Good morning. It's great to be back in New York and see some familiar faces and some new ones. Earlier today, we had an opportunity to do the opening bell as a commemorative token to what got us here. That is not only just becoming a public company, but earning the right to help our customers drive their strategies around digital transformation. Today, we're gonna talk a lot about how we're helping customers make their digital experiences reliable and secure. With that, we have a packed agenda. I'd like to get started. Obviously my name is Ramin Sayar. I'm the President and CEO. I've had the pleasure of being at Sumo coming on eight years. The company is about 12 years old, and we're in our next phase of journey about scaling out and scaling up. A lot of the conversation today will be centered around that in terms of our product strategy, in terms of what we're doing for go-to-market, as well as obviously our financial profile and plans. Obviously we'll go through the safe harbor statement requirements. Check. Thank you very much. Let's talk a little bit about the agenda more specifically than I just outlined. I will personally talk a little bit about our vision and strategy, talking in context to what's going on in the market. Then I'll turn it over to Tej Redkar, who's our Chief Product Officer. Tej joined us just a few months ago, coming on month four. I think you'll find that his background is very pertinent to who we serve, one of the main personas. He was not only a developer but had the opportunity to build a lot of the similar capabilities when his time at Microsoft, but even not as a developer, but also running engineering teams, he was also a customer. He brings really interesting perspective on both sides of a user and a customer, as well as he'll highlight a lot of things we're doing for our innovation strategy, things around improvements in our core foundation and platform, as well as around usability workflow as we talk about reliability and security, how we bring these use cases and personas together. We'll turn it over to Lynne. Lynne joined us, just about 10 months ago. She's leading our go-to-market organization. Lynne has a fabulous background in a lot of the tectonic shifts that we've seen for those of us been around for a while. If you think about the client server, the converged infrastructure, that whole massive transition, she was at Cisco during that time, was able to build world-class sales organizations and worked for Chuck during many of those years, if you're familiar with him at Cisco now. Then went over to McAfee, and she'll talk a little bit more about her history in terms of modernizing what they were doing when they went private and public. It's got great experience through different downturns, upturns, just more importantly, building sales organizations and transitioning from scaling up to scaling out like we're doing. We'll turn it over to Stewart. Stewart will talk a little bit about the context of the market that we've covered, but more specifically around the things that are really critical to a lot of our investors today in this journey to break even in profitability. Talk about the levers for growth, building on what Lynne spoke about and will speak about in her section in terms of the drivers for growth. Naturally, after that, we'll open up to some Q&A. Packed agenda. Again, we'll go and jump in. As I mentioned at the top, today, you know, marks just not the commemorative opportunity for us to be here, but we're seeing digital experiences everywhere. The billboards on the streets, the things on your mobile phones. Our personal and professional lives are at this intersection of this digital experience driven by, obviously, a major trend around digital transformation. These digital transformation initiatives apply to organizations of all sizes and maturities. We're gonna talk about the role that Sumo plays, and more importantly, the role that cloud-native applications play in delivering delightful experiences. When we talk about delightful experiences, it's not just about eyeballs. Delightful experience is about really ensuring loyalty as well as revenue and obviously experience at the very end. These things are really critical, assuming that you're able to make sure that they're reliable as well as secure. That's the role that Sumo's played for over a decade to help our customers evolve to this transition and be able to deliver these delightful experiences. These cloud-native applications that are powering these modern digital experiences are actually at the center of a major change, the market shifts that are taking place. We've heard these terms around digital transformation probably a lot. If you unpack that a little bit, what's really going on is customers are trying to modernize how they get more intimate with users and data and experiences. That's centered around new applications delivered through new mediums, whether it's streaming through devices and more. The spend on digital experiences and digital transformation is actually dramatically increasing. In fact, so much so by 65% in the coming years. A lot of that spend actually is coming from not only brand-new workloads or applications being built, but also a lot of those that are shackled in the data center. There's $1 trillion of spend that's sitting in these legacy architectures and application infrastructures that's now being lifted and shifted to the cloud that needs to be modernized. In fact, so much so that there's 750 million cloud-native applications already predicted by 2025. Majority of those are new, not just those that are being migrated. It gives a huge opportunity to go after those applications and infrastructure within a data center. Naturally, when these workloads get lifted and shifted. What also happens? They get re-architected. As a result, this tsunami of data is created, the data explosion. You've probably heard me talk about this for so long. A typical three-tier app now that's migrated to the cloud emulates more than 5-10 times the volume of data. This data tsunami that's created is actually not just the only issue and opportunity. It requires and necessitates a new way of how you collect and instrument to be able to understand and analyze what's going on in the process to the application to be able to deliver in real time these delightful experiences. The notion of near real-time visibility and the ability to connect that to user behavior and experience is the cornerstone of these digital transformation agendas that our customers are going through. However, there's an unfortunate aspect, because through this transition and transformation, what's also going on is complexity. This complexity that spans obviously people, process, and technology. These silos that are in a lot of organizations, small, medium, and large. A lot of that's because of what's going on in terms of how applications are built. I talked about this notion of cloud-native applications. Let's unpack that a little bit more. What's really going on in a lot of these organizations is they're actually using a plethora of tools now to be able to build and release. The tech stack is becoming much broader. Everything from source code control systems to CI/CD pipelines, to how you instrument, to look for quality and release. As those tools are used to build and release the software, what's also happening is the opaque infrastructure, the cloud infrastructure that's residing below that is also new. It's creating this lack of visibility from the code to the configuration of the applications, right? As a result, that challenge to be able to get visibility is further perpetuating this organizational barrier as well as visibility barrier that's required for reliability and security. The other thing that's going on obviously is the data explosion. As these applications get built and then scaled up and scaled out, it's actually generating a lot more volume of data. Therefore, you need to be able to collect the streaming data that's coming in continuously versus sampling and aggregating. It makes the job of these professionals, particularly site reliability engineers, someone that Tej will talk about a little bit more, developers, DevOps teams, much more difficult to be able to collect and instrument and analyze that. It's not just about the data explosion or the lack of visibility or the new tech stack. Unfortunately, what's happening is this is all happening even faster. It's compounding these set of challenges. No longer is it about releasing every month, every week. It's every hour and every minute, and constantly changing configurations. Your deployments very much like Sumo across multiple cloud providers, or in our case, Amazon Web Services in different regions, we're constantly updating and patching and moving things. That continuous release and updates creates more friction, creates more challenge. That in itself isn't the biggest challenge as well. What's also happening is, as these workloads get moved, as infrastructure gets migrated, it's actually creating a broader attack surface. What do we mean? Well, if you look at traditional data center, you had the DMZ, you had the firewalls, you had the way to protect data in and out, and you had endpoints, email systems. What's happening is, as a converged infrastructure gets moved to the cloud, as applications get moved to the cloud, now suddenly you have this broad base of where data needs to go because of the processes, from colos, to your data centers, to your SaaS providers, to your hyperscale providers, and more. Now it's broadening the surface attack, unfortunately, for security practitioners that already have a very tough job because there's too few of them, and they're inundated with false alerts and false positives and constantly trying to figure out what's real and what's not. As a result, this broad surface attack is only becoming more challenging for them because the release of software and the updates to infrastructure heading to them is increasing. Collectively, this is creating challenges for the security practitioners as well as the operations people, as well as the developers that are releasing to production consistently. These silos need to kind of come together, and that's what we'll talk about. What's our role? Not only breaking down the silos, but our mission from the very beginning was to be able to turn this complexity into insights, these insights that we refer to as intelligence. Our platform is designed to be able to deliver these intelligent insights through delivering essentially three things. One, helping our customers ensure application reliability. Two, protecting and securing against modern threats. Three, providing the insights into that opaque cloud infrastructure that I referred to a little bit earlier. Our mission has been focused on this, but our SaaS heritage started from something very important in this journey, and that is from logs. Why is that important? Well, if you look at typically today, majority of data that's collected for reliability and security is not just the what, the monitoring, like memory, disk, CPU type information. Majority of the data is semi-structured and unstructured, which means it's logs. We're the de facto leader in log cloud analytics delivered as SaaS, and we've been doing this for well over a decade. It's not just about our tenure. It's not just about the length of time and experience we have. It's about the fact that we understand the role that logs play in this critical troubleshooting, not just monitoring, aspects for both reliability and security. Let me talk a little bit more about that. If you look at the typical organization, they'll have developers, they'll have site reliability engineers, you have security operations teams, you have threat hunters. What's happening is as things come about, you're trying to understand what happened, which is the monitoring. Where did this happen? Is it in this location? Is it in that location? Why did it happen? Did someone make a mistake accidentally or intentionally? How do I go actually remediate and automate the resolution process? When you think about the what, the where, the why, and the how, it's imperative that you understand that information from logs, because logs give you hints. They give you insights into what the developer wrote little code for, as well as where to be able to potentially look for, 'cause in the log line is the crown jewels of all that information. It's not about log monitoring. It's about analyzing and unpacking thousands and millions of records to be able to correlate through metadata event status of what happened, so you can quickly create what we call dashboard or alert that gives you the what, which is the monitoring, but most importantly, help reduce the time to escalation and remediation. The only way, again, to do that, because of the volume, the velocity, the variety of all this data, in particular log data, is through what Sumo does in our platform. Obviously, logs are really essential here, and we're the gold standard, but this platform that we've built is meant to address this complexity of these cloud-native apps, not just for log data. We're trying to take it even one step further to be able to simplify how these practitioners across the development operations security teams work together. Let me tell you a little bit more about that. Well, over 12 years ago, our founders decided that they actually were gonna go and deliver on this vision from being security practitioners and to help their peers essentially do their job much easier by leveraging cloud-scale infrastructure from Amazon and trying to reduce the noise and pain that security practitioners had from what typically happened upstream. Why is that important? We started with a philosophy of delivering true SaaS and be able to ingest all types of data, analyze that, reason over that, and be able to build the multi-tenant infrastructure, so you can scale out and scale up to deliver reliable service, but also quality of service to our users. What we then did is took that innovation and not only delivered it from a reliability point of view, but that innovation allowed us to deliver flexible licensing and packaging from day one. We never actually charge for going over the peaks, unlike what you hear from a lot of other technology providers. You go over for the hour, for the minute, for the day, for the month, you get penalized. There's no peaks of penalties for Sumo, right? We've always had Cloud Flex licensing that allowed you to have flexibility for these valleys and peaks. That innovation not only manifests itself in how we actually license the platform, but that innovation actually manifests itself also in the analytics, the machine learning algorithms. The things that we did to really be