Core Insights - Elastic has launched the Elastic Inference Service (EIS) via Cloud Connect, enabling self-managed Elasticsearch deployments to access cloud-hosted inference capabilities without the need for GPU infrastructure management [1][3] - The EIS allows organizations to implement advanced semantic search capabilities efficiently while keeping their existing architecture and data on-premises [2][3] Group 1 - The EIS is now available for self-managed customers using Elastic Stack 9.3, providing access to GPU-based embedding and reranking models, including those from Jina.ai [2][3] - This service simplifies the adoption of semantic search for self-managed customers by eliminating the complexity associated with GPU infrastructure [3] - Users can benefit from a range of cloud services, including automated diagnostics and fast AI inference, while maintaining data security on-premises [3] Group 2 - Elastic integrates its expertise in search technology with artificial intelligence to transform data into actionable insights, serving thousands of companies, including over 50% of the Fortune 500 [4]

SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC), the Search AI Company, today made two Jina Rerankers available on Elastic Inference Service (EIS), a GPU-accelerated inference-as-a-service that makes it easy to run fast, high-quality inference without complex setup or hosting. These rerankers bring low-latency, high-precision multilingual reranking to the Elastic ecosystem. As generative AI prototypes move into production-ready search and RAG systems, users run into relevance and inference. ...

Elastic N.V. (NYSE:ESTC) is one of the 10 AI Stocks Gaining Attention on Wall Street. On January 30, Rosenblatt analyst Blair Abernethy lowered the price target on the stock to $110.00 (from $130.00) while maintaining a “Buy” rating. While there are multiple compression and macro pressures for ESTC, the firm sees strength in tool consolidation and AI-led use cases. Rosenblatt noted that Elastic is expected to report an in-line to marginal beat in Q3/FY 26 results when it reports in late February.  It hig ...

Core Insights - The article discusses the investment potential of Elastic N.V. (ESTC), highlighting it as undervalued with an estimated 30% upside from its stock price of approximately $74.5 to the author's Fair Value estimate [1] Group 1: Investment Strategy - The investment style is described as "Fundamental Options," which combines fundamental analysis with options trading strategies [1] - The author employs various strategies including income-oriented investments, growth at a reasonable price, deep value based on discounted cash flow, and dividend aristocrats [1] - The author typically invests for the long term but also utilizes 20-25 options strategies for purposes such as hedging, bullish substitutes, neutral trades, trading volatility, and earnings-related trades [1] Group 2: Background and Experience - The author has a background in software development, which informs their focus on technology investments [1] - Teaching is mentioned as a passion, with experience in both formal and informal education, including authoring a free local investing newsletter [1]

Core Insights - Elastic N.V. (ESTC) is identified as undervalued, with a potential upside of approximately 30% from its stock price of around $74.5 to the estimated Fair Value [1] Group 1: Investment Strategy - The investment style is described as "Fundamental Options," combining fundamental analysis with options strategies [1] - Various investment strategies are pursued, including income-oriented investments, growth at a reasonable price, deep value based on discounted cash flow, and dividend aristocrats [1] - The analyst employs 20-25 options strategies for purposes such as hedging, bullish substitutes, neutral trades, trading volatility, and earnings-related trades [1] Group 2: Background and Teaching - The analyst has a background in software development, which informs their focus on technology investments [1] - Teaching is a passion, with experience in both formal and informal education, including authoring a free local investing newsletter [1]

Core Insights - The discussion features a fireside chat with Elastic's GVP of Finance, Eric Prengel, focusing on cybersecurity and infrastructure software [1]. Group 1 - The lead analyst from Needham & Company, LLC, Michael Cikos, is facilitating the conversation [1]. - The session aims to be interactive, encouraging audience questions during the discussion [1].

Summary of Elastic's Conference Call Company Overview - **Company**: Elastic - **Industry**: Cybersecurity and Infrastructure Software - **Key Executive**: Eric Prengel, Global Vice President of Finance - **Background**: Eric Prengel has been with Elastic for three years and previously worked as an investment banker at JP Morgan, where he took Elastic public and managed its debt deal [2][3] Core Business and Value Proposition - **Platform Functionality**: Elastic specializes in handling unstructured data, enabling ingestion, management, and search capabilities [4] - **Key Use Cases**: - **Observability**: Ingesting and searching through logs for monitoring and troubleshooting [5] - **Security**: SIEM (Security Information and Event Management) and XDR (Extended Detection and Response) capabilities [5] - **Vector Search**: Elastic has been a pioneer in vector search and databases, positioning itself well for the GenAI revolution [6][9] Market Dynamics and Trends - **GenAI Impact**: The search business has become the fastest-growing segment due to increased customer adoption of GenAI technologies [11] - **Customer Segmentation**: Engagement with customers has shifted to include board-level discussions about GenAI, enhancing the company's market presence [19] - **Competitive Landscape**: Elastic competes effectively in the SIEM and XDR markets, winning significant deals against established competitors [21][22] Financial Performance and Guidance - **Revenue Growth**: Elastic raised its top-line guidance by $34 million, reflecting strong demand and successful customer engagements [72] - **Large Deals**: The company is increasingly closing larger deals, with a shift towards $5-$10 million contracts becoming more common [51][52] - **Federal Exposure**: Elastic has a similar level of federal exposure as other infrastructure software companies, with recent deals being closed post-government shutdown [73][80] Go-to-Market Strategy - **Restructuring Sales Teams**: Elastic resegmented its sales teams to focus on high-potential customers, resulting in improved sales productivity [32][34] - **Greenfield Territories**: The company is investing in new territories with no prior revenue, aiming to capture new business [42] - **Sales Incentives**: Sales teams are incentivized based on new and expansion business, with accelerators for exceeding quotas [56] Observability and Security Integration - **Convergence of Security and Observability**: Elastic has been advocating for the integration of security and observability solutions, which is gaining traction in the market [28][29] - **Competitive Differentiation**: The unified data platform allows Elastic to offer efficiencies that competitors with separate platforms cannot match [29] Customer Engagement and Adoption - **Cross-Selling Opportunities**: Elastic is focusing on deepening relationships with existing customers to sell additional solutions [63] - **Customer Base**: Approximately 20% of customers use multiple solutions, contributing to 80% of annual recurring revenue (ARR) [63] Conclusion - **Future Outlook**: Elastic is well-positioned for growth with its innovative solutions in GenAI, security, and observability, supported by a strong go-to-market strategy and increasing customer engagement [72][74]

Group 1 - Elastic N.V. (NYSE:ESTC) is recognized as one of the top big data stocks to invest in, with significant collaborations announced in December [1] - The company partnered with the Cybersecurity and Infrastructure Security Agency (CISA) to create a Security Information and Event Management as a Service platform for US federal civilian agencies, under a $26 million base-year contract that could total $130 million over four years [2] - Elastic N.V. also released an update for Amazon Bedrock AgentCore, enabling monitoring and troubleshooting of AI agents through the Elasticsearch platform, which includes features for tracking performance and managing expenses [3] Group 2 - Elastic N.V. specializes in software solutions for search, logging, analytics, security, and observability, utilizing machine-learning capabilities for tasks like anomaly detection and root cause analysis [4]

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]

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] Group 1: Company Analysis - Elastic is expected to benefit from the ongoing adoption of GenAI, which is anticipated to enhance its growth prospects [1] - The transition to cloud services is seen as a key factor that will help Elastic reaccelerate its growth trajectory [1] Group 2: 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]