- Shares of Elastic remain down more than 50% relative to all-time highs notched last November and are down 25% year to date.
- Meanwhile, fundamentals have never looked healthier. Defying deceleration, Elastic continues to grow revenue north of 40% y/y.
- Its burgeoning cloud solutions are seeing ~80% y/y growth, driven by more seamless integrations with AWS.
- The company remains free cash flow positive with above-breakeven pro forma operating margins, putting it squarely in the "Rule of 40" club.
- Its valuation at ~7x forward revenues is cheap for a company with such a strong fundamental profile.
For further details see:
Elastic: The Bottom Has Been Reached, It's Time To Go All In