Elastic(US:ESTC)2025-11-20 21:07Revenue Growth - Q2 revenue reached $423 million, a 16% increase year-over-year (15% in constant currency) [5] - Total subscription revenue was $398 million, up 17% year-over-year (16% in constant currency) [5] - Elastic Cloud revenue grew to $206 million, reflecting a 22% year-over-year increase [5] - Total revenue for the three months ended October 31, 2025, was $423,481,000, representing a 15.9% increase from $365,361,000 in the same period of 2024 [30] - Subscription revenue increased to $397,699,000 for the three months ended October 31, 2025, up 16.7% from $340,807,000 in the prior year [30] - Annual Elastic Cloud revenue reached $156,868,000 for the three months ended October 31, 2025, a 27% increase compared to the same period last year [38] - Total subscription revenue for the six months ended October 31, 2025, was $786,282,000, an 18% increase year-over-year [38] Financial Performance - Non-GAAP operating income was $70 million, with a non-GAAP operating margin of 16.5% [5] - Operating loss for the three months ended October 31, 2025, was $(8,236,000), compared to $(4,426,000) in the same period of 2024 [30] - Net loss for the six months ended October 31, 2025, was $(75,887,000), slightly higher than $(74,677,000) in the same period of 2024 [30] - Non-GAAP net income for the three months ended October 31, 2025, was $69,027,000, up from $62,906,000 year-over-year [42] - GAAP net loss for the three months ended October 31, 2025, was $51,284,000, compared to a loss of $25,450,000 in the same period last year [42] Cash and Assets - Cash and cash equivalents as of October 31, 2025, totaled $800,586,000, an increase from $727,543,000 as of April 30, 2025 [32] - Total assets decreased to $2,476,570,000 as of October 31, 2025, from $2,592,853,000 as of April 30, 2025 [32] - Total liabilities as of October 31, 2025, were $1,585,458,000, down from $1,665,619,000 as of April 30, 2025 [32] - Net cash provided by operating activities for the six months ended October 31, 2025, was $131,447,000, compared to $91,131,000 in the same period of 2024 [34] - The company reported a net increase in cash, cash equivalents, and restricted cash of $138,064,000 for the three months ended October 31, 2025 [34] Customer Metrics - The total customer count with Annual Contract Value (ACV) greater than $100,000 exceeded 1,600, up from over 1,550 in Q1 FY26 [6] - The Net Expansion Rate was approximately 112% [6] - Total remaining performance obligations amounted to $971 million, a 17% increase year-over-year (15% in constant currency) [5] - Total deferred revenue as of October 31, 2025, was $732,511,000, reflecting a 13% increase year-over-year [38] - Total remaining performance obligations as of October 31, 2025, were $1,506,725,000, a 19% increase year-over-year [38] Guidance and Future Outlook - The company raised its full-year total revenue guidance by $18 million due to strong customer commitments [1] - For fiscal 2026, total revenue is expected to be between $1.715 billion and $1.721 billion, representing 16% year-over-year growth at the midpoint [12] Expenses - GAAP research and development expenses for Q2 2025 totaled $108,152 million, an increase from $88,163 million in Q2 2024, marking a rise of 22.6% [44] - Non-GAAP sales and marketing expenses for the first half of 2025 were $299,375 million, compared to $257,748 million in the first half of 2024, indicating a growth of 16.1% [44] - GAAP general and administrative expenses for Q2 2025 were $47,962 million, up from $44,085 million in Q2 2024, which is an increase of 6.4% [44] - Non-GAAP general and administrative expenses for the first half of 2025 were $61,740 million, compared to $60,011 million in the same period of 2024, showing a slight increase of 2.9% [44] - Stock-based compensation expense for research and development in Q2 2025 was $28,434 million, compared to $24,777 million in Q2 2024, reflecting an increase of 14.3% [44] - Total GAAP services revenue for Q2 2025 was $25,505 million, up from $23,238 million in Q2 2024, representing an increase of 9.8% [44] - Non-GAAP services revenue for the first half of 2025 reached $44,746 million, compared to $39,312 million in the first half of 2024, indicating a growth of 13.3% [44] - Amortization of acquired intangibles decreased from $2,835 million in Q2 2024 to $2,158 million in Q2 2025, a reduction of 23.8% [44]