Q1 2025 Elastic NV Earnings Call Transcript
Key Points
- Total revenue in Q1 grew 18% year-over-year, with cloud revenue growing 30% year-over-year.
- Elastic NV (ESTC) delivered a non-GAAP operating margin of 10.7%, outperforming the high end of their revenue and profitability guidance.
- The company saw strong momentum in generative AI opportunities, accelerating growth in their search business.
- Elastic NV (ESTC) ended Q1 with over 1,300 customers using Elastic Cloud for generative-AI use cases.
- The company continues to strengthen its position as the platform of choice for building real-time gen-AI applications, with significant customer wins in various industries.
- The overall volume of customer commitments closed in Q1 fell short of expectations.
- Sales segmentation changes at the beginning of Q1 impacted deal progression, particularly in the Americas.
- Tighter customer budget constraints in EMEA led to delays in closing deals.
- The company underestimated the impact of account transitions, affecting sales execution.
- Elastic NV (ESTC) had to update its guidance to reflect the first quarter performance and current outlook, indicating a cautious stance on future deal closures.
Good day and welcome to the Elastic first quarter fiscal 2025 conference call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Anthony Luscri, VP of Investor Relations. Please go ahead.
Thank you. Good afternoon and thank you for joining us on today's conference call to discuss Elastic's first quarter fiscal 2025 financial results. On the call, we have Ash Kulkarni, Chief Executive Officer; and Janesh Moorjani, Chief Financial Officer and Chief Operating Officer.
Following their prepared remarks, we will take questions. Our press release was issued today after the close of market and is posted on our website. Slides, which are supplemental to the call, can also be found on the Elastic Investor Relations website at ir.elastic.co.
Our discussion will include forward looking statements, which may include predictions, estimates, or expectations regarding the demand for our products and solutions and our future
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