Company Overview - Elastic (ESTC) is expected to report a year-over-year increase in earnings, with a projected EPS of $0.38, reflecting a change of +2.7% [3] - Revenue is anticipated to reach $354.24 million, marking a 14.1% increase from the previous year [3] Earnings Expectations - The earnings report is scheduled for November 21, 2024, and the stock may rise if results exceed expectations, while a miss could lead to a decline [2] - The consensus EPS estimate has been revised down by 0.65% over the last 30 days, indicating a bearish sentiment among analysts [4] Earnings Surprise Prediction - The Most Accurate Estimate for Elastic is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.20%, which complicates predictions of an earnings beat [10] - The company currently holds a Zacks Rank of 4 (Sell), further diminishing the likelihood of surpassing the consensus EPS estimate [10] Historical Performance - In the last reported quarter, Elastic exceeded the expected EPS of $0.25 by delivering $0.35, achieving a surprise of +40% [11] - Over the past four quarters, Elastic has consistently beaten consensus EPS estimates [12] Industry Context - In the Zacks Internet - Software industry, Snowflake Inc. (SNOW) is expected to report earnings of $0.15 per share, reflecting a year-over-year decline of -40% [16] - Snowflake's revenue is projected at $898.77 million, up 22.4% from the previous year [16] - Despite a recent EPS estimate revision down by 0.1%, Snowflake has an Earnings ESP of 13.92%, but its Zacks Rank of 4 (Sell) complicates predictions of an earnings beat [17]

Core Insights - The article discusses the resumption of coverage on Elastic (NYSE: ESTC), an enterprise search software company, after a period of inactivity since 2021, highlighting its stock underperformance compared to the S&P 500 during that time [1]. Group 1 - Elastic's stock has underperformed the S&P 500 since the last article in 2021, indicating a potential opportunity for investors to reassess the company's position in the market [1].

Core Viewpoint - Elastic (ESTC) has experienced a significant downtrend, with a 25.2% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to analysts' positive earnings outlook [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) for ESTC is currently at 27.49, indicating that the heavy selling pressure may be exhausting, which could lead to a price rebound [5]. - The RSI is a momentum oscillator that ranges from 0 to 100, with a reading below 30 typically indicating that a stock is oversold [2]. - Technical indicators like RSI can help identify potential entry points for investors looking to benefit from a rebound after unwarranted selling [3]. Group 2: Fundamental Analysis - There has been a strong consensus among sell-side analysts to raise earnings estimates for ESTC, resulting in a 17.9% increase in the consensus EPS estimate over the last 30 days [5]. - An upward trend in earnings estimate revisions is generally associated with price appreciation in the near term [5]. - ESTC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate trends and EPS surprises, indicating a strong potential for a turnaround [6].

It has been almost 2 years since I last wrote about Elastic in an article published on SA. Over that span, the shares rallied substantially, rising by more Bert Hochfeld graduated with a degree in economics from the University of Pennsylvania and received an MBA from Harvard. Mr. Hochfeld has enjoyed a long career in the tech world, working for IBM, Memorex/Telex, Raytheon Data Systems, and BMC Software. Starting in the 1990s, Mr. Hochfeld worked as a sell-side analyst and won awards from the Wall Street Jo ...

Core Viewpoint - Kirby McInerney LLP is investigating potential claims against Elastic N.V. regarding possible violations of federal securities laws and unlawful business practices following a significant decline in share price after the company's financial results announcement [1]. Financial Performance - On August 29, 2024, Elastic reported its financial results for the first quarter ending July 31, 2024, and revised its annual revenue guidance, citing a slower start to the year due to customer commitment volume being affected by segmentation changes [1]. - The company's share price fell by $27.45, or approximately 26.49%, from $103.64 on August 29, 2024, to close at $76.19 on August 30, 2024, following the announcement [1].

NEW YORK, Sept. 09, 2024 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Elastic N.V. ("Elastic" or "the Company") (NYSE: ESTC). Investors who purchased Elastic securities are encouraged to obtain additional information and assist the investigation by visiting the firm's site: bgandg.com/ESTC. Investigation Details On August 29, 2024, Elastic announced its first-quarter financial results. Elastic also revised its ann ...

LOS ANGELES, Sept. 9, 2024 /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Elastic N.V. ("Elastic" or "the Company") (NYSE: ESTC) for violations of the securities laws. The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Elastic announced its first quarter financial results on August 29, 2024. The Company ...

Core Viewpoint - Elastic N.V. has faced significant challenges in its financial performance, leading to a drastic reduction in revenue guidance for the fiscal year 2025, which has resulted in a sharp decline in its stock price [2]. Financial Performance - On August 29, 2024, Elastic reported its financial results for the first quarter of fiscal 2025, which ended on July 31, 2024, and announced a reduction in its revenue guidance for the full year [2]. - The company's CEO indicated that the slower start to the year was due to changes in customer segmentation, which have taken longer than anticipated to stabilize [2]. - Following the announcement, Elastic's share price dropped over 25%, from $103.64 per share to $76.19 per share within a single trading day [2]. Market Reaction - The announcement of reduced revenue guidance prompted a series of downgrades from market analysts, reflecting a negative sentiment towards the company's future performance [2].

