Q1 Revenue of $347 million, up 18% year-over-year (18% in constant currency)

Q1 Elastic Cloud Revenue of $157 million, up 30% year-over-year (30% in constant currency)

Elastic Reports First Quarter Fiscal 2025 Financial Results

Anthony Luscri
Elastic Investor Relations
ir@elastic.co

Madge Miller
Elastic Corporate Communications
PR-Team@elastic.co

Elastic (NYSE: ESTC) (“Elastic”), the company behind Elasticsearch®, announced financial results for its first quarter of fiscal 2025 ended July 31, 2024.

First Quarter Fiscal 2025 Financial Highlights

  • Total revenue was $347 million, an increase of 18% year-over-year, as reported and on a constant currency basis
  • Elastic Cloud revenue was $157 million, an increase of 30% year-over-year, as reported and on a constant currency basis
  • GAAP operating loss was $34 million; GAAP operating margin was -10%
  • Non-GAAP operating income was $37 million; non-GAAP operating margin was 11%
  • GAAP net loss per share was $0.48; non-GAAP diluted earnings per share was $0.35
  • Operating cash flow was $53 million with adjusted free cash flow of $64 million
  • Cash, cash equivalents, and marketable securities were $1.147 billion as of July 31, 2024

“We delivered solid first quarter results, outperforming the high end of our guidance for both revenue and profitability, and we continued to see strong adoption of our GenAI offerings. However, we had a slower start to the year with the volume of customer commitments impacted by segmentation changes that we made at the beginning of the year, which are taking longer than expected to settle. We have been taking steps to address this, but it will impact our revenue this year,” said Ash Kulkarni, Chief Executive Officer, Elastic. “We are excited by our significant momentum in GenAI as customers build real-time GenAI applications on Elastic, and by our opportunity to drive platform consolidation across a number of use cases. We bring incredible value to our customers through our Search AI platform and we remain confident in our market opportunity and growth potential.”

First Quarter Fiscal 2025 Key Metrics and Recent Business Highlights

Key Customer Metrics

  • Total customer count with Annual Contract Value (ACV) greater than $100,000 was over 1,370 compared to over 1,330 in Q4 FY24, and over 1,190 in Q1 FY24
  • Total subscription customer count was approximately 21,200 compared to approximately 21,000 in Q4 FY24, and approximately 20,500 in Q1 FY24
  • Net Expansion Rate was approximately 112%

Product Innovations and Updates

  • Introduced Automatic Import to automate SIEM data onboarding, enabling custom data sources to be added to Elastic Security in record time
  • Launched Playground to accelerate RAG development with Elasticsearch
  • Expanded LLM options on the Elastic Search AI Platform with support for Google Cloud Vertex AI and the LangChain chat model ecosystem
  • Announced that the Elasticsearch Open Inference API now supports integration with additional partners, including Amazon Bedrock, Mistral AI, and Anthropic
  • Integrated Elasticsearch vector database and broad retrieval capabilities into LangChain and Red Hat OpenShift AI
  • Announced Elastic Distributions of OpenTelemetry, a portfolio of OpenTelemetry components designed to improve infrastructure and application monitoring with Elastic Observability

Other Business Highlights

  • Announced intent to add AGPL as an option to license the free part of our source code that is available under the SSPL license today
  • Recognized as a Leader in the Gartner MQ for Observability Platforms
  • Awarded Microsoft US Partner of the Year 2024
  • Launched Elastic Express Migration, a new incentive program to help organizations adopt Search AI quickly and efficiently
  • Released the third Annual Elastic Sustainability Report
  • Engaged with thousands of customers and partners at Black Hat, WSJ Tech Live Cybersecurity, and InfoSec Europe

Financial Outlook

The Company is providing the following guidance:

For the second quarter of fiscal 2025 (ending October 31, 2024):

  • Total revenue is expected to be between $353 million and $355 million, representing 14% year-over-year growth at the midpoint (14% year-over-year constant currency growth at the midpoint)
  • Non-GAAP operating margin is expected to be approximately 13%
  • Non-GAAP diluted earnings per share is expected to be between $0.37 and $0.39, assuming between 105.5 million and 106.5 million diluted weighted average ordinary shares outstanding

For fiscal 2025 (ending April 30, 2025):

  • Total revenue is expected to be between $1.436 billion and $1.444 billion, representing 14% year-over-year growth at the midpoint (14% year-over-year constant currency growth at the midpoint)
  • Non-GAAP operating margin is expected to be approximately 12.5%
  • Non-GAAP diluted earnings per share is expected to be between $1.52 and $1.56, assuming between 106.0 million and 108.0 million diluted weighted average ordinary shares outstanding

The guidance assumes, among others, the following exchange rates: 1 Euro = 1.100 US Dollars; and 1 Great British Pound = 1.290 US Dollars.

