Q2 Revenue of $365 million, up 18%
year-over-year (17% in constant currency)
Q2 Elastic Cloud Revenue of $169 million, up
25% year-over-year (25% in constant currency)
Announces Chief Financial Officer
Transition
Elastic (NYSE: ESTC) (“Elastic”), the company behind
Elasticsearch®, announced financial results for its second quarter
of fiscal 2025 ended October 31, 2024.
Second Quarter Fiscal 2025 Financial Highlights
- Total revenue was $365 million, an increase of 18%
year-over-year, or 17% on a constant currency basis
- Elastic Cloud revenue was $169 million, an increase of 25%
year-over-year, as reported and on a constant currency basis
- GAAP operating loss was $4 million; GAAP operating margin was
-1%
- Non-GAAP operating income was $64 million; non-GAAP operating
margin was 18%
- GAAP net loss per share was $0.25; non-GAAP diluted earnings
per share was $0.59
- Operating cash flow and adjusted free cash flow of $38
million
- Cash, cash equivalents, and marketable securities were $1.198
billion as of October 31, 2024
“Elastic delivered a strong second quarter supported by solid
sales execution, exceeding our guidance across all revenue and
profitability metrics,” said Ash Kulkarni, Chief Executive Officer,
Elastic. “In Q2 we saw strong customer commitments with key wins
across all our solution areas, with continued momentum in GenAI and
platform consolidation. Our clear product differentiation, and our
relentless pace of innovation is helping us become a natural choice
for customers building GenAI applications.”
Second Quarter Fiscal 2025 Key Metrics and Recent Business
Highlights
Key Customer Metrics
- Total customer count with Annual Contract Value (ACV) greater
than $100,000 was over 1,420 compared to over 1,370 in Q1 FY25, and
over 1,220 in Q2 FY24
- Total subscription customer count was approximately 21,300
compared to approximately 21,200 in Q1 FY25, and approximately
20,700 in Q2 FY24
- Net Expansion Rate was approximately 112%
Product Innovations and Updates
- Delivered Better Binary Quantization (BBQ) in Elasticsearch, a
new quantization approach unique to Elastic, that offers
significant memory reduction to deliver vector search at lower
costs while maintaining accuracy
- Launched AutoOps, a monitoring and management tool from
Elastic’s acquisition of Opster, to allow Elastic Cloud users to
access simplified cluster management with performance
recommendations, resource utilization and cost insights, real time
issue detection, and resolution paths
- Integrated Cloud Detection and Response (CDR) into Elastic’s AI
driven Security solution, enabling users to benefit from detection
rules that combine cloud telemetry with other relevant logs
collected by SIEM and gain context from correlating other events to
perform streamlined investigations
- Achieved 100% OpenTelemetry (OTel) native observability,
enabling seamless data ingestion without any schema translation,
and offering out-of-the-box Kubernetes integration providing users
with instant visibility into clusters and applications, all without
the need for manual configuration
- Announced the Elastic AI Ecosystem to help enterprise
developers accelerate building and deploying their Retrieval
Augmented Generation (RAG) applications with technology
integrations including Microsoft, Amazon Web Services, Google,
NVIDIA, OpenAI, Alibaba Cloud, Anthropic, Cohere, RedHat, Hugging
Face, Confluent, LangChain, Mistral, Data Robot, Dataiku,
ProtectAI, Galileo, Vectorize, LlamaIndex and Unstructured
- Expanded LLM Observability capabilities to include Amazon
Bedrock providing dashboards and detailed insights into model
performance, usage patterns and costs, adding to previously
announced support for Azure OpenAI
Other Business Highlights
- Announced the listing of the Elastic Search AI Platform in the
AWS Marketplace for the U.S. Intelligence Community (ICMP), making
it easier for US Federal customers to discover, purchase, and
deploy Elastic’s solutions
- Launched Elastic’s third global threat report, highlighting how
adversaries are exploiting basic security settings
- Engaged with thousands of customers and partners across
ElasticONs in San Francisco, Bangalore, Munich and New York
Financial Outlook
The Company is providing the following guidance:
For the third quarter of fiscal 2025 (ending January 31,
2025):
- Total revenue is expected to be between $367 million and $369
million, representing 12% year-over-year growth at the midpoint
(13% year-over-year constant currency growth at the midpoint)
- Non-GAAP operating margin is expected to be approximately
15%
- Non-GAAP diluted earnings per share is expected to be between
$0.46 and $0.48, assuming between 106.0 million and 107.0 million
diluted weighted average ordinary shares outstanding
For fiscal 2025 (ending April 30, 2025):
- Total revenue is expected to be between $1.451 billion and
$1.457 billion, representing 15% year-over-year growth at the
midpoint (15% year-over-year constant currency growth at the
midpoint)
- Non-GAAP operating margin is expected to be approximately
13.5%
- Non-GAAP diluted earnings per share is expected to be between
$1.68 and $1.72, assuming between 106.0 million and 108.0 million
diluted weighted average ordinary shares outstanding
The guidance assumes, among others, the following exchange
rates: 1 Euro = 1.060 US Dollars; and 1 Great British Pound = 1.267
US Dollars.
