Financial Data and Key Metrics Changes - Total revenue in Q4 was $388 million, growing 16% year-over-year on an as-reported and constant currency basis [30] - Subscription revenue in Q4 totaled $362 million, also growing 16% as reported and 17% in constant currency [30] - Elastic Cloud revenue grew 23% on an as-reported and constant currency basis [30] - Non-GAAP operating margin for Q4 was 15%, with a gross margin of 77% [35][36] - Adjusted free cash flow margin improved by approximately 600 basis points to end the year at 19% [36] Business Line Data and Key Metrics Changes - The number of customers with over $1 million in annual contract value grew approximately 27%, adding about 45 net new customers [34] - Customers with over $100,000 in annual contract value grew approximately 14%, adding about 180 net new customers [34] - Subscription revenue excluding Monthly Cloud was $315 million, growing 19% in Q4 [32] Market Data and Key Metrics Changes - Strong growth was observed in the APJ region, followed by EMEA and The Americas, while some pressure was noted in the U.S. Public sector [34] - Over 2,000 Elastic Cloud customers are using Elastic for Gen AI use cases, with over 30% of these customers spending $100,000 or more annually [12] Company Strategy and Development Direction - The company is focusing on leveraging AI to automate business processes and drive innovation, positioning itself as a strategic partner for enterprises [11][18] - Elastic aims to strengthen its position as the preferred vector database, enhancing its offerings with new technologies like better binary quantization [13][19] - The company is committed to maintaining a balance between growth and profitability while continuing to innovate and expand its product offerings [40][43] Management's Comments on Operating Environment and Future Outlook - Management acknowledged potential uncertainty in the macro environment but expressed confidence in the healthy pipeline and demand signals [39] - The company expects continued growth and strong margins in FY 2026, projecting total revenue in the range of $1.655 billion to $1.670 billion [42] Other Important Information - Elastic Cloud now accounts for over 50% of subscription revenue, with strong growth in cloud adoption [18] - The company announced a strategic collaboration agreement with AWS to enhance solution integrations and accelerate AI innovation [25] Q&A Session Summary Question: Guidance and Metrics - Inquiry about the conservativeness of guidance and leading indicators of business performance [45] - Response highlighted the balance of positive demand signals with macro uncertainty, emphasizing the importance of CRPO and subscription revenue metrics [46][49] Question: Partnerships and Market Opportunities - Question regarding the impact of recent partnerships, particularly with AWS and NVIDIA, on market opportunities [53] - Management noted the growing acceptance of Elastic as a leading vector database and the importance of partnerships for driving cloud adoption [54] Question: Retrieval Augmented Generation (RAG) - Inquiry about the durability of RAG architectures and Elastic's positioning [59] - Management affirmed the critical role of retrieval in enterprise data management and the growing adoption of their vector database for RAG use cases [60][61] Question: Cloud Performance and Consumption Hesitation - Question about the sequential growth in cloud performance and the impact of the leap year [62] - Management clarified that the leap year and fewer days in Q4 affected consumption rates, but normalized growth rates remained strong [64][66] Question: Go-to-Market Strategy and Changes - Inquiry about the effectiveness of go-to-market changes made in the previous fiscal year [69] - Management confirmed that the changes have settled and are yielding positive results, with plans to continue hiring sales capacity [70][72] Question: AI Commitments and Emerging Use Cases - Question about the $1 million AI commitments and emerging use cases [93] - Management clarified that 25% of $1 million customers are using Elastic for AI workloads, with a variety of sophisticated use cases emerging across industries [94][96]

