Sorapop/iStock via Getty Images Investment Thesis Elastic (ESTC) specializes in search analytics, offering a platform that allows businesses to swiftly search and analyze extensive datasets in real time. The stock had gone largely nowhere for a prologue period post-pandemic. But of late, on the back of its strong improvements in profitability, the stock is now once more attractive. According to my estimates, in fiscal 2025 (starting in May 2024) Elastic's underlying profitability will meaningfully increase ...

Shares of Elastic (ESTC 4.12%) rose 40.2% in December 2023, according to data from S&P Global Market Intelligence. The Dutch-American expert in enterprise data search and related functions posted a terrific earnings report at the end of November. Elastic's stock closed 37.1% higher the next day -- and hasn't looked back from its newfound plateau.The fuel for Elastic's December firesThe company's Elasticsearch data search and analytics platform gained 200 new customers in the second quarter of fiscal year 20 ...

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Elastic N.V. (NYSE:ESTC) Q2 2024 Earnings Conference Call November 30, 2023 5:00 PM ET Company Participants Anthony Luscri - VP, IR Ashutosh Kulkarni - CEO Janesh Moorjani - CFO and COO Conference Call Participants Brent Thill - Jefferies Raimo Lenschow - Barclays Harshil Thakkar - Oppenheimer Pinjalim Bora - JPMorgan Brad Reback - Stifel Matthew Hedberg - RBC Capital Markets Yitchuin Wong - Citi Kash Rangan - Goldman Sachs Koji Ikeda - Bank of America Securities Rob Owens - Piper Sandler Andrew Nowinski - ...

Revenue and Growth - Elastic Cloud contributed 41% and 39% of total revenue for the three months ended July 31, 2023 and 2022, respectively[118] - Total revenue increased by $43.7 million (17%) to $293.8 million for the three months ended July 31, 2023, driven by a 17% growth in subscription revenue and a 29% increase in services revenue[143][144] - Subscription revenue grew by $38.4 million (17%) to $270.2 million, with Elastic Cloud revenue increasing 24% and accounting for 41% of total revenue[143] - Services revenue increased by $5.2 million (29%) to $23.5 million, attributed to higher adoption of the company's services offerings[144] - Elastic Cloud revenue as a percentage of total revenue increased to 41% in Q3 2023 from 39% in Q3 2022, reflecting continued growth in cloud adoption[143] Customer Base and Contracts - The company had approximately 20,500 customers as of July 31, 2023, compared to over 19,300 customers as of July 31, 2022[109] - The number of customers with annual contract value (ACV) greater than $100,000 was over 1,190 as of July 31, 2023, compared to over 1,010 as of July 31, 2022[110] - The company's Net Expansion Rate was approximately 113% as of July 31, 2023[123] Subscription and Cloud Services - Subscriptions accounted for 92% and 93% of total revenue for the three months ended July 31, 2023 and 2022, respectively[108] - Elastic Cloud subscriptions are primarily consumption-based, with the majority contracted in U.S. dollars[108] Financial Performance and Margins - Gross profit rose by $39.2 million (22%) to $216.3 million, with total gross margin improving from 71% to 74%[145] - Operating loss improved from $60.6 million to $36.2 million, with operating margin improving from -24% to -12%[139][141] - Net loss decreased from $69.6 million to $48.5 million, with net margin improving from -28% to -17%[139][141] Expenses and Costs - Cost of subscription revenue increased by $3.7 million (7%) to $57.3 million, primarily due to higher cloud infrastructure costs[145] - Research and development expenses increased by $2.0 million (3%) to $80.7 million, driven by higher personnel and cloud infrastructure costs[148] - Sales and marketing expenses grew by $8.2 million (7%) to $133.2 million, mainly due to increased personnel costs and travel expenses[149] - General and administrative expenses increased by $3.9 million, or 11%, primarily due to a $3.8 million increase in personnel and related costs, including $2.7 million in stock-based compensation and $1.0 million in salaries and related taxes[150] - Restructuring and other related charges of $0.7 million were recorded for employee-related severance and termination benefits, compared to no charges in the same period last year[151] Investments and Income - Other income, net increased by $7.0 million to $7.3 million, primarily due to a $7.2 million increase in investment income from marketable securities and money market funds[153] - As of July 31, 2023, the company had $957.1 million in cash, cash equivalents, and marketable securities, with a strong and diversified credit quality portfolio[157] - Net cash provided by operating activities was $37.8 million, driven by $81.8 million in non-cash charges and a $4.6 million net cash inflow from changes in operating assets and liabilities[161] - Net cash used in investing activities was $55.1 million, primarily due to the purchase of $83.6 million in marketable securities, offset by $29.1 million from maturities of marketable securities[163] - The company had $959.8 million in cash, cash equivalents, restricted cash, and marketable securities as of July 31, 2023, with minimal exposure to interest rate risk[169] Taxes and Provisions - Provision for income taxes increased by $10.4 million, or 365%, driven by growth in taxable income in certain jurisdictions and a one-time charge of $7.4 million for acquisition-related integration[154] - The company maintains a full valuation allowance against U.S. federal and state deferred tax assets, but anticipates potential recognition of these assets within the next 12 months if sustained profitability is achieved[155] Strategic Initiatives - The company plans to continue investing in new features and solutions for the Elastic Stack to drive growth[120] - Elastic's strategy includes converting free users of its software into paid subscribers to grow its customer base[121] Employee and Restructuring - The company had 2,995 employees as of July 31, 2023[112] - Elastic incurred $0.7 million in restructuring and other related charges during the three months ended July 31, 2023[114] Interest and Other Financials - Interest expense decreased slightly by $0.1 million, or 1%, compared to the same period last year[152]

Elastic N.V. (NYSE:ESTC) Q1 2024 Earnings Conference Call August 31, 2023 5:00 PM ET Company Participants Janice Oh - IR Ashutosh Kulkarni - CEO Janesh Moorjani - CFO and COO Conference Call Participants Tyler Radke - Citi Koji Ikeda - Bank of America Jacob Roberge - William Blair Matt Swanson - RBC Capital Markets Raimo Lenschow - Barclays Stephen Schwartz - Wells Fargo Bo Yin - Jefferies Ethan Weeks - Piper Sandler Kingsley Crane - Canaccord Shrenik Kothari - Baird Operator Good day and welcome to the Ela ...

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Elastic N.V. (NYSE:ESTC) Q4 2023 Earnings Conference Call June 1, 2023 5:00 PM ET Company Participants Nikolay Beliov - Vice President of Investor Relations Ashutosh Kulkarni - Chief Executive Officer Janesh Moorjani - Chief Financial Officer and Chief Operating Officer Conference Call Participants Matthew Hedberg - RBC Capital Markets LLC Tyler Radke - Citigroup Inc. Koji Ikeda - Bank of America Merrill Lynch Pinjalim Bora - JPMorgan Chase & Co. Harshil Thakkar - Oppenheimer & Co. Shrenik Kothari - Robert ...

21 Customers adopt more solutions Customers adopt more use cases Distribution and Monetization Model ● Resource-based pricing model ←> Consumption-based subscriptions on Elastic Cloud ● Subscriptions generally 1 to 3 years, invoiced annually in advance ● Elastic Cloud also has month-to-month web-based self-service option Customer Segment Coverage Model High automation, self-serve product-led motion Amazon Web Services Google Cloud Microsoft Azure | --- | --- | --- | --- | |---------------------------------- ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________________________________________________________________________________________________________________________ FORM ____________________________________________________________________________________________________________________10-Q ________________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURS ...