Sumo Logic stock drops 7% after fourth quarter results, deal to buy DF Labs

Shares of Sumo Logic Inc. SUMO,
-4.63%
fell more than 7% in the extended session on Wednesday after the data analytics firm reported fourth-quarter tax results above Wall Street expectations and a deal to buy an Italian company. Sumo Logic said it lost $ 20.6 million, or 20 cents per share, in the quarter, compared to a loss of $ 34.5 million, or $ 1.95 per share, in the quarter last year. . Adjusted for one-time items, the company lost $ 6.7 million, or 7 cents per share. Revenue rose 22% to $ 54.2 million, the company said. Analysts polled by FactSet expected the company to report an adjusted loss of 12 cents per share on sales of $ 52.1 million. Sumo Logic also announced its intention to acquire Italian company DF Labs SpA, a “leader in security orchestration, automation and response (SOAR) technology”. The deal is expected to close in the second quarter of fiscal 2022. Sumo Logic has guided first quarter revenue to between $ 53.2 million and $ 54.2 million, which would represent a growth of 13% at 15% year over year, he said. He guided for an adjusted loss per share of 12 cents. For the full year 2022, Sumo Logic expects revenue of between $ 231 million and $ 235 million, and a non-GAAP net loss per share of between 50 cents and 48 cents. The stock ended the regular trading day down 4.6%.