See the section titled “Forward-Looking Statements” below for information on the factors that could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. We present historical and forward-looking non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of these non-GAAP measures. A reconciliation of forward-looking non-GAAP measures to the corresponding GAAP measures for operating margin and net loss per share is not available without unreasonable effort due to the uncertainty regarding, and the potential variability of, many of the costs and expenses that may be incurred in the future. These items necessary to reconcile such non-GAAP measures could be material and have a significant impact on the Company’s results computed in accordance with GAAP.

Conference Call and Webcast

Elastic’s executive management team will host a conference call today at 2:00 p.m. PT/5:00 p.m. ET to discuss the Company’s financial results and business outlook. A live audio webcast of the conference call will be available through Elastic’s Investor Relations website at ir.elastic.co. A presentation containing financial and operating information will be available at the same website. The replay of the webcast will also be available on the investor relations website.

About Elastic

Elastic (NYSE: ESTC), the Search AI Company, enables everyone to find the answers they need in real-time using all their data, at scale. Elastic’s solutions for search, observability and security are built on the Elastic Search AI Platform, the development platform used by thousands of companies, including more than 50% of the Fortune 500. Learn more at elastic.co.

Elastic and associated marks are trademarks or registered trademarks of Elastic N.V. and its subsidiaries. All other company and product names may be trademarks of their respective owners.

Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties, which include, but are not limited to, statements regarding our expected financial results for the fiscal quarter ending October 31, 2024 and the fiscal year ending April 30, 2025, the expected performance or benefits of our offerings, our sales strategies, expected market opportunities, and our ability to execute on those market opportunities. Actual outcomes and results may differ materially from those contemplated by these forward-looking statements due to uncertainties, risks, and changes in circumstances, including but not limited to those related to: our future financial performance, including our expectations regarding our revenue, cost of revenue, gross profit or gross margin, operating expenses (which include changes in sales and marketing, research and development and general and administrative expenses), and our ability to achieve and maintain future profitability; our ability to continue to deliver and improve our offerings and develop new offerings (including innovations around AI use cases); customer acceptance and purchase of our new and existing offerings; the expansion and adoption of our Elastic Cloud offerings; our ability to realize value from investments in the business; our ability to maintain and expand our user and customer base; the impact of the evolving macroeconomic and geopolitical environments on our business, operations, hiring and financial results, and on businesses and spending priorities of our customers and partners; the impact of our pricing model strategies on our business; the impact of our licensing model on the use and adoption of our software; the impact of foreign currency exchange rate fluctuations and the uncertain inflation and interest rate environment on our results; our international expansion strategy; our operating results and cash flows; the sufficiency of our capital resources; our ability to successfully execute our go-to-market strategy, our forecasts regarding our business; and general market, political, economic and business conditions.

Any additional or unforeseen effect from the evolving macroeconomic and geopolitical environments may exacerbate these risks. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those expressed or implied in our forward-looking statements are included in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the fiscal year ended April 30, 2024 and subsequent reports filed with the SEC. SEC filings are available on the Investor Relations section of Elastic’s website at ir.elastic.co and the SEC’s website at www.sec.gov. Elastic assumes no obligation to, and does not currently intend to, update any such forward-looking statements, except as required by law.

Statement Regarding Use of Non-GAAP Financial Measures

In addition to our results determined in accordance with U.S. GAAP, we believe the non-GAAP measures listed below are useful in evaluating our operating performance. We use these non-GAAP financial measures to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with U.S. GAAP. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. Investors are cautioned that there are a number of limitations associated with the use of non-GAAP financial measures and key metrics as analytical tools. Investors are encouraged to review the differences between GAAP financial measures and the corresponding non-GAAP financial measures, and not to rely on any single financial measure to evaluate our business.

Reconciliations of historical GAAP financial measures to their respective historical non-GAAP financial measures are included below. In relation to constant currency non-GAAP financial measures, the only reconciling item between GAAP financial measures and non-GAAP financial measures is the effect of foreign currency rate fluctuations. Further details on how we calculate such effects can be found in the definition of “Constant Currency” below.

