Cloud data analytics firm Sumo Logic Inc. beat market expectations for its third-quarter financial results, boosted by growing adoption of its Continuous Intelligence tools.

The company reported a loss before certain costs such as stock compensation of $13.3 million, or 12 cents per share. Revenue for the period rose 20% from a year ago, to $62 million.

That beat expectations, with Wall Street looking for a larger loss of 14 cents per share on sales of $60.86 million. The company’s shares fell about two-thirds of a percentage point in after-hours trading, reversing a two-thirds-of-a-point rise in regular trading, to $23.68 a share.

Sumo Logic sells a cloud analytics platform that provides insights into information technology infrastructure issues and cybersecurity threats. It provides services such as log management, Amazon Web Services monitoring, Azure and Google Cloud Platform management, Kubernetes management, and microservices and cloud security monitoring. The platform also lends itself to more business-oriented use cases such as customer analytics.

Those tools are in big demand, according to Sumo Logic Chief Executive Ramin Sayar (pictured). He said the company’s “strong quarter of revenue growth” was thanks to growing adoption of its Continuous Intelligence platform, which is used by enterprises to ensure application reliability, manage and optimize cloud infrastructure and protect it against security threats.

“We continue to leverage our differentiated DevSecOps platform across a broad range of observability and security use cases,” Sayar added. “[That] strengthens our position and helps us further capture the significant opportunity created by digital transformations and cloud migrations.”

Late last month, Sumo Logic added a key new capability to its platform when it announced support for Amazon Web Services Inc.’s AWS Lambda service. Lambda is a popular serverless computing platform that lets developers deploy and run code in the cloud without having to worry about managing the underlying infrastructure. For Sumo Logic, supporting AWS Lambda is a big win because the platform is so widely used. Serverless in general is becoming more popular, with both Google Cloud and Microsoft Azure providing their own alternatives.

Sumo Logic also announced a bunch of new products and features during its annual user conference Illuminate in November, including new and enhanced observability improvements for its monitoring and troubleshooting tools. The company also announced enhancements to its Cloud Security Analytics and Monitoring tools.

“Sumo Logic benefits from the massive demand of enterprises having to build software to practice enterprise acceleration,” said analyst Holger Mueller of Constellation Research Inc. “That is the good news, with revenues up 20%. The not so good news is its losses are growing, as costs grow even faster than revenue. It can be extraordinary times for sure – but management will have to show it can get revenue and cost into balance – better sooner than later.”

For the fourth quarter, Sumo Logic is confident that it will at least match Wall Street’s expectations, if not beat them again. The company is forecasting revenue of $63.7 million to $64.7 million, the midpoint of which is just above the consensus estimate of $64.05 million.

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