Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Cloud

9/17/2020
03:45 PM
Connect Directly
Twitter
LinkedIn
RSS
E-Mail
100%
0%

Sumo Logic IPO Prices Higher Than Expected

Co-founder and CTO Christian Beedgen explains what this means for the future of the cloud-based data analytics company.

Data analytics company Sumo Logic today announced the pricing of its initial public offering of 14.8 million shares of its common stock at $22 per share, which is higher than the anticipated range of $17 to $21 per share. Its debut marks the first cybersecurity company IPO this year.

Sumo Logic was founded in 2010 and has since raised more than $340 million in public funding, Crunchbase reports. Its cloud-native Continuous Intelligence Platform automates the collection and analysis of application, infrastructure, and security data. Security analysts, developers, and IT teams can use it to analyze log and event data, and monitor and troubleshoot applications, systems, and services. The tool scans 873 petabytes of data daily on average, Sumo Logic says.

Related Content:

6 Lessons IT Security Can Learn From DevOps

Special Report: Computing's New Normal, a Dark Reading Perspective

New on The Edge: h2c Smuggling: A New 'Devastating' Kind of HTTP Request Smuggling

The company has 2,130 customers as of July 31, 2020, as indicated in its SEC filing. Among them are major companies including Alaska Airlines, JetBlue, Land O'Lakes, Major League Baseball, Netflix, Salesforce, and Twilio. It has seen substantial financial growth: In fiscal years 2018, 2019, and 2020, its revenue was $67.8 million, $103.6 million, and $155.1 million, respectively.

That said, its losses have also increased. Sumo Logic reports net losses of $32.4 million, $47.8 million, and $92.1 million for the fiscal years 2018, 2019, and 2020, respectively.

Estimates indicate gross proceeds from today's IPO are expected to be $325.6 million, before deducting underwriting discounts, commissions, and other offering expenses. The offering is expected to close on Sept. 21, 2020, and is subject to customary closing conditions. 

Sumo Logic plans to use these funds to further develop and grow its platform for machine data and analytics, says co-founder and CTO Christian Beedgen. He co-founded the company coming out of ArcSight, where he learned how to use unstructured SIEM data for security analytics.

"We sort of understood, being developers ourselves, how this can also apply to this emerging way of large-scale web applications," he explains, noting that "smaller and smaller teams can use all these emerging technologies to build bigger and better products." 

However, things do become complicated. Now IT teams not only have to host applictions, they have to handle containers, which have to be orchestrated, and there are more layers of obstruction in the IT that runs business apps. A challenge for every company is the wide range of sources from which security data can come in, and this continues to be a problem today, Beegden says. 

Over the years, Sumo Logic's focus has been on delivering the observability and security it believes a cloud SIEM tool should offer. As they sought to expand on the idea of machine data and analytics, "we found ourselves in a market that was suddenly larger than we ever even hoped for."

Today's IPO does not change Sumo Logic's strategy, he adds. It enables the company to invest more in building a better product and to do it faster.

"Both in terms of product development and go-to-market, those are pretty heavy-duty markets and areas," he says. "These are rich products and they need to change and evolve as the world of IT constantly changes and evolves. It feels like it's actually accelerating."

A major part of this growth is investing in talent -- specifically, people in product development who can help build more products and quickly. He points to Sumo Logic's 2019 acquisition of JASK Labs as an example of an important step toward building out its SIEM tool. JASK Labs built cloud-native autonomous security operations center (ASOC) software, which will be combined with Sumo Logic's SIEM and compliance tools to create a new security intelligence platform.

Security is an important angle for the company, Beedgen says, and it has been a priority for customers from the start. 

"I think we're really well-positioned to execute against that in a much more focused fashion over the next few years," he notes. "This is a major part of what this company does, and continues to do, and will be known for. That's how I look at it."

Read the full release for more details.  

 

Kelly Sheridan is the Staff Editor at Dark Reading, where she focuses on cybersecurity news and analysis. She is a business technology journalist who previously reported for InformationWeek, where she covered Microsoft, and Insurance & Technology, where she covered financial ... View Full Bio
 

Recommended Reading:

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
COVID-19: Latest Security News & Commentary
Dark Reading Staff 10/23/2020
7 Tips for Choosing Security Metrics That Matter
Ericka Chickowski, Contributing Writer,  10/19/2020
Russian Military Officers Unmasked, Indicted for High-Profile Cyberattack Campaigns
Kelly Jackson Higgins, Executive Editor at Dark Reading,  10/19/2020
Register for Dark Reading Newsletters
White Papers
Video
Cartoon
Current Issue
Special Report: Computing's New Normal
This special report examines how IT security organizations have adapted to the "new normal" of computing and what the long-term effects will be. Read it and get a unique set of perspectives on issues ranging from new threats & vulnerabilities as a result of remote working to how enterprise security strategy will be affected long term.
Flash Poll
How IT Security Organizations are Attacking the Cybersecurity Problem
How IT Security Organizations are Attacking the Cybersecurity Problem
The COVID-19 pandemic turned the world -- and enterprise computing -- on end. Here's a look at how cybersecurity teams are retrenching their defense strategies, rebuilding their teams, and selecting new technologies to stop the oncoming rise of online attacks.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2020-24847
PUBLISHED: 2020-10-23
A Cross-Site Request Forgery (CSRF) vulnerability is identified in FruityWifi through 2.4. Due to a lack of CSRF protection in page_config_adv.php, an unauthenticated attacker can lure the victim to visit his website by social engineering or another attack vector. Due to this issue, an unauthenticat...
CVE-2020-24848
PUBLISHED: 2020-10-23
FruityWifi through 2.4 has an unsafe Sudo configuration [(ALL : ALL) NOPASSWD: ALL]. This allows an attacker to perform a system-level (root) local privilege escalation, allowing an attacker to gain complete persistent access to the local system.
CVE-2020-5990
PUBLISHED: 2020-10-23
NVIDIA GeForce Experience, all versions prior to 3.20.5.70, contains a vulnerability in the ShadowPlay component which may lead to local privilege escalation, code execution, denial of service or information disclosure.
CVE-2020-25483
PUBLISHED: 2020-10-23
An arbitrary command execution vulnerability exists in the fopen() function of file writes of UCMS v1.4.8, where an attacker can gain access to the server.
CVE-2020-5977
PUBLISHED: 2020-10-23
NVIDIA GeForce Experience, all versions prior to 3.20.5.70, contains a vulnerability in NVIDIA Web Helper NodeJS Web Server in which an uncontrolled search path is used to load a node module, which may lead to code execution, denial of service, escalation of privileges, and information disclosure.