able to reason over this data and be able to architect the stack to also protect that data coming in. Ultimately, the strong foundation that we built allowed us to innovate on top of and build these two suites that we refer today for reliability and security. That's how we go to market. A single platform with these two suites selling to two buying centers, one being site reliability and DevOps teams that you'll hear Tej talk a lot more about, and the other being the SOC, the CISO, the threat hunters, and helping them with the automation remediation challenges. This platform that's meant to address this complexity has been refined and oriented to not only serving the problems that we're surfacing up from the data we're collecting, but also be an integral part of what we refer to as the ecosystem. For any company going through this digital transformation, this DevSecOps ecosystem is a must-have. What I mean by that? Well, I mentioned earlier the plethora of tools that everyone's using to build and release software, where we integrate to all those that are best in class. Second is how they run and operate that software, and that is around IT ops or DevOps teams and how they get visibility to that insights and the information that we're collecting. The third is how they secure and protect and make sure it's compliant. We're integrating everything from endpoint to email to firewall and so much more. Last, but definitely not least, is how those silos are coming together to ensure productivity and collaboration across these teams that I talked about earlier. Center of this ecosystem is fundamentally driven by the innovation in our platform, the integration to all the tools that are used in most organizations today. This platform innovation for us has put us in a strong position, not only to be able to get the chance to be here today, be a public company, but also build for the future and help customers like Sumo transform their organizations. We're very positive in the sense of what we've already achieved and very confident in what we can achieve going forward. What do I mean by that? Well, we think that we're at the very early innings of a of a very large market opportunity. It's already at $50+ billion and growing. The compound annual growth rate continues to increase, driven by observability, security, and the spend on cloud and infrastructure. Second area is the tsunami of data. Specifically, if you look at the data volume growth, we're actually at zettabytes today, if you wanna you know, Google that, but it's not just about the zettabyte characterization, it's about the compound growth rate of data. If you look at what's happening in the last couple years in our own data, and particularly even last year, our data grew more than 50%. In the last five years, the data on our platform, the compound annual growth rate, has been more than 46%. Now you look at the market and you see the growth in overall market is expected to more than double in the next four years. This tsunami of data is creating great opportunities, right, for an intelligence analytics platform. A lot of that is driven, again, because of the spend and transition to the cloud. That is driven also by the spend that companies are making for that migration of workloads, the modernization of these workloads that are going to the cloud. If that's not enough, as we've now started to exit this post-pandemic era, budgets are a concern. There's a lot of conversation around where spend will happen. During the initial part of COVID, it was all about protecting the distributed workforce. Now, exiting that, it's not about the distributed workforce so much, it's about looking at the post-COVID priorities, and the first being continuing of digital transformation, driving that delightful experience and ultimately, the revenue that flows to the bottom line. The second priority of most CIOs in this particular survey is centered around the spend from the data center shifting to the cloud, and particularly with multi-hypervisors. Sorry, multi-cloud providers from the multi-hypervisor environments, meaning the migration from on-prem to the cloud. Most, on average, we're seeing customers at least pick two different hyperscale providers. The third is the spend on security is not decreasing. If anything, it's increasing. You don't get fired for buying more tools, but you definitely get fired for having a breach. What we're seeing in our technology partnership and ecosystem is the need to modernize the security software, moving from traditional endpoint to modern SaaS endpoint, moving from traditional appliance firewalls to the hyperscale providers' firewall services. That modernization of security spend isn't just tools, but also processes, automation. These are the three priorities that gives us confidence in terms of where we sit in this ecosystem, the priorities for a lot of our customers and prospects. Speaking of customers, you know, what's interesting is, and what's fabulous to see is, you know, we just completed our user conference last week, and I'll talk about that a little bit more, but I think stories and experience like our customers have with our platform really help explain the passion they have and the opportunity we have together. Let me take a couple examples. You've heard probably Stewart and myself refer to this during our various earnings calls in terms of the types of opportunities we saw in quarter. We've categorized them into both greenfield as well as coexist or replace. If you look at greenfield, typically what that means is they haven't bought a package tool. They're trying to do it themselves. It's a combination of open source and some internal development. In a lot of those cases, those customers are on that early part of that journey to cloud-native applications and trying to shift from monitoring to reliability or from traditional security to more Cloud SIEM. In that, there's a couple examples that really highlight how they're leveraging Sumo and why. Let's start with Acquia, one of arguably the best development platforms, the DevOps platforms that is out there, targeting Drupal developers and trying to modernize their stack. Well, naturally, they built everything inside themselves. They were using Sumo for logs and troubleshooting, and they started to go down the process of using open source for instrumentation and collection and monitoring, and it was very cumbersome, couldn't scale, the value wasn't there. Great opportunity for them to add metrics to their logs and extend the full stack observability and eventually displace another monitoring tool for observability. You compare and contrast that to Pokémon. You know, Christian's a big Pokémon GO, you know, fan, our founder, and probably so are many other adults or young children or teenagers. The essence of what Pokémon GO is about delightful experience. That digital experience that you're having on your device when you're looking around, walking around, trying to find, what are those things called? Tokens? Goes? I don't know. But the point is, that experience that's on that device is a good example of rearchitecting the stack that they had to go through to not only to ensure reliable experience, but also protect that data. What do I mean by that? Well, a lot of that data is actually, interesting enough, young kids, and so last thing they wanna be able to do is have a breach and that exposure of that data to some bad actor. So again, here's what's important in this example is that digital initiative, that digital transformation, striving to delight customers, drive revenue, also needs to not just be reliable, but also secure. That's why Pokémon GO picked Sumo. You see the same thing with HashiCorp, Automation Anywhere, where they started one use case and expanded to multiple others. Let's compare and contrast that to some coexistence examples. Tej will talk about the Clorox example and their transition from traditional SIEM to cloud as they were modernizing over the last couple years. You know, that example, in addition to, like, AB InBev, very traditional organization, trying to go through a digital transformation themselves, trying to fix supply chain issues and modernize their infrastructure as they're modernizing the supply chain issues. Their vision was to have a digital core. What do I mean by that? They wanted to have that experience when you're in the bar watching a game to be able to instantly be able to order up on your phone that would pour one, you know, if you tap, it would be delivered to you. A lot of automation analytics needs to go into that to understand when to change the keg, when to actually promote something 'cause the volume is too high. All that insights that they're collecting from in the bar going to a device needs to be powered on the back end by a lot of analytics, needs to also be secure. Great example of how they're actually leveraging our platform to do that. Other examples here could be an airline. You'll hear from Alaska Airlines, another example, Tej. What's going on there? They're trying to integrate these disparate teams and systems across passenger information detection systems, gateway information detection systems, and more into one common application, so you can collect all that data, so they can ultimately deliver value, but also protect that data, monetize that data. Delta, Alaska Airlines, and others in that space are great examples how they're using us for both reliability, in this case, Delta, for security as well. As you can tell, I'm pretty passionate about how our customers are using our products and platform, and so are our customers. We're fortunate enough to have our sixth annual Illuminate conference take place last week, where we had hundreds of sessions from practitioners, partners, customers, employees, talk about what they're doing, how they're sharing insights, how they can actually leverage each other to get ahead, and tips and tricks. We had certifications and trainings. It's great to see them participate in this and great to see the community come together. What's very interesting is actually when you hear it yourself. With that, let's take a moment to actually hear from some of our customers. A lot of these are business metric. To your point, yes, we're watching this. This is our dashboard that we want to be watching, make sure that we're getting our order count. We know our average orders, we know our trends, so we watch for those, right? How many orders we've taken in a full hour, or the revenue for the day, right? We keep an eye on those. This is where Sumo really comes in handy for us in monitoring all this. We can check and see how many invalid password attempts are happening, right? That can tell us if there's something going on here. We see that the product logs that are retiered following our recommendation have a cost reduction of up to 80%. Our approach resulted in a doubling of our log ingestion in 2021 at an ingestion cost increase of only 10%, saving us around $1 million. With Sumo Logic outlier detection and time compare operator, we are able to effectively detect an outlier and not just detect, also compare that with historical behaviors with which helps us to plan our infrastructure better. Our ingestion at Sumo Logic has grown to nearly 100 GB per day. That's nearly triple of what we were three years ago. The number of records created in Cloud SIEM averages to about 61 million per day, with over 100,000 signals created, we average about 8-10 actionable insights per day. The same kind of scalability where we just have to provide, you know, an observable surface, you know, we're able to keep pace there. But we're also able to provide, you know, an analytical capability to keep pace with the innovations on the threat actor side as well as on the product side and, you know, vendor side. You know, to me, I think it. Observability, I think last year I said it's like turning on the lights. This year, I would say it's like realizing you're in a solar system and you really see the systems orientation. It just shows you a depth of how your system works, and that opens up pathways for creativity, which is what we really want. Those are some of the voices of all the practitioners that we run into on a day-to-day basis in our community. You heard about cost and time savings, about being able to detect threats. You heard about being able to use analytics and outlier predictor operator to get more insights. You heard about improvements in the kind of release process. That's the center of what Sumo does, the DevSecOps platform that we've curated over a decade to be able to deliver these types of experiences reliable. As we talk about what's next and the opportunity that we have now that we've invested tremendously in this intelligence and analytics platform, it's really obvious to us in terms of the market opportunity. I think it's really obvious as you hear more sessions today from my cohorts here around what we're doing from a product perspective. Tej will talk about the innovations that we're driving in the platform and how that's actually helping Lynne, who will talk about essentially the levers and drivers for growth and the go-to-market organizational changes that she's already made underway and the evolution there. Followed by Stewart, who talked about effectively not only our top-line plans, but how we flow more to the bottom line to not only deliver efficient growth, but also our path to break even and path to profitability. We're very excited about the opportunity we have. We've invested quite a bit to be able to get here, but it's just the beginning. Thank you for joining us. With that, I'd like to turn it over to Tej Redkar, our Chief Product Officer. Thank you, Ramin. I'm Tej Redkar. I'm the Chief Product Officer here. I've been here for around four and a half months, and I'm here to make everyone's digital experiences reliable and secure. Just a quick glimpse about my background. Always been a developer. Started out as a developer in Microsoft ecosystem. I spent almost 10+ years in Microsoft, mostly on Azure. I was one of the very early-stage developers on Azure. I enjoyed the journey a lot because I learned transformation. I learned how to build large-scale software, how to grow from a 10, 15-person team to a multi-billion-dollar enterprise franchise that can not only transform the company itself, but also its customers. That was huge for me. I published one of the first books ever written on Azure and said, "Don't buy it's already obsolete." But several books. I was founder of the Azure Developer Community and Azure Machine Learning Community. These were all early-stage transformation events that we had to do to transform the company itself, right, along with the customers. Over time from developer, I graduated into