See the section titled “Forward-Looking Statements” below for
information on the factors that could cause our actual results to
differ materially from those expressed or implied in our
forward-looking statements. We present historical and
forward-looking non-GAAP financial measures in addition to, and not
as a substitute for, or superior to, financial measures calculated
in accordance with GAAP. See the section entitled “Statement
Regarding Use of Non-GAAP Financial Measures” for an explanation of
these non-GAAP measures. A reconciliation of forward-looking
non-GAAP measures to the corresponding GAAP measures for operating
margin and net loss per share is not available without unreasonable
effort due to the uncertainty regarding, and the potential
variability of, many of the costs and expenses that may be incurred
in the future. These items necessary to reconcile such non-GAAP
measures could be material and have a significant impact on the
Company’s results computed in accordance with GAAP.
Chief Financial Officer Transition
Elastic also announced today that Janesh Moorjani, the Company’s
Chief Financial Officer and Chief Operating Officer, will be
leaving Elastic to pursue another opportunity and his last day with
Elastic will be December 13, 2024. Eric Prengel, Elastic’s Group
Vice President of Finance, has been appointed as interim Chief
Financial Officer effective December 14, 2024. Prengel has been
with Elastic for the past two years with broad responsibility for
various FP&A and business partnership functions. Prior to
joining Elastic, Prengel spent nearly 10 years at J.P. Morgan in
various investment banking leadership roles.
“I’d like to thank Janesh for all his contributions to Elastic
over the past seven years. He has been a trusted colleague and a
friend, and we wish him all the best as he pursues a new
opportunity. Having worked closely with Eric during his time here,
I am excited to have him step into the interim CFO role and I am
confident in his disciplined leadership and ability to excel in
this role,” said Kulkarni.
Conference Call and Webcast
Elastic’s executive management team will host a conference call
today at 2:00 p.m. PT/5:00 p.m. ET to discuss the Company’s
financial results and business outlook. A live audio webcast of the
conference call will be available through Elastic’s Investor
Relations website at ir.elastic.co. A presentation containing
financial and operating information will be available at the same
website. The replay of the webcast will also be available on the
investor relations website.
About Elastic
Elastic (NYSE: ESTC), the Search AI Company, enables everyone to
find the answers they need in real-time using all their data, at
scale. Elastic’s solutions for search, observability and security
are built on the Elastic Search AI Platform, the development
platform used by thousands of companies, including more than 50% of
the Fortune 500. Learn more at elastic.co.
Elastic and associated marks are trademarks or registered
trademarks of Elastic N.V. and its subsidiaries. All other company
and product names may be trademarks of their respective owners.