Financial Data and Key Metrics Changes - In Q4, total revenue reached $388 million, growing 16% year-over-year on both reported and constant currency basis [29] - Subscription revenue for Q4 totaled $362 million, also growing 16% as reported and 17% in constant currency [29] - Elastic Cloud revenue grew 23% on both reported and constant currency basis [29] - Non-GAAP operating margin for Q4 was 15%, with a gross margin of 77% [34][35] - For FY 2025, subscription revenue excluding Monthly Cloud was $1,195 million, growing 20% as reported and 21% in constant currency [31] Business Line Data and Key Metrics Changes - The number of customers with over $1 million in annual contract value grew approximately 27%, adding about 45 net new customers [32] - Customers spending over $100,000 annually increased by approximately 14%, with around 180 net new customers added [32] - The self-managed business performed solidly, contributing to overall revenue growth [30] Market Data and Key Metrics Changes - APJ region showed the fastest growth, followed by EMEA and The Americas, while there was some pressure in the U.S. public sector [32] - The U.S. public sector faced constraints, leading to elongated sales cycles, particularly in federal civilian agencies [33][34] Company Strategy and Development Direction - The company is focusing on driving customer adoption of the Elasticsearch AI platform, leveraging Gen AI and consolidation as key growth drivers [9][10] - Elastic aims to strengthen its position as the preferred platform for enterprises building Gen AI applications, emphasizing innovation and performance [10][19] - The company is committed to maintaining a balance between growth and profitability while continuing to invest in its sales capacity and security sales specialists [74] Management's Comments on Operating Environment and Future Outlook - Management acknowledged potential uncertainties in the macro environment but expressed confidence in a healthy pipeline and ongoing demand for their solutions [16][39] - The company expects continued growth and strong margins in FY 2026, projecting total revenue between $1.655 billion and $1.670 billion, representing 12% year-over-year growth at the midpoint [40][41] Other Important Information - The company announced a new five-year strategic collaboration agreement with AWS to enhance solution integrations and simplify Elastic adoption [24] - Elastic's AI capabilities are being integrated into various sectors, including security, observability, and customer support, with a focus on automating workflows [20][88] Q&A Session Summary Question: Guidance and Metrics - The guidance was described as conservative due to macro uncertainties, with a focus on balancing positive demand signals against potential consumption headwinds [45][46] - Key metrics for assessing business health include subscription revenue less Monthly Cloud and CRPO, which showed positive momentum [49] Question: Partnerships and Market Position - The company is positioning itself as a leading vector database through partnerships with hyperscalers like AWS and NVIDIA, enhancing its go-to-market strategy [53][55] Question: AI Commitments and Use Cases - 25% of customers with over $1 million in annual contract value are utilizing Elastic for AI workloads, indicating strong adoption within this cohort [95] - Emerging use cases for AI include sales automation, marketing automation, and legal e-discovery, reflecting a broadening of applications beyond initial use cases [97]

Financial Performance - Total revenue for Q4 FY25 was $388 million, representing a 16% year-over-year growth[133] - Elastic Cloud revenue grew by 23% year-over-year, reaching $182 million and comprising 47% of total revenue in Q4 FY25[133] - Total revenue for FY25 reached $1.483 billion, a 17% increase year-over-year[133] - Elastic Cloud revenue for FY25 was $688 million, growing 26% year-over-year and accounting for 46% of total revenue[133] - The company achieved a Non-GAAP operating margin of 15% for both Q4 FY25 and FY25[132, 143] Customer Growth and Expansion - The company has 1,510 customers with ACV (Annual Contract Value) greater than $100K[132] - The net expansion rate in Q4 FY25 was 112%[141] Future Outlook - The company projects total revenue between $396 million and $398 million for Q1FY26, representing a 14% year-over-year growth[146] - The company anticipates total revenue between $1655 billion and $1670 billion for FY26, representing a 12% year-over-year growth[146] Search AI Platform and Generative AI - Elastic combines search with AI to help users find answers from data in real-time and at scale[14] - The company highlights that 72% of organizations have adopted AI in one or more business functions[25] - Elastic emphasizes the importance of search for Generative AI, positioning itself as a Search AI platform[32, 37]