architecture, then went on the darker side of product management, did my MBA. Microsoft paid for it. That's why my GMAT was expiring. Built products like Power BI, Azure Machine Learning, and more. After that, I realized that it's not just about building products. It's about bringing business and the product together. I got an opportunity from Cisco to really design the next gen strategy in the cloud and analytics brand new business unit, right? I joined. I took that opportunity and along the way, I realized that there also we needed transformation. Considering the DNA of Cisco, I convinced them that they should acquire AppDynamics. I architected the acquisition of AppDynamics, the $3.7 billion acquisition of AppDynamics. That is where actually the seeds for bringing observability and security were sown. Bringing AppDynamics and Cisco's assets like OpenDNS, Stealthwatch. The strategy was laid out. After that, another opportunity came where I had the opportunity to become the chief product officer of LogicMonitor, and there the company was midsize, around $40 million ARR, growing at 25%-30%. My job there was to grow and help the company grow and infuse with great products. Three and a half years later, the company grew almost 4x in revenues. Along the journey I met Sumo. It formed the core of everything my team operated on, right? I was a customer of Sumo for three and a half years. Then here I am, right? One thing that I brought to the table across all these brands was a very user-centric approach towards building products, because that's not so common in enterprise software. Because what I fundamentally believe is that if you cannot save time for a user in enterprise software, you don't have the user for a long time. That's what I brought to the table. That's a quick glimpse of who I am. Now let's take a step back and being a customer of Sumo for several years, I realized that yes, it is a gold standard for log analytics in the cloud, as Ramin was saying that, right? I'll take it even further. It is actually far superior than anything that you can observe out there, and especially for solving problems for practitioners and developers on one platform on reliability and security. Right? The reason I say that is because I had a team of around 450 people and every single developer, practitioner, product manager, site reliability engineer. I also incubated the CISO office there. All of them were using Sumo. Sumo has actually rescued us from several of these disruptions or security events. That's the reason, that's the impetus that actually drove me towards Sumo. Now, considering my DNA of bringing user-centric approach, let's take a quick snapshot of how a typical Sumo customer operates, right? I also operated the same way, right? It's all about the personas, the practitioners, right? So there are four main practitioners who are actually constantly interacting with Sumo and deriving value out of it, right? One is the product manager. As product managers, they want to see how customers are interacting with the product from all the way from the end user. What is the user journey, end-to-end user journey, and where are the disruptions? How many users are actually using the product? What is the adoption of the product, right? Is this going up? Is it going down? All that is digital, right? Everything has to come to a central location for the product managers, developers, and other personas to look at. The second persona is the developer. I had all the developers. It was mandated every single log line should go into Sumo. And the reason for that is logs have the inclusion not just about the performance of the system, but also about the business because it has the content, it has the context, right? That's the reason the developer persona is so important because imagine the developer has to code, ship software, troubleshoot customer escalations. Everything is surrounded around that persona, and they are the only ones who can actually make changes to the code. None of the other personas can. Come the site reliability engineer who are looking at the entire platform, the performance, the reliability and security of the entire platform. They form the first line of defense. They need the right tools to look outside in. They adhere to the service level agreements or service level objectives to really make sure that the customers are getting the right experience from platform perspective. They are also responsible for optimizing the cost over time. They're also responsible for expanding the business into multiple regions and so on. The last but not the least persona is the security team, right? We can have security architect, the CISO, security analyst. All of them are really constantly looking at what are the threats, what are the threat landscape, right? They're constantly hunting for threats, but all of them really need near real-time data about how the overall digital business is operating. Okay. Let's take a quick scenario. Let's run down the scenario so we understand that how this works. Let's take example of a financial app. We are all investors here. We are all used to transferring money, right? Imagine in a financial app, I'm the receiver and you are the sender, and you open the app, and you're not able to log in. Now, as a person, as a consumer, you want that to happen right now. I want because I'm the receiver. The point there is that maybe something went wrong, and nobody knows what went wrong, right? It may be in the code, it may be in the Wi-Fi network here if you're in the same. Nobody knows what went wrong. What happens in that case is that assuming that the transaction went into the data center, into the cloud, and that transaction failed, right? Now there are several inputs that can happen across these personas. If there is a service level objective that was not met at the SRE level and the login service was part of that, then they would get an alert. The on-call developer may get an alert directly because the on-call developer who was responsible for that login service, that team, that was woken up. Now, that team may be anywhere in the world, right? It could be just all of them, right? Everyone gets an alert, and then from the alert, what happens is Sumo typically sends that alert to one or more of the personas. The user will log in and then follow the workflow towards logs. Especially when it's developers, they will go to logs directly because that tells them, okay, where is the problem and why is the problem? Because they want to move fast because that's not their day job. Their day job is to code the digital application. That's why I keep on saying that the developers are a core persona in here because the future of the digital business is in the hands of the developer. Please treat them properly, right? Let's run a second scenario. Second scenario is the security event, right? Let's take an example of a Log4j event, right? Typically, an outside event happens, a vulnerability was detected, and that vulnerability was picked up by the security team, and now what, right? That's why they need to collaborate with the developers. Again, they need access to logs because it was Log4j. We really want to know where is the deployment. There might be multiple regions. Where are all the logs coming from? All that ultimately is around collaboration. That's what DevSecOps ecosystem is. It's all about collaboration and breaking down silos, as Ramin was saying, across all these personas and building the right workflows. Now, behind the scenes, how does this work, right? This is how the platform looks like, Sumo platform. The three main pillars to it. One is really all the data collection that is happening across different parts of your infrastructure now and applications. There might be an end user in case of the login app. The data is collected from the end user's device or the browser and sent it to the Sumo Logic's Continuous Intelligence Platform. There could be servers, and then there could be EC2 instances in multiple clouds. All of that data is collected and streamed. These are multiple data types. Logs, metrics, traces, events, and those get correlated, right? Within the Continuous Intelligence Platform, there are analytics pipelines across these different data types, and they generate near real-time alerts. They generate AIML algorithms, and then they ultimately create a visualization storage so that end users of different domains can get the value, right? Whether it is a developer looking at an alert and quickly jumping into logs and searching around logs, or a site reliability engineer looking at all the service level objectives and the metrics around it, or the security team looking at, okay, what are the security events that are happening. If you look at all of this together, it's too much data that flows in, and it's just humanly impossible for a team like that to process those analytics on a regular basis. That's why it's about turning that complexity into insights. Those insights are really powerful, right? Data on its own is garbage in, garbage out. You can have terabytes or petabytes of data, but customers will pay for insights. Because ultimately, they want to save time because the users there, they all want to save time. They have families. That, that's the kind of empathy that's required in digital businesses around the users. Let's go back to the three value drivers that Ramin was saying, right? Ensure application reliability, secure and protect against modern threats, and then gain insights into multi-cloud infrastructure. Now let's look at how these value drivers tie back to the personas, right? From a visual perspective. When you think about an application, a multi-cloud application, that could be running all over the world, there can be multiple events happening. There could be millions or in cases, even billions of users accessing that application. Tying this back to the personas from observability perspective, you want product managers and developers and site reliability engineers to really look at, okay, what are the user journeys flowing? What is the user funnel? Because there might be business tied to that funnel, right? There might be users coming in, dropping off, right? What is the adoption of existing customers? If you see that first diagram, that is the funnel that shows, okay, what are the response times? How is the user coming in? What are those metrics and logs that really matter to the business? Again, product managers are really focused on the business, the adoption. Then that translates into developers, because product managers might think that, "Hey, no, there is a drop-off in usage." They might reach out to the developers and say, "Hey, why are the users dropping? There is a performance bottleneck here." That bottleneck might be in the Kubernetes infrastructure that the developers are responsible for. Because today's developers, they release code multiple times a day, right? In mature environments. These containers, they are ephemeral, right? The actual container itself doesn't matter, but the insights that you get out of that container, that really ties back to the digital business. That honeycomb diagram there, developers will be looking at, okay, which container failed and why did it fail? Again, logs come into the picture, right? That, okay, this was the line of code that failed. In some cases, tracing also comes into the picture. Some cases, metrics also. But developers, they jump to logs pretty quickly, and then they trace back if they cannot find it. So in Sumo, we provide multiple of these visuals across different honeycombs of Kubernetes infrastructure. Because these are all containers, ephemeral. Each one doesn't matter, but a cluster really matters because that typically ties to a service-level objective. Similar to the login service, right? In the login service, there might be like 50,000 containers running that. That's probably the most critical service for any digital application. If a user cannot log in, we're done, right? The developers will be looking at, okay, where is the escalation coming from? What part of the login service? Which region? What are the logs? What is the error? What is the line of code? That's why it is so important. For developers, it is also important that it's not just always the production time problems. It's the development time problems also matter. The productivity of developers matter, right? That's the reason the software development optimization product of ours, what it does is it collects data from multiple of these development tools and then shows the metrics around the performance of the overall continuous integration and development pipeline. What they call it CI/CD. All of this together, integrated view of observability, productivity, right? There are not many products that give that kind of real end-to-end visibility, right, for multiple personas. Now let's take an example of a true customer, real customer, Alaska Airlines. One interesting thing about Alaska Airlines is when I was in Microsoft, they had started their transformation journey. They were my customer there because they were moving to Azure. Now seven, eight years later, they're already transformed, and they're using Sumo Logic to really look at their end-to-end digital experience. Now, alaskaair.com is a high-volume website. Users come there for reservations. There are multiple products there, like search, reservations, corporate reservations, then all these miles and all this. That drives business for Alaska Airlines. Behind the scenes, they have completely transformed their infrastructure from on-prem data center into Kubernetes, a high-scale Kubernetes infrastructure. They use Sumo for that transformation too, because you want to know how it was performing before and after. Only logs can give it, because the compute and metrics might be completely different. The logs have the real intuition into how it was performing and how it is now. What they have done is they've used Sumo for transformation. They have enabled metrics, logs, traces, everything in their Kubernetes infrastructure. They have service-level objectives that really track the end-to-end view. Like login is a very good example that applies to Alaska Airlines too. It's a very basic foundational example. They ultimate, the ultimate benefit that they get out of using Sumo is it's clarity of the digital experience across all their products that are driven through their website. It ties directly to the business. They are also using our global intelligence capabilities, which are AIML-driven. What they do is it optimi-The, the capability optimizes around how Kubernetes is either hogging the CPU, asking for more CPU and memory, and how does it relate to the cost, right? The customers say that, "Hey, this is an internal