Non-GAAP Gross Profit and Non-GAAP Gross Margin

We define non-GAAP gross profit and non-GAAP gross margin as GAAP gross profit and GAAP gross margin, respectively, excluding stock-based compensation expense and related employer taxes and amortization of acquired intangible assets. We believe non-GAAP gross profit and non-GAAP gross margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations, as these metrics generally eliminate the effects of certain variables from period to period for reasons unrelated to overall operating performance.

Non-GAAP Operating Income and Non-GAAP Operating Margin

We define non-GAAP operating income and non-GAAP operating margin as GAAP operating loss and GAAP operating margin, respectively, excluding stock-based compensation expense and related employer taxes, amortization of acquired intangible assets, acquisition-related expenses, and restructuring and other related charges. We believe non-GAAP operating income and non-GAAP operating margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations, as these metrics generally eliminate the effects of certain variables from period to period for reasons unrelated to overall operating performance.

Non-GAAP Net Income and Non-GAAP Earnings Per Share

We define non-GAAP net income as GAAP loss, excluding stock-based compensation expense and related employer taxes, amortization of acquired intangible assets, acquisition-related expenses, restructuring and other related charges, and the related income tax effect of these adjustments as well as other significant tax adjustments. We define non-GAAP earnings per share, basic, as non-GAAP net income divided by weighted average shares outstanding and non-GAAP earnings per share, diluted, as non-GAAP net income divided by weighted average diluted shares outstanding, which includes the potentially dilutive effect of the company’s employee equity incentive plan awards. We believe non-GAAP earnings per share provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this metric generally eliminates the effects of certain variables from period to period for reasons unrelated to overall operating performance.

Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin

Adjusted free cash flow is a non-GAAP financial measure that we define as net cash provided by operating activities adjusted for cash paid for interest less cash used for investing activities for purchases of property and equipment. Adjusted free cash flow margin is calculated as adjusted free cash flow divided by total revenue. Adjusted free cash flow does not represent residual cash flow available for discretionary expenditures since, among other things, we have mandatory debt service requirements.

Constant Currency

We compare the percent change in certain results from one period to another period using constant currency information to provide a framework for assessing how our business performed excluding the effect of foreign currency rate fluctuations. In presenting this information, current and comparative prior period results are converted into United States dollars at the exchange rates in effect on the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.

Contact Information 

Anthony Luscri
Elastic Investor Relations
ir@elastic.co

Madge Miller
Elastic Corporate Communications
PR-Team@elastic.co

Elastic N.V.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share data)

(unaudited)

 

 

Three Months Ended July 31,

 

2024

 

2023

Revenue

 

 

 

Subscription

$

323,774

 

 

$

270,247

 

Services

 

23,646

 

 

 

23,506

 

Total revenue

 

347,420

 

 

 

293,753

 

Cost of revenue

 

 

 

Subscription

 

68,347

 

 

 

57,266

 

Services

 

23,410

 

 

 

20,211

 

Total cost of revenue

 

91,757

 

 

 

77,477

 

Gross profit

 

255,663

 

 

 

216,276

 

Operating expenses

 

 

 

Research and development

 

89,332

 

 

 

80,690

 

Sales and marketing

 

157,357

 

 

 

133,169

 

General and administrative

 

42,673

 

 

 

37,939

 

Restructuring and other related charges

 

139

 

 

 

725

 

Total operating expenses

 

289,501

 

 

 

252,523

 

Operating loss

 

(33,838

)

 

 

(36,247

)

Other income, net

 

 

 

Interest expense

 

(6,526

)

 

 

(6,306

)

Other income, net

 

11,208

 

 

 

7,300

 

Loss before income taxes

 

(29,156

)

 

 

(35,253

)

Provision for income taxes

 

20,071

 

 

 

13,255

 

Net loss

$

(49,227

)

 

$

(48,508

)

Net loss per share attributable to ordinary shareholders, basic and diluted

$

(0.48

)

 

$

(0.50

)

Weighted-average shares used to compute net loss per share attributable to ordinary shareholders, basic and diluted

 

102,284,435

 

 

 

97,942,049

 

Elastic N.V.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

(unaudited)

 

 

As of
July 31, 2024

 

As of
April 30, 2024

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

594,871

 

 

$

540,397

 

Restricted cash

 

3,436

 

 

 

2,692

 

Marketable securities

 

552,459

 

 

 

544,002

 

