PresentationMichael CikosNeedham & Company, LLC, Research Division My name is Mike Cikos. I'm the lead analyst here covering cybersecurity and infrastructure software. Pleased to say we have with us Elastic. I'm joined up here on the stage for a fireside chat with GVP of Finance, Eric Prengel. We'll go through some questions we have planned on our side, but please would love this to be interactive. If you guys have any questions, lob them in and we'll get them while we have Eric here. With that out of the w ...

Elastic (NYSE:ESTC) FY Conference January 14, 2026 01:30 PM ET Company ParticipantsEric Prengel - Global VP of FinanceConference Call ParticipantsMike Cikos - Senior AnalystMike CikosMy name is Mike Cikos. I'm the Lead Analyst here covering cybersecurity and infrastructure software. Pleased to say we have with us Elastic. I'm joined up here on the stage for a fireside chat with GVP of Finance, Eric Prengel. We'll go through some questions we have planned on our side, but please, we'd love this to be interac ...

Elastic N.V. (NYSE:ESTC) ranks among the best big data stocks to invest in. Elastic N.V. (NYSE:ESTC) announced a number of major collaborations in December. Notably, the company partnered with the Cybersecurity and Infrastructure Security Agency on December 16 to establish a Security Information and Event Management as a Service platform for US federal civilian agencies. The endeavor is managed under a $26 million base-year contract with ECS, which could be renewed for up to four more years, reaching a t ...

Group 1 - Elastic (NYSE: ESTC) has experienced a decline in investor favor due to slowing growth, despite its product being increasingly relevant in the current market [1] - The company's offerings are positioned well within the tech landscape, indicating potential for future growth [1]

I was previously positive on Elastic ( ESTC ), as I had the view that GenAI adoption would continue and that cloud transition would help reaccelerate growth. I reiterate my buy rating, as GenAI adoptionI'm a passionate investor with a strong foundation in fundamental analysis and a keen eye for identifying undervalued companies with long-term growth potential. My investment approach is a blend of value investing principles and a focus on long-term growth. I believe in buying quality companies at a discount ...

Core Viewpoint - The analyst maintains a positive outlook on Elastic (ESTC), believing that the adoption of Generative AI (GenAI) and the transition to cloud services will drive growth reacceleration [1] Company Analysis - Elastic is expected to benefit from the ongoing adoption of GenAI technologies, which could enhance its market position and growth potential [1] - The transition to cloud services is seen as a key factor that will help Elastic reaccelerate its growth trajectory [1] Investment Strategy - The investment approach focuses on identifying undervalued companies with long-term growth potential, emphasizing the importance of buying quality companies at a discount to their intrinsic value [1]

Core Insights - The company reported strong customer commitments in Q2, indicating a robust sales-driven approach that translates into revenue over the next 12 months [1] - Notable deals included two contracts exceeding $20 million and five contracts over $10 million, with over 30 deals valued at $1 million [1] Sales Performance - The sales organization is experiencing significant momentum, particularly in the AI sector, which is the fastest-growing area of the business [2] - Security deals are also a key focus, with the largest contracts being in this domain, showcasing the company's ability to displace incumbent competitors [2]

Summary of Elastic's Earnings Call Company Overview - **Company**: Elastic - **Industry**: Technology, specifically focusing on search, observability, and security solutions Key Highlights 1. **Strong Customer Commitments**: Elastic reported strong customer commitments in Q2, with significant deals including two over $20 million and five over $10 million, indicating robust sales momentum [1][2] 2. **AI Growth**: AI is identified as the fastest-growing segment of Elastic's business, contributing to overall strong performance [1] 3. **Public Sector Impact**: U.S. public sector shutdowns affected some renewals, shifting revenue from Q2 to Q3, but overall momentum remained strong [3] 4. **Revenue Guidance Raised**: Due to strong performance and customer commitments, Elastic raised its full-year revenue guidance [4] 5. **Geopolitical Influence**: Geopolitical events have led to increased public sector purchasing in Europe, benefiting Elastic's operations [6] 6. **CISA Deal**: Elastic secured a significant deal with CISA, allowing them to offer Elastic SIEM as a service to other U.S. federal agencies, marking a unique opportunity for growth [10][11] 7. **AI Integration**: Companies are increasingly integrating AI capabilities into their products, with Elastic collaborating with various software businesses to enhance their offerings [12][13] 8. **Production Use Cases**: Many customers are moving from proof of concepts (POCs) to live production scenarios, indicating a growing adoption of Elastic's solutions [16][17] 9. **Customer Cohorts**: The cohort of customers using Elastic for AI is growing approximately 5% faster than other cohorts, highlighting the increasing demand for AI-related solutions [19][36] 10. **Sales Strategy**: Elastic has restructured its sales organization to focus on new customer acquisition, particularly in the mid-market and enterprise segments, aiming to convert more Fortune 100 companies into customers [34][35] Additional Insights 1. **Investment Allocation**: Over 60% of Elastic's investment is directed towards platform capabilities, which enhances their ability to address complex data challenges across security, observability, and search [24][26] 2. **Efficiency Gains**: The company has seen improvements in sales efficiency and productivity, which supports their growth strategy [41][52] 3. **Pricing Model**: Elastic does not have a specific AI SKU; instead, AI adoption leads to higher functionality usage and increased data consumption, which drives revenue growth [20][21] 4. **Long-term Growth Focus**: Elastic emphasizes a balanced approach to growth and profitability, aiming for sustainable growth while increasing margins [55][56] Conclusion Elastic is experiencing strong growth driven by significant customer commitments, particularly in AI and public sector deals. The company is strategically investing in its platform capabilities and restructuring its sales approach to capture new market opportunities. The focus on efficiency and productivity is expected to support continued growth and improved margins in the future.

Core Insights - Siren announced a strategic investment from Elastic, enhancing their decade-long partnership and focusing on the development of Siren's AI-driven platform [1] - The investment will support the newly launched K9 AI Companion, which is utilized by national security, law enforcement, and financial crime agencies globally [1] Company Summary - Siren is positioned as an all-in-one investigation company, leveraging AI technology to enhance its platform [1] - Elastic, known for its Elasticsearch product, is deepening its involvement with Siren through this strategic investment [1] Industry Impact - The partnership aims to accelerate the development of advanced investigative tools, particularly in sectors such as national security and law enforcement [1] - The integration of the Elasticsearch platform with Siren's offerings is expected to enhance capabilities in tackling financial crimes [1]

Core Insights - Elastic has achieved the Amazon Web Services (AWS) Agentic AI Specialization, recognizing its capabilities in deploying smart, self-operating AI systems [1] Company Summary - The AWS Agentic AI Specialization is a new category within the AWS AI Competency, highlighting Elastic as a partner that enables customers to implement complex business processes through AI [1]