The company’s remarkable performance in Q3 positions ScienceLogic for a strong finish in 2022, not to mention the company’s recent acquisition of machine learning analytics provider, Zebrium and growing leadership team.
In addition to record quarterly bookings, ScienceLogic achieved strong new logo growth resulting in 36% year-over-year net ARR growth for Q3.
Other points of note for Q3 2022 include:
- Two new contracts with TCV >$10MM and one new contract with > $8MM ARR;
- Four new logo sales > $2MM ARR; and
- Continued global expansion including a new international subsidiary formed in India.
Q3 produced the largest single quarterly ARR sales bookings in ScienceLogic history. That is confidence-inspiring for our customers, partners, and global team. We’ve won some very large contracts with organizations that are confident we’re going to do something transformative for their business and are willing to invest in those results. Deal sizes are increasing drastically for our customers.
Succeeding in a Tech Slowdown
According to Simply Wall Street, the tech industry has fallen 30% in the last year, signaling a slowdown1. Combined with rising interest rates and inflation, many organizations aren’t seeing the growth that they enjoyed in 2021 thus far this year.
While the macroeconomic climate across the tech industry, in general, is seeing some slowdowns, we’re not experiencing that at ScienceLogic. Over the last 15 years, every time the global stock market dips, we grow faster than the market. Against a gloomy macroeconomic picture in the tech world, we’re continuing to grow at a strong pace. Our customers have confidence that we’re here and healthy for the long haul. Our Q3 results show that.
Organizations are reluctant to spend in lots of areas but continue to invest in digital transformation, operational transformation, and automation to drive business outcomes.
Where We’re Seeing Big Growth
We had a very good quarter in our U.S. public sector business. It was also a great quarter and so far, a spectacular 2022 for us across EMEA. We’re of course spread across many verticals, but service providers and telecom have been very big growth drivers for us in 2022. Our biggest new customer in EMEA for Q3 is a large telecommunications company.
We’ve had big sales in the Americas in the partner community, which points back to a strong ecosystem of partners that continues to pay dividends for the company. One of the biggest new logos we signed in Q3 was with one of the largest technology resellers in the US, which we’re really excited about. We’ve had consistently strong growth in our business selling through the channel. Our new channel leader, Jasmina Muller, has been recognized as one of the best in the industry, and she’s continuing to lead us through several impactful channel initiatives. Channel as a route to market is incredibly important to ScienceLogic.
Zebrium—Providing at-a-Glance Root-Cause Visibility
Our acquisition of Zebrium demonstrates the level of investment ScienceLogic continues to make in innovation and excellence. Organizations are under pressure to do more with less. They must invest in digital transformation initiatives, but they’re worried about the immense cost of the IT teams required to drive those initiatives. They’re overwhelmed with massive amounts of data and the mandate to use that data to improve customer experiences is something that our technology lets them do faster and at a lower cost. Zebrium is going to be a huge contributor to our continued success as we use more AI/ML to create massive efficiencies across our global customer base.
What Keeps Us Strong—Our People
While we’ve seen broad layoffs across the tech industry in recent months, we’ve added significant headcount this year, and we’re particularly excited about the investments we’re making in our R&D and engineering talent. We have large customers that require “follow-the-sun” support and engineering, so we’re building out those teams even further.
It’s a competitive market when it comes to talent, but we have a strong culture of teamwork, camaraderie, and stellar managers. Those are the things that build the cornerstone of our company. We have three tenets that serve as the core of our culture.
- First, people want to work with people they like and believe in, so it’s critical for us to hire talent that’s a good fit with our culture.
- Second, people want to work for a cause they believe in; they want to be able to buy into a vision of making a difference in customers’ lives.
- Third, they want reasonable compensation and the opportunity to grow professionally, which we’re very committed to. It all adds up to a high retention rate and an ability to compete in a tight job market.
And lastly, I must thank our amazing customers and partners who trust us and the ScienceLogic SL1 platform to help them deliver better business outcomes. Here’s to a spectacular Q3 and a record-breaking year!
1https://simplywall.st/markets/us/tech
