Sumo Logic Inc. (NASDAQ:SUMO) shares gained nearly 12% on Tuesday following the company’s reported Q3 results, with EPS of ($0.04) coming in better than the Street estimate of ($0.15). Revenue was $79 million, beating the Street estimate of $74.21 million.
ARR grew 22% to $298.9 million, which management noted was impacted by a reduced number of total sales reps and ramp sales reps, expected to take some time to reach full productivity.
Management mentioned no material impact from macros in Q3/23, though noting some budget scrutiny into Q4/23. Overall, the strength of the platform along with clean execution continues to cut through macro headwinds.
The company expects Q4/23 EPS to be in the range of ($0.09)-($0.08), compared to the Street estimate of ($0.17). Revenue is expected in the range of $77-78 million, compared to the Street estimate of $75.4 million.