Forward-Looking Statements
This press release contains forward-looking statements that
involve substantial risks and uncertainties, which include, but are
not limited to, statements regarding our expected financial results
for the fiscal quarter ending January 31, 2025 and the fiscal year
ending April 30, 2025, the expected performance or benefits of our
offerings, our product strategy and innovation, changes in
leadership, expected market opportunities, and our ability to
execute on those market opportunities. Actual outcomes and results
may differ materially from those contemplated by these
forward-looking statements due to uncertainties, risks, and changes
in circumstances, including but not limited to those related to:
our future financial performance, including our expectations
regarding our revenue, cost of revenue, gross profit or gross
margin, operating expenses (which include changes in sales and
marketing, research and development and general and administrative
expenses), and our ability to achieve and maintain future
profitability; our ability to continue to deliver and improve our
offerings and develop new offerings (including innovations around
AI use cases); customer acceptance and purchase of our new and
existing offerings; the expansion and adoption of our Elastic Cloud
offerings; our ability to realize value from investments in the
business; our ability to maintain and expand our user and customer
base; the impact of the evolving macroeconomic and geopolitical
environments on our business, operations, hiring and financial
results, and on businesses and spending priorities of our customers
and partners; the impact of our pricing model strategies on our
business; the impact of our licensing model on the use and adoption
of our software; the impact of foreign currency exchange rate
fluctuations and the uncertain inflation and interest rate
environment on our results; our international expansion strategy;
our operating results and cash flows; the sufficiency of our
capital resources; our ability to successfully execute our
go-to-market strategy, our forecasts regarding our business; and
general market, political, economic and business conditions.
Any additional or unforeseen effect from the evolving
macroeconomic and geopolitical environments may exacerbate these
risks. Additional risks and uncertainties that could cause actual
outcomes and results to differ materially from those expressed or
implied in our forward-looking statements are included in our
filings with the Securities and Exchange Commission (the “SEC”),
including our Annual Report on Form 10-K for the fiscal year ended
April 30, 2024 and subsequent reports filed with the SEC. SEC
filings are available on the Investor Relations section of
Elastic’s website at ir.elastic.co and the SEC’s website at
www.sec.gov. Elastic assumes no obligation to, and does not
currently intend to, update any such forward-looking statements,
except as required by law.
Statement Regarding Use of Non-GAAP Financial
Measures
In addition to our results determined in accordance with U.S.
GAAP, we believe the non-GAAP measures listed below are useful in
evaluating our operating performance. We use these non-GAAP
financial measures to evaluate our ongoing operations and for
internal planning and forecasting purposes. We believe that
non-GAAP financial information, when taken collectively, may be
helpful to investors because it provides consistency and
comparability with past financial performance. However, non-GAAP
financial information is presented for supplemental informational
purposes only, has limitations as an analytical tool and should not
be considered in isolation or as a substitute for financial
information presented in accordance with U.S. GAAP. In addition,
other companies, including companies in our industry, may calculate
similarly-titled non-GAAP measures differently or may use other
measures to evaluate their performance, all of which could reduce
the usefulness of our non-GAAP financial measures as tools for
comparison. Investors are cautioned that there are a number of
limitations associated with the use of non-GAAP financial measures
and key metrics as analytical tools. Investors are encouraged to
review the differences between GAAP financial measures and the
corresponding non-GAAP financial measures, and not to rely on any
single financial measure to evaluate our business.
Reconciliations of historical GAAP financial measures to their
respective historical non-GAAP financial measures are included
below. In relation to constant currency non-GAAP financial
measures, the only reconciling item between GAAP financial measures
and non-GAAP financial measures is the effect of foreign currency
rate fluctuations. Further details on how we calculate such effects
can be found in the definition of “Constant Currency” below.
Non-GAAP Gross Profit and Non-GAAP Gross Margin
We define non-GAAP gross profit and non-GAAP gross margin as
GAAP gross profit and GAAP gross margin, respectively, excluding
stock-based compensation expense and related employer taxes and
amortization of acquired intangible assets. We believe non-GAAP
gross profit and non-GAAP gross margin provide our management and
investors consistency and comparability with our past financial
performance and facilitate period-to-period comparisons of
operations, as these metrics generally eliminate the effects of
certain variables from period to period for reasons unrelated to
overall operating performance.
