On August 29, 2024, Elastic NV (ESTC, Financial) released its 8-K filing detailing the financial results for the first quarter of fiscal 2025, which ended on July 31, 2024. Elastic, a software company based in Mountain View, California, focuses on search-adjacent products, enabling enterprises to process and glean insights from both structured and unstructured data.
Performance Overview
Elastic NV (ESTC, Financial) reported total revenue of $347 million for Q1 FY2025, an 18% increase year-over-year, surpassing the analyst estimate of $344.70 million. However, the company posted a GAAP net loss per share of $0.48, missing the estimated earnings per share (EPS) of -$0.41. The company's performance highlights both its growth potential and the challenges it faces in achieving profitability.
Key Financial Achievements
Elastic's financial achievements for the quarter include:
- Total revenue of $347 million, up 18% year-over-year.
- Elastic Cloud revenue of $157 million, up 30% year-over-year.
- Non-GAAP operating income of $37 million, with a non-GAAP operating margin of 11%.
- Operating cash flow of $53 million and adjusted free cash flow of $64 million.
- Cash, cash equivalents, and marketable securities totaling $1.147 billion as of July 31, 2024.
Income Statement Highlights
| Metric | Q1 FY2025 | Q1 FY2024 |
|---|---|---|
| Total Revenue | $347 million | $293.8 million |
| GAAP Operating Loss | $34 million | $36.2 million |
| GAAP Net Loss | $49.2 million | $48.5 million |
| Non-GAAP Diluted EPS | $0.35 | Not Provided |
Balance Sheet and Cash Flow
Elastic's balance sheet remains robust with cash, cash equivalents, and marketable securities amounting to $1.147 billion. The company reported an operating cash flow of $53 million and an adjusted free cash flow of $64 million, indicating strong liquidity and operational efficiency.
Key Metrics and Business Highlights
Elastic's customer metrics showed positive trends:
- Total customer count with Annual Contract Value (ACV) greater than $100,000 was over 1,370, up from over 1,330 in Q4 FY24.
- Total subscription customer count was approximately 21,200, up from approximately 21,000 in Q4 FY24.
- Net Expansion Rate was approximately 112%.
Product Innovations and Updates
Elastic introduced several product innovations, including:
- Automatic Import for SIEM data onboarding.
- Playground for accelerating RAG development with Elasticsearch.
- Expanded LLM options on the Elastic Search AI Platform.
- Integration of Elasticsearch vector database with LangChain and Red Hat OpenShift AI.
Challenges and Future Outlook
Despite the positive financial performance, Elastic faced challenges with customer segmentation changes, which impacted the volume of customer commitments. CEO Ash Kulkarni commented,
“We delivered solid first quarter results, outperforming the high end of our guidance for both revenue and profitability, and we continued to see strong adoption of our GenAI offerings. However, we had a slower start to the year with the volume of customer commitments impacted by segmentation changes that we made at the beginning of the year, which are taking longer than expected to settle. We have been taking steps to address this, but it will impact our revenue this year.”
Financial Outlook
For Q2 FY2025, Elastic expects total revenue between $353 million and $355 million, representing 14% year-over-year growth at the midpoint. The non-GAAP operating margin is expected to be approximately 13%, with non-GAAP diluted EPS between $0.37 and $0.39.
For the full fiscal year 2025, the company anticipates total revenue between $1.436 billion and $1.444 billion, with a non-GAAP operating margin of approximately 12.5% and non-GAAP diluted EPS between $1.52 and $1.56.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Elastic NV for further details.
