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Elastic N.V Up by almost 20% after Q2 Performance Update
Happy Monday, investors of Commonstock, and welcome to all the new followers; we are grateful to have you with us! 🚀
Today we are looking at a stock that does more than just impress on paper.
Earnings Snapshot
Elastic N.V., the real-time search database titan, posted a robust Q1 for Fiscal 2024.
Highlights? A 17% YoY total revenue increase to $294 million, with Elastic Cloud revenue scaling up by 24% YoY to hit $121 million.
What's exactly Elastic N.V do?
Elastic N.V. develops search and analytic solutions, primarily known for their Elastic Stack which includes Elasticsearch, Logstash, Kibana, and Beats.
Developers utilize the Elastic Stack (or ELK Stack) for a range of functions, from centralized logging and full-text search to performance monitoring and data visualization. Its versatility supports diverse applications, from business analytics to geospatial data analysis.
Operating Overview
While Elastic reported a GAAP operating loss of $36 million, non-GAAP operations painted a brighter picture with a $29 million income and a 10% margin. Elastic's cash flow? Optimistic and impressive at $38 million.
Customer Growth
Elastic's expansion is evident with its rising customer count, now at approximately 20,500,
compared to approximately 20,200 in Q4 FY23, and over 19,300 in Q1 FY23.
1,190 of Elastic customers have anACV greater than $100,000.
Product Innovations:
Elastic unveiled its AI Assistant, optimized search capabilities via Reciprocal Rank Fusion (RRF) technology, and integrated a new capability called Time Series Data Streams (TSDS), which can potentially cut storage needs for metrics data by up to 70%.
In the Words of the CEO:
"We had a strong start to the fiscal year... We are very excited about the long-term opportunity generative AI represents for Elastic," commented CEO Ash Kulkarni.
Elastic N.V. continues to solidify its place as a leader in the search and analytics sector.
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$ESTC sequential improvement on revenue is encouraging, but their pace of customer add is still somewhat tepid, even with the new product launches. I do see its platform approach to search, observability, and security as a plus. Elastic is under the radar, compared to many other SaaS stocks....
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