Elastic(US:ESTC)2021-06-03 03:22Financial Data and Key Metrics Changes - In Q4, total revenue was $177.6 million, representing a 44% year-over-year growth [40] - For the full fiscal year, total revenue reached $608.5 million, up 42% year-over-year [40] - Subscription revenue in Q4 totaled $164.5 million, making up 93% of total revenue, with Elastic cloud revenue growing 70% year-over-year to $51.3 million [41] - Elastic cloud revenue for fiscal '21 was $166.3 million, an 80% increase year-over-year, comprising 27% of total revenue [41] - Calculated billings in Q4 grew 38% year-over-year to $240.9 million [43] - Total deferred revenue at the end of Q4 was $397.7 million, up 53% year-over-year [44] Business Line Data and Key Metrics Changes - The company ended Q4 with over 15,000 subscription customers, including more than 730 with annual contract values over $100,000 [46] - The number of customers with ACV over $1 million increased to over 75, compared to over 50 at the end of fiscal '20 [48] - Professional services revenue in Q4 was $13.1 million, growing 34% year-over-year [42] Market Data and Key Metrics Changes - The demand environment in Q4 showed early signs of recovery, with broad-based strength across all three solutions [43] - The net expansion rate was slightly below 130%, reflecting broader market conditions [47] Company Strategy and Development Direction - The company aims to become a $1 billion plus revenue company in fiscal '23, driven by strong cloud adoption and strategic partnerships [38][60] - Investments will focus on sales and marketing to drive initial adoption and scale within enterprises [54] - The company is expanding its cloud offerings and partnerships, particularly with Microsoft, to enhance customer experience [34][96] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term opportunity, citing strong customer alignment with spending priorities [78] - The macroeconomic environment is gradually improving, which is expected to positively impact business performance [75] - The company anticipates that Elastic cloud will continue to grow faster than the overall business due to its feature advantages [56] Other Important Information - The company raised $1.3 million for charitable organizations through its Elastic Cares program in fiscal '21 [37] - The company ended the year with approximately $401 million in cash and cash equivalents, maintaining a strong cash position [52] Q&A Session Summary Question: Insights on the importance of security in the business - Management highlighted that security is the fastest-growing segment, representing around 20% of the business, and emphasized the importance of data as a feature for better protection [64] Question: Adoption of different SKUs and customer transition - Management noted that over half of customers with more than $100,000 ACV have adopted only one solution, indicating significant cross-sell and upsell opportunities [73] Question: Confidence in achieving the billion-dollar target - Management expressed confidence based on strong execution, market opportunity, and customer spending alignment with their solutions [78] Question: Impact of licensing changes on customer additions - Management stated that the licensing changes have not negatively impacted customers and expect long-term benefits for the cloud business [88] Question: Cloud strategy and customer migration - Management believes that their cloud service provides the best experience for customers and is committed to supporting customers wherever they are, including self-managed options [96][101]