Non-GAAP Operating Income and Non-GAAP Operating
Margin
We define non-GAAP operating income and non-GAAP operating
margin as GAAP operating loss and GAAP operating margin,
respectively, excluding stock-based compensation expense and
related employer taxes, amortization of acquired intangible assets,
acquisition-related expenses, and restructuring and other related
charges. We believe non-GAAP operating income and non-GAAP
operating margin provide our management and investors consistency
and comparability with our past financial performance and
facilitate period-to-period comparisons of operations, as these
metrics generally eliminate the effects of certain variables from
period to period for reasons unrelated to overall operating
performance.
Non-GAAP Net Income and Non-GAAP Earnings Per Share
We define non-GAAP net income as GAAP loss, excluding
stock-based compensation expense and related employer taxes,
amortization of acquired intangible assets, acquisition-related
expenses, restructuring and other related charges, and the related
income tax effect of these adjustments as well as other significant
tax adjustments. We define non-GAAP earnings per share, basic, as
non-GAAP net income divided by weighted average shares outstanding
and non-GAAP earnings per share, diluted, as non-GAAP net income
divided by weighted average diluted shares outstanding, which
includes the potentially dilutive effect of the company’s employee
equity incentive plan awards. We believe non-GAAP earnings per
share provides our management and investors consistency and
comparability with our past financial performance and facilitates
period-to-period comparisons of operations, as this metric
generally eliminates the effects of certain variables from period
to period for reasons unrelated to overall operating
performance.
Adjusted Free Cash Flow and Adjusted Free Cash Flow
Margin
Adjusted free cash flow is a non-GAAP financial measure that we
define as net cash provided by (used in) operating activities
adjusted for cash paid for interest less cash used for investing
activities for purchases of property and equipment. Adjusted free
cash flow margin is calculated as adjusted free cash flow divided
by total revenue. Adjusted free cash flow does not represent
residual cash flow available for discretionary expenditures since,
among other things, we have mandatory debt service
requirements.
Constant Currency
We compare the percent change in certain results from one period
to another period using constant currency information to provide a
framework for assessing how our business performed excluding the
effect of foreign currency rate fluctuations. In presenting this
information, current and comparative prior period results are
converted into United States dollars at the exchange rates in
effect on the last day of our prior fiscal year, rather than the
actual exchange rates in effect during the respective periods.
Contact Information
Anthony Luscri Elastic Investor Relations
ir@elastic.co
Madge Miller Elastic Corporate Communications
PR-Team@elastic.co
Elastic N.V.
Condensed Consolidated
Statements of Operations
(in thousands, except share and
per share data)
(unaudited)
Three Months Ended October
31,
Six Months Ended October
31,
2024
2023
2024
2023
Revenue
Subscription
$
340,807
$
287,743
$
664,581
$
557,990
Services
24,554
22,869
48,200
46,375
Total revenue
365,361
310,612
712,781
604,365
Cost of revenue
Subscription
69,941
59,996
138,288
117,262
Services
23,238
20,093
46,648
40,304
Total cost of revenue
93,179
80,089
184,936
157,566
Gross profit
272,182
230,523
527,845
446,799
Operating expenses
Research and development
88,163
80,108
177,495
160,798
Sales and marketing
144,274
133,230
301,631
266,399
General and administrative
44,085
38,695
86,758
76,634
Restructuring and other related
charges
86
29
225
754
Total operating expenses
276,608
252,062
566,109
504,585
Operating loss
(4,426
)
(21,539
)
(38,264
)
(57,786
)
Other income, net
Interest expense
(6,462
)
(6,349
)
(12,988
)
(12,655
)
Other income, net
9,106
8,239
20,314
15,539
Loss before income taxes
(1,782
)
(19,649
)
(30,938
)
(54,902
)
Provision for income taxes
23,668
5,147
43,739
18,402
Net loss
$
(25,450
)
$
(24,796
)
$
(74,677
)
$
(73,304
)
Net loss per share attributable to
ordinary shareholders, basic and diluted
$
(0.25
)
$
(0.25
)
$
(0.73
)
$
(0.74
)
Weighted-average shares used to compute
net loss per share attributable to ordinary shareholders, basic and
diluted
103,238,740
99,073,401
102,761,588
98,507,725
Elastic N.V.
