- Elastic is an interesting company in the intensely competitive log analytics market. Elastic's fortune is tied to the growth and analysis of the data to reveal valuable insights.
- While getting it to work is challenging and needs help from developers, the Elastic platform is robust and capable. ISVs use Elastic to build their products to sell to customers.
- Rapid new customer additions and upsells will drive growth for the company. Dollar based net retention continues to remain north of 130% over the last few quarters.
- Elastic competes against Datadog, Splunk, Cisco, Dynatrace, CrowdStrike, VMware, Microsoft, and other point product companies. We expect multiple winners due to the nascent market and large size.
- The company is known for guiding conservatively and beating the estimates consistently. Over the last ten quarters, Elastic beat consensus revenue by 7% or about $8.5 million.
For further details see:
Elastic: Reasonable Valuation And Market Momentum Make It A Buy