infrastructure. I don't have an SLA." You can do it like a cost driven, and Sumo will tell you that, "Hey, you are you have a cost-driven optimization algorithm here, and you need to really you are actually asking for more compute that's gonna cost you more and vice versa." If it's like a high-scale website, then cost may not matter much, right? The performance does. The customer can decide. That is another great capability that we have across multiple different types of products. Now let's switch gear a little bit on this. This is the security value driver. Right. Looking at the example of Log4j, right? It is common, right? If you look at how security teams really interact with Sumo is first phase of security is logs. You cannot really build a serious security product without logs, I can tell you that, right? A product that actually can correlate and add value end-to-end, you just cannot. What happens is, okay, a security team and the observability team, they started using the logs product. Naturally, out of the box, we give them security analytics and secure cloud security monitoring. What that does is it baselines the logs that are coming from different environments. It detects anomalies. You can add different filters and regular expressions. You can customize that, and you can also look at if there are any cross-site scripting, any inside events that are happening that are not predicted as well as external. It gives a baseline around what is happening and what are the risks of the overall threat landscape of the logs that are coming in. Next one is Cloud SIEM. Cloud SIEM is our SIEM product, and we have gotten good recognition from analyst community too, especially Gartner. This is more like an enterprise-level SIEM where it's all cloud-based. The reason I say that is because traditionally, SIEM has been on-prem like some of our competitors. Actually the cost of running the SIEM is higher than the actual value that it actually gives to the customer. That's why cloud-based SIEM is really important because you can ingest data from multiple of these locations. As you saw in one of those videos, 63 million records coming in to hundreds of real signals and eight insights. Now that's magic. Because it applies rules, AI ML, and there are lots of improvements planned on that product. Those insights are magical. Imagine the time saved if the user had to search across 63 million records you cannot find. Again, as I said, garbage in, garbage out. Those insights is what customers care about. Now, in Cloud SIEM, you can actually take those insights and then what? Right. The user have to act on it. That's where our Cloud SOAR product comes in, right? That's where you can tie workflows from those insights into remediation. See, the end goal is saving time for the user. If the user has to still go and do some work, it's still some work. If you can automate that work, that's really, really critical for a digital business, right? That's why SOAR product that actually ingests 300+ integrations already built in, it can enrich, it can remediate, and it forms an awesome pair with our SIEM product. That's how the overall security landscape in Sumo and security products and the value driver of protecting against modern threats work. Now let's look at another good example. Clorox, household name, great companion during pandemic, right? They saved bunch of lives, I would say. Really, truly. It's a really household name, and it was taken for granted before pandemic, and now it is like up there, right? Everyone loves Clorox. 25 different countries, right? 84 different locations, 32+ different manufacturing plants, around 10,000 employees, right? Look at their threat landscape, right? They were using traditional SIEM that couldn't solve the problem, right? Lots of false alerts, right? Because there is no correlation. That's what cloud gives you, right? From all of these locations, you can send centrally into Sumo. Then you can really find If you relate this back to the visual, right? All of these records coming in, signals and then insights. They have saved a lot on these false alerts. Plus, what they say is that they are able to find needles in haystacks. What that means is that they were inundated with so much information that they were not able to humanly process that. Now with 8, 10, 15 insights, they're able to act on it. That is huge in cybersecurity, right? Because now you have things in control. In Sumo, we also correlate with multiple threat intelligence libraries that are already out there, right? We correlate the information that's coming in. We also look at, okay, what are the anomalies and changes that are happening in the patterns? What they have done is they have gone beyond the SIEM capabilities, right? They have created logs to metrics, and now they have an executive dashboard for how the entire threat landscape looks like. This is another great example. Now going into the infrastructure aspect of it, right? Global cloud is a huge infrastructure on its own. You have storage, computer. It's like just one big computer. As a digital business, you have to really cater to different users running or accessing the system, the digital applications from different locations. Right? What happens is that the dependencies are too much, right? You might have applications running in multiple regions, right? Really troubleshooting and understanding. This is a great tool for SREs, site reliability engineers. Sorry. They can establish service level objectives across each regions. They can look at, okay, where is the traffic coming from, right? What is the landscape of that, right? Coming and relating this back to even the previous Alaska Airlines case, it's like if I'm migrating from one environment to another, how does it look like? What are my risks? Those are all SRE functions, right? SRE is looking at, okay, what's my failure landscape of infrastructure that doesn't violate my SLOs? The next one is really looking at the modern side of infrastructure, because there is optimization required. There is scale-up required, right? The reliability of the overall infrastructure, because it's FML. The SREs and the developers, they need to work together hand in hand, right, in making sure that not one role is inundated with all the alerts. What's the workflow between those two? That is also very, very critical. At Sumo, we are betting big time on OpenTelemetry. We want to drive open standards. We're contributing to OpenTelemetry. We acquired Sensu, so we are bringing the OpenTelemetry. We are enhancing that, bringing some of the Sensu discovery capabilities in that. Because as I said, the goal is to save time for users. The more we can automatically discover and present to the user, that will save time. Another great case study, PagerDuty. 19,000 customers, right, they needed full digital experience visibility across multiple tiers of their application. They had data that varied a lot, depending on their digital application, and they also wanted to, like, really understand their scaling, and they had some outage issues, which Sumo really helped them solve. Overall, another great case study in a different domain. End-to-end digital experience, at the end of the day, 19,000 customers, they are using PagerDuty. Executives are using PagerDuty all the time, right? This is another great case study that gives end-to-end visibility. Now let's look at the horizon. I've been talking a lot about, well, how it is today, but where it is headed, it's very, very important, right? Again, coming back to four personas, you need unified experience on one platform that we already provide, and we are gonna continue to enhance that. Right? Reliability, security coming together, even within observability, multiple products, right? How the workflow goes from one site to another, right? Reliability and observability and security are two sides of the same coin. Because if you relate the story back, it's almost the same data that's coming into both the units. One is log data coming from security angle, for security dimension, and then the log data going into, for a performance and reliability dimension. All that is very, very critical to build that unified experience. Next step is looking at these end-to-end workflows with very core data structures. We have an awesome logs data structure, an awesome metrics data structure, traces data structure. We are investing heavily into the entities data structure. Because entities are common in observability and security, right? In security, you, your asset landscape is very, very important. In observability, your application landscape is very, very important. All those are really assets at the end of it that are driving digital business, and each of that asset has its own property, whether it's an IP address or a Kubernetes container or a simple, plain EC2 instance in Amazon. Tying those collaborative workflows within the platform common to both the solution types is very, very important. Finally, autonomic apps, right? More and more customers would want automation and apps that are self-healing and self-protecting. That's where the combination of the SIEM, SOAR, and the data streams that are coming into the data platform are gonna help create that remediation cycle. The intelligence system cycle where you're discovering, monitoring, right, and automating everything end to end. That's the direction customers are headed. That's the direction we are headed, right? That's an awesome. I love this direction overall because it actually brings the DevSecOps ecosystem together. Let's take a step back again, and hopefully, I have convinced you that this is a superior platform than anything that you can see out there, right? Logs are essential. You cannot be a serious observability player or a serious security player without logs, 'cause that has the intuition, the context, the content, and true insights that you can provide to the user. That's why it is super critical. Let's summarize those differentiators. Right? Multi-solution. Within observability, we have multiple products, like tracing, metrics, logs, right, Real User Monitoring, all of that coming together and driving a multi-solution platform. Cloud-scale. It's a massively scalable cloud-scale platform. This is not a hosted system. It's multi-tenant, cloud-scale deployed in multiple regions, right? That's massively scalable for different data types. You can find a lot of products out there that are scaled on metrics, where metrics are continuous numbers. Scaling on logs in cloud is next to impossible. It takes years of work because this is unstructured and semi-structured data with insights. Different products log differently. There is a lot of variation that happens. The cloud-native scalable platform for metrics, logs, traces, right? Powerful analytics. We have very good investment in AIML, visualization-based analytics, right? Making sure that ties into the persona, each persona getting a different view. Best-in-class economics, right? As Ramin was also mentioning, that data is garbage in, garbage out, but the insights are not. When customers are looking at data, the value of data changes over time, right? In near real-time, when I want to troubleshoot something, it's 30 days or maybe 90 days. When I'm doing forensic analysis investigations, then the window might be more, right? If I have compliance requirements, the window might be even longer, right? The value decays over time of all data, and we provide the ability to our customers to really think about how they can tier the data, right, and then optimize on the cost and value. The second is flexible licensing model. We want our customers to try the product, right? We don't charge separately. We don't have separate sales cycles. Once they buy the platform, they can try out multiple products in observability, multiple products in security, and that helps customers really understand the value very well. That is one of our key differentiators. On top of that, layering great certifications and attestations, right? FedRAMP, right? FedRAMP is a very important certification for us. HIPAA, right, PCI, and several other attestations. Having said that, if you bring all of this together, I think the true value of Sumo is, of course, in these differentiators. On top of that is the customers and the people itself. We have amazing people working in Sumo, right? Those are driving these capabilities. We release the product very often, right? That is a big differentiator for us, and we have a huge opportunity in front of us. Ladies and gentlemen, my colleague, Lynne, will come and show how we can capitalize on that opportunity. Well done, Tej. Hi, everybody. I am Lynne Doherty. I am the President of Worldwide Field Operations for Sumo Logic, and I'm excited to talk to you today about our opportunity to accelerate our growth. Before I start on that content, I thought I'd share a little bit about my background. I've been at Sumo for about 10 months now. Though I started my career as an engineer, I have spent about the last 20 years leading go-to-market organizations. Leading go-to-market organizations through transitions, whether that's something like preparing a company for an IPO, whether that's something like splitting SaaS sales motions or market and economic shifts, things like the technology shift from the move to on-prem to the cloud or something like a market downturn or hypergrowth. I've led through transitions and transformations my entire career, and what I do in that is build best-in-class sales organizations through it. Why that background matters enough is because since I started at Sumo Logic 10 months ago, I realized we as a company are at an inflection point. It was a ton of great work that took us from 0 to $50 million, from $50 million to $150, from $150 to $250 million, and to an IPO. It's really important to recognize that from $250 million to accelerate beyond requires something different. There's a saying, "What got you here won't get you there." That's the inflection point that I'm talking about. For us to accelerate from $250 million and beyond, we need new talent, we need new processes, we need new plans, and that's part of why I wanted to join Sumo, is to take advantage of that opportunity. As you already heard both Ramin and Tej talk about, we layer on the bottom of this $50 billion TAM that we have the opportunity for us to go after. When I looked at coming to Sumo, there was a lot of other important reasons that I chose to be here 10 months ago. The first is around the technology. As a person who's led go-to-market for years, it's important to me that I sell technology that I believe in. We actually just last month were named as only one of five vendors that's in two Magic Quadrants for Gartner, the APM and the SIEM Magic Quadrant. That