Financial Data and Key Metrics Changes - The company reported total revenue of $415 million for Q1 2026, representing a 20% year-over-year growth and an 18% growth on a constant currency basis [27] - Sales-led subscription revenue, excluding monthly Elastic Cloud, was $339 million, growing 22% as reported and 20% on a constant currency basis [27] - Non-GAAP operating margin was 16%, with a gross margin of 79% [32] Business Line Data and Key Metrics Changes - Subscription revenue growth was driven by both cloud and self-managed offerings, with strong performance across all solution areas [28] - The company ended the quarter with over 1,550 customers spending more than $100,000 annually, indicating strong enterprise adoption [7] - The number of Elastic Cloud customers using Gen AI use cases exceeded 2,200, with over 330 customers spending $100,000 or more annually [12] Market Data and Key Metrics Changes - In the U.S. Public sector, signs of stabilization were noted, with a strategic agreement signed with the U.S. General Services Administration [9] - The company reported strong customer commitments and competitive success in the security segment, with one-third of new and expansion deals coming from competitive displacements [28][51] Company Strategy and Development Direction - The company is focused on leveraging its Search AI platform to drive growth in Gen AI and platform consolidation across various industries [23] - The strategic alignment of the sales team towards expanding enterprise accounts and high-potential mid-market customers is proving effective [10] - The introduction of new capabilities, such as the Elastic AI SOC engine (EASE), aims to enhance threat detection and drive further adoption [28][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong execution and market position, despite operating in a complex macro environment [34] - The company raised its fiscal 2026 revenue guidance, reflecting better-than-expected macro conditions and strong demand for its solutions [34] - Management highlighted the importance of search relevance and context in the AI era, positioning the company as a leader in data retrieval and context engineering [15][101] Other Important Information - The company achieved an adjusted free cash flow margin of 28% in Q1, with expectations to maintain and expand this margin over time [33] - The current remaining performance obligations (CRPO) grew 18% year-over-year, reaching approximately $956 million [30] Q&A Session Summary Question: Customer spend uplift related to AI usage - Management noted that as customers utilize AI applications, workloads tend to be more compute-intensive, leading to increased overall consumption [42] Question: Impact of price increases on guidance - The price increase implemented in May is expected to provide a year-over-year benefit, but the majority of growth is attributed to performance rather than price [46] Question: Growth mix across business segments - Management indicated strong performance across all solution areas, with Gen AI driving growth in search, security, and observability [50] Question: Predictability of the business model - Management expressed confidence in the predictability of sales-led subscription growth, noting strong execution and consistency in performance [52] Question: Competitive displacements in security - Management highlighted a growing trend of customers recognizing security as a data problem, leading to increased migrations to the company's platform [58] Question: Federal business stabilization - Management confirmed stabilization in the U.S. Public sector, with expectations for continued execution and alignment with customer needs [90][94]

Financial Performance - Total revenue grew by 20% year-over-year to $415 million[116, 118] - Sales-led subscription revenue increased by 22% year-over-year, reaching $339 million[116, 118] - Elastic Cloud revenue grew by 24% year-over-year, totaling $196 million[116, 118] - Sales-led subscription revenue accounted for 82% of total revenue[118] - Non-GAAP operating margin was 16%[116, 130] - Adjusted free cash flow was $116 million, representing 28% of total revenue[131, 141] Customer Base - The company has 1,550 customers with ACV (Annual Contract Value) greater than $100K[117] - The net expansion rate is 112%[128] Future Outlook - The company projects total revenue between $415 million and $417 million for Q2 FY26, representing 14% year-over-year growth[132] - The company projects total revenue between $1.679 billion and $1.689 billion for FY26, representing 14% year-over-year growth[132] Platform and Technology - 72% of organizations have adopted AI in one or more business functions[18] - Elastic's Search AI Lake provides response times in milliseconds[34] - Elastic ingests 400 terabytes of telemetry data per day with Elastic Observability[54]

Exhibit 99.1 Elastic Reports First Quarter Fiscal 2026 Financial Results First Quarter Fiscal 2026 Key Metrics and Recent Business Highlights Key Customer Metrics Product Innovations and Updates • Total revenue was $415 million, an increase of 20% year-over-year, or 18% on a constant currency basis • Total subscription revenue was $389 million, an increase of 20% year-over-year, or 19% on a constant currency basis • Sales-led subscription revenue (calculated as subscription revenue excluding monthly Elastic ...

