Elastic Reports First Quarter Fiscal 2025 Financial Results
Intellectia.AI Updated: 2024-08-29
Elastic Reports First Quarter Fiscal 2025 Financial Results
Elastic (NYSE:ESTC), the company behind Elasticsearch®, announced its financial results for the first quarter of fiscal 2025, which ended on July 31, 2024.
Key Financial Metrics
| Metric | Q1 FY25 | Q1 FY24 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue | $347 million | $294.9 million | +18% | $344.7 million |
| EPS (GAAP) | -$0.48 | -$0.51 | Improved | N/A |
| EPS (Non-GAAP) | $0.35 | $0.25 | +40% | $0.25 |
The company’s Q1 revenue was $347 million, up 18% year-over-year, surpassing Wall Street’s consensus estimate of $344.7 million. Non-GAAP EPS stood at $0.35, significantly higher than the consensus estimate of $0.25. Although the GAAP net loss was $0.48 per share, the non-GAAP EPS growth is a positive indicator of the company’s financial health and strategic initiatives.
Segment Revenue Performance
| Segment | Q1 FY25 Revenue | YoY Change |
|---|---|---|
| Elastic Cloud | $157 million | +30% |
Elastic Cloud continues to be a significant growth driver, reporting revenue of $157 million, a 30% increase year-over-year. The robust performance of Elastic Cloud signifies strong adoption and reflects customer preference for scalable and cloud-native solutions.
Operational Highlights
- Total customer count with ACV over $100,000: Over 1,370, up from over 1,330 in Q4 FY24.
- Total subscription customer count: Approximately 21,200, up from 21,000 in Q4 FY24.
- Net Expansion Rate: Approximately 112%.
Product Innovations and Updates
- Introduced Automatic Import to automate SIEM data onboarding.
- Launched Playground to accelerate RAG development.
- Expanded LLM options, including support for Google Cloud Vertex AI and LangChain chat model.
- Announced Elasticsearch Open Inference API integration with Amazon Bedrock, Mistral AI, and Anthropic.
Business Highlights
- Announced intent to add AGPL as an option to license the free part of its source code.
- Recognized as a Leader in the Gartner MQ for Observability Platforms.
- Awarded Microsoft US Partner of the Year 2024.
- Launched Elastic Express Migration for quick Search AI adoption.
- Released the third Annual Elastic Sustainability Report.
- Engaged with thousands at Black Hat, WSJ Tech Live Cybersecurity, and InfoSec Europe.
CEO Comments
CEO Ash Kulkarni commented, "We delivered solid first-quarter results, outperforming the high end of our guidance for both revenue and profitability. We continued to see strong adoption of our GenAI offerings. However, we had a slower start to the year due to segmentation changes, which will impact our revenue this year. We remain confident in our Search AI platform and its value to customers."
Forward Guidance
- Q2 FY25:
- Revenue: $353 million to $355 million
- Non-GAAP diluted EPS: $0.37 to $0.39
- FY25:
- Revenue: $1.436 billion to $1.444 billion
- Non-GAAP operating margin: ~12.5%
- Non-GAAP diluted EPS: $1.52 to $1.56
Stock Price Movement
Following the earnings release, Elastic's stock saw a modest increase of 0.64%.
Elastic’s first-quarter performance highlights strong growth in its cloud segment and robust financial health despite challenges. The company remains optimistic about its future prospects, driven by the ongoing adoption of its GenAI offerings and platform consolidation opportunities.