Financial Performance - Q4 revenue was $388 million, up 16% year-over-year, with Elastic Cloud revenue at $182 million, up 23% year-over-year[1][6] - FY25 total revenue reached $1.483 billion, an increase of 17% year-over-year, with Elastic Cloud revenue at $688 million, up 26% year-over-year[1][6] - Total revenue for the three months ended April 30, 2025, was $388,432, representing a 16% year-over-year increase[35] - Total subscription revenue for the year ended April 30, 2025, was $1,384,520, an 18% increase year-over-year[35] - Subscription revenue increased to $361,741 thousand for the three months ended April 30, 2025, up 16.3% from $310,984 thousand in the prior year[33] - Elastic Cloud revenue reached $181,507 for the three months ended April 30, 2025, with a 23% year-over-year growth[35] Profitability Metrics - GAAP operating loss for Q4 was $12 million, with a GAAP operating margin of -3%, while non-GAAP operating income was $60 million, with a non-GAAP operating margin of 15%[6] - Non-GAAP net income for the year ended April 30, 2025, was $217,837, up from $123,568 in 2024, reflecting a 76% increase[39] - Non-GAAP earnings per share (diluted) for the three months ended April 30, 2025, was $0.47, compared to $0.21 in the same period last year[39] - Non-GAAP operating margin for FY26 is expected to be approximately 16%[14] - Gross profit for the three months ended April 30, 2025, was $290,647 thousand, compared to $247,128 thousand for the same period in 2024, reflecting a 17.6% increase[27] - Adjusted free cash flow for the three months ended April 30, 2025, was $84,862, compared to $60,103 for the same period in 2024, marking a 41% increase[37] Customer Growth - Total customer count with Annual Contract Value (ACV) greater than $100,000 increased to over 1,510, compared to over 1,460 in Q3 FY25[7] Future Guidance - The company expects Q1 FY26 revenue to be between $396 million and $398 million, representing 14% year-over-year growth at the midpoint[11] - Non-GAAP diluted earnings per share for Q1 FY26 is expected to be between $0.41 and $0.43, assuming between 107.5 million and 108.5 million diluted weighted average ordinary shares outstanding[12] Strategic Initiatives - The company announced the acquisition of Keep Alerting Ltd, enhancing its AIOps capabilities[10] - A five-year global Strategic Collaboration Agreement was signed with Amazon Web Services (AWS) to deepen partnership through solution integrations[10] - The company plans to expand Elastic Cloud Serverless, now available in 1 region on Google Cloud and 4 regions on AWS[10] Balance Sheet Highlights - Cash and cash equivalents increased to $727,543 thousand as of April 30, 2025, from $540,397 thousand as of April 30, 2024[29] - Total assets grew to $2,592,853 thousand as of April 30, 2025, compared to $2,242,566 thousand as of April 30, 2024[29] - Deferred revenue increased to $802,117 thousand as of April 30, 2025, up from $663,846 thousand as of April 30, 2024, indicating strong future revenue potential[29] - Total remaining performance obligations reached $1,545,412, reflecting a 14% increase year-over-year[35]

Summary of Insider Transactions Analysis Industry Overview - The analysis covers insider transactions across various companies in the enterprise software sector, particularly focusing on small to mid-cap (SMID Cap) firms. Key Insights - **March 2025 Insider Transactions**: The total insider transaction value was over $900 million, with 97% being sell transactions and only 3% buy transactions, excluding transactions by >10% external shareholders [5][7] - **Sell Transactions**: 95% of sell transactions were not executed under Rule 10b5-1, which allows for pre-scheduled trades. This percentage drops to 94% when excluding sales made to satisfy tax obligations. After adjusting for Nutanix's share sales by Bain Capital, the percentage of non-10b5-1 sell transactions falls to 4% and 3% respectively [5][7] - **Buy Transactions**: All buy transactions in March were executed under Rule 10b5-1, indicating a structured approach to buying shares by insiders [5][7] Notable Transactions - **Asana (ASAN)**: CEO Dustin Moskovitz purchased 1.8 million shares worth $25.6 million, holding 37.23% of total shares outstanding [5][7] - **C3.ai (AI)**: CEO Tom Siebel sold 639,000 shares valued at $13.9 million, owning 5.5% of total shares outstanding [5][7] - **Elastic (ESTC)**: CEO Ashutosh Kulkarni sold approximately 24,000 shares for $2.2 million, while co-founder Shay Banon sold around 203,000 shares for $21.9 million, with most sales not under 10b5-1 [5][7] - **GitLab (GTLB)**: Director Matthew Jacobson sold 153,000 shares worth $8 million, not under 10b5-1 [5][7] - **Nutanix (NTNX)**: Bain Capital sold 11 million shares valued at $819.6 million, not under 10b5-1, related to the conversion of convertible notes [5][7] - **Sprinklr (CXM)**: Director Neeraj Agrawal sold 26,000 shares for $242,000, not under 10b5-1 [5][7] Year-to-Date (YTD) Insights for 2025 - **Total Transactions**: The aggregate insider transaction value for the year was $1.1 billion, with 98% being sell transactions and 2% buy transactions [7] - **Sell Transactions**: 77% of sell transactions were not executed under 10b5-1, dropping to 76% when excluding tax-related sales. Adjusting for Nutanix's sales, this number falls to 3% [7] - **Buy Transactions**: All buy transactions executed in 2025 were under 10b5-1 [7] Additional Noteworthy Transactions - **Asana (ASAN)**: Co-founder Justin Rosenstein sold 1.35 million shares for $27.9 million, with ownership declining from 1.53% to 0.57% [7] - **Elastic (ESTC)**: Similar patterns of non-10b5-1 sales were observed among executives [7] - **Nutanix (NTNX)**: Continued significant sales by Bain Capital [7] - **Sprinklr (CXM)**: Multiple executives sold shares not under 10b5-1 [7] Conclusion - The analysis indicates a trend of significant insider selling across the covered companies, with a notable lack of buy transactions, suggesting potential caution among insiders regarding future performance. The structured nature of buy transactions under Rule 10b5-1 may reflect strategic planning by insiders amidst market uncertainties.

