Q3 Revenue of $382 million, up 17%
year-over-year (17% in constant currency)
Q3 Elastic Cloud Revenue of $180 million, up
26% year-over-year (26% in constant currency)
Elastic (NYSE: ESTC) (“Elastic”), the company behind
Elasticsearch®, announced financial results for its third quarter
of fiscal 2025 ended January 31, 2025.
Third Quarter Fiscal 2025 Financial Highlights
- Total revenue was $382 million, an increase of 17%
year-over-year, as reported and on a constant currency basis
- Elastic Cloud revenue was $180 million, an increase of 26%
year-over-year, as reported and on a constant currency basis
- GAAP operating loss was $5 million; GAAP operating margin was
-1%
- Non-GAAP operating income was $64 million; non-GAAP operating
margin was 17%
- GAAP net loss per share was $0.16; non-GAAP diluted earnings
per share was $0.63
- Operating cash flow was $88 million with adjusted free cash
flow of $99 million
- Cash, cash equivalents, and marketable securities were $1.284
billion as of January 31, 2025
“We exceeded guidance across all revenue and profitability
metrics in the third quarter. Our results reflect ongoing momentum
across all aspects of our business, led by our strong sales
execution, continued market demand for our products, and our
relentless pace of innovation, reinforcing Elastic as the leader in
Search AI,” said Ash Kulkarni, Chief Executive Officer, Elastic.
“Continued interest from customers building Generative AI
applications and consolidating onto a single platform helped drive
our outperformance during the quarter.”
Third 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 1,460 compared to over 1,420 in Q2 FY25, and
over 1,270 in Q3 FY24
- Total subscription customer count was approximately 21,350
compared to approximately 21,300 in Q2 FY25, and approximately
20,800 in Q3 FY24
- Net Expansion Rate was approximately 112%
Product Innovations and Updates
- Announced general availability of Elastic Cloud Serverless on
AWS with availability in 4 regions and technical preview on
Azure
- Delivered Elasticsearch logsdb index mode available in
Enterprise tier, which allows security and observability teams to
optimize storage and extend log retention while keeping all data
accessible for analysis in real-time
- Launched the Elastic Rerank Model that enhances search
experiences for users, improving search accuracy and relevance
across their Elasticsearch data
Other Business Highlights
- Appointed Navam Welihinda, a HashiCorp and IBM veteran, as
chief financial officer to lead the finance function and play a key
role in driving the Company's next phase of growth
- Awarded the AWS Global Generative AI Infrastructure and Data
Partner of the Year 2024
- Named a 2024 Future 50 Company by Boston Consulting Group and
Fortune, a list which identifies companies with the greatest
potential for future growth
- Engaged with thousands of customers and partners across
ElasticONs in Amsterdam, Paris, and London, and the AWS re:Invent
industry conference
Financial Outlook
The Company is providing the following guidance:
For the fourth quarter of fiscal 2025 (ending April 30,
2025):
- Total revenue is expected to be between $379 million and $381
million, representing 13% 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
$0.36 and $0.37, assuming between 107.5 million and 108.5 million
diluted weighted average ordinary shares outstanding
For fiscal 2025 (ending April 30, 2025):
- Total revenue is expected to be between $1.474 billion and
$1.476 billion, representing 16% year-over-year growth at the
midpoint (17% year-over-year constant currency growth at the
midpoint)
- Non-GAAP operating margin is expected to be approximately
14.7%
- Non-GAAP diluted earnings per share is expected to be between
$1.91 and $1.96, 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 = 1.040 US Dollars; and 1 Great British Pound = 1.260
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” below 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)/earnings 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.
