|Power Score: 47.88||Momentum Score: 50.0 (3)||HQ: Redwood City, CA||CEO: Ramin Sayar|
Valuation: $2.2 billion (+81% YoY)
Amt. Raised: $345.5 million
Lobbying Spend: No
Industry Orgs: No
Headcount: 919 (+18% YoY)
Engineering Headcount: 296 (+30% YoY)
Big Tech Experience: 8%
Open Roles: 112
R&D Spending: $70.2 million (+29% YoY)
Patents Applied For: 0
Patents Owned: 23
Acquisitions: Sensu (6/21), DFLabs (3/21)
Exec Team Exits: Sydney Carey (CFO)
Diversity Data: No
ESG/CSR Data: No
Sumo Logic went public in September 2020 on NASDAQ,
just over a decade after its founding in Redwood City, California. Though the company has yet to turn a profit, it managed to grow its valuation by 81% year-over-year. As of April 2020, Sumo Logic managed to attract 27 clients with ARR over $1 million. These prominent clients are likely drawn to Sumo Logic's robust security monitoring features and developer-friendly open source approach. Sumo Logic also received FedRAMP authorization in early 2021 and is now on an even playing field with many other companies on the top part of this list when it comes to winning public sector contracts.
Fresh off an IPO and leading the Power Index in total amount raised, Sumo Logic has used its ample financial resources to invest in its platform: Even though it has the lowest R&D spend of the public companies on the Power Index, it made one of the splashiest acquisitions by agreeing to acquire Sensu in June 2021. Sensu labels itself as a monitoring company, but Sumo Logic expressed that the acquisition would allow it to offer a "scalable end-to-end solution for infrastructure and application monitoring." Still, in the long run, Sumo Logic's lower R&D spend could become a competitive disadvantage: It spent $70.2 million on R&D in the last fiscal year, which paled in comparison to the $791 million spent by Splunk or the $211 million spent by Datadog.
Sumo Logic has been beefing up the number of tools it has in its arsenal recently, launching Real User Monitoring and app performance tools in July. And it has continued to ship products with pace, coming out in August with its Cloud SOAR platform that enhances security automation within the context of observability, effectively allowing DevOps teams to automate courses of action for disruptive events. It's noteworthy that the slew of recent software developments comes on the heels of a year where the company expanded its engineering team by 30%.
Geographic availability expansion has been a trend for Sumo Logic in 2021, and we expect the momentum to carry through to 2022. In April, the company
announced that its Cloud SIEM solution would be available in Australia. That was followed up with an announcement in July that it would be available in Japan. The company signaled that it would continue this streak with the launch of availability in India.
While the product focus may be on abroad, Sumo Logic is also dealing with transition at home. In August 2021 the company lost its CFO, Sydney Carey, who helped lead the company through its IPO. Carey is staying on as an advisor to the company through the end of the calendar year, and a new executive search is underway to fill her role.
They Said It
"Every innovator needs to live in fear of being disrupted … If they manage to build a better product than us, then that's on us." — CTO Christian Beedgen in a September 2020 interview with Protocol