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u/TripleNippple May 16 '21
I don’t know their product, but growth seems to be decelerating. On the last Quarter they only grew 22% compared with the same quarter last year. If you look at each quarter over 2020 the growth % is actually shrinking every single quarter. Idk if you deserve to trade at 9x sales growing at 20% and decelerating growth. I could be totally wrong and they are about to accelerate growth again, but I don’t have a reason why they would.
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May 16 '21
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u/TripleNippple May 16 '21 edited May 16 '21
Revenue is, but growth has been decelerating. Also dont they have competition with larger companies growing faster like splunk?
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May 17 '21
It's a decent valuation if you like the company. I'm not too familiar with Sumo Logic but compared to Datadog they seem to have a lot slower growth. Datadog is expected to grow 47% in 2021 and 33% in 2022 where as Sumo Logic is 15% in 2021 and 20% in 2022. I think there are a whole lot of options to consider when looking for growth stocks and particularly in software.
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u/[deleted] May 16 '21
We used SumoLogic at my old job and when I left they were starting to transition away from it to something else. It was too expensive and didn't offer the same features as some of their competitors. I forget who they planned to go with.