The Enterprise Search market is expected to grow at 13.6% to reach $6.8 billion by 2026. Elastic, (NYSE: ESTC) a leading player in the open-source Big Data search sector recently reported results that surpassed market expectations.

Elastic’s Financials

Elastic’s first-quarter revenues grew 50% to $193.1 million with SaaS revenues growing 51.2% over the year. GAAP net loss was $0.38 per share. Non GAAP net income was $0.04 per share. The market was looking for revenues of $173.21 million with a loss of $0.12 per share.

By segment, subscription revenues grew 46% to $177.2 million. Within the segment, subscription, licensed, self-managed, and SaaS revenues grew 51.2% to $160.96 million. Professional services for the quarter grew 111.3% to $15.9 million.

Among key metrics, calculated billings for the company grew 23% to $165 million. Total subscription customer count grew from 15,000 a quarter ago to over 16,000 at the end of the first quarter. Total customer count with Annual Contract Value (ACV) of more than $100,000 grew to 780 from 730 in the previous quarter. Net Expansion Rate continued to be more than 130%.

Elastic expects to end the second quarter with revenues of $193-$195 million and an adjusted net loss of $0.19-$0.15 per share. It expects to end the year with revenues of $808-$814 million and an adjusted net loss of $0.67-$0.57 per share. The market was looking for revenues of $194.57 million and a net loss of $0.16 per share for the second quarter and revenues of $813.71 million and a net loss of $0.60 per share for the year.

Elastic’s Acquisition

Elastic recently announced the acquisition of California-based Build.security. Founded in 2020 by Amit Kanfer, the company provides developers with easy deployment, ecosystem integrations, and code extensibility. It leverages the open-sourced Open Policy Agent as well as API-based data sources to help build and enforce enterprise-grade access controls across application portfolios. The acquisition will allow Elastic to enhance its customers’ ability to ensure that their cloud environments are secure in keeping with policies that have been implemented, continuously validate security posture against standards like the CIS benchmarks, and resolve the complexity associated with building authorization into applications at deployment time. Prior to the acquisition, Build.Security had raised $6 million from StoneMill Ventures, Dan Amiga, Eyal Gruner, Eren Barak, YL Ventures, Sounil Yu, and George Kurtz. Terms of the acquisition were not disclosed.

Elastic also announced the acquisition of Canada-based Cmd. Founded in 2016 by Jake King and Milun Tesovic, Cmd allows organizations to secure their Linux environment with real-time visibility into user actions, customizable controls, and the ability to stop commands pre-execution, without the need for human intervention. The acquisition will allow Elastic to enhance its security capabilities for cloud-native runtime application workloads using extended Berkeley Packet Filter (eBPF) technology, giving customers kernel-level visibility into their Linux systems. Prior to the acquisition, Cmd had raised $21 million in two rounds of funding by Expa, GV, Amplify Partners, and Decibel Partners. Terms of the acquisition were not disclosed.

Elastic’s stock is currently trading at $159.28 with a market capitalization of $14.7 billion. It reported a 52-week high of $176.49 in January and a low of $97.48 in October of last year.