NEW YORK, Sept. 04, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Elastic N.V. ("Elastic" or the "Company") (NYSE: ESTC) on behalf of Elastic stockholders. Our investigation concerns whether Elastic has violated the federal securities laws and/or engaged in other unlawful business practices. Click here to participate in the action. On August 30, 2024, Elastic announced that it was reducing its revenue fore ...

Revenue and Growth - For the three months ended July 31, 2024, subscription revenue accounted for 93% of total revenue, compared to 92% for the same period in 2023[82] - Elastic Cloud contributed 45% of total revenue for the three months ended July 31, 2024, up from 41% in the same period of 2023[85] - Subscription revenue increased by $53.5 million, or 20%, for the three months ended July 31, 2024, compared to the same period of the prior year[107] - Elastic Cloud adoption grew 30% over the prior year, increasing its contribution to 45% of total revenue for the three months ended July 31, 2024, up from 41% in the same period of 2023[107] - Total revenue for the three months ended July 31, 2024, was $347,420 thousand, an increase of $53,667 thousand, or 18%, compared to $293,753 thousand for the same period in 2023[107] Customer Metrics - The number of customers increased to approximately 21,200 as of July 31, 2024, compared to approximately 20,500 as of July 31, 2023[83] - The number of customers with annual contract value (ACV) greater than $100,000 rose to over 1,370 as of July 31, 2024, from over 1,190 in 2023[83] - The Net Expansion Rate was approximately 112% as of July 31, 2024[87] Financial Performance - Total cost of revenue increased by $14,280 thousand, or 18%, for the three months ended July 31, 2024, totaling $91,757 thousand compared to $77,477 thousand in the prior year[108] - Gross profit for the three months ended July 31, 2024, was $255,663 thousand, reflecting an increase of $39,387 thousand, or 18%, from $216,276 thousand in the same period of 2023[108] - The net loss for the three months ended July 31, 2024, was $49,227 thousand, compared to a net loss of $48,508 thousand for the same period in 2023[96] Expenses - Research and development expenses for the three months ended July 31, 2024, were $89,332 thousand, up from $80,690 thousand in the prior year[96] - Sales and marketing expenses increased to $157,357 thousand for the three months ended July 31, 2024, compared to $133,169 thousand in the same period of 2023[96] - General and administrative expenses rose to $42,673 thousand for the three months ended July 31, 2024, compared to $37,939 thousand in the prior year[96] - Research and development expenses increased by $8.6 million, or 11%, to $89.3 million for the three months ended July 31, 2024, compared to the same period last year[109] - Sales and marketing expenses rose by $24.2 million, or 18%, to $157.4 million for the three months ended July 31, 2024, driven by increases in personnel and related costs[110] - General and administrative expenses increased by $4.7 million, or 12%, to $42.7 million for the three months ended July 31, 2024, primarily due to higher personnel costs[111] - Restructuring and other related charges decreased by $0.6 million, or 81%, to $0.1 million for the three months ended July 31, 2024, reflecting lower severance and termination benefit charges[112] Tax and Other Income - Provision for income taxes rose by $6.8 million, or 51%, to $20.1 million for the three months ended July 31, 2024, influenced by growth in taxable income[115] - Other income, net increased by $3.9 million, or 54%, to $11.2 million for the three months ended July 31, 2024, mainly due to higher investment income[114] Cash Flow and Financial Position - Net cash provided by operating activities was $52.8 million for the three months ended July 31, 2024, compared to $37.8 million for the same period last year[120] - Net cash used in investing activities was $3.5 million for the three months ended July 31, 2024, down from $55.1 million in the prior year[121] - Net cash provided by financing activities was $4.7 million for the three months ended July 31, 2024, consistent with proceeds from stock option exercises[122] - As of July 31, 2024, the company had cash, cash equivalents, and marketable securities totaling $1.147 billion[116] Foreign Currency and Risk Management - The company has recognized foreign currency transaction losses of $0.2 million and $0.7 million for the three months ended July 31, 2024 and 2023, respectively[127] - A 10% increase or decrease in exchange rates as of July 31, 2024, would have impacted the company's cash, cash equivalents, restricted cash, and marketable securities balances by approximately $8.5 million[127] - As of July 31, 2024, the company's cash, cash equivalents, restricted cash, and marketable securities were primarily denominated in U.S. dollars, Euros, and British Pound Sterling[127] - The company has not had a formal hedging program for foreign currency but may adopt one in the future if exposure increases[127] Management and Legal Matters - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended July 31, 2024[129] - The company's management believes that its disclosure controls and procedures are effective at providing reasonable assurance of achieving their objectives[130] - The company is not currently a party to any legal proceedings that would materially affect its business or financial condition[132] - Future litigation may be necessary to defend the company’s proprietary rights, which could have an adverse impact due to costs and resource diversion[132]