Elastic’s Search Upgrades Ruffle Competition

According to a recent research report by Research and Markets, the global Enterprise Search market is projected to grow from $3.8 billion to $8 billion by 2027 at a CAGR of 11.4%. Elastic (NYSE: ESTC) is a leading player in the open-source Big Data search sector that continues to deliver strong results.

Elastic’s Financials

For the recently reported third quarter, Elastic’s revenues grew 39% to $157.1 million with SaaS revenues growing 79%. Adjusted net loss was $0.04 per share. The market was looking for revenues of $146.7 million with a loss of $0.15 per share.

By segment, subscription revenues grew 41.3% to $147.2 million. Within the segment, subscription, licensed, self-managed, and SaaS revenues grew 47.1% to $132 million. Professional services revenue grew 9.8% to $9.9 million.

Among key metrics, calculated billings for the company grew 40.9% over the year to $173.2 million. Total subscription customer count grew from 12,900 a quarter ago to over 13,800 at the end of the third quarter. Total customer count with Annual Contract Value (ACV) of more than $100,000 grew to 670 from 650 in the previous quarter. Net Expansion Rate continued to be more than 130%.

Elastic expects to end the fourth quarter with revenues of $158-$159 million and an adjusted net loss of $0.18-$0.15 per share. It expects to end the year with revenues of $589-$590 million and an adjusted net loss of $0.19-$0.16 per share. The market was looking for revenues of $158.91 million for the quarter with a net loss of $0.16 per share and revenues of $589.76 million for the year with a net loss of $0.17 per share.

Elastic’s Product Upgrade

Recently, Elastic announced a partnership with Grafana Labs to develop a Grafana ElasticSearch plugin to integrate the benefits of Grafana’s visualization platform with the full capabilities of ElasticSearch. The plugin will be able to provide the customers with access to an integrated experience with aggregations, broader query language support, and support for space-saving constructs such as rollups.

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Disclosure: All investors should make their own assessments based on their own research, informed interpretations and risk appetite. This article expresses my own opinions based on my own ...

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