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 and 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 effects 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.
generally accepted accounting principles (“GAAP”), we believe the
non-GAAP measures discussed 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 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)/income, excluding
stock-based compensation expense and related employer taxes,
amortization of acquired intangible assets, acquisition-related
expenses, restructuring and other related charges, the related
income tax effect of the foregoing adjustments, and the income tax
impact from the release of any valuation allowance against deferred
tax assets. 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 operating activities adjusted for
cash paid for interest on long-term debt 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
Alexia Russell 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 January
31,
Nine Months Ended January
31,
2025
2024
2025
2024
Revenue
Subscription
$
358,198
$
307,632
$
1,022,779
$
865,622
Services
23,885
20,325
72,085
66,700
Total revenue
382,083
327,957
1,094,864
932,322
Cost of revenue
Subscription
72,205
63,976
210,493
181,238
Services
24,947
20,666
71,595
60,970
Total cost of revenue
97,152
84,642
282,088
242,208
Gross profit
284,931
243,315
812,776
690,114
Operating expenses
Research and development
93,598
87,202
271,093
248,000
Sales and marketing
153,749
141,621
455,380
408,020
General and administrative
42,222
40,896
128,980
117,530
Restructuring and other related
charges
—
—
225
754
Total operating expenses
289,569
269,719
855,678
774,304
Operating loss
(4,638
)
(26,404
)
(42,902
)
(84,190
)
Other income, net
Interest expense
(6,475
)
(6,368
)
(19,463
)
(19,023
)
Other income, net
15,184
8,568
35,498
24,107
Income (loss) before income taxes
4,071
(24,204
)
(26,867
)
(79,106
)
Provision for (benefit from) income
taxes
21,127
(200,328
)
64,866
(181,926
)
Net (loss) income
$
(17,056
)
$
176,124
$
(91,733
)
$
102,820
Net (loss) earnings per share attributable
to ordinary shareholders
Basic
$
(0.16
)
$
1.76
$
(0.89
)
$
1.04
Diluted
$
(0.16
)
$
1.69
$
(0.89
)
$
1.00
Weighted-average shares used to compute
net (loss) earnings per share attributable to ordinary
shareholders
Basic
104,085,183
100,282,179
103,202,786
99,099,210
Diluted
104,085,183
104,503,290
103,202,786
103,149,384
Elastic N.V.
Condensed Consolidated Balance
Sheets
(in thousands, except share and
per share data)
(unaudited)
As of January 31,
2025
As of April 30,
2024
Assets
Current assets:
Cash and cash equivalents
$
584,010
$
540,397
Restricted cash
3,597
2,692
Marketable securities
700,029
544,002
Accounts receivable, net of allowance for
credit losses of $5,322 and $4,979 as of January 31, 2025 and April
30, 2024, respectively
270,430
323,011
Deferred contract acquisition costs
79,761
78,030
Prepaid expenses and other current
assets
55,609
42,765
Total current assets
1,693,436
1,530,897
Property and equipment, net
5,105
5,453
Goodwill
319,417
319,380
Operating lease right-of-use assets
15,547
20,506
Intangible assets, net
12,929
20,620
Deferred contract acquisition costs,
non-current
107,791
114,509
Deferred tax assets
169,146
225,544
Other assets
6,776
5,657
Total assets
$
2,330,147
$
2,242,566
Liabilities and Shareholders’
Equity
Current liabilities:
Accounts payable
$
9,122
$
26,075
Accrued expenses and other liabilities
73,783
75,292
Accrued compensation and benefits
83,313
93,691
Operating lease liabilities
9,941
12,187
Deferred revenue
660,873
663,846
Total current liabilities
837,032
871,091
Deferred revenue, non-current
46,053
30,293
Long-term debt, net
569,445
568,612
Operating lease liabilities,
non-current
8,347
12,898
Other liabilities, non-current
10,164
21,487
Total liabilities
1,471,041
1,504,381
Shareholders’ equity:
Preference shares, €0.01 par value;
165,000,000 shares authorized, 0 shares issued and outstanding as
of January 31, 2025 and April 30, 2024
—
—
Ordinary shares, par value €0.01 per
share: 165,000,000 shares authorized; 104,412,717 shares issued and
outstanding as of January 31, 2025 and 101,705,935 shares issued
and outstanding as of April 30, 2024
1,100
1,070
Treasury stock
(369
)
(369
)
Additional paid-in capital
1,961,418
1,750,729
Accumulated other comprehensive loss
(19,703
)
(21,638
)
Accumulated deficit
(1,083,340
)
(991,607
)
Total shareholders’ equity
859,106
738,185
Total liabilities and shareholders’
equity
$
2,330,147
$
2,242,566
Elastic N.V.
