Shares of Sumo Logic (SUMO) plummeted today, down by 12% as of 11:10 a.m. EST, after the company reported fiscal fourth-quarter earnings. Sumo Logic also said that it would acquire DFLabs.
Revenue in the fiscal fourth quarter was $54.2 million, ahead of the consensus estimate of $52.1 million. That resulted in an adjusted net loss of $6.7 million, or $0.07 per share, which was also better than the $0.12 per share in adjusted losses that analysts were expecting. The technology company, which provides monitoring and security services to the enterprise, finished the quarter with $404.1 million in cash.
"We continue to see customers of all sizes and maturities choose our platform to enable their cloud and digital transformations," CEO Ramin Sayar said in a statement. "We continue to expand our differentiated platform with investments in observability and security and are well positioned for success in the massive market opportunity in front of us."
Sumo Logic has agreed to acquire Italy-based DFLabs, which offers security orchestration, automation, and response (SOAR) software to strengthen its cloud-native SIEM solution. Financial terms were not disclosed, and the deal is expected to close in the second quarter of fiscal 2022 (a couple quarters from now).
In terms of guidance, Sumo Logic is forecasting revenue of $53.2 million to $54.2 million in the first quarter of fiscal 2022, compared to the $53.4 million in sales that Wall Street is currently modeling for. That should result in an adjusted net loss per share of $0.12, slightly better than the consensus estimate of an adjusted net loss per share of $0.14.