ESTC - Elastic jumps on earnings forecasts

2023-11-30 16:26:55 ET

Elastic ( NYSE: ESTC ) rose 14% postmarket on Thursday as the company trounced expectations for quarterly earnings.

For the third quarter of fiscal 2024, revenue is expected to be between $319M and $321M versus the expectation of $318.58M. Non-GAAP earnings per share is expected to be between $0.30 and $0.32 versus the estimate of $0.28.

For the full year, total revenue is expected to be between $1.247B and $1.253B compared to the estimate of $1.25B. Non-GAAP earnings per share is expected to be between $1.06 and $1.15 versus the expectation of $1.09

For the second quarter, non-GAAP EPS of $0.37 beat the average analyst estimate by $0.13. Revenue of $311M beat by $6.95M.

Elastic Cloud revenue was $135 million, an increase of 31% year-over-year, and its non-GAAP operating margin was 13%.

“We exceeded our expectations across both revenue and non-GAAP operating margin,” said Chief Executive Officer Ash Kulkarni. “Generative AI is driving a resurgence of interest in search as customers use semantic search, vector search, and hybrid search to ground large language models with their private business context, and Elasticsearch Relevance Engine provides the most comprehensive and enterprise-ready platform for these use cases.”

Total subscription customer count was 20,700 compared to 20,500 in the first quarter. Total customer count with Annual Contract Value ( ACV ) greater than $100,000 was over 1,220 compared to over 1,190 in the first quarter.

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