Condensed Consolidated
Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended January
31,
Nine Months Ended January
31,
2025
2024
2025
2024
Cash flows from operating
activities
Net (loss) income
$
(17,056
)
$
176,124
$
(91,733
)
$
102,820
Adjustments to reconcile net (loss) income
to cash provided by operating activities:
Depreciation and amortization
2,286
4,072
10,024
13,853
Amortization of premium and accretion of
discount on marketable securities, net
(1,659
)
(2,750
)
(5,785
)
(6,396
)
Amortization of deferred contract
acquisition costs
24,312
20,440
71,487
56,392
Amortization of debt issuance costs
280
269
833
798
Non-cash operating lease cost
2,305
2,878
7,760
8,148
Stock-based compensation expense
64,634
62,762
192,242
176,344
Deferred income taxes
17,799
(210,705
)
56,175
(210,278
)
Unrealized foreign currency transaction
(gain) loss
(914
)
1,845
1,302
2,267
Other
—
(16
)
(14
)
(34
)
Changes in operating assets and
liabilities, net of impact of business acquisitions:
Accounts receivable, net
(16,544
)
4,072
51,537
31,044
Deferred contract acquisition costs
(29,792
)
(30,668
)
(66,970
)
(74,089
)
Prepaid expenses and other current
assets
(14,080
)
(7,655
)
(12,906
)
(5,512
)
Other assets
(1,267
)
(917
)
(2,719
)
639
Accounts payable
(14,375
)
(25,330
)
(16,710
)
(25,212
)
Accrued expenses and other liabilities
(4,664
)
2,821
(12,800
)
1,428
Accrued compensation and benefits
11,269
12,282
(10,211
)
1,509
Operating lease liabilities
(3,082
)
(2,902
)
(9,489
)
(9,096
)
Deferred revenue
68,606
45,767
17,166
23,189
Net cash provided by operating
activities
88,058
52,389
179,189
87,814
Cash flows from investing
activities
Purchases of property and equipment
(766
)
(1,077
)
(2,228
)
(2,605
)
Business acquisitions, net of cash
acquired
—
(18,951
)
—
(18,951
)
Purchases of marketable securities
(222,518
)
(179,972
)
(388,771
)
(358,273
)
Sales, maturities, and redemptions of
marketable securities
64,506
74,931
242,988
150,223
Net cash used in investing activities
(158,778
)
(125,069
)
(148,011
)
(229,606
)
Cash flows from financing
activities
Proceeds from issuance of ordinary shares
under employee stock purchase plan
—
—
10,464
9,111
Proceeds from issuance of ordinary shares
upon exercise of stock options
1,486
8,847
8,013
19,490
Net cash provided by financing
activities
1,486
8,847
18,477
28,601
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
(4,987
)
1,008
(5,137
)
(3,782
)
Net (decrease) increase in cash, cash
equivalents, and restricted cash
(74,221
)
(62,825
)
44,518
(116,973
)
Cash, cash equivalents, and restricted
cash, beginning of period
661,828
592,492
543,089
646,640
Cash, cash equivalents, and restricted
cash, end of period
$
587,607
$
529,667
$
587,607
$
529,667
Elastic N.V.
Revenue by Type
(in thousands, except
percentages)
(unaudited)
Three Months Ended January
31,
Nine Months Ended January
31,
2025
2024
2025
2024
Amount
% of
Total
Revenue
Amount
% of
Total
Revenue
Amount
% of
Total
Revenue
Amount
% of
Total
Revenue
Elastic Cloud
$
179,996
47
%
$
143,379
44
%
$
506,112
46
%
$
399,540
43
%
Other subscription
178,202
47
%
164,253
50
%
516,667
47
%
466,082
50
%
Total subscription
358,198
94
%
307,632
94
%
1,022,779
93
%
865,622
93
%
Services
23,885
6
%
20,325
6
%
72,085
7
%
66,700
7
%
Total revenue
$
382,083
100
%
$
327,957
100
%
$
1,094,864
100
%
$
932,322
100
%
Elastic N.V.
