Press Release

Elastic N.V. Reports Strong Second Quarter Fiscal 2020 Financial Results

Company Release - 12/4/2019 4:10 PM ET

Q2 Revenue of $101.1 million; Up 59% year-over-year (63% in constant currency)

SaaS Revenue of $20.6 million, Up 106% year-over-year (114% in constant currency)

Calculated Billings of $125.3 million, Up 41% year-over-year (45% in constant currency)

MOUNTAIN VIEW, Calif. & AMSTERDAM, The Netherlands--(BUSINESS WIRE)-- Elastic N.V. (NYSE: ESTC) (“Elastic”), the company behind Elasticsearch and the Elastic Stack, announced strong results for its second quarter of fiscal 2020 (ended October 31, 2019).

Second Quarter Fiscal 2020 Financial Highlights

  • Total revenue was $101.1 million, an increase of 59% year-over-year, or 63% on a constant currency basis.
  • SaaS revenue was $20.6 million, an increase of 106% year-over-year, or 114% on a constant currency basis.
  • Calculated billings was $125.3 million, an increase of 41% year-over-year, or 45% on a constant currency basis.
  • Deferred revenue was $201.3 million, an increase of 58% year-over-year.
  • GAAP operating loss was $52.0 million; GAAP operating margin was -51%.
  • Non-GAAP operating loss was $18.4 million; non-GAAP operating margin was -18%.
  • GAAP net loss per share was $0.64; non-GAAP net loss per share was $0.22.
  • Operating cash flow was $0.3 million with free cash flow of -$1.4 million.
  • Cash and cash equivalents were $305.2 million as of October 31, 2019.

“We’re pleased with our constant currency revenue growth of 63% year-over-year in Q2,” said Shay Banon, Elastic’s founder and chief executive officer. “Closing the acquisition of Endgame is an exciting step toward realizing our vision for applying search to multiple use cases, as we are now able to offer users a powerful threat hunting solution with superior endpoint protection.”

Second Quarter Fiscal 2020 Key Metrics and Recent Business Highlights

Key Customer Metrics:

  • Total subscription customer count was over 9,700, compared to over 8,800 in Q1.
  • Total customer count with ACV greater than $100,000 was over 525, compared to over 475 in Q1.
  • Subscription revenue represented 91% of total revenue.
  • Net Expansion Rate continued to be greater than 130%.

Product releases and other business highlights:

  • Completed the acquisition of Endgame, Inc., a leader in endpoint security and threat prevention, detection, and response.
  • Introduced Elastic Endpoint Security, a leading endpoint protection solution that integrates with Elastic SIEM in the Elastic Stack, and eliminates endpoint pricing, enabling organizations to automatically and flexibly respond to threats in real time, whether in the cloud, on-premises, or in hybrid environments.
  • Released versions 7.4 and 7.5 of the Elastic Stack introducing:
    • Observability improvements that allow for monitoring more data and services and several key integrations between APM, logging, and security data.
    • Elastic Maps and Elastic SIEM integration that allows real-time live data to be searched and explored in maps.
    • Kibana Lens (preview) for a fast and intuitive way to craft visualizations with a drag-and-drop experience.
    • Elastic Enterprise Search (preview) with new connectors for Microsoft SharePoint Online, Office 365, OneDrive, and ServiceNow.
    • Machine learning enhancements, including a new UI in Kibana to manage outlier detection jobs and more pre-built machine learning jobs in Elastic SIEM.
  • Released version 2.4 of Elastic Cloud Enterprise (ECE) introducing:
    • Elastic App Search (preview), making it possible to add App Search as part of a deployment with a simple slider experience.
    • New ECE proxy that brings improved stability, fault tolerance, and simpler deployment management with new API endpoints.
  • Released Elastic Cloud on Kubernetes 1.0 (preview) introducing:
    • StatefulSets, allowing for even faster upgrades and configuration changes, as well as better usability when leveraging Elasticsearch architectures, such as hot-warm-cold, driving significant value for observability and security analytics use cases.
  • Announced the general availability of the Elasticsearch Service on Google Cloud Platform (GCP) Marketplace, simplifying procurement for GCP customers with consolidated billing; expanded availability in London, Sydney, and N. Virginia.
  • Launched the availability of the Elasticsearch Service on Microsoft Azure (preview) in Virginia and the Netherlands; expanded availability in Washington and Singapore.
  • Held 12 successful Elastic{ON} Tour events to engage with Elastic’s community of users, customers, and partners in Toronto, Chicago, Boston, Minneapolis, Washington D.C., Munich, San Jose, London, Amsterdam, Dallas, New York, and Barcelona, with waitlists driven by strong demand.
  • Nominated Alison Gleeson to join Elastic’s Board of Directors. Gleeson is a globally recognized executive who was previously Cisco Systems, Inc.'s Senior Vice President, Americas.

