Sumo Logic, Inc. (NASDAQ:SUMO) reported its Q3 results, with revenue growing 20% to $62 million, beating the consensus estimate of $60.9 million.

Management raised its 2022 outlook, expecting revenue of $239.3 million, which implies a growth of 18.1% year-over-year.

Analysts at Berenberg Bank view 2022 as a challenging year as the company looks to accelerate growth while reining in what they view to be an elevated cost profile. As the analysts seek more clarity into the cadence of these improvements in 2022, they downgrade the company to hold from buy.