

Anyone here has an opinion on this company and their products? I don’t understand this market well, but I know that busted IPO’s can be worth owning. I guess a P/S of 10x isn’t exactly Graham style value investing, but it could work out if their products are good and they can keep growing.

 

[gjangal]

From the S-1,  growth appears to be stalling, number of customer adds are slowing.  Market is reacting to this. They probably have pricing and increasing usage levers to pull, but that goes only so far. Looks like an avoid to me

[fareastwarriors]

Markets can be "rational" when it comes to cloud / saas?

Wow

[lnofeisone]

This is a very crowded space with Spunk and ELK dominating the scene. Sumo is cloud-native and is relatively expensive. I always wondered where Sumo plays. They don't have the features needed for large enterprises (Splunk/Elk do) and they can be pricey for smaller organizations or small organizations don't really pay attention to their logs. Purely anecdotal, in my occasional interaction with log data, I've yet to come across Sumo logic.

[gjangal]

Markets can be "rational" when it comes to cloud / saas?

Wow

 

I don’t think they are rational, but some of them are worth the lofty multiples, but it’s not easy to know which ones. High tides lifts all boats kind of situation