Sumo Logic’s Number of Customers (2020-2022)

This statistic highlights Sumo Logic’s number of customers, reported annually from 2019 onwards.

ARR refers to Annualized Recurring Revenue run rate from all the customers whose contract is with the company at the end of the period or with which the company is negotiating for a renewal contract. The company continues to include customers with expired contracts if it is in active discussion for a renewal until the customer renews the contract or the discussion terminates without renewal. For the customers whose revenue fluctuates from month to month, the company calculates ARR using Annualised Monthly Recurring Revenue.

Sumo Logic’s Number of Customers

The number of customers increased from 251 in 2019 to 348 in 2020, marking a growth of approximately 38.64% on a yearly basis from 2019 to 2020. It further increased by 11.78% in 2021.

There has been an increase in the number of the customer with ARR > $100k+ from 234 in 2019 to 323 in 2020, making an increase of 38%. It also grew by 10.86% in 2021 compared to 323 in 2020.

The customers with ARR>$1M+ increased from 17 in 2019 to 25 in 2020, making an increase of 47%. It also grew by 24% in 2021 compared to 25 in 2020.

Sumo Logic’s customers range from cloud-native organizations to those who are undergoing digital transformation and from mid-sized firms to companies included in Fortune 500. With the business transition and increase in the number of cloud-native businesses, the demand for the company’s platform has shot up. The company adopts a go-to-market strategy which consists of self-service adoption through the website, inside and field sales team, and offers potential customers free trials to explore the benefits that the platform has to offer and there has been a significant conversion from trial users to paid customers. Approximately 33% of the trial users converted to paid users. This user community is used to identify global trends and insights and deliver value to the users.

Impact of Covid-19 Pandemic

• Pandemic has negatively impacted the operations of the business. It affected demand and caused potential customers to forgo or delay the purchase of subscriptions, lengthening the sales cycle and some of the existing customers were unable to renew their contract or reduced their use, or unable to expand their usage.
• Due to the restriction imposed on the travel, the sales team of the company is unable to make physical contact with the existing and potential customers reducing the effectiveness of efforts.
• Increasing customer churn, delaying collections, resulting in an inability to collect the dues as a result of extended payment terms, concessions, or inability to pay to hamper the company’s ability to improve its existing and new offerings.

About the company

Sumo Logic is a cloud-based machine data analytics company that focuses on providing log management and analytics service to deliver real-time IT insights. It was founded in the year 2010 and becomes a publicly-traded company in 2020. The company is listed in NASDAQ and headquartered in Redwood City, California. The company provides services to the organization of all sizes. The company addresses both cloud-native and traditional businesses that want to build, manage, and secure modern applications when they undertake cloud adoption initiatives.

Continuous Intelligence Platform offers four main solutions:

• Operational Intelligence– Customers can use the platform for building, monitoring, troubleshooting, and optimizing their applications. Modern applications require observability powered by AI/ML and the platform is designed in such a manner that it enables the user to rapidly understands the cause of poor performance and enhance customer experience.
• Security Intelligence- The platform detects real-time threats and incidents as well as provides a list of compromise that enable analyst to accelerate investigations across a multi-cloud environment.
• Business Intelligence- It enables real-time, data-driven decision-making. It extracts critical KPIs such as about the business, service, and other KPIs to analyze customer behavior. The platform also offers a flexible search language to help users design and robust set of searches to gain visibility into customer engagement.
• Global Intelligence- The company have insights into the type of technologies its user uses and how they are using them. It offers a unique operational and security benchmarking service that allows measuring their performance, value, and risks broader Sumo Logic global community.

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