Accounts receivable, net of allowance for credit losses of $4,370 and $4,979 as of July 31, 2024 and April 30, 2024, respectively

 

196,474

 

 

 

323,011

 

Deferred contract acquisition costs

 

76,265

 

 

 

78,030

 

Prepaid expenses and other current assets

 

42,643

 

 

 

42,765

 

Total current assets

 

1,466,148

 

 

 

1,530,897

 

Property and equipment, net

 

4,953

 

 

 

5,453

 

Goodwill

 

319,417

 

 

 

319,380

 

Operating lease right-of-use assets

 

17,758

 

 

 

20,506

 

Intangible assets, net

 

17,341

 

 

 

20,620

 

Deferred contract acquisition costs, non-current

 

107,467

 

 

 

114,509

 

Deferred tax assets

 

210,809

 

 

 

225,544

 

Other assets

 

6,580

 

 

 

5,657

 

Total assets

$

2,150,473

 

 

$

2,242,566

 

Liabilities and Shareholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

9,337

 

 

$

26,075

 

Accrued expenses and other liabilities

 

72,408

 

 

 

75,292

 

Accrued compensation and benefits

 

76,080

 

 

 

93,691

 

Operating lease liabilities

 

11,143

 

 

 

12,187

 

Deferred revenue

 

599,251

 

 

 

663,846

 

Total current liabilities

 

768,219

 

 

 

871,091

 

Deferred revenue, non-current

 

27,724

 

 

 

30,293

 

Long-term debt, net

 

568,887

 

 

 

568,612

 

Operating lease liabilities, non-current

 

10,714

 

 

 

12,898

 

Other liabilities, non-current

 

15,511

 

 

 

21,487

 

Total liabilities

 

1,391,055

 

 

 

1,504,381

 

Shareholders’ equity:

 

 

 

Preference shares, €0.01 par value; 165,000,000 shares authorized, 0 shares issued and outstanding as of July 31, 2024 and April 30, 2024

 

 

 

 

 

Ordinary shares, par value €0.01 per share: 165,000,000 shares authorized; 102,724,366 shares issued and outstanding as of July 31, 2024 and 101,705,935 shares issued and outstanding as of April 30, 2024

 

1,081

 

 

 

1,070

 

Treasury stock

 

(369

)

 

 

(369

)

Additional paid-in capital

 

1,819,006

 

 

 

1,750,729

 

Accumulated other comprehensive loss

 

(19,466

)

 

 

(21,638

)

Accumulated deficit

 

(1,040,834

)

 

 

(991,607

)

Total shareholders’ equity

 

759,418

 

 

 

738,185

 

Total liabilities and shareholders’ equity

$

2,150,473

 

 

$

2,242,566

 

Elastic N.V.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

Three Months Ended July 31,

 

2024

 

2023

Cash flows from operating activities

 

 

 

Net loss

$

(49,227

)

 

$

(48,508

)

Adjustments to reconcile net loss to cash provided by operating activities:

 

 

 

Depreciation and amortization

 

4,173

 

 

 

5,053

 

Amortization of premium and accretion of discount on marketable securities, net

 

(2,200

)

 

 

(2,468

)

Amortization of deferred contract acquisition costs

 

23,181

 

 

 

17,572

 

Amortization of debt issuance costs

 

275

 

 

 

263

 

Non-cash operating lease cost

 

2,838

 

 

 

2,652

 

Stock-based compensation expense

 

63,543

 

 

 

57,127

 

Deferred income taxes

 

14,723

 

 

 

392

 

Unrealized foreign currency transaction (gain) loss

 

(181

)

 

 

1,200

 

Other

 

 

 

 

(34

)

Changes in operating assets and liabilities:

 

 

 

Accounts receivable, net

 

127,203

 

 

 

75,871

 

Deferred contract acquisition costs

 

(13,900

)

 

 

(21,145

)

Prepaid expenses and other current assets

 

176

 

 

 

4,896

 

Other assets

 

(1,939

)

 

 

680

 

Accounts payable

 

(16,400

)

 

 

(19,233

)

Accrued expenses and other liabilities

 

(9,028

)

 

 

(411

)

Accrued compensation and benefits

 

(17,789

)

 

 

(3,885

)

Operating lease liabilities

 

(3,374

)

 

 

(3,100

)

Deferred revenue

 

(69,320

)

 

 

(29,110

)

Net cash provided by operating activities

 

52,754

 

 

 

37,812

 

Cash flows from investing activities

 