Reconciliation of GAAP to
Non-GAAP Data
Supplementary
Information
(in thousands, except
percentages)
(unaudited)
Three Months Ended
January 31, 2025
% 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
$
179,996
26%
26%
7%
7%
Other subscription
$
178,202
8%
9%
4%
5%
Total subscription
$
358,198
16%
17%
5%
6%
Total revenue
$
382,083
17%
17%
5%
5%
Total deferred revenue
$
706,926
21%
22%
9%
11%
Total remaining performance
obligations
$
1,354,345
15%
16%
7%
8%
Nine Months Ended
January 31, 2025
% Change Year Over
Year
% Change Year Over Year
Excluding Currency Changes
Revenue
Elastic Cloud
$
506,112
27%
27%
Other subscription
$
516,667
11%
11%
Total subscription
$
1,022,779
18%
18%
Total revenue
$
1,094,864
17%
17%
Elastic N.V.
Reconciliation of GAAP to
Non-GAAP Data
Adjusted Free Cash
Flow
(in thousands, except
percentages)
(unaudited)
Three Months Ended January
31,
Nine Months Ended January
31,
2025
2024
2025
2024
Net cash provided by operating
activities
$
88,058
$
52,389
$
179,189
$
87,814
Less: Purchases of property and
equipment
(766
)
(1,077
)
(2,228
)
(2,605
)
Add: Interest paid on long-term debt
11,859
11,859
23,719
23,719
Adjusted free cash flow (1)
$
99,151
$
63,171
$
200,680
$
108,928
Net cash used in investing activities
$
(158,778
)
$
(125,069
)
$
(148,011
)
$
(229,606
)
Net cash provided by financing
activities
$
1,486
$
8,847
$
18,477
$
28,601
Net cash provided by operating activities
(as a percentage of total revenue)
23
%
16
%
16
%
9
%
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)
3
%
3
%
2
%
3
%
Adjusted free cash flow margin
26
%
19
%
18
%
12
%
(1) Adjusted free cash flow includes cash
paid for restructuring and other charges of $0.3 million and $3.8
million during the three and nine months ended January 31, 2025,
respectively, and $0.8 million and $1.5 million during the three
and nine months ended January 31, 2024, respectively.
Elastic N.V.
Reconciliation of GAAP to
Non-GAAP Data
(in thousands, except
percentages, share and per share data)
(unaudited)
Three Months Ended January
31,
Nine Months Ended January
31,
2025
2024
2025
2024
Gross Profit Reconciliation:
GAAP gross profit
$
284,931
$
243,315
$
812,776
$
690,114
Stock-based compensation expense and
related employer taxes
6,654
5,902
18,871
16,483
Amortization of acquired intangibles
1,577
3,186
7,687
9,139
Non-GAAP gross profit
$
293,162
$
252,403
$
839,334
$
715,736
Gross Margin Reconciliation(1):
GAAP gross margin
74.6
%
74.2
%
74.2
%
74.0
%
Stock-based compensation expense and
related employer taxes
1.7
%
1.8
%
1.7
%
1.8
%
Amortization of acquired intangibles
0.4
%
1.0
%
0.7
%
1.0
%
Non-GAAP gross margin
76.7
%
77.0
%
76.7
%
76.8
%
Operating (Loss) Income
Reconciliation:
GAAP operating loss
$
(4,638
)
$
(26,404
)
$
(42,902
)
$
(84,190
)
Stock-based compensation expense and
related employer taxes
67,054
65,847
200,302
183,564
Amortization of acquired intangibles
1,577
3,186
7,687
11,282
Acquisition-related expenses
29
682
181
2,240
Restructuring and other related
charges
—
—
225
754
Non-GAAP operating income
$
64,022
$
43,311
$
165,493
$
113,650
Operating Margin
Reconciliation(1):
GAAP operating margin
(1.2
)%
(8.1
)%
(3.9
)%
(9.0
)%
Stock-based compensation expense and
related employer taxes
17.5
%
20.1
%
18.3
%
19.7
%
