Elastic Beats Q3 Estimates but Shares Fall 15% on Q4 Guidance

Core Insights - Elastic N.V. reported third-quarter results that surpassed analyst expectations, but shares fell over 15% intra-day due to concerns about the fourth-quarter outlook [1] Group 1: Financial Performance - The company posted adjusted earnings per share of $0.73, exceeding the consensus estimate of $0.65 by $0.08 [1] - Revenue increased by 18% year-over-year to $450 million, surpassing analyst expectations of $438.38 million [1] - Subscription revenue rose by 19% to $426 million, while sales-led subscription revenue advanced by 21% to $376 million [2] Group 2: Future Projections - For the fourth quarter of fiscal 2026, Elastic forecasts revenue between $445 million and $447 million, with a midpoint of $446 million indicating 15% year-over-year growth [2] - Adjusted earnings per share for the fourth quarter are projected to be between $0.55 and $0.57 [2] - For the full fiscal 2026, the company expects revenue between $1.734 billion and $1.736 billion, slightly above the $1.72 billion consensus estimate [3] Group 3: Customer Metrics - Elastic's customer base with annual contract value above $100,000 grew to over 1,660, up from over 1,460 in the prior-year quarter [3] - The net expansion rate was approximately 112% [3]