Source: Pinterest
Elastic's (ESTC) strong growth momentum is attractive. The company's product diversification into the APM, logging, and endpoint security market is compelling. Sales efficiency has to improve for the stock to buck the downward trend in price action. Regardless, I find the valuation attractive at 8.7x FY'21 revenue.
Demand (Rating: Bullish)
Elastic reported strong results last quarter. Revenue grew 59% y/y (63% on a constant currency basis). The net expansion rate stood at over 130%. Subscription revenue grew 57%, while professional services revenue grew 83%.
Source: Seeking Alpha
Going forward, management is