Elastic Cloud Hosted Achieves FedRAMP® High Authorization Mar 31, 2026 9:00 AM Eastern Daylight Time Elastic Cloud Hosted Achieves FedRAMP® High Authorization Share U.S. federal agencies can now use Elastic for mission-critical use cases involving the most sensitive, unclassified government data on AWS GovCloud (US) SAN FRANCISCO--(BUSINESS WIRE)-- Elastic(NYSE: ESTC), the Search AI Company, announced that Elastic Cloud Hosted has achieved the Federal Risk and Authorization Management Program (FedRAMP®) Hig ...

Elastic Eliminates Per-Endpoint Pricing for XDR Mar 23, 2026 12:09 PM Eastern Daylight Time Elastic Eliminates Per-Endpoint Pricing for XDR Share Elastic Security ends the "endpoint tax† "Organizations shouldn'4t have to decide which systems are worth protecting, and with AI drastically evolving the threat landscape, they can'€ afford to, †said Mike Nichols, general manager of Security at Elastic. "Per-endpoint pricing turns coverage into a budget decision. We don't believe in that at Elastic. We've built t ...

Core Insights - Elastic has introduced Elastic Workflows, a native automation feature integrated into Elastic Security, eliminating the need for separate SOAR tools [1][2][4] - This integration allows security teams to respond to alerts and security data more efficiently, reducing complexity and reliance on multiple vendors [2][4] Group 1: Product Features - Elastic Workflows provides direct access to alerts, cases, and investigation data, streamlining the automation process [1][2] - The feature allows analysts to execute scripted playbooks alongside AI agents, enhancing response consistency and effectiveness [4][5] - Built on the Elasticsearch platform, Elastic Workflows leverages superior context for more accurate results through integration with Agent Builder [5] Group 2: Market Context - The security landscape is evolving, with adversaries using AI for rapid attacks, necessitating faster response capabilities from organizations [2][4] - Companies that do not utilize AI in their security operations risk falling behind, especially if they continue to rely on separate SOAR tools [4] Group 3: User Impact - A European government agency reported significant time savings, with Elastic Workflows automating case creation and enrichment, allowing their SOC to save up to 2.5 hours daily [3] Group 4: Availability - Elastic Workflows is currently available in tech preview, with general availability expected soon [6]

Financial Data and Key Metrics Changes - Total revenue for Q3 was $450 million, representing an 18% growth year-over-year and a 16% growth on a constant currency basis [23][24] - Sales-led subscription revenue reached $376 million, growing 21% as reported and 19% on a constant currency basis [24] - Current remaining performance obligations (CRPO) crossed the $1 billion mark for the first time, reaching approximately $1.06 billion, growing 19% as reported and 15% on a constant currency basis [24][25] - Non-GAAP operating margin was 18.6%, with subscription gross margins at 82% and total gross margins at 78% [27][28] Business Line Data and Key Metrics Changes - Sales-led subscription revenue growth was driven by both self-managed and cloud offerings, with strong consumption trends [24][26] - The number of customers with an annual contract value (ACV) of over $100,000 grew to over 1,660, marking a 14% increase [25] - 28% of customers in the greater than $100,000 ACV cohort are utilizing Elastic for AI, indicating significant adoption of AI capabilities [26] Market Data and Key Metrics Changes - The company experienced strong deal momentum across all geographies, with multi-year commitments indicating the platform's strategic value [25] - The demand for Elastic's solutions is being driven by the need for organizations to manage increasing data volumes and leverage AI for innovation and efficiency [9][21] Company Strategy and Development Direction - The company is focused on becoming the essential infrastructure for AI-powered businesses, emphasizing the importance of context in AI applications [5][21] - Elastic aims to bridge the gap between proprietary data and AI models, enhancing the adoption of AI across its customer base [12][13] - The introduction of new features like Agent Builder and Elastic Workflows aims to enhance the platform's capabilities for building intelligent applications [18][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for Elastic's solutions, particularly in the context of AI and data management [23][34] - The company anticipates continued growth in sales-led subscription revenue and adjusted free cash flow, supported by strong customer commitments [33][34] - The outlook for Q4 includes expected total revenue in the range of $445 million to $447 million, representing 15% growth at the midpoint [30][31] Other Important Information - The company has made significant progress on its $500 million share repurchase program, returning approximately $186 million to shareholders in Q3 [29] - The partnership with NVIDIA aims to enhance AI application deployment without straining IT infrastructure [17] Q&A Session Summary Question: Potential for growth acceleration as AI penetration increases - Management noted that as more customers reach the $100,000 ACV mark, there is potential for accelerated growth beyond the current 5% average [36][38] Question: Core components for securing status as a leading provider of context for AI applications - The company emphasized the need for a comprehensive data platform that can handle both structured and unstructured data, along with capabilities for hybrid search and context engineering [40][41] Question: Insights on cloud revenue growth and sequential performance - Management highlighted that the sales-led subscription revenue growth remains the key metric, with strong performance in both self-managed and cloud segments [78] Question: Broader AI use cases and their impact on customer spending - The company is witnessing a diversification of AI use cases beyond vector databases, including security and observability workflows, which is expected to drive increased usage and spending [82]

Core Insights - Elastic N.V. (NYSE:ESTC) is recognized as a high-growth cybersecurity stock, particularly in the AI-driven market, with recent developments enhancing its service offerings [1][2]. Group 1: Product Developments - The company announced the Elastic Inference Service, allowing organizations to access cloud-hosted GPU inference capabilities without needing GPU hardware, thus simplifying the adoption of semantic search for self-managed customers [1][3]. - Elastic launched Agent Builder, a platform enabling developers to create AI agents for accessing and analyzing enterprise data, which integrates with Microsoft Foundry and Agent Framework [4]. - Elastic Workflows enhances the functionality of AI agents by allowing them to execute actions across multiple systems, combining AI reasoning with rule-based automation to improve enterprise data use and security [5]. Group 2: Market Position and Performance - Elastic N.V. serves over 50% of the Fortune 500, providing a platform for real-time data ingestion, searching, analyzing, and visualizing, positioning itself as a leader in the search AI sector [6]. - Despite a recent price target cut from $130 to $110 by Rosenblatt Securities due to macroeconomic concerns, the firm maintains a Buy rating and anticipates better-than-expected results for the third quarter of fiscal 2026 [3].