just is a testament to our technology that we're in both observability and security. The second was around customers. I talked to a lot of customers before coming here, and I heard again and again how much they loved Sumo and they loved our product. The third was partners, an ecosystem of partners that was a foundation that was already built. The reason I came to Sumo 10 months ago was because of the last part, is that go-to-market organization and the opportunity to layer the go-to-market organization to match that with the opportunity, with the product, with the customer base that we have, and layer that opportunity for us to accelerate our growth here. That's our opportunity, is bringing all of those together. Let me take you a little bit on the journey of the last 10 months that I've been here, because I think it's important for us to talk about with you that inflection point. For me, that inflection point was around retooling our go-to-market to take advantage of that $250 million and beyond. For me, that starts with building the right talent. There was a lot of fantastic talent that got us to where we were, but we needed a blend of that existing talent and new talent to take us to the next level. In the last 10 months, I've worked really hard at building out that talent powerhouse organization, people with experience in taking a company on that journey from $250 million and beyond, people with experience in building that scale organization. For example, we have a new SVP of sales operations who's helping put the operational rigor and discipline into the system for us to run a repeatable, scalable, efficient organization. A new global SVP of channels to really help us double down on those partnerships that we're going to need to scale in the long term. A new SVP of North America Enterprise and many others through the organization. It was that combination of building on some of the talent that was here with new talent who has the experience to take us through this inflection point to accelerate our growth. The next part for me was around making what I call a go-to-market machine. I call it a machine because I actually believe an organization, a sales organization at scale, needs to run like a machine. We need to have operational discipline. We need to have efficiency. We need to have rigor, structure, predictability in our business, especially for us as a public company. Building that go-to-market machine, layering in all of those pieces that we need so we have a repeatable, predictable, structured way of showing up and going to market every day, every week, every month, every quarter, was really important. The last part of that foundation that I've been building in the last 10 months is around our segmentation model. For us, this was moving from having a sales team that was pretty generically focused into one that's really going to a proven best-in-class SaaS sales model. What that means is splitting the roles of our sales team into hunters and farmers. You can think about that as the land motion of somebody who's going, getting new customers, and then the expand motion of somebody who's going into existing customers, cross-selling, upselling, and expanding them. This is a model that I didn't make up. This is what best-in-class sales organizations do, and we have moved to this model at the start of our fiscal year back in February. It's also that segmentation is around segmenting and fine-tuning in sort of an evolutionary way, our move from what's enterprise and what's mid-market. What that does for us from a segmentation standpoint is it allows us to really cost optimize, to put the best resources on the opportunities in the most efficient cost model that we can. I'll take a minute and share with you a little more on what that segmentation looks like. I don't think you can have a good go-to-market presentation without a pyramid slide. This is the required pyramid slide. You can see our pyramid. It's enterprise on the top, mid-market on the bottom. In our enterprise space, you can think of that as field reps who work directly and closely with customers with small customer lists. You can see on there we have both the pursuit and the expansion reps in there. Again, those are reps who are just focused on expanding our enterprise new logos, as well as reps who are just focused on growing our customer base and doing the upsell and cross-sell. We do that by looking at the size of the customers, the ARR, the potential TAM, and a lot of other metrics and data to do that. In the bottom part of our tier, you can see that same structure. It's expansion and pursuit reps, but this is primarily an inside sales team. What that does for us is allow us to really cost optimize, to put the right coverage on the customers, but to do it in a way that optimizes and drives sales efficiency in our business. As I mentioned, we cut over to this at the start of our fiscal year, so that's back in February. We've been in this new model, this best-in-class SaaS sales organization model, now for about two quarters. You know, when I look at the customers, we take that pyramid, how do we apply that to customers? Both Ramin and Tej have talked about the users that we support and the benefit of having a platform that we can sell. It's actually one of the greatest things about leading this sales organization is that we have so many different personas that we can go after. We have observability teams with different buyers and different needs, then security teams, then executives. Our team goes after all of these. What that means for us is that we have many different entry points to go after and get new customers, but it also gives us a real opportunity to go back to the existing customers that we have to do cross-sell, to do up-sell in different parts of an organization than where we started. It's a real benefit of us having now a focused sales model to go into these different buying centers and personas. That's our foundation. That foundation is already built. We've put that in place, and that's where we are today, is now focusing around how do we take that optimized sales model that's ready to scale past this inflection point and put the growth levers on it that are gonna help us get to the next level. For me, I have four growth levers that I'll spend a few minutes talking about each of these, and those are market expansion, strategic partnerships, enterprise acceleration, and customer penetration retention. Let me talk for a minute about market expansion. For us, Sumo already had a global go-to-market sales organization when I started. These are the areas that we're doubling down on where we see growth. First is around public sector. Just last month, we became FedRAMP certified as the only SaaS SIEM platform FedRAMP Moderate. What that gives us is a huge opportunity to sell in the FED and SLED space now, and we're doubling down on our investments there to do that. For APJ, again, we already had a team built out in APJ, but we're expanding and doubling down where we're seeing momentum in India and Korea, and actually our first team in ASEAN. Then in EMEA, again, we already had a team in EMEA, but we're doubling down there in Germany, in DACH, and in Southern Europe, where we have seen and continue to see growth. We'll continue to do this look at new markets to see where are the opportunities that we continue to expand. Strategic partnerships. As I mentioned, we already had a partner ecosystem built out when I came here. In fact, we were awarded AWS ISV of the Year this year out of thousands of partners that they work with. It's a pretty remarkable honor for Sumo Logic to be named AWS Partner of the Year. What we're doing today is moving from what we have historically been as a partner-fulfilled motion into a partner-sourced motion. That's across all types of partners, whether that's managed service providers, whether that's systems integrators, traditional partners. We're moving to a partner-first model, which is going to give us the opportunity to drive scale, to drive growth, to speed up our sales cycles because those partners have existing relationships with customers. We have access to hundreds and thousands of partner sales managers that we will bring into now as a partner-first organization into every new opportunity that we have. This gives us ability to scale our growth incredibly quickly with those relationships. The next piece is around enterprise acceleration. I've talked about on the left here. We've already done this reset the foundation, building in the teams, putting in the process and structure. Right now, we're in the phase of putting our foot on our gas, establishing all of those teams, the processes, the people that we've hired, mapping that to our account-based marketing motions and our pipeline development, and layering in all of those other organizations that are gonna play a role in helping us accelerate. Then as you can see on here, you know, sort of our coming soon is around accelerate the growth when all of that comes to fruition because there's a lot of that work that's been done that now we expect to start to see paying off throughout the course of next year and beyond. Then our last lever for growth around customer penetration and retention. When I was looking at coming here, I, as I mentioned, I talked to a bunch of customers who said great things. I had no idea this CSAT score, 97% CSAT score is pretty remarkable and a real opportunity for me leading go-to-market to go sell into customers. How do we do that? With our new structure, we can really do that in an optimized way because it's not just about the sales team. It's bringing the customer success organization with us on that journey that we take care of customers differently so that we decrease churn, so that we increase our opportunity to expand customers. It's around our enablement team that we can put training and certification for both our team and for our customers by getting really focused. It's around partnering with marketing so that we can do very targeted campaigns, whether they're competitive takeout plays or sales plays focused at expansion opportunities. We have a huge opportunity at Sumo Logic to both increase our customer base as well as to drive new sales in the customers that we have. You know, the customer base, I think Ramin and Tej highlighted some examples, but I'll just talk at a high level. Customers love Sumo, and we are very, very fortunate. Oh, happened yesterday too. Sorry. Good thing I checked back. It's just a set of customers that we have. I think what's amazing to look at on here, how many verticals, how many size customers that we have across every geography, and they're customers that are leaning in and accelerated very digital first, but they're also pretty traditional customers who are maybe a little slower on that journey. We scale from top to bottom on size of customers, from small customers to very large customers across verticals. For us, I really believe that the opportunity is limitless for us to go to market. We're already winning. When I talk to customers, I ask all the time, "Why did you pick us? Why did you select Sumo out of" There's a lot of people in the market that we sell against. We're already winning. The number one reason, and I think Tej and Ramin talked about this, several times, is around we are the best-in-class gold standard for log analytics. That's a pretty amazing place for us to be because metrics and traces are not enough. When you really need to do deep dives, you need the logs. As customers move on their digital journey, this becomes more and more important. Our single platform for observability and security, what this does for us is allows a customer to consolidate their tech stack, which is really important, especially as budgets may get cut given some of the uncertainty out there. It also gives them better insights because they can look across observability and security solutions. Our flexible licensing model. There are a lot of companies out there that penalize a customer for peaks and valleys. If you think about customers that exist, almost every customer has peaks and valleys, whether it's an end of month, whether it's a time of year, a seasonal, an incident that happened, peaks and valleys happen. We don't penalize our customers for that. We're flexible enough with our licensing model. We scale top to bottom. The biggest, most high-tech customers use us as well as all the way down the stack, people that are just starting on their digital journey. Then lastly, we are cloud native, and so we're not retrofitting into an environment. We are built for the cloud, in the cloud, and really can help a customer accelerate as they do their digital transition. Where are we? I feel like it's important to share as we're on this journey, some early indicators of success because that's what I'm looking for, and I know all of Sumo is looking for from us is what are the early indicators of success. I'll share a few things, early indicators of success. I started earlier talking about how we're a partner-first team now and how we're really looking at how many partner-sourced opportunities can we get. Comparing last year first half to this year first half, 'cause we're two quarters through this year, we're up more than 100% year-over-year on partner-sourced opportunities. What that means is we're starting to see that momentum of partners engaging with us, bringing us into customers, bringing us opportunities. Second early indicator of success is gains in productivity because it's really important that we drive an efficient sales organization. Again, if I compare first half of last year to first half of this year, we're up 16% year-over-year on rep productivity. We're already seeing improvement in the productivity, given the changes we've made, the focus that we've put in place. Then lastly, as you can see on here, I've put some customer numbers on 100K customers and million-dollar customers that we have. What I think is really important to note on here, because the bars are going up, is that this is just to compare for the first six months of this year with full year prior year. You can see that we're up, but I expect that to be even more up as we continue through this year on the back half of our Q3 and Q4. We're seeing early indicators of success on the work that we've already done and the groundwork that we've laid to go past this inflection point from $250 million and beyond. I will wrap up with my sentiment for Sumo Logic, which is the future is now. For this team, for this company, in this market, with this set of customers, this is our opportunity to accelerate growth. We've done the heavy lift now. We've done the transformation of our go-to-market organization, and now is our opportunity to accelerate