Elastic NV
NYSE:ESTC
Elastic NV
Nestled in the rapidly evolving landscape of search and data technology, Elastic NV has emerged as a formidable player since its founding in 2012. At its core, Elastic is built upon the open-source Elasticsearch technology, which quickly became the company's flagship product. Elasticsearch is a search and data analytics engine that enables organizations to search, analyze, and visualize their data in real-time. Whether it's log or document search, infrastructure monitoring, or application performance management, Elastic's suite of products facilitates the seamless handling and interpretation of massive datasets, empowering businesses to transform vast amounts of information into actionable insights.
Elastic NV generates its revenue primarily through subscriptions to its services and support offerings. Businesses around the world, from small startups to large enterprises, leverage Elastic's technology to harness the full potential of their data. The company offers various subscription tiers for its core products, including Elasticsearch and Kibana, accommodating the diverse needs and scales of its clientele. Additionally, Elastic's cloud service, Elastic Cloud, has become an essential component of its revenue model, allowing organizations to deploy, manage, and scale their Elastic Stack in a streamlined and efficient manner. This blend of open-source foundations and premium service offerings creates a robust ecosystem that not only ensures a steady income stream but also fosters strong and lasting partnerships with its clients.
Nestled in the rapidly evolving landscape of search and data technology, Elastic NV has emerged as a formidable player since its founding in 2012. At its core, Elastic is built upon the open-source Elasticsearch technology, which quickly became the company's flagship product. Elasticsearch is a search and data analytics engine that enables organizations to search, analyze, and visualize their data in real-time. Whether it's log or document search, infrastructure monitoring, or application performance management, Elastic's suite of products facilitates the seamless handling and interpretation of massive datasets, empowering businesses to transform vast amounts of information into actionable insights.
Elastic NV generates its revenue primarily through subscriptions to its services and support offerings. Businesses around the world, from small startups to large enterprises, leverage Elastic's technology to harness the full potential of their data. The company offers various subscription tiers for its core products, including Elasticsearch and Kibana, accommodating the diverse needs and scales of its clientele. Additionally, Elastic's cloud service, Elastic Cloud, has become an essential component of its revenue model, allowing organizations to deploy, manage, and scale their Elastic Stack in a streamlined and efficient manner. This blend of open-source foundations and premium service offerings creates a robust ecosystem that not only ensures a steady income stream but also fosters strong and lasting partnerships with its clients.
Revenue Beat: Elastic reported Q2 revenue of $423 million, up 16% year-over-year, beating the high end of guidance.
Sales-Led Subscriptions: Sales-led subscription revenue grew 18%, reflecting strong demand in both cloud and self-managed offerings.
Large Deals: The company signed over 30 deals above $1 million annual value, including 5 above $10 million and 2 above $20 million, a new record.
AI Tailwinds: Gen AI adoption is accelerating growth, with 23% of $100,000+ customers now leveraging Elastic for AI use cases.
Profitability: Operating margin reached 16.5%, and free cash flow margin was 6% for the quarter.
Raised Guidance: Full-year fiscal 2026 revenue guidance raised to $1.715–$1.721 billion, and EPS guidance also increased.
Federal Win: Landmark $26 million security contract closed with CISA, the US agency for civilian infrastructure security.
Share Buybacks: Elastic repurchased $114 million in stock in Q2 as part of a $500 million authorized program.