 

 

Purchases of property and equipment

 

(747

)

 

 

(632

)

Purchases of marketable securities

 

(95,163

)

 

 

(83,579

)

Sales, maturities, and redemptions of marketable securities

 

92,390

 

 

 

29,116

 

Net cash used in investing activities

 

(3,520

)

 

 

(55,095

)

Cash flows from financing activities

 

 

 

Proceeds from issuance of ordinary shares upon exercise of stock options

 

4,745

 

 

 

3,843

 

Net cash provided by financing activities

 

4,745

 

 

 

3,843

 

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

1,239

 

 

 

42

 

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

55,218

 

 

 

(13,398

)

Cash, cash equivalents, and restricted cash, beginning of period

 

543,089

 

 

 

646,640

 

Cash, cash equivalents, and restricted cash, end of period

$

598,307

 

 

$

633,242

 

Elastic N.V.

Revenue by Type

(in thousands, except percentages)

(unaudited)

 

 

Three Months Ended July 31,

 

2024

 

2023

 

Amount

 

% of
Total
Revenue

 

Amount

 

% of
Total
Revenue

Elastic Cloud

$

157,281

 

45

%

 

$

121,172

 

41

%

Other subscription

 

166,493

 

48

%

 

 

149,075

 

51

%

Total subscription

 

323,774

 

93

%

 

 

270,247

 

92

%

Services

 

23,646

 

7

%

 

23,506

 

8

%

Total revenue

$

347,420

 

100

%

 

$

293,753

 

100

%

Elastic N.V.

Reconciliation of GAAP to Non-GAAP Data

Supplementary Information

(in thousands, except percentages)

(unaudited)

 

 

Three Months
Ended

July 31, 2024

 

% Change
Year Over
Year

 

% Change
Year Over Year
Excluding
Currency Changes

 

% Change
Quarter
Over
Quarter

 

% Change
Quarter Over
Quarter Excluding
Currency Changes

Revenue

 

 

 

 

 

 

 

 

 

Elastic Cloud

$

157,281

 

30

%

 

30

%

 

6

%

 

6

%

Other subscription

$

166,493

 

12

%

 

12

%

 

2

%

 

2

%

Total subscription

$

323,774

 

20

%

 

20

%

 

4

%

 

4

%

Total revenue

$

347,420

 

18

%

 

18

%

 

4

%

 

4

%

Total deferred revenue

$

626,975

 

17

%

 

18

%

 

(10

)%

 

(10

)%

Total remaining performance obligations

$

1,258,813

 

13

%

 

13

%

 

(7

)%

 

(7

)%

Elastic N.V.

Reconciliation of GAAP to Non-GAAP Data

Adjusted Free Cash Flow

(in thousands, except percentages)

(unaudited)

 

 

Three Months Ended July 31,

 

2024

 

2023

Net cash provided by operating activities

$

52,754

 

 

$

37,812

 

Less: Purchases of property and equipment

 

(747

)

 

 

(632

)

Add: Interest paid on long-term debt

 

11,859

 

 

 

11,859

 

Adjusted free cash flow (1)

$

63,866

 

 

$

49,039

 

Net cash used in investing activities

$

(3,520

)

 

$

(55,095

)

Net cash provided by financing activities

$

4,745

 

 

$

3,843

 

Net cash provided by operating activities (as a percentage of total revenue)

 

15

%

 

 

13

%

Less: Purchases of property and equipment (as a percentage of total revenue)

 

%

 

 

%

Add: Interest paid on long-term debt (as a percentage of total revenue)

 

3

%

 

 

4

%

Adjusted free cash flow margin

 

18

%

 

 

17

%

(1)

 

Adjusted free cash flow includes cash paid for restructuring and other charges of $3.0 million and $0.5 million during the three months ended July 31, 2024 and 2023, respectively.

Elastic N.V.

