cloudedjudgement.substack.com · 2020-08-24 · 2110d

Sumo Logic S-1 Analysis: Pre-IPO Benchmarking & Valuation Prediction

The article provides a detailed analysis of Sumo Logic's S-1 filing, benchmarking its financial metrics against publicly traded SaaS peers in the observability category. The author predicts Sumo Logic will trade at ~30x forward revenue ($7B valuation) post-IPO despite weaker operating margins than comparable companies, driven by positive SaaS IPO sentiment.

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Metrics in this report

Average Contract Value

89thousand dollars

average

Sumo Logic across 2,131 total customers

CAC Payback Period

14months

average

Sumo Logic 4-quarter average pre-IPO

Enterprise Customer Count

27customers

Sumo Logic customers with ACV > $1M as of April 30, 2020

High-Value Customer Count

329customers

Sumo Logic customers with ACV > $100k as of April 30, 2020

LTM Revenue Growth

48percent

Sumo Logic LTM as of April 30, 2020

Net Revenue Retention

127.5percent

average

Sumo Logic midpoint of 120-135% range over 9 quarters

SaaS Revenue Multiple

13times revenue

target

Splunk comparable observability vendor

SaaS Revenue Multiple

16times revenue

target

Elastic comparable observability vendor

SaaS Revenue Multiple

38times revenue

best-in-class

Datadog high-growth SaaS observability leader