Financial Outlook

The Company is providing the following guidance:

For its third quarter of fiscal 2020 (ending January 31, 2020):

  • Total revenue is expected to be between $106 million and $108 million.
  • Non-GAAP operating margin is expected to be between -26.0% and -24.0%.
  • Non-GAAP net loss per share is expected to be between $0.36 and $0.34, assuming between 80.5 million and 81.5 million weighted average ordinary shares outstanding.

For its fiscal year 2020 (ending April 30, 2020):

  • Total revenue is expected to be between $415 million and $417 million.
  • Non-GAAP operating margin is expected to be between -23.0% and -22.0%, including approximately -2% related to the acquisition of Endgame.
  • Non-GAAP net loss per share is expected to be between $1.24 and $1.17, assuming between 78 million and 80 million weighted average ordinary shares outstanding.

See the section titled “Forward-Looking Statements” below for information on the factors that could cause our actual results to differ materially. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis 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.

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/ 11:00 p.m. CET 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. Slides will accompany the webcast. The replay of the webcast and slides will be available for two months.

About Elastic

Elastic is a search company. As the creators of the Elastic Stack (Elasticsearch, Kibana, Beats, and Logstash), Elastic builds self-managed and SaaS offerings that make data usable in real time and at scale for use cases like application search, site search, enterprise search, logging, APM, metrics, security, business analytics, and many more.

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.

Use of Non-GAAP Financial Measures

Reconciliations of non-GAAP financial measures to Elastic’s financial results as determined in accordance with U.S. GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of this press release titled “About Non-GAAP Financial Measures.”

Forward-Looking Statements

This press release contains forward-looking statements which include, but are not limited to, expected financial results for the fiscal quarter ending October 31, 2019 and the fiscal year ending April 30, 2020. These forward-looking statements are subject to the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Our expectations and beliefs regarding these matters may not materialize. Actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of uncertainties, risks, and changes in circumstances, including but not limited to risks and uncertainties related to: our future financial performance, including our expectations regarding our revenue; cost of revenue; gross profit or gross margin; and operating expenses (including changes in sales and marketing, research and development and general and administrative expenses); our ability to achieve, and maintain, future profitability; our ability to continue to deliver and improve our offerings and successfully develop new offerings; customer acceptance and purchase of our existing offerings and new offerings; our ability to maintain and expand our user and customer base; the market for our products not continuing to develop; competition from other products; the impact of foreign currency exchange rate and interest rate fluctuations on our results; our business strategy and our plan to build our business; our ability to effectively manage our growth; the pace of change and innovation in the markets in which we participate and the competitive nature of those markets; our international expansion strategy; our service performance and security, including the resources and costs required to prevent, detect and remediate potential security breaches; our operating results and cash flows; our strategy of acquiring complementary businesses and our ability to successfully integrate acquired businesses and technologies; our relationships with third parties, including partners; our ability to protect our intellectual property rights; our ability to develop our brands; our ability to attract and retain qualified employees and key personnel; the impact of expensing stock options and other equity awards; the sufficiency of our capital resources; the impact of our acquisition of Endgame, Inc. on our operating margin; the impact of our acquisition of Endgame, Inc. on Elastic’s future product offerings; and general market, political, economic and business conditions. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our most recent filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the fiscal year ended April 30, 2019 and any subsequent reports on Form 10-K, Form 10-Q or Form 8-K 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 after the date of this release, except as required by law.

Elastic N.V.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except share and per share amounts)

(Unaudited)

 

 

 

Three Months Ended October 31,

 

 

Six Months Ended October 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

License - self-managed

 

$

12,272

 

 

$

10,204

 

 

$

22,179

 

 

$

17,444

 

Subscription - self-managed and SaaS

 

 

79,407

 

 

 

48,232

 

 

 

151,890

 

 

 

92,601

 

Total subscription revenue

 

 

91,679

 

 

 

58,436

 

 

 

174,069

 

 

 

110,045

 

Professional services

 

 

9,427

 

 

 

5,139

 

 

 

16,747

 

 

 

10,174

 

Total revenue

 

 

101,106

 

 

 

63,575

 

 

 

190,816

 

 

 

120,219

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of license - self-managed

 

 

158

 

 

 

97

 

 

 