Core Insights - The upcoming earnings report from Elastic (ESTC) is projected to show quarterly earnings of $0.42 per share, reflecting a 20% increase year-over-year, with revenues expected to reach $396.89 million, a 14.2% increase from the previous year [1] Group 1: Earnings Estimates - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, indicating analysts' reassessment of their projections [1] - Prior to earnings announcements, revisions to earnings estimates are crucial as they significantly influence investor actions regarding the stock [2] Group 2: Revenue Projections - The consensus estimate for 'Revenue- Services' is $25.24 million, indicating a 6.7% increase from the year-ago quarter [4] - Analysts expect 'Revenue- Subscription' to reach $371.59 million, reflecting a 14.8% increase year-over-year [4] - The estimate for 'Revenue- Subscription- Elastic Cloud' is projected at $189.97 million, suggesting a 20.8% increase from the previous year [4] - 'Revenue- Subscription- Other subscription' is anticipated to be $181.93 million, indicating a 9.3% increase from the prior-year quarter [5] Group 3: Stock Performance - Over the past month, shares of Elastic have decreased by 10.9%, contrasting with the Zacks S&P 500 composite's increase of 2.7% [5] - Currently, ESTC holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [5]

Group 1: Core Insights - Wedbush Securities has added CrowdStrike, Roblox, GE Vernova, and Nebius to its IVES AI 30 list, which highlights companies expected to shape the AI industry in the coming years [1][2] - The IVES AI 30 list was initially launched in May, featuring major companies like Apple and Nvidia, along with Chinese firms such as Alibaba and Baidu [1] - The firm also launched the Dan Ives Wedbush AI Revolution ETF focused on artificial intelligence [1] Group 2: Newly Added Companies - **CrowdStrike (CRWD.US)**: The company is demonstrating strategic advantages in capitalizing on the AI revolution through modular expansion in its core cybersecurity business, particularly with its data protection module and Charlotte AI product [1] - **Roblox (RBLX.US)**: The platform has created an attractive incentive system for developers, and its AI-driven discovery mechanism is expected to drive user growth and enhance monetization capabilities in the coming quarters [2] - **GE Vernova (GEV.US)**: The company is strategically positioned in the grid management solutions sector, benefiting from the surge in electrification demand driven by large-scale data center construction [2] - **Nebius (NBIS.US)**: The demand for the company's AI infrastructure services remains strong, with plans to expand data center capacity in the coming years, as service demand exceeds current supply capabilities [2] Group 3: Removed Companies - **C3.ai (AI.US)**: The company is facing significant financial impacts due to a sales team restructuring and the resignation of CEO Thomas Siebel, leading to a belief that its development is encountering a slowdown, although long-term prospects remain optimistic [2] - **CyberArk (CYBR.US)**: The company was removed from the list following the announcement of a $25 billion acquisition by Palo Alto Networks, which is already part of the IVES AI 30, thereby strengthening its market position [2] - **Adobe (ADBE.US)**: The company is experiencing disruptive impacts from AI technology on its product lines, which may affect growth trajectories and free cash flow generation, with a slower-than-expected AI transformation [3] - **Elastic (ESTC.US)**: Despite increased government spending on software and AI, the company's public sector business shows signs of slowing down, leading to the identification of more promising alternatives for the IVES AI 30 list [3]

Group 1: Inclusion in "IVES AI30" List - CrowdStrike is positioned favorably in the AI revolution, with increasing module expansions and strong trading flows from Charlotte AI driving growth [2] - Roblox offers attractive incentives for developers, and its AI-driven discovery features are enhancing platform adoption, expected to lead to stronger monetization in upcoming quarters [2] - GE Vernova will benefit from the growing demand for electrification as large cloud providers continue to build data centers, providing necessary tools for grid management [2] - Nebius is experiencing strong demand in AI infrastructure, planning to increase data center capacity in the coming years [2] Group 2: Removal from "IVES AI30" List - CyberArk was removed due to Palo Alto Networks' plan to acquire it for $25 billion, as Palo Alto is already on the list [3] - C3.ai was removed following a recent sales organization restructuring and the resignation of CEO Thomas Siebel, which significantly impacts its finances, though analysts remain optimistic about its future [3] - Adobe faces concerns over its growth potential, with worries that its product portfolio may be disrupted by AI, leading to slower growth and free cash flow generation [3] - Elastic's public business growth has slowed, despite incremental funding from the U.S. federal government for software and AI improvements, with analysts favoring other tech companies for the "IVES AI30" list [3]

