Financial Data and Key Metrics Changes - The company reported total revenue of $423 million for Q2, representing a growth of 16% year-over-year and 15% on a constant currency basis [24] - Sales-led subscription revenue was $349 million, growing 18% as reported and 17% on a constant currency basis [24] - The current remaining performance obligation (CRPO) was approximately $971 million, growing 17% as reported and 15% in constant currency [25] - Subscription gross margins were 82%, total gross margins were 78%, and operating margin was 16.5% [28] - Adjusted free cash flow was approximately $26 million, representing a margin of 6% [29] Business Line Data and Key Metrics Changes - The company saw strong execution in sales-led subscription revenue, with a notable increase in large commitments, including over 30 commitments greater than $1 million in annual contract value [24][26] - The number of customers spending over $100,000 annually grew to more than 1,600, with 23% of this cohort utilizing Elastic for GenAI use cases, up from 17% a year ago [27][33] Market Data and Key Metrics Changes - The company experienced broad-based demand across all geographies, supported by healthy consumption trends [23] - Despite a government shutdown impacting some renewals, the company closed significant deals, including a $26 million commitment with CISA [26][29] Company Strategy and Development Direction - The company is focusing on AI and platform consolidation as top priorities for enterprises, which is driving sustained momentum in demand [23] - The introduction of new products like Agent Builder aims to enhance the company's capabilities in AI and context engineering, further differentiating its offerings [15][19] - The acquisition of Jina AI is expected to accelerate the company's strategy in AI and vector search [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's momentum, citing strong consumption and commitments as key drivers for future growth [38][41] - The company raised its full fiscal year 2026 revenue guidance, expecting total revenue in the range of $1.715 billion to $1.721 billion, representing approximately 16% growth at the midpoint [32] Other Important Information - The company initiated a $500 million share repurchase program, returning approximately $114 million in cash to shareholders during Q2 [29] - The company plans to participate in upcoming conferences, including the Barclays Global Technology Conference and the Needham Growth Conference [5] Q&A Session Summary Question: Performance of non-AI-native customers - Management noted strong consumption trends across all customer segments, including traditional businesses, driven by increased commitments and consolidation onto the platform [36] Question: Billings lagging behind other metrics - Management explained that seasonality and a government shutdown impacted renewals, but overall commitments and consumption remained strong [40][42] Question: Composition of sales-led subscription revenue guidance - Management clarified that the guidance focuses on commitments from both cloud and self-managed environments, with expectations for flat growth in the self-serve segment [49] Question: Growth in GenAI revenue contributions - Management emphasized that consumption growth is driven by various factors, including new workloads and platform efficiency, rather than pricing alone [53][56] Question: Competitive landscape in security - Management highlighted that the company is successfully displacing incumbents in the security space, leveraging its data platform and AI capabilities [85][90]

Core Insights - Elastic has introduced Streams, an AI-powered solution designed to enhance the efficiency of incident investigation and resolution for teams working with logs [1] Company Overview - Elastic is positioned as the Search AI Company, focusing on innovative solutions that leverage artificial intelligence to improve operational workflows [1] Product Features - Streams utilizes AI to automatically partition and parse raw logs, significantly reducing the workload for Site Reliability Engineers (SREs) [1] - The solution also highlights significant events, such as critical errors and anomalies, to facilitate quicker responses [1]

Reliability and Security - Chainlink oracle services operated without interruption despite widespread cloud outage [1] - Chainlink platform is built to withstand single points of failure, delivering high security and reliability [2] - Chainlink utilizes independent, distributed operations across geographic regions and infra providers [2] - Data is delivered directly on each supported chain without reliance on third-party bridges or relayers [2] - Decentralized oracle networks (DONs) eliminate single points of network-operation failure [3] - Operators manage their own authenticated API connections, minimizing centralized data provisioning [3] - Chain-specific deployments limit inter-chain dependencies and correlated risk [3] Market Position and Impact - Chainlink secures 70% of the oracle-enabled DeFi economy [1] - Chainlink enables billions in value to move cross-chain via CCIP [1] - Chainlink secures approximately $100 billion in DeFi markets [4] - Chainlink enables $26+ trillion in transaction value [4]

Platform Launch - Based Streams, a live streaming platform built on Hyperliquid and backed by Ethena Labs, has officially launched [1] - The platform enables users to host real-time trading streams and interact with viewers [1] Key Features - Viewers can directly tip streamers with Hypercore tokens [1] - Viewers can earn "Based Gold" rewards for watching streams [1]