Amortization of acquired intangibles
0.4
%
1.0
%
0.7
%
1.2
%
Acquisition-related expenses
—
%
0.2
%
—
%
0.2
%
Restructuring and other related
charges
—
%
—
%
—
%
0.1
%
Non-GAAP operating margin
16.8
%
13.2
%
15.1
%
12.2
%
Net (Loss) Income
Reconciliation:
GAAP net (loss) income
$
(17,056
)
$
176,124
$
(91,733
)
$
102,820
Stock-based compensation expense and
related employer taxes
67,054
65,847
200,302
183,564
Amortization of acquired intangibles
1,577
3,186
7,687
11,282
Acquisition-related expenses
29
682
181
2,240
Restructuring and other related
charges
—
—
225
754
Income tax effects related to the above
adjustments(2)
15,579
(780
)
50,543
7,988
Income tax benefit from the release of a
valuation allowance against deferred tax assets
—
(207,456
)
—
(207,456
)
Non-GAAP net income
$
67,183
$
37,603
$
167,205
$
101,192
Non-GAAP earnings per share
attributable to ordinary
shareholders, basic(1)
$
0.65
$
0.37
$
1.62
$
1.02
Non-GAAP earnings per share
attributable to ordinary
shareholders, diluted(1)
$
0.63
$
0.36
$
1.57
$
0.98
Weighted-average shares used to compute
non-GAAP earnings per share attributable to ordinary shareholders,
basic
104,085,183
100,282,179
103,202,786
99,099,210
Weighted-average shares used to compute
non-GAAP earnings per share attributable to ordinary shareholders,
diluted
106,884,748
104,503,290
106,439,570
103,149,384
(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) income 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 January
31,
Nine Months Ended January
31,
2025
2024
2025
2024
Cost of revenue reconciliation:
GAAP subscription
$
72,205
$
63,976
$
210,493
$
181,238
Stock-based compensation expense and
related employer taxes
(2,597
)
(2,400
)
(7,478
)
(6,989
)
Amortization of acquired intangibles
(1,577
)
(3,186
)
(7,687
)
(9,139
)
Non-GAAP subscription
$
68,031
$
58,390
$
195,328
$
165,110
GAAP services
$
24,947
$
20,666
$
71,595
$
60,970
Stock-based compensation expense and
related employer taxes
(4,057
)
(3,502
)
(11,393
)
(9,494
)
Non-GAAP services
$
20,890
$
17,164
$
60,202
$
51,476
Operating expenses
reconciliation:
GAAP research and development expense
$
93,598
$
87,202
$
271,093
$
248,000
Stock-based compensation expense and
related employer taxes
(25,900
)
(25,989
)
(76,399
)
(71,956
)
Acquisition-related expenses
(22
)
—
(76
)
(1,175
)
Non-GAAP research and development
expense
$
67,676
$
61,213
$
194,618
$
174,869
GAAP sales and marketing expense
$
153,749
$
141,621
$
455,380
$
408,020
Stock-based compensation expense and
related employer taxes
(22,946
)
(21,142
)
(66,829
)
(59,541
)
Amortization of acquired intangibles
—
—
—
(2,143
)
Non-GAAP sales and marketing expenses
$
130,803
$
120,479
$
388,551
$
346,336
GAAP general and administrative
expense
$
42,222
$
40,896
$
128,980
$
117,530
Stock-based compensation expense and
related employer taxes
(11,554
)
(12,814
)
(38,203
)
(35,584
)
Acquisition-related expenses
(7
)
(682
)
(105
)
(1,065
)
Non-GAAP general and administrative
expense
$
30,661
$
27,400
$
90,672
$
80,881
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250227007734/en/
Anthony Luscri Elastic Investor Relations
ir@elastic.co
Alexia Russell Elastic Corporate Communications
PR-Team@elastic.co
Elastic NV (NYSE:ESTC)
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