255

 

 

 

194

 

Cost of subscription - self-managed and SaaS

 

 

19,741

 

 

 

12,870

 

 

 

37,636

 

 

 

23,071

 

Total cost of revenue - subscription

 

 

19,899

 

 

 

12,967

 

 

 

37,891

 

 

 

23,265

 

Cost of professional services

 

 

8,862

 

 

 

5,620

 

 

 

17,121

 

 

 

10,879

 

Total cost of revenue

 

 

28,761

 

 

 

18,587

 

 

 

55,012

 

 

 

34,144

 

Gross profit

 

 

72,345

 

 

 

44,988

 

 

 

135,804

 

 

 

86,075

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

38,478

 

 

 

25,332

 

 

 

73,660

 

 

 

44,313

 

Sales and marketing

 

 

54,020

 

 

 

34,634

 

 

 

106,031

 

 

 

65,056

 

General and administrative

 

 

31,808

 

 

 

12,092

 

 

 

50,376

 

 

 

22,191

 

Total operating expenses

 

 

124,306

 

 

 

72,058

 

 

 

230,067

 

 

 

131,560

 

Operating loss

 

 

(51,961

)

 

 

(27,070

)

 

 

(94,263

)

 

 

(45,485

)

Other income, net

 

 

1,684

 

 

 

264

 

 

 

2,615

 

 

 

860

 

Loss before income taxes

 

 

(50,277

)

 

 

(26,806

)

 

 

(91,648

)

 

 

(44,625

)

Provision for (benefit from) income taxes

 

 

(304

)

 

 

733

 

 

 

94

 

 

 

1,492

 

Net loss

 

$

(49,973

)

 

$

(27,539

)

 

$

(91,742

)

 

$

(46,117

)

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

 

$

(0.64

)

 

$

(0.63

)

 

$

(1.20

)

 

$

(1.20

)

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

 

 

77,772,406

 

 

 

43,978,770

 

 

 

76,202,865

 

 

 

38,471,641

 

Elastic N.V.

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except share and per share amounts)

(Unaudited)

 

 

 

October 31,

2019

 

 

April 30,

2019

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

305,246

 

 

$

298,000

 

Restricted cash

 

 

2,302

 

 

 

2,280

 

Accounts receivable, net of allowance for doubtful accounts of $1,495 and $1,411 as of October 31, 2019 and April 30, 2019, respectively

 

 

78,920

 

 

 

81,274

 

Deferred contract acquisition costs

 

 

14,778

 

 

 

17,215

 

Prepaid expenses and other current assets

 

 

31,859

 

 

 

30,872

 

Total current assets

 

 

433,105

 

 

 

429,641

 

Property and equipment, net

 

 

8,002

 

 

 

5,448

 

Goodwill

 

 

198,797

 

 

 

19,846

 

Operating lease right-of-use assets

 

 

40,177

 

 

 

-

 

Intangible assets, net

 

 

58,463

 

 

 

6,723

 

Deferred contract acquisition costs, non-current

 

 

14,456

 

 

 

8,935

 

Deferred tax assets

 

 

2,255

 

 

 

1,748

 

Other assets

 

 

11,534

 

 

 

13,397

 

Total assets

 

$

766,789

 

 

$

485,738

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

10,064

 

 

$

4,450

 

Accrued expenses and other liabilities

 

 

21,818

 

 

 

18,740

 

Accrued compensation and benefits

 

 

44,978

 

 

 

22,147

 

Operating lease liabilities

 

 

7,733

 

 

 

-

 

Deferred revenue

 

 

180,156

 

 

 

158,243

 

Total current liabilities

 

 

264,749

 

 

 

203,580

 

Deferred revenue, non-current

 

 

21,175

 

 

 

12,423

 

Operating lease liabilities, non-current

 

 

34,137

 

 

 

-

 

Other liabilities, non-current

 

 

13,572

 

 

 

6,723

 

Total liabilities

 

 

333,633

 

 

 

222,726

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

Convertible preference shares, €0.01 par value; 165,000,000 shares authorized, 0 shares issued and outstanding as of October 31, 2019 and April 30, 2019

 

 

-

 

 

 

-

 

Ordinary shares, par value €0.01 per share: 165,000,000 shares authorized; 80,412,842 and 73,675,083 shares issued and outstanding as of October 31, 2019 and April 30, 2019, respectively

 

 

829

 

 

 

754

 

Treasury stock

 

 

(369

)

 

 

(369

)

Additional paid-in capital

 

 

843,997

 

 

 

581,135

 