NEW YORK, April 13, 2025 (GLOBE NEWSWIRE) -- WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of Elastic N.V. (NYSE: ESTC) between May 31, 2024 and August 29, 2024, both dates inclusive (the "Class Period"), of the important April 14, 2025 lead plaintiff deadline. SO WHAT: If you purchased Elastic securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. WHAT TO DO N ...

Core Viewpoint - A class action securities lawsuit has been filed against Elastic N.V. for alleged securities fraud affecting investors between May 31, 2024, and August 29, 2024 [1] Group 1: Allegations of Fraud - The lawsuit claims that Elastic made false statements regarding significant changes to its sales operations, particularly affecting customer segments in the Americas [2] - It is alleged that these changes disrupted Elastic's sales operations during the first quarter of FY 2025, leading to an overstatement of the stability of its sales operations [2] - As a result of these issues, Elastic is unlikely to meet its previously issued revenue guidance for FY 2025, rendering the defendants' public statements materially false and misleading [2] Group 2: Legal Process and Participation - Investors who suffered losses during the relevant timeframe have until April 14, 2025, to request to be appointed as lead plaintiff, although participation in any recovery does not require serving as a lead plaintiff [3] - Class members may be entitled to compensation without any out-of-pocket costs or fees, with no obligation to participate [3] Group 3: Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years [4] - The firm has been recognized in ISS Securities Class Action Services' Top 50 Report for seven consecutive years as one of the leading securities litigation firms in the United States [4]

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Elastic N.V. regarding a class action lawsuit due to alleged misleading statements and operational disruptions affecting sales during FY 2025 [1]. Group 1: Allegations - The complaint alleges that Elastic made materially false and misleading statements and failed to disclose significant changes to its sales operations, particularly in the Americas [1]. - These changes reportedly disrupted Elastic's sales operations in the first quarter of FY 2025, leading to an overstatement of the stability of its sales operations [1]. - As a result, Elastic is unlikely to meet its previously issued revenue guidance for FY 2025, making the defendants' public statements materially false and misleading [1]. Group 2: Class Action Details - The class period for the lawsuit is from May 31, 2024, to August 29, 2024, and shareholders are encouraged to register for participation [2]. - The deadline for shareholders to seek lead plaintiff status is April 14, 2025, and there is no cost or obligation to participate in the case [2]. Group 3: Law Firm Background - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting investors' rights against deceit, fraud, and illegal business practices [3]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements or omissions [3].

I'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 to their intrinsic value and holding them for the long haul, allowing them to compound their earnings and shareholder returns.Analyst’s Disclosure: I/we have no stock, option or similar derivative posit ...

Core Viewpoint - A class action securities lawsuit has been filed against Elastic N.V. for alleged securities fraud affecting investors between May 31, 2024, and August 29, 2024 [1][2]. Group 1: Lawsuit Details - The complaint alleges that Elastic made false statements regarding significant changes to its sales operations, particularly affecting customer segments in the Americas [2]. - It is claimed that these changes disrupted Elastic's sales operations during the first quarter of FY 2025, leading to an overstatement of the stability of its sales operations [2]. - As a result of these issues, Elastic is unlikely to meet its previously issued revenue guidance for FY 2025, rendering the defendants' public statements materially false and misleading [2]. Group 2: Next Steps for Investors - Investors who suffered losses during the relevant time frame have until April 14, 2025, to request the Court to appoint them as lead plaintiff, although participation in any recovery does not require serving as a lead plaintiff [3]. - Class members may be entitled to compensation without any out-of-pocket costs or fees, with no obligation to participate [3]. Group 3: Firm Background - Levi & Korsinsky has a history of securing hundreds of millions of dollars for shareholders and has extensive expertise in complex securities litigation [4]. - The firm has been recognized in ISS Securities Class Action Services' Top 50 Report for seven consecutive years as one of the top securities litigation firms in the United States [4].