Reconciliation of GAAP to Non-GAAP Data

(in thousands, except percentages, share and per share data)

(unaudited)

 

 

Three Months Ended July 31,

 

2024

 

2023

Gross Profit Reconciliation:

 

 

 

GAAP gross profit

$

255,663

 

 

$

216,276

 

Stock-based compensation expense and related employer taxes

 

6,309

 

 

 

5,394

 

Amortization of acquired intangibles

 

3,275

 

 

 

2,976

 

Non-GAAP gross profit

$

265,247

 

 

$

224,646

 

Gross Margin Reconciliation(1):

 

 

 

GAAP gross margin

 

73.6

%

 

 

73.6

%

Stock-based compensation expense and related employer taxes

 

1.8

%

 

 

1.8

%

Amortization of acquired intangibles

 

0.9

%

 

 

1.0

%

Non-GAAP gross margin

 

76.3

%

 

 

76.5

%

Operating (Loss) Income Reconciliation:

 

 

 

GAAP operating loss

$

(33,838

)

 

$

(36,247

)

Stock-based compensation expense and related employer taxes

 

67,567

 

 

 

59,614

 

Amortization of acquired intangibles

 

3,275

 

 

 

4,208

 

Acquisition-related expenses

 

48

 

 

 

780

 

Restructuring and other related charges

 

139

 

 

 

725

 

Non-GAAP operating income

$

37,191

 

 

$

29,080

 

Operating Margin Reconciliation(1):

 

 

 

GAAP operating margin

 

(9.7

)%

 

 

(12.3

)%

Stock-based compensation expense and related employer taxes

 

19.4

%

 

 

20.3

%

Amortization of acquired intangibles

 

0.9

%

 

 

1.4

%

Acquisition-related expenses

 

%

 

 

0.3

%

Restructuring and other related charges

 

%

 

 

0.2

%

Non-GAAP operating margin

 

10.7

%

 

 

9.9

%

Net (Loss) Income Reconciliation:

 

 

 

GAAP net loss

$

(49,227

)

 

$

(48,508

)

Stock-based compensation expense and related employer taxes

 

67,567

 

 

 

59,614

 

Amortization of acquired intangibles

 

3,275

 

 

 

4,208

 

Acquisition-related expenses

 

48

 

 

 

780

 

Restructuring and other related charges

 

139

 

 

 

725

 

Income tax effects related to the above adjustments(2)

 

15,314

 

 

 

8,585

 

Non-GAAP net income

$

37,116

 

 

$

25,404

 

Non-GAAP earnings per share attributable to ordinary shareholders, basic(1)

$

0.36

 

 

$

0.26

 

Non-GAAP earnings per share attributable to ordinary shareholders, diluted(1)

$

0.35

 

 

$

0.25

 

Weighted-average shares used to compute non-GAAP earnings per share attributable to ordinary shareholders, basic

 

102,284,435

 

 

 

97,942,049

 

Weighted-average shares used to compute non-GAAP earnings per share attributable to ordinary shareholders, diluted

 

105,964,740

 

 

 

101,334,074

 

(1)

 

Totals may not sum, due to rounding. Gross margin, operating margin, and earnings per share are calculated based upon the respective underlying, non-rounded data.

(2)

 

Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating the non-GAAP financial measures presented above as well as other significant tax adjustments. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our actual tax liabilities.

Elastic N.V.

Reconciliation of GAAP to Non-GAAP Data

(in thousands)

(unaudited)

 

 

Three Months Ended July 31,

 

2024

 

2023

Cost of revenue reconciliation:

 

 

 

GAAP subscription

$

68,347

 

 

$

57,266

 

Stock-based compensation expense and related employer taxes

 

(2,520

)

 

 

(2,381

)

Amortization of acquired intangibles

 

(3,275

)

 

 

(2,976

)

Non-GAAP subscription

$

62,552

 

 

$

51,909

 

GAAP services

$

23,410

 

 

$

20,211

 

Stock-based compensation expense and related employer taxes

 

(3,789

)

 

 

(3,013

)

Non-GAAP services

$

19,621

 

 

$

17,198

 

Operating expenses reconciliation:

 

 

 

GAAP research and development expense

$

89,332

 

 

$

80,690

 

Stock-based compensation expense and related employer taxes

 

(25,722

)

 

 

(23,405

)

Acquisition-related expenses

 

(48

)

 

 

(780

)

Non-GAAP research and development expense

$

63,562

 

 

$

56,505

 

GAAP sales and marketing expense

$

157,357

 

 

$

133,169

 

Stock-based compensation expense and related employer taxes

 

(22,449

)

 

 

(19,669

)

Amortization of acquired intangibles

 

 

 

 

(1,232

)

Non-GAAP sales and marketing expenses

$

134,908

 

 

$

112,268

 

GAAP general and administrative expense

$

42,673

 

 

$

37,939

 

Stock-based compensation expense and related employer taxes

 

(13,087

)

 

 

(11,146

)

Non-GAAP general and administrative expense

$

29,586

 

 

$

26,793

 

 


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