Accumulated other comprehensive loss

 

 

(2,482

)

 

 

(1,431

)

Accumulated deficit

 

 

(408,819

)

 

 

(317,077

)

Total shareholders’ equity

 

 

433,156

 

 

 

263,012

 

Total liabilities and shareholders’ equity

 

$

766,789

 

 

$

485,738

 

Elastic N.V.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in thousands)

(Unaudited)

 

 

 

Three Months Ended

October 31,

 

 

Six Months Ended

October 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(49,973

)

 

$

(27,539

)

 

$

(91,742

)

 

$

(46,117

)

Adjustments to reconcile net loss to cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

2,050

 

 

 

1,466

 

 

 

3,338

 

 

 

3,008

 

Amortization of deferred contract acquisition costs

 

 

7,198

 

 

 

4,829

 

 

 

13,921

 

 

 

8,848

 

Non-cash operating lease cost

 

 

1,667

 

 

 

-

 

 

 

3,014

 

 

 

-

 

Stock-based compensation expense

 

 

14,416

 

 

 

11,239

 

 

 

27,187

 

 

 

16,904

 

Non-cash acquisition expense settled with shares

 

 

8,834

 

 

 

-

 

 

 

8,834

 

 

 

-

 

Deferred income taxes

 

 

(690

)

 

 

42

 

 

 

(671

)

 

 

910

 

Other

 

 

323

 

 

 

15

 

 

 

323

 

 

 

15

 

Changes in operating assets and liabilities, net of impact of business acquisitions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

(18,678

)

 

 

(11,772

)

 

 

4,850

 

 

 

(2,624

)

Deferred contract acquisition costs

 

 

(11,510

)

 

 

(9,617

)

 

 

(17,025

)

 

 

(14,136

)

Prepaid expenses and other current assets

 

 

(3,389

)

 

 

(5,900

)

 

 

(819

)

 

 

(4,857

)

Other assets

 

 

851

 

 

 

68

 

 

 

1,906

 

 

 

733

 

Accounts payable

 

 

1,916

 

 

 

1,685

 

 

 

4,204

 

 

 

4,867

 

Accrued expenses and other liabilities

 

 

6,238

 

 

 

4,778

 

 

 

3,372

 

 

 

7,655

 

Accrued compensation and benefits

 

 

18,031

 

 

 

4,820

 

 

 

16,214

 

 

 

1,666

 

Operating lease liabilities

 

 

(1,505

)

 

 

-

 

 

 

(2,788

)

 

 

-

 

Deferred revenue

 

 

24,511

 

 

 

25,310

 

 

 

24,478

 

 

 

27,678

 

Net cash provided by (used in) operating activities

 

 

290

 

 

 

(576

)

 

 

(1,404

)

 

 

4,550

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(1,645

)

 

 

(836

)

 

 

(3,230

)

 

 

(1,172

)

Business acquisitions, net of cash acquired

 

 

(24,373

)

 

 

-

 

 

 

(24,373

)

 

 

(1,986

)

Net cash used in investing activities

 

 

(26,018

)

 

 

(836

)

 

 

(27,603

)

 

 

(3,158

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net proceeds from issuance of ordinary shares in initial public offering

 

 

-

 

 

 

269,514

 

 

 

-

 

 

 

269,514

 

Proceeds from issuance of ordinary shares upon exercise of stock options

 

 

19,455

 

 

 

2,133

 

 

 

39,568

 

 

 

2,782

 

Payment of withholding taxes related to acquisition expense settled in shares

 

 

(2,834

)

 

 

-

 

 

 

(2,834

)

 

 

-

 

Repurchase of early exercised options

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(500

)

Repayment of notes payable

 

 

(30

)

 

 

-

 

 

 

(60

)

 

 

(20

)

Payment of deferred offering costs

 

 

-

 

 

 

(2,302

)

 

 

-

 

 

 

(2,302

)

Net cash provided by financing activities

 

 

16,591

 

 

 

269,345

 

 

 

36,674

 

 

 

269,474

 

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

 

 

(728

)

 

 

(449

)

 

 

(399

)

 

 

(1,628

)

Net increase in cash, cash equivalents, and restricted cash

 

 

(9,865

)

 

 

267,484

 

 

 

7,268

 

 

 

269,238

 

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

 

 

317,413

 

 

 

53,363

 

 

 

300,280

 

 

 

51,609

 

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

 

$

307,548

 

 

$

320,847

 

 

$

307,548

 

 

$

320,847

 

Elastic N.V.