Core Viewpoint - Elastic (NYSE: ESTC) is positioned between "Hold" and "Buy" with an expected revenue growth of 14% for FY'25 and an estimated fair value around $95, indicating potential upside from its current price of approximately $76.4 [1] Group 1: Company Analysis - The company is expected to achieve a revenue growth of 14% for FY'25, reflecting strong operational performance [1] - Elastic's margins are increasing, which is a positive indicator for profitability and financial health [1] - The estimated base-case fair value of the stock is around $95, suggesting a potential appreciation from its current trading price [1] Group 2: Investment Strategy - The investment approach combines fundamental analysis with options strategies, allowing for a diversified investment methodology [1] - Various strategies are employed, including income-oriented investments, growth at a reasonable price, deep value based on discounted cash flow, and dividend aristocrats [1] - The investment style includes 20-25 options strategies for purposes such as hedging, bullish substitutes, neutral trades, trading volatility, and earnings-related trades [1]

Group 1 - The stock of Elastic N.V. (NYSE: ESTC) has declined approximately 25% since January, while the market has increased nearly 5% [1] - The analysis focuses on growth opportunities in technology sectors, emphasizing the importance of current and future trends in fundamental analysis [1] Group 2 - The author has a long position in the shares of ESTC, AMD, and DDOG, indicating a personal investment interest in these companies [2]

Group 1 - Elastic (ESTC) closed at $82.69, with a 2.3% gain over the past four weeks, and a mean price target of $112.17 suggests a 35.7% upside potential [1] - The average of 24 short-term price targets ranges from a low of $75.00 to a high of $148.00, with a standard deviation of $15.45, indicating variability among analysts [2] - Analysts show strong agreement in revising EPS estimates higher, which correlates with potential stock price movements [11] Group 2 - The Zacks Consensus Estimate for the current year has increased by 68.8% over the past month, with nine estimates going higher and two lower [12] - ESTC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - While consensus price targets may not be reliable for predicting gains, they can indicate the direction of price movement [14]

Financial Data and Key Metrics Changes - The company positions itself as a "Search AI company," focusing on providing high-performance solutions for storing, searching, and analyzing vast amounts of data [5][6] - The core technology is centered around Elasticsearch, which serves as the primary data storage and processing engine [8] Business Line Data and Key Metrics Changes - The company markets its offerings in three main areas: developer tools, observability products, and security solutions [9][12] - The observability product combines unstructured log messages with structured metrics and traces to identify operational issues [10] - The security product is described as a modern SIEM that goes beyond traditional capabilities, addressing the increasing complexity of security threats [11][49] Market Data and Key Metrics Changes - The company has seen a diverse range of use cases for Elasticsearch, from traditional search applications to more complex scenarios like transaction tracking and logistics [15][19] - The advent of AI has expanded the potential applications of Elasticsearch, with a focus on semantic and vector search capabilities [21][25] Company Strategy and Development Direction - The company aims to simplify the developer experience by providing out-of-the-box tools for building generative AI applications [36][37] - There is a strong emphasis on integrating AI capabilities into their products, including features like vector search and semantic search to enhance search relevance [25][26] - The acquisition of Keep Alerting is seen as a strategic move to enhance workflow automation capabilities in both security and observability [64][66] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that customers are at various stages of maturity in adopting generative AI applications, with some already in production while others are still experimenting [39][40] - The importance of providing accurate and contextually relevant information is highlighted as critical for the success of AI applications [72][75] Other Important Information - The company has established partnerships with major AI model providers to enhance its offerings and ensure compatibility with various AI frameworks [32][68] - The focus on security is underscored by the need for per-user and per-document security measures, which are critical for enterprise applications [80][81] Q&A Session Summary Question: What is Elastic's overall strategy regarding AI? - The company is focused on building core components for developers while also utilizing these components in their observability and security solutions [23][24] Question: Are customers still in the experimental stage with generative AI applications? - Customers are at different maturity levels, with some already deploying generative AI applications in production [39][40] Question: How does Elastic position itself in the security space? - The company provides a comprehensive security suite, including a modern SIEM with prebuilt detection rules and AI-powered features [46][49] Question: What is the integration with NVIDIA's enterprise AI factory about? - The partnership aims to leverage NVIDIA's capabilities for running AI workloads, enhancing the company's offerings in the AI space [90]