Public Startups

Sumo Logic Files For $100M IPO

Sumo Logic, a cloud management software startup, has filed for a $100 million initial public offering, according to new U.S. Securities and Exchange Commission documents.

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The company, which brands itself as a “continuous intelligence platform,” analyzes data to give businesses more actionable information for things like operations, security and compliance. As a private company, Sumo Logic raised at least $340 million in total funding from backers including Battery Ventures, Sapphire Ventures, Accel and Sequoia Capital, per Crunchbase. It last raised money with a $110 million Series G round in May 2019.

In the S-1 filing, the company reported $155 million in revenue for the year that ended on Jan. 31, 2020, up nearly 50 percent from the same period the year prior, when it reported $103.6 million in revenue. At the same time, the company’s losses have been quickly rising. Being unprofitable isn’t uncommon for startups going public nowadays, and Sumo Logic’s net losses increased nearly 93 percent from $47.8 million in the year ending Jan. 31, 2019, to $92 million in the year ending Jan. 31, 2020.

More recently, for the three months that ended April 30, Sumo Logic reported $47.2 million in revenue, up from about $32.5 million during the same period the year prior. Its net losses also grew to nearly $23.6 million from $15.2 million, according to the filing. 

Sumo Logic is among a growing number of tech startups to go public in the second half of 2020, after the IPO market experienced a down period following the outbreak of the COVID-19 pandemic. Companies including Lemonade, ZoomInfo and Vroom have all gone public this summer (ZoomInfo and Vroom in June), and companies like Palantir and Airbnb have filed confidential S-1 registration statements with the SEC.

Morgan Stanley, J.P. Morgan, and Jefferies are among the underwriters for the IPO. The company plans to trade on the Nasdaq under the ticker symbol SUMO.

Illustration: Li-Anne Dias

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