our growth. With that, I will turn it over to my esteemed colleague, Stewart Grierson, who will share more about the financial numbers. Thanks, Lynne, and thanks everyone for being here today, both in person and those of you who are joining us virtually. I'm Stewart Grierson. I've been with Sumo. I came just after Lynne, so roughly 10 months as our CFO. Today, I'm gonna share with you some context around our current financial profile. I'm gonna dive into a key cohort of customers that is driving our growth, and then I'm gonna share with you our future growth plans and our path to profitability. For those of you who don't know me, a little bit about my background. I spent the last 30 years in private public companies of various sizes and scale, almost all of that in the technology sector. I've also spent a lot of time in security companies and DevOps companies, which gives me the domain experience, which is really useful in my current role at Sumo. I've been in operating roles through three major economic cycles. Starting with the dot-com boom and then crash of 2001, some of you will remember that, the 2008 financial crisis, and now the current environment we find ourselves in. This high inflationary environment, it's creating a high level of uncertainty in our macro. With these economic shifts, you also see shifts in market sentiment. This is particularly true in the tech sector, where you see markets rewarding companies for growth only, and then starting to shift towards growth to growth plus profitability. I've experienced both dealing with operating in companies, both through these macro shifts, but also dealing with investor changes in sentiment. Lastly, I have a track record of delivering profitable growth, including at companies at much lesser scale than Sumo. I think the combination of these experiences gives me the conviction that we can drive sustained growth at Sumo, deliver operating leverage and ultimately profitability. Let me just share some key metrics to orient you on our current scale. This is as of Q2 of FY 2023, so this is July 31st of this year. Let me start with ARR or annual recurring revenue. We share this metric because we think this is the leading indicator of growth for a SaaS business. At the end of Q2, we delivered $286.2 million of ARR, which represented 25% year-over-year growth. Let's talk about our revenue model. Most of our revenue is subscription in nature, with our contracts typically being one to three years in duration. We're not a consumption model. There's been some confusion about this in the market, but we're not a consumption model. We recognize revenue ratably over the term of the contract. This gives us really strong forward visibility and predictability around our revenue. Let me talk about our customers who spend more than $100,000 in ARR with us. They are foundational to our growth. We had 489 of these customers at the end of Q2, and the ARR from these customers represented more than 80% of our total ARR. In the next slide, I'm gonna walk you through the strength of the land-and-expand model of these customers to give you some more perspective of how they are foundational to our growth. Dollar-based net retention, I think this is a key metric for a SaaS business. At the end of Q2, our dollar-based net retention was 115% on a trailing twelve-month basis. Significant improvement from the prior year, driven by both improvements in gross expansions and gross retention. On the balance sheet side, we're well capitalized. We have over $350 million of cash and marketable securities on the balance sheet and no debt. This gives us the flexibility to drive our forward growth, but also gives us the balance sheet to continue to add and tuck-in acquisitions that are complementary to our existing capabilities. Lastly, we have over 950 employees globally. All right, let's look at this key customer cohort. Lynne touched on the four growth drivers that we're focused on to drive our sustained growth forward. They were market expansion, strategic partnerships, enterprise acceleration, and customer penetration and retention. Our 100K customers are instrumental to the latter two of those growth levers, so enterprise acceleration and customer penetration retention. Before I jump into the numbers, it's really important you understand when we talk about enterprise acceleration, we're not talking about that pyramid that Lynne shared, which had our enterprise and mid-market segmentation. We have many mid-market companies that drive meaningful revenue for Sumo and are really well represented in this 100K+ ARR cohort. Let's dive into the numbers a little bit. What we did is we analyzed the growth. We took our 489 current ARR customers at the end of Q2, and we analyzed their growth over a five-year period. From the end of FY 2017 through the end of FY 2022. For simplicity, we actually aggregated those customers we acquired prior to FY 2017. They're represented by the orange segment of this cohort chart. I think what's important to notice here is these are customers who've been with us a long time. They've grown more than 4x over the last 4 years. The other thing to notice is they represent. These longtime customers represent a meaningful portion of our ARR, and they continue to grow with us. I mean, that says something about the value customers get from our technology. If we go up the stack and look at what is the gray and yellow segment of this cohort chart, these are customers we acquired in FY 2017 and FY 2018. Been with us for four or more years. Both of these cohorts have grown more than 4x since their initial ARR. Lastly, I'll just look at the more recent cohorts, which is FY 2019, 2020, 2021. These are customers who have been with us three full years or less at the end of FY 2022. Look at the room for further expansion we have within these cohorts as they continue to mature and adopt more of our capabilities will look like the cohorts that are more tenured than they are. What's the commonality amongst these customers that make up this key part of our growth strategy? Typically, these are digitally advanced companies that are leveraging the cloud to deliver modern apps. Generally, what we see is these are in the tech, finance, media, and retail verticals. I think Lynne touched on this. What's exciting about this is a great growth driver for us, but we think there are many other industries that are gonna continue to follow this trend and will digitize and move to the cloud over time, representing an even bigger opportunity for us. Then I'll leave you this sort of last takeaway on this is we've achieved this phenomenal land and expand growth without the benefit of the segmentation we just executed at the beginning of this year. If you think about those two growth levers, the enterprise acceleration, we now have a dedicated pursuit team that is focused on acquiring more of these types of customers. We have a dedicated expansion team that works with our customer success organization to drive even more ARR from our existing customers. Let me walk you through a single customer example, a customer that's within this cohort. This is a US-based company that's delivering cloud-based supply chain automation software to retailers globally. As they are trying to automate their supply chains and vendor management processes in an ever-connecting world, this company is helping them solve this problem. This company is actually not that big a company. They have revenue less than $1 billion, but it's indicative of how mid-market customers can drive meaningful ARR and revenue for Sumo. I think it's also indicative of a company that is disrupting an industry that has typically relied on disparate and on-premise software solutions to manage their supply chains. Let's go through the journey. This customer did its first purchase with us back in fiscal 2016. This was an initial purchase of about $135,000 in ARR. It was a security logs analytics use case and was really driven by customer was moving apps to the cloud, and its existing tools and vendors were not solving some of the complexities that of the problems that Tej highlighted for us. They ended up selecting Sumo. It was the engineering team with the support of the CTO who actually selected Sumo. What is fairly typical at actually a smaller company is, it is often the engineering team that owns both product and security at that early stage. They did a small expansion that year, and they ended the FY 2016 with $185K in ARR. FY 2017, they expanded by $150K in ARR, driven by just data growth as their business was evolving in the cloud. Similar dynamic in FY 2019, where they added another $110K in ARR, driven by further data growth. In FY 2020, they expanded their use case to include observability. It really focused on our logs, logging capabilities to monitor and troubleshoot their key customer-facing apps in the cloud. That added $80K in ARR. They extended that use case the next year in FY 2021 to include metrics to monitor their Kubernetes environments. That added $120K in ARR. At this point, the company was continuing to grow and evolve, and as is typical at this point, actually brought in a full security team to manage the complexities of actually running and building these apps in the cloud. That team evaluated they had an existing SIEM from a vendor for their on-premise capabilities. The security team evaluated that SIEM and decided it could not handle the complexities of the security threats in the cloud, and selected Sumo as their Cloud SIEM and migrated off that SIEM to Sumo in the cloud. That drove $440,000 in incremental ARR. Lastly, just earlier this year, they expanded by another $500,000 in ARR as their business and data continued to grow. If you look at this, they are now at $1.6 million in ARR. We certainly don't believe they're done on their journey with Sumo as they continue to attack this market. This is a customer that over roughly seven years has gone from an initial land of $135K to $1.6 million. You know, really good example of how we can help customers on their digital transformation journeys and deliver reliable and secure applications in the cloud. Let me spend a little bit of time on our recent history so you can really understand our current financial profile, 'cause I think it's important to really understand the journey of how Sumo got to where we are. We start with fiscal 2020. The company was growing ARR and revenue at roughly 50% year-over-year. It was hiring rapidly, and it was actually ramping towards an IPO at that time. Fiscal 2021, Q1 of that year, COVID hits, right? We all kind of lived through this. Many venture-backed companies pulled back because of the uncertainty created by the pandemic, and Sumo was no different. We actually did a downsizing in the workforce that had a significant impact on our growth momentum. You can see we ended FY2 021, our AR growth rate had declined to 15%. The markets, however, remained open and receptive to new entrants. In Q3 of that year, the company went public and then started to rehire and ramped to re-accelerate top line and also support being a public company. As we get to FY 2022, company continued to grow pretty aggressively throughout that year. We did re-accelerate growth. We took it from the 15% in the prior year to 24% when we look at ARR growth, which, as I said, is the leading indicator of growth of the SaaS business. However, one of the things the company realized during FY 2022 was to take the company to the next level, there was a new skill set required to further scale up and scale out the sales organization, which is why Lynne was brought on at the beginning of Q4 of that year. Before I go to FY 2023, I think the other thing that's important to understand is this was a time when the markets were only rewarding companies for growth. That was the focus, right? Let's come into our current fiscal year, FY 2023. We entered FY 2023 with a significant run rate of expenses, given the hiring we did in FY 2022. At the same time, we started to implement many of the go-to-market changes that Lynne discussed and shared with you. We're mostly through the hard work of making those changes. However, it will take several quarters for the full effect of those changes to have an impact. The other thing I wanna point out is, at the beginning of this fiscal year, the world changed yet again, right? Talked about this high inflationary environment, significant change in the macro. With that, particularly in the tech sector, once again, a shift from the markets in terms of it wasn't all about growth anymore. Now it's about growth and profitability. What have we done? We've adjusted our plans in light of the uncertainties of the macro and to also focus on long-term shareholder value. We've identified $15 million, roughly $15 million, of expenses that we've taken out of the business since the beginning of the year, and we've significantly improved the operating margin guidance we gave at the beginning of the year, which was -26.5%. At the end of Q2, our updated guidance was -23% to -22%. Hopefully, a little bit of that history will give you some of the insights and perspective to understand kinda how we got to our current financial profile. Let's look forward. Here we're actually gonna share some information we've never shared with you before. We're gonna give you our view of our future growth plans and our path to profitability. Ramin shared with you the dynamics of this large market opportunity in front of us as companies digitize and move to the cloud. Tej talked about the benefits our customers get from our platform and how we're solving these really complex problems of delivering modern apps from the cloud. Lynne shared the changes we've made in the go-to-market team, where we are on those changes, and then also our levers for growth. All of these are important factors as we look at what do we think it takes to drive our forward growth plans and our path to profitability. All right, so let's dive in. We think revenue scale's the most important factor in evaluating our ability to go from where we are today, and this is actually where our guidance is at the end of this year, to get to a point where we can be non-GAAP operating margin break even. We think the other second most important factor is the growth rate, 'cause that's gonna determine how quickly we can get there. We believe it'll take revenue scale of $475 million-$525 million to get to operating margin breakeven, and we have a plan that will allow us to get there at some point in FY 2026. Free cash flow will typically precede getting to operating margin breakeven. Let me share. Let's take a conservative view, what I think is a conservative view, and let's say we get to that revenue range towards the end of FY 2026. The following assumptions would