Condensed Consolidated Balance
Sheets
(in thousands, except share and
per share data)
(unaudited)
As of
October 31,
2024
As of
April 30, 2024
Assets
Current assets:
Cash and cash equivalents
$
658,508
$
540,397
Restricted cash
3,320
2,692
Marketable securities
539,062
544,002
Accounts receivable, net of allowance for
credit losses of $4,992 and $4,979 as of October 31, 2024 and April
30, 2024, respectively
256,068
323,011
Deferred contract acquisition costs
77,129
78,030
Prepaid expenses and other current
assets
41,667
42,765
Total current assets
1,575,754
1,530,897
Property and equipment, net
5,005
5,453
Goodwill
319,417
319,380
Operating lease right-of-use assets
16,433
20,506
Intangible assets, net
14,506
20,620
Deferred contract acquisition costs,
non-current
106,120
114,509
Deferred tax assets
187,204
225,544
Other assets
7,061
5,657
Total assets
$
2,231,500
$
2,242,566
Liabilities and Shareholders’
Equity
Current liabilities:
Accounts payable
$
23,557
$
26,075
Accrued expenses and other liabilities
75,979
75,292
Accrued compensation and benefits
72,511
93,691
Operating lease liabilities
10,525
12,187
Deferred revenue
608,157
663,846
Total current liabilities
790,729
871,091
Deferred revenue, non-current
37,548
30,293
Long-term debt, net
569,165
568,612
Operating lease liabilities,
non-current
9,621
12,898
Other liabilities, non-current
12,919
21,487
Total liabilities
1,419,982
1,504,381
Shareholders’ equity:
Preference shares, €0.01 par value;
165,000,000 shares authorized, 0 shares issued and outstanding as
of October 31, 2024 and April 30, 2024
—
—
Ordinary shares, par value €0.01 per
share: 165,000,000 shares authorized; 103,631,086 shares issued and
outstanding as of October 31, 2024 and 101,705,935 shares issued
and outstanding as of April 30, 2024
1,091
1,070
Treasury stock
(369
)
(369
)
Additional paid-in capital
1,895,307
1,750,729
Accumulated other comprehensive loss
(18,227
)
(21,638
)
Accumulated deficit
(1,066,284
)
(991,607
)
Total shareholders’ equity
811,518
738,185
Total liabilities and shareholders’
equity
$
2,231,500
$
2,242,566
Elastic N.V.
Condensed Consolidated
Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended October
31,
Six Months Ended October
31,
2024
2023
2024
2023
Cash flows from operating
activities
Net loss
$
(25,450
)
$
(24,796
)
$
(74,677
)
$
(73,304
)
Adjustments to reconcile net loss to cash
provided by (used in) operating activities:
Depreciation and amortization
3,565
4,728
7,738
9,781
Amortization of premium and accretion of
discount on marketable securities, net
(1,926
)
(1,178
)
(4,126
)
(3,646
)
Amortization of deferred contract
acquisition costs
23,994
18,380
47,175
35,952
Amortization of debt issuance costs
278
266
553
529
Non-cash operating lease cost
2,617
2,618
5,455
5,270
Stock-based compensation expense
64,065
56,455
127,608
113,582
Deferred income taxes
23,653
35
38,376
427
Unrealized foreign currency transaction
loss (gain)
2,397
(778
)
2,216
422
Other
(14
)
16
(14
)
(18
)
Changes in operating assets and
liabilities:
Accounts receivable, net
(59,122
)
(48,899
)
68,081
26,972
