What happened
Shares of Sumo Logic (SUMO), a software analytics platform company, were rising fast today after the company reported better-than-expected third-quarter results.
Sumo Logic's top and bottom lines both outpaced Wall Street's expectations, helping to send the software-as-a-service stock up 13% as of 11:01 a.m. ET.
So what
Sumo Logic's revenue jumped 27% in the third quarter to $79 million and beat analysts' consensus estimate of $74.1 million for the quarter.
Investors were also happy to see that the company's non-GAAP (adjusted) loss of $0.04 was a huge improvement from a loss of $0.12 in the year-ago quarter and was better than Wall Street's average estimate of a loss of $0.15 per share.
Additionally, the company's annual recurring revenue (ARR) continued to expand, increasing 22% in the third quarter to $298.9 million.
"We delivered revenue growth of 27% year over year in the third quarter while also driving better operating efficiencies, and will continue to emphasize efficient growth as we drive toward future cash flow break even and profitability," Ramin Sayar, CEO of Sumo Logic, said in a press release.
Now what
In addition to its strong results in the third quarter, Sumo Logic's management issued fourth-quarter guidance that was ahead of analysts' estimates.
The company expects a fourth-quarter loss of about $0.09 and revenue of about $77.5 million, which is ahead of Wall Street's consensus estimate of a loss of $0.17 on revenue of $75.4 million.
With Sumo Logic's solid results in the quarter and optimistic outlook, it's no surprise that investors were pushing the tech stock higher today.
