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.
Beat Across Metrics: Elastic exceeded the high end of guidance for both revenue and profitability, highlighting strong execution and demand.
Revenue Growth: Total revenue grew 18% year-over-year to $450 million, driven by robust sales-led subscription growth.
AI Momentum: AI-related customer adoption continues to expand rapidly, with over 3,000 customers now using Elastic for AI, including more than 470 customers with $100,000+ ACV.
Large Deal Wins: Commitments over $1 million in annual value grew more than 30% year-over-year, with notable competitive displacements against legacy and cloud-native vendors.
Raised Guidance: Management raised full-year revenue and subscription revenue guidance, now expecting $1.734–$1.736 billion in total revenue and $1.434–$1.436 billion in sales-led subscription revenue.
Profitability: Operating margin was 18.6% for the quarter, with full-year margin guidance raised to 16.3%.
Share Repurchases: Elastic has already repurchased 60% of its $500 million program, returning $186 million to shareholders in Q3.
Strong CRPO Growth: Current remaining performance obligations (CRPO) surpassed $1 billion, growing 19% year-over-year.