Deferred contract acquisition costs
(23,278
)
(22,276
)
(37,178
)
(43,421
)
Prepaid expenses and other current
assets
998
(2,753
)
1,174
2,143
Other assets
487
876
(1,452
)
1,556
Accounts payable
14,065
19,351
(2,335
)
118
Accrued expenses and other liabilities
892
(982
)
(8,136
)
(1,393
)
Accrued compensation and benefits
(3,691
)
(6,888
)
(21,480
)
(10,773
)
Operating lease liabilities
(3,033
)
(3,094
)
(6,407
)
(6,194
)
Deferred revenue
17,880
6,532
(51,440
)
(22,578
)
Net cash provided by (used in) operating
activities
38,377
(2,387
)
91,131
35,425
Cash flows from investing
activities
Purchases of property and equipment
(715
)
(896
)
(1,462
)
(1,528
)
Purchases of marketable securities
(71,090
)
(94,722
)
(166,253
)
(178,301
)
Sales, maturities, and redemptions of
marketable securities
86,092
46,176
178,482
75,292
Net cash provided by (used in) investing
activities
14,287
(49,442
)
10,767
(104,537
)
Cash flows from financing
activities
Proceeds from issuance of ordinary shares
under employee stock purchase plan
10,464
9,111
10,464
9,111
Proceeds from issuance of ordinary shares
upon exercise of stock options
1,782
6,800
6,527
10,643
Net cash provided by financing
activities
12,246
15,911
16,991
19,754
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
(1,389
)
(4,832
)
(150
)
(4,790
)
Net increase (decrease) in cash, cash
equivalents, and restricted cash
63,521
(40,750
)
118,739
(54,148
)
Cash, cash equivalents, and restricted
cash, beginning of period
598,307
633,242
543,089
646,640
Cash, cash equivalents, and restricted
cash, end of period
$
661,828
$
592,492
$
661,828
$
592,492
Elastic N.V.
Revenue by Type
(in thousands, except
percentages)
(unaudited)
Three Months Ended October
31,
Six Months Ended October
31,
2024
2023
2024
2023
Amount
% of
Total
Revenue
Amount
% of
Total
Revenue
Amount
% of
Total
Revenue
Amount
% of
Total
Revenue
Elastic Cloud
$
168,835
46
%
$
134,989
43
%
$
326,116
46
%
$
256,161
42
%
Other subscription
171,972
47
%
152,754
50
%
338,465
47
%
301,829
50
%
Total subscription
340,807
93
%
287,743
93
%
664,581
93
%
557,990
92
%
Services
24,554
7
%
22,869
7
%
48,200
7
%
46,375
8
%
Total revenue
$
365,361
100
%
$
310,612
100
%
$
712,781
100
%
$
604,365
100
%
Elastic N.V.
Reconciliation of GAAP to
Non-GAAP Data Supplementary Information
(in thousands, except
percentages)
(unaudited)
Three Months
Ended
October 31, 2024
% Change
Year Over
Year
% Change
Year Over Year
Excluding
Currency Changes
% Change
Quarter
Over
Quarter
% Change
Quarter Over
Quarter Excluding Currency
Changes
Revenue
Elastic Cloud
$
168,835
25
%
25
%
7
%
7
%
Other subscription
$
171,972
13
%
12
%
3
%
2
%
Total subscription
$
340,807
18
%
18
%
5
%
5
%
Total revenue
$
365,361
18
%
17
%
5
%
5
%
Total deferred revenue
$
645,705
20
%
20
%
3
%
3
%
Total remaining performance
obligations
$
1,266,069
13
%
12
%
1
%
—
%
Six Months
Ended
October 31, 2024
% Change
Year Over
Year
% Change
Year Over Year
Excluding
Currency Changes
Revenue
Elastic Cloud
$
326,116
27
%
27
%
Other subscription
$
338,465
12
%
12
%
Total subscription
$
664,581
19
%
19
%
Total revenue
$
712,781
18
%
18
%
Elastic N.V.