need to hold true. We need to drive annual productivity gains in the sales organization between 15%-22%. If we think about Lynne shared with you, first half of this year, we've already had 16% productivity improvements over the first half of last year. I think that tells you that we've got the ability to do this. We've actually demonstrated being in that range already. Productivity improvements will be driven by a number of things. First, it's the improved focus from the segmentation of the pursuit and expansion teams. It's the impact of the new go-to-market leadership and our up-leveled talent in our sales organization. It's the ramping and increased tenure of our existing sales force. We're assuming some modest improvement from strategic partnerships as we move from a fulfillment to a sourced partner-first model. We're not really assuming for the sake of this exercise, any meaningful improvement in our renewal rates. We'd have to take those types of productivity gains of 15%-22% annually and combine that with sales capacity, annual sales capacity increases of roughly 10%. We execute on that plan, it will deliver that level of scale. Once again, I think those are conservative assumptions if we think about that at the end of the year. I wanna emphasize, we plan to cross this revenue threshold at some point during FY 2026. I'm not standing in front of you today giving you FY 2026 revenue guidance. We're gonna try and achieve that as quickly as possible, but also believe or recognize that the impact of the changes we've made in the sales org will not be linear in nature. They're gonna have greater impact the more we progress towards FY 2026. I think what I'm outlining here is what I believe is a very achievable plan to get to this level of revenue scale. I've also not factored in some of the other things we've talked about. I've not really factored into the impact of market expansion. As I said, I'm not really assuming too much meaningful impact of strategic partnerships, and I'm not really assuming any significant change in our renewal rates. Once again, just for the sake of this example. Let's talk about now that I've talked about kind of the scale it takes to get there and the timeframe, let's go down the P&L and look at the various components of the P&L and how we'll evolve from where we are today. That was a big click. Let's start with gross margin. We're currently at about 70% gross margin. We've talked about this previously. We expect to be able to return, and I wanna emphasize the word return, to gross margins in the 75%+ range. We've already started several initiatives to identify efficiencies in our own hosting operations, and that, combined with scale, will allow us to reach this target. On the sales and marketing side, I talked about the productivity assumptions I made, or we made getting to this model, so the 15%-22% annual, as well as the capacity increases of roughly 10%. We'll evaluate our investments in sales and marketing in conjunction with our productivity gains, but believe we have a clear path to deliver sales and marketing as a percentage of revenue in the 40%-42% range. We're gonna continue to invest in R&D to stay current in this fast-moving cloud world, but feel really good about the investments we've made over the last few years to drive the current strength of our security and observability suites. Tej talked about his, sort of the future view of where we're going from a product perspective, and he talked about we're gonna be unifying the core data management, analytics, and workflows of our platform and applying those to both our security and observability suites. This strategy gives us the synergies to be able to have us drive R&D as a percentage of revenue to 20%-22%. Then lastly, from a G&A perspective, we've got several areas where we can drive efficiencies here. First it's leveraging our current systems, it's automation, and then streamlining our processes as we scale revenue. This will allow us to take G&A, reduce G&A to 10%-12% of revenue to get to break even. Your key takeaway today should be, we have a clear plan to drive sustained growth, operating leverage, and ultimately profitability to deliver long-term shareholder value. This is my final slide before we open up for Q&A. Sort of highlight why I believe now is the time for Sumo. What you heard from us today was, we have a large addressable market driven by digital transformation, cloud migrations, and data growth. A differentiated, unified SaaS analytics platform for both observability and security. We have multiple levers for long-term durable growth. A clear path and plan to profitability. Lastly, a management team with the experience to deliver these results. Before I open it up to Q&A, just some quick housekeeping. I'll do a time check. Think about 20-25 minutes for Q&A. We will have someone circulating in the room with a microphone, and for those of you who are online, you can also submit your questions. My ask is, please state your name and your firm when you ask your question. If we can't get to all of your questions during the open Q&A, then certainly happy to follow up with any of you or all of you afterwards on a one-on-one basis. With that, let me invite Ramin, Tej, and Lynne back up to the stage and we'll take your questions. Good. Hi, my name is Anusha. I'm from RBC. Thanks for taking my questions. Maybe just start with, when thinking about the long-term model, what assumptions related to the macro environment are embedded? Do you want me to take this one? Sure. Yeah. Actually no different than when we think about guidance, right? There's a certain degree of uncertainty that comes with the macro. We know what we know today, as we said at the end of our Q2 earnings call, that we had not seen any impact. As I said, we're also being prudent, and we've adjusted our plans accordingly. We're gonna manage our plans forward in terms of looking both at how we're investing for growth and how we're driving those levers of operating efficiencies in line with what we're seeing from a macro perspective and how it impacts us. We're taking into consideration what we can see today, understanding that there is real uncertainty out there, and once again, being able to react fairly dynamically as we see that impact. Got it. Can you talk about the overall competitive landscape and what type of deal you're most successful in winning, and how much of the market is greenfield versus replacement? Thank you. Sure. I think as we've highlighted before, we still see majority of opportunities being greenfield, and I tried to illustrate that through the slides earlier. As you look at the separate markets, it's important to remember that they're different buying centers, different budgets, different sales motions. You layer on top of that the segmentation of enterprise versus mid-market. What that nets it out is we believe that in the mid-enterprise, the mid-market, plenty of greenfield, in the enterprise, plenty of greenfield, as well as a lot of displacement opportunities, particularly for the legacy tools around observability that's still there, let alone for security. Now, on the legacy side, it's typically the ArcSights, the QRadars, the Splunks, the McAfees that are still there, as well as even the tools that have been there for the previous generation of virtualization management, right? That coupled with homegrown tools. As these workloads get moved and migrated, it necessitates a new technology for both reliability and security. We're positioned really well. Thanks. I'm Mike Cikos with Needham & Company. I just had a question on logging, right? It came up frequently throughout the investor day, the fact that you guys are this gold standard in the logging analytics. I guess the question is more around, like, if I'm thinking about the number of companies that are talking to logging or even have the observability players who are making more of a push into security now, what are you guys doing maybe from a marketing angle or the philosophy around making sure that you guys have this leadership position when having a voice at that table, just given how crowded this ecosystem is, especially from our side, where we may not have that tech hat to begin with, so we're from the outside looking in? Well, we don't market to you, we market to developers. Understood. Yeah. No, but I just wanna see how you guys are framing this. Yeah, it's a great question. I didn't mean sarcasm. It was more around the practitioners, right? As you've heard from Tej and myself, they already know how hard this is 'cause they've tried to do it with open source tools. We've seen dozens and dozens of companies enter the market to try to do log monitoring, which is totally different. You can collect the logs, but analyzing it and getting those insights to signals, to detection, as we talk about security or troubleshooting reliability, is not an easy thing to do. What we're kinda doing is much more of the same. Making sure we collect all data, providing tiered analytics because of our architecture difference, extending that to the licensing model that allows them to get more data in, 'cause it's really important to remember, budgets aren't growing as fast as data is, right? Because we have that strong foundation, allows them to insert and ingest more data, not just in the form of logs, to ultimately get more value. Then we can upsell them, cross-sell them, and drive that. At net net, what we're really focused on is differentiation in our platform, economics and value, and integrating into all the sources and tools and processes in the organizations. Awesome. Thank you for that. If I could just turn over to the long-term model that you guys have out there. Thank you for putting that out there, as well as the, I guess, different levers you can pull on those different line items. If I'm thinking about the gross margin versus R&D as an example or I know it's not gonna be linear as far as how we get to that, but is there a way to think about maybe where we can start to see some of those levers show up initially when looking at that time horizon between now and fiscal 2026? Yeah. Well, I'll start with, we've already started to show some leverage this year as we've adjusted our plans, right? I think the one that is least linear in nature is the sales and marketing, right? Because we've made the changes, but to get to the full effect and impact of those changes is something that takes more time, right? You've got ramp time, you've got sales cycles, you've got all of that. Strategic partnerships, market expansions, those just take a little more time. I think you can expect to see a little more linear improvement on things like gross margin, R&D, and G&A because those just are more linear in nature. I wanna reemphasize, we've already adjusted to this new world we're in, and we're making changes that have already impacted, you know, the profile that we shared at the beginning of the year. Hi, my name's Noah Herman with JP Morgan. Thanks for doing this today. It was great to see the 100% growth in the partner-sourced deals. Can you maybe help us understand what drove the success of those deals and what those deals look like? I'd say it's probably early on because we're two quarters in, and our sales cycle is as an enterprise sales cycle, somewhere between, say, three and twelve quarters. Twelve months, I'm sorry. God, twelve quarters. I'd say we're early on. There are things that were sourced in the first half of this year. I'd say most of them are probably not yet closed, but typically, partner-sourced opportunities are well-qualified opportunities. We see high close rates on historically here and other places in partner-sourced opportunities because those partners are already embedded in the customers, have relationships, know their business, and then bringing us in. I anticipate it to be high close rates, but it's probably early on to see that yet. Can I add to that? Yeah. It's important to remember that if you look at security, it's very much a channel sale, right? There's a VAR, there's a distie, there's MSPs, and a lot of the traction we're getting is centered around security transformation monetization. Naturally, what that means is they're either trying to help the customer figure out how to bring in a new security analytics, a new SIEM that's tied to the digital transformation and cloud migration efforts, one, or secondarily, they're trying to figure out how to shut the lights off of a legacy tool that just can't keep up. Because the folks that wrote the rules and collectors and everything are no longer around. We're trying to make sure that we insert ourselves with those partners at that transition point of either swapping out or migrating to the cloud. That's where the traction with a lot of these partners are, both global VARs, disties, as well as we've highlighted on quite a few earnings calls around the traction with MSPs and MSSPs. Got it. Have you ever mentioned what portion of your sales comes from the channel or what it has been historically? We've disclosed that about 50% of our business comes through the channel touch, but mostly led by Sumo. Now you're seeing some more sourced by the partners. Got it. Thank you. Yeah. Thanks. Blair Abernethy with Rosenblatt, and thanks again for doing this as well. Yeah. A couple of questions, just around the persona. Tej, you talked about it a bit. Maybe just give us a sense of, when you're landing new customers, what persona are typically coming in, what makes up your base today? Then Lynne, how do you expand from that into a much broader, persona footprint within your customers? Do you want me to start with that since it's a little more historical? Blair, nice to see you. Thanks for being here. By and large, and what we've highlighted before is majority of our users, and not too surprising, are developers. There's more of them than there are security practitioners. We tend to find the development organizations that are trying to troubleshoot and monitor, and typically that means it'll be a site reliability engineer involved, the platform engineering team, and that's really for the logging use case, that it kind of evolves to monitoring, right? There's still standalone logging deals because they have their own open source monitoring and the like, but more and more we're seeing the opportunity to combine those and add metrics and traces for full stack observability, right? Now you compare and contrast that on the security side. Typically, it's like a dual prong approach. Back to the question earlier around the channel, we're trying to figure out where to insert our teams with the partners who are embedded in those accounts. If it's an eyes on glass, it's an MSP or an MDR, we try to figure out if they're doing level one, level two, and