On November 30, 2023, Elastic NV (ESTC, Financial) released its 8-K filing, announcing financial results for the second quarter of fiscal year 2024, which ended on October 31, 2023. The company reported a significant increase in revenue and customer growth, particularly in its Elastic Cloud segment.
Financial Highlights and Performance
Elastic NV (ESTC, Financial) achieved a total revenue of $311 million in Q2, marking a 17% increase compared to the same period last year. This growth was driven in part by the company's Elastic Cloud segment, which saw a 31% year-over-year revenue increase to $135 million. Despite a GAAP operating loss of $22 million, the company reported a non-GAAP operating income of $41 million, translating to a non-GAAP operating margin of 13%. The GAAP net loss per share was $0.25, while non-GAAP diluted earnings per share reached $0.37.
Customer Metrics and Product Innovations
The total subscription customer count grew to approximately 20,700, up from 20,500 in Q1 FY24, and the number of customers with an Annual Contract Value (ACV) greater than $100,000 increased to over 1,220. Elastic NV (ESTC, Financial) also reported a Net Expansion Rate of approximately 110%. On the innovation front, the company announced the general availability of Elastic Learned Sparse EncodeR (ELSER) and introduced the Elasticsearch Query Language (ES|QL), among other product updates.
Strategic Moves and Market Recognition
Elastic NV (ESTC, Financial) acquired Opster, creators of AutoOps, and signed a new global Strategic Collaboration Agreement with Amazon Web Services (AWS). The company was also recognized as a Leader in the IDC MarketScape: Worldwide General-Purpose Knowledge Discovery Software 2023 Vendor Assessment.
Financial Outlook
For Q3 of fiscal 2024, Elastic NV (ESTC, Financial) expects total revenue to be between $319 million and $321 million, with a non-GAAP operating margin between 11.5% and 12.0%. The non-GAAP earnings per share are projected to be between $0.30 and $0.32. For the full fiscal year 2024, the company anticipates total revenue to be between $1.247 billion and $1.253 billion, with a non-GAAP operating margin between 10.25% and 10.75%, and non-GAAP earnings per share between $1.06 and $1.15.
Balance Sheet and Cash Flow
As of October 31, 2023, Elastic NV (ESTC, Financial) reported cash, cash equivalents, and marketable securities totaling $966 million. Operating cash flow was -$2 million, with an adjusted free cash flow of -$3 million. The balance sheet remains robust, providing the company with a solid foundation to support ongoing operations and strategic initiatives.
Analysis and Investor Sentiment
The company's strong performance in the cloud segment and customer growth are positive indicators for investors. Elastic NV (ESTC, Financial)'s focus on innovation and strategic partnerships, such as the collaboration with AWS, positions it well for future growth. However, the reported GAAP operating loss and negative operating cash flow highlight the challenges of balancing growth investments with profitability.
Investors and potential GuruFocus.com members interested in Elastic NV (ESTC, Financial)'s detailed financial results and future outlook can access the full earnings report through the company's 8-K filing.
Explore the complete 8-K earnings release (here) from Elastic NV for further details.