Reconciliation of GAAP to
Non-GAAP Data
Adjusted Free Cash
Flow
(in thousands, except
percentages)
(unaudited)
Three Months Ended October
31,
Six Months Ended October
31,
2024
2023
2024
2023
Net cash provided by (used in) operating
activities
$
38,377
$
(2,387
)
$
91,131
$
35,425
Less: Purchases of property and
equipment
(715
)
(896
)
(1,462
)
(1,528
)
Add: Interest paid on long-term debt
—
—
11,859
11,859
Adjusted free cash flow (1)
$
37,662
$
(3,283
)
$
101,528
$
45,756
Net cash provided by (used in) investing
activities
$
14,287
$
(49,442
)
$
10,767
$
(104,537
)
Net cash provided by financing
activities
$
12,246
$
15,911
$
16,991
$
19,754
Net cash provided by (used in) operating
activities (as a percentage of total revenue)
10
%
(1
)%
13
%
6
%
Less: Purchases of property and equipment
(as a percentage of total revenue)
—
%
—
%
—
%
—
%
Add: Interest paid on long-term debt (as a
percentage of total revenue)
—
%
—
%
1
%
2
%
Adjusted free cash flow margin
10
%
(1
)%
14
%
8
%
(1) Adjusted free cash flow includes cash
paid for restructuring and other charges of $0.5 million and $3.5
million during the three and six months ended October 31, 2024,
respectively, and less than $0.1 million and $0.8 million during
the three and six months ended October 31, 2023, respectively.
Elastic N.V.
Reconciliation of GAAP to
Non-GAAP Data
(in thousands, except
percentages, share and per share data)
(unaudited)
Three Months Ended October
31,
Six Months Ended October
31,
2024
2023
2024
2023
Gross Profit Reconciliation:
GAAP gross profit
$
272,182
$
230,523
$
527,845
$
446,799
Stock-based compensation expense and
related employer taxes
5,908
5,187
12,217
10,581
Amortization of acquired intangibles
2,835
2,977
6,110
5,953
Non-GAAP gross profit
$
280,925
$
238,687
$
546,172
$
463,333
Gross Margin Reconciliation(1):
GAAP gross margin
74.5
%
74.2
%
74.1
%
73.9
%
Stock-based compensation expense and
related employer taxes
1.6
%
1.7
%
1.7
%
1.8
%
Amortization of acquired intangibles
0.8
%
1.0
%
0.9
%
1.0
%
Non-GAAP gross margin
76.9
%
76.8
%
76.6
%
76.7
%
Operating (Loss) Income
Reconciliation:
GAAP operating loss
$
(4,426
)
$
(21,539
)
$
(38,264
)
$
(57,786
)
Stock-based compensation expense and
related employer taxes
65,681
58,103
133,248
117,717
Amortization of acquired intangibles
2,835
3,888
6,110
8,096
Acquisition-related expenses
104
778
152
1,558
Restructuring and other related
charges
86
29
225
754
Non-GAAP operating income
$
64,280
$
41,259
$
101,471
$
70,339
Operating Margin
Reconciliation(1):
GAAP operating margin
(1.2
)%
(6.9
)%
(5.4
)%
(9.6
)%
Stock-based compensation expense and
related employer taxes
18.0
%
18.7
%
18.7
%
19.5
%
Amortization of acquired intangibles
0.8
%
1.3
%
0.9
%
1.3
%
Acquisition-related expenses
—
%
0.3
%
—
%
0.3
%
Restructuring and other related
charges
—
%
—
%
—
%
—
%
Non-GAAP operating margin
17.6
%
13.3
%
14.2
%
11.6
%
Net (Loss) Income
Reconciliation:
GAAP net loss
$
(25,450
)
$
(24,796
)
$
(74,677
)
$
(73,304
)
Stock-based compensation expense and
related employer taxes
65,681
58,103
133,248
117,717
Amortization of acquired intangibles
2,835
3,888
6,110
8,096
Acquisition-related expenses
104
778
152
1,558
Restructuring and other related
charges
86
29
225
754
Income tax effects related to the above
adjustments(2)
19,650
183
34,964
8,768
Non-GAAP net income
$
62,906
$
38,185
$
100,022
$
63,589
Non-GAAP earnings per share
attributable to ordinary shareholders, basic(1)
$
0.61
$
0.39
$
0.97
$
0.65
Non-GAAP earnings per share
attributable to ordinary shareholders, diluted(1)
$
0.59
$
0.37
$
0.94
$
0.62
Weighted-average shares used to compute
non-GAAP earnings per share attributable to ordinary shareholders,
basic
103,238,740
99,073,401
102,761,588
98,507,725
Weighted-average shares used to compute
non-GAAP earnings per share attributable to ordinary shareholders,
diluted
105,827,936
102,493,070
106,006,894
102,066,719
(1) Totals may not sum, due to rounding.