where in that role and how long they've been there. That means naturally, it doesn't start with necessarily, in that case, a CISO. It starts with a SOC or the security operations team, right? Therefore, the security engineer, and eventually gets to the threat hunters and analysts who are the highest paid people that have the responsibility to remediate issues. You try to go back up and get the CISO involved to get the economic buyer motion tied to the budget. Does that help? Yeah. Thank you. Then, just one other one, Lynne, on the federal FedRAMP approval. Just, can you give us a sense of where you're at in the federal markets today? Yeah. We've got coverage in FedSLED, higher education. Sort of all of the public sector markets, we have coverage. What we've been doing in anticipation of knowing that we were targeting this August FedRAMP certification for moderate is we've built the team, and they've been developing pipeline throughout the last, say, six months so that once we sort of skate to where the puck is going, once we get that certification, now we have a ready pipeline in process. We're across the federal market, the SLED space, the higher ed. Another great opportunity for the channel play and the partners. Yeah. Hi, this is Alex Ka, Mutual of America. Stewart, one of the numbers you gave us was productivity improvement annually from 15% to 22%. If I do it over four years, you can almost get to 80% productivity improvement. If a sales rep today on average generates $1 million in quota. In four years, you expect that rep to generate $1.8 million in quota. How do you do this? How do you get this kind of productivity improvement? What are your assumptions you're making? Just first, the assumption was over three years, but your math still holds true. I think it's a couple things, right? Lynne just shared that if you look at the first half of this year versus the first half of last year, we've already demonstrated 16%. We've already demonstrated that in an annual period we can get into that range. I think it really goes back to the various factors I talked about, right? To date, until February first, so our new fiscal year, our sales force was not necessarily focused on one area or another. They were responsible for new logo acquisitions, for expansions, for renewals. There's a lot of, you know, it's just a lack of focus, and there's a lot of shifting that happens as you're trying to manage that full spectrum. I think the first thing is the focused execution from pursuit and expansion will drive meaningful improvements in both of those, right, which drives productivity gains. Obviously, we've up-leveled the team, brought in new talent, the combination of that and that team actually ramping, because where they are today is they're relatively new, a lot of them. The ramping over time naturally brings productivity gains versus where we're executing today. Strategic partnerships can be a massive lever, particularly as you get to a source versus a fulfillment model, right? Fulfillment model, which is really where we've been today, we're still doing the heavy lifting on the sales effort. We're spending our salespeople are spending their cycles, their time prosecuting that transaction and getting to the point where it gets fulfilled through a partner. When partners start to source deals and bring them to you're not expending that level of effort, and so you've got more time to actually work on closing deals and prospecting other deals. Those are really the combination of all those. I don't have, you know, what's the granular impact of each of those, but all of those have the ability to drive meaningful improvement over where we are today. I've got conviction in those 15%-22% annual productivity gains. Any other questions? Anything online, Bryan? Yeah, we have a question online. You have a strong cash position right now. How are you thinking about M&A? Want me to lead? Why don't we tag team this one? Okay. Well, obviously, I think the correction has only taken place in the public markets, not yet in the private markets. Valuations are still probably a little rich for some of the private companies of any size. If you compare that to kinda historically where we've played, we've leveraged a lot of that capital to do talent acquisitions or acquihires, and that's meant to really expand and extend the areas that we already invested in. If we were to do something, it would probably be along those lines versus try to buy ourselves into a new market or buy revenue or buy product that you need to convert and SaaSify. That's not the motion that Sumo will drive. Yeah, I'll just add to that. As we think about extending the capabilities of the platform, we go through the typical build, partner, buy kind of equation. The nice thing about having the balance sheet where it is we do have the flexibility to continue to do tuck-in acquisitions where they make sense. All right. If there are any other questions? Sorry. One more online. We just got one more from Ethan Weeks at Piper. Can you talk about the mix of enterprise versus mid-market customers on the platform today? Where do you want to see this trend once the new go-to-market changes are mature? What we have disclosed from an ARR perspective is that 60% of our ARR comes from the enterprise. That's not too abnormal for a company of our size. We think we have plenty of headroom to penetrate more enterprise segment as well as more midmarket. Secondarily, I think we can drive more diversification from what is contributed from North America versus international. I think as we look at that may have a blend in the lines of how you calculate an enterprise customer by account. I think contribution-wise today, about 20% of our business international. We do see that going to 30% and 40% as we look at the outer year plans, and that's definitely possible. Do you wanna add anything to that? No. I think it's just that we'll continue to evolve what's enterprise and what's mid-market from a coverage standpoint. Today, as I shared, we draw the line at around 1,500 employees. I think over time, we'll continue to look at what makes sense there and potentially evolve that in the definitions of how we cover it. Again, as Ramin highlighted, it doesn't mean necessarily less opportunity. We have very big mid-market customers, but we'll continue to evolve that line. We have another question from Pinjalim Bora at JP Morgan. How do you think about OpenTelemetry, and how can it change the observability landscape? Can it drive switching costs down? How do you think about OpenTelemetry? Can it change the landscape? Drive the switching costs down. Drive the solution down? Yeah, no, I can take that. I think OpenTelemetry is an industry effort, right? If you look at historically how the market has changed, the APM and the tracing market was pretty much owned by the proprietary agents. It was very difficult to really extract data out. Over time, they became very expensive, like cost prohibitive. Some of our case studies are also regarding that, right? Some of our customers are moving more towards OpenTelemetry is because it's open source and a lot of the vendors are contributing to it, right? It brings the cost down, it commoditizes, yet it provides the right value, a single agent value for ingesting logs, traces, metrics. Whereas these proprietary agents, they only ingested either traces or metrics. They didn't have that single view. The industry realized that, and that's where that initiative is, and that's why we are banking on it. Over time, I think we'll pass it on to the customers, that insights value, because the collection is gonna continue to commoditize. The insights is where the actual value is. Yeah, I'll just add that, we do believe that that's gonna cause a change in the landscape. It's not necessarily because of what Sumo is only doing, it's what the community is doing, and the movement towards standardized mechanism of instrumenting and collecting these different data sources and formats, normalizing that. Then the vendors actually have to compete with what they do with the data, which is what we've been specializing in for quite some time. Second thing I'll comment on is this isn't just applicable to potentially reliability or observability. We think we can expand it beyond that even into security, because a lot of the same data exists out there. If you can normalize the data formats, standardize not on SDKs, but now a set of collection mechanisms, it allows those disparate teams to better work together, and then a single platform like Sumo to be able to be inserted in there. What is your ideal customer? What do they look like? Well, I think we've covered that, in the sense of any customer that's digitizing, migrating to the cloud, that's looking to ensure reliability and security and wants to make sure they not only are driving revenue and experience, but ultimate delightful customer experiences. That spans SMB, mid-market, commercial, and enterprise customers globally. Hi, this is Janet Zhang with BTIG. Thank you for taking my question. I was wondering if you might be able to compare and contrast some of the customer feedback that you were hearing kind of from customers back during the beginning of COVID versus now, or maybe in the past three to six months. Sure. Logically, I think, a lot of that initial feedback was, how do I deal with now my workforce that's moving to be remote? How do I make sure that they can be productive, but also secure the kind of the endpoints and the access control and gateways? A lot of the conversation was shifted to then. It started evolving because of the supply chain attacks, the things for Log4j and more around, "Wow, I got this distributed workforce. How do I actually deal with the process and visibility to potential vulnerabilities and threats?" That's what allowed us to meaningfully have some conversations with companies that are now distributed global as well as even smaller organizations. What's transpired, I would argue, over the last six to nine months, maybe even 12 months, is companies leaning in, putting that front foot down and investing more in that digitization that we've been talking about. Modernizing apps that are in the data center and moving them to the cloud, but also building brand new. The conversation is about agility, but at the same time, it's about how do I manage costs? How do I manage my people costs? How do I manage 'cause the cost of labor's gone up. A lot of that is through automation and analytics that we deliver. Secondarily is how do I manage my tool and technology costs, which we're foundational for. Because we've talked about data growing faster than budgets, and our platform allows them to do that. It's really value versus a cost, speed versus agility. Ramin, if I can add to that. Something that I would add is I think there was a set of customers that needed to digitize whether it was from work from home and applications, and made really, sort of fast point in time decisions that now, you know, 18, 24 months later, are looking back and saying, "Hey, I'm not sure I made the right decision for the long term. I made a decision that I needed to put a fire out and to respond really quickly. I feel like there's a set of customers now relooking at decisions they've made and saying, "Are they the right strategic decisions for the long term? That's a great point. All right, we have time for about one more question before we wrap up. Thanks. Blair Abernethy with Rosenblatt again. Just on pricing, can you talk a little bit about or compare and contrast a subscription approach to a consumption approach? A lot of your competitors have gone to consumption. Just sort of how much, when you're landing new logos, how important is that pricing mechanism to the final decision? Thanks. I think it depends on the maturity and the size of the customer and the use case. For the security sale, for example, there's no bill in arrears model. They won't, you know, sign up for that. They want a solution that's predictable, unlike what they've been getting from their SIEM tools and vendors. It's really more about how much volume of data do I have? How can we help them tier it? And better understanding of what it's potentially gonna grow like, and the comfort with the credit-based model that we have to be able to roll back, roll forward, and deal with their data today as well as their growth going forward, okay? That's more enterprise and security. On the observability play, I think what Lynne commented on earlier in terms of some of the decisions that companies made a year or two ago, and now being surprised by the sticker shock and being billed in the rears for a developer accidentally turning on memory and heap and other things that drive up collection. You know, that kind of pay-as-you-go model needs to kind of be more predictable. And when we walk in, we start talking about the technology value and then talk about what they're gonna get from the licensing model with no sticker shock, so to speak. And then a lot logically, it leads to, well, if you have the whole platform, then you don't have to pick and choose. You're not gonna have to license a different way. It just opens up the conversations commercially after the technical discussion. Does that help, Blair? Do you have anything to add? No. That was great. You gonna wrap it up? All right. First of all, thank you for being here. It's an absolute delight to be back in New York and feel the energy and see people in person again, instead of on the monitors and Zooms as we've all been used to the last couple of years. We're actually very honored to be able to be here on this commemorative day. I wanna thank all of our employees, our investors, our partners, and our community customers. In fact, many of those customers are joining us for the call today as a follow-up to our event last week, Illuminate. You know, those are what drives us every day, the delight that we see, more importantly, the anticipation of what we're building and releasing and their involvement in some of those plans. That's really special to be here. As I look forward, it's very obvious that the market circumstances have changed for all of us, right? We are very committed to not only delivering more strong top line, but flowing more through the bottom line and driving that path to break even a path to profitability. Some of us have been around for a while, and we appreciate your patience as we've traversed this journey. Rest assured we have the right strategy, we have the right team, we have the right market opportunity, and we're executing against that. We'll sure to make sure we deliver shareholder value soon. Thank you for joining us today. Great to see some of you again and some new ones. Travel safe, be safe, and have a great day. Thank you.