Gross margin, operating margin, and earnings per share are
calculated based upon the respective underlying, non-rounded
data.
(2) Non-GAAP financial information for the
quarter is adjusted for a tax rate equal to our annual estimated
tax rate on non-GAAP income. This rate is based on our estimated
annual GAAP income tax rate forecast, adjusted to account for items
excluded from GAAP loss in calculating the non-GAAP financial
measures presented above as well as other significant tax
adjustments. Our estimated tax rate on non-GAAP income is
determined annually and may be adjusted during the year to take
into account events or trends that we believe materially impact the
estimated annual rate including, but not limited to, significant
changes resulting from tax legislation, material changes in the
geographic mix of revenue and expenses and other significant
events. Due to the differences in the tax treatment of items
excluded from non-GAAP earnings, as well as the methodology applied
to our estimated annual tax rates as described above, our estimated
tax rate on non-GAAP income may differ from our GAAP tax rate and
from our actual tax liabilities.
Elastic N.V.
Reconciliation of GAAP to
Non-GAAP Data
(in thousands)
(unaudited)
Three Months Ended October
31,
Six Months Ended October
31,
2024
2023
2024
2023
Cost of revenue reconciliation:
GAAP subscription
$
69,941
$
59,996
$
138,288
$
117,262
Stock-based compensation expense and
related employer taxes
(2,361
)
(2,208
)
(4,881
)
(4,589
)
Amortization of acquired intangibles
(2,835
)
(2,977
)
(6,110
)
(5,953
)
Non-GAAP subscription
$
64,745
$
54,811
$
127,297
$
106,720
GAAP services
$
23,238
$
20,093
$
46,648
$
40,304
Stock-based compensation expense and
related employer taxes
(3,547
)
(2,979
)
(7,336
)
(5,992
)
Non-GAAP services
$
19,691
$
17,114
$
39,312
$
34,312
Operating expenses
reconciliation:
GAAP research and development expense
$
88,163
$
80,108
$
177,495
$
160,798
Stock-based compensation expense and
related employer taxes
(24,777
)
(22,562
)
(50,499
)
(45,967
)
Acquisition-related expenses
(6
)
(395
)
(54
)
(1,175
)
Non-GAAP research and development
expense
$
63,380
$
57,151
$
126,942
$
113,656
GAAP sales and marketing expense
$
144,274
$
133,230
$
301,631
$
266,399
Stock-based compensation expense and
related employer taxes
(21,434
)
(18,730
)
(43,883
)
(38,399
)
Amortization of acquired intangibles
—
(911
)
—
(2,143
)
Non-GAAP sales and marketing expenses
$
122,840
$
113,589
$
257,748
$
225,857
GAAP general and administrative
expense
$
44,085
$
38,695
$
86,758
$
76,634
Stock-based compensation expense and
related employer taxes
(13,562
)
(11,624
)
(26,649
)
(22,770
)
Acquisition-related expenses
(98
)
(383
)
(98
)
(383
)
Non-GAAP general and administrative
expense
$
30,425
$
26,688
$
60,011
$
53,481
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241120426893/en/
Anthony Luscri Elastic Investor Relations
ir@elastic.co
Madge Miller Elastic Corporate Communications
PR-Team@elastic.co
Elastic NV (NYSE:ESTC)
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