REVENUE BY TYPE

(amounts in thousands, except percentages)

(Unaudited)

 

 

 

Three Months Ended October 31,

 

Six Months Ended October 31,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

 

 

 

% of

 

 

 

 

 

 

% of

 

 

 

 

 

 

% of

 

 

 

 

 

 

% of

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

Total

 

 

 

 

 

 

Total

 

 

 

 

 

 

Total

 

 

 

Amount

 

 

Revenue

 

 

Amount

 

 

Revenue

 

 

Amount

 

 

Revenue

 

 

Amount

 

 

Revenue

 

Self-managed subscription

 

$

71,030

 

 

 

71

%

 

$

48,406

 

 

 

76

%

 

$

135,842

 

 

 

71

%

 

$

89,718

 

 

 

75

%

License

 

 

12,272

 

 

 

12

%

 

 

10,204

 

 

 

16

%

 

 

22,179

 

 

 

11

%

 

 

17,444

 

 

 

15

%

Subscription

 

 

58,758

 

 

 

59

%

 

 

38,202

 

 

 

60

%

 

 

113,663

 

 

 

60

%

 

 

72,274

 

 

 

60

%

SaaS

 

 

20,649

 

 

 

20

%

 

 

10,030

 

 

 

16

%

 

 

38,227

 

 

 

20

%

 

 

20,327

 

 

 

17

%

Total subscription revenue

 

 

91,679

 

 

 

91

%

 

 

58,436

 

 

 

92

%

 

 

174,069

 

 

 

91

%

 

 

110,045

 

 

 

92

%

Professional services

 

 

9,427

 

 

 

9

%

 

 

5,139

 

 

 

8

%

 

 

16,747

 

 

 

9

%

 

 

10,174

 

 

 

8

%

Total revenue

 

$

101,106

 

 

 

100

%

 

$

63,575

 

 

 

100

%

 

$

190,816

 

 

 

100

%

 

$

120,219

 

 

 

100

%

Elastic N.V.

RECONCILIATION OF GAAP TO NON-GAAP DATA

CALCULATED BILLINGS

(amounts in thousands)

(Unaudited)

 

 

 

Three Months Ended October 31,

 

 

Six Months Ended October 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Total revenue

 

$

101,106

 

 

$

63,575

 

 

$

190,816

 

 

$

120,219

 

Add: Increase in total deferred revenue

 

 

24,511

 

 

 

25,310

 

 

 

24,478

 

 

 

27,678

 

Less: Increase in unbilled accounts receivable

 

 

(362

)

 

 

(361

)

 

 

(599

)

 

 

(155

)

Calculated billings

 

$

125,255

 

 

$

88,524

 

 

$

214,695

 

 

$

147,742

 

Elastic N.V.

RECONCILIATION OF GAAP TO NON-GAAP DATA

FREE CASH FLOW

(amounts in thousands, except percentages)

(Unaudited)

 

 

 

Three Months Ended October 31,

 

Six Months Ended October 31,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net cash provided by (used in) operating activities

 

$

290

 

 

$

(576

)

 

$

(1,404

)

 

$

4,550

 

Less: Purchases of property and equipment

 

 

(1,645

)

 

 

(836

)

 

 

(3,230

)

 

 

(1,172

)

Free cash flow

 

$

(1,355

)

 

$

(1,412

)

 

$

(4,634

)

 

$

3,378

 

Net cash used in investing activities

 

$

(26,018

)

 

$

(836

)

 

$

(27,603

)

 

$

(3,158

)

Net cash provided by financing activities

 

$

16,591

 

 

$

269,345

 

 

$

36,674

 

 

$

269,474

 

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

 

 

0

%

 

 

(1

)%

 

 

(0

)%

 

 

4

%

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

 

 

(1

)%

 

 

(1

)%

 

 

(2

)%

 

 

(1

)%

Free cash flow margin

 

 

(1

)%

 

 

(2

)%

 

 

(2

)%

 

 

3

%

Elastic N.V.

RECONCILIATION OF GAAP TO NON-GAAP DATA

For the three months ended October 31, 2019

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

(Unaudited)

 

 

 

GAAP

 

 

Stock-Based

Compensation

Expense

 

 

Employer
Payroll Taxes on Employee Stock Transactions

 

 

Amortization

of Acquired

Intangibles

 

 

Acquisition

Related

Expenses

 

 

Tax

Adjustment (1)

 

 

Non-GAAP (2)

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of license - self-managed

 

$

158

 

 

 

-

 

 

 

-

 

 

 

(158

)

 

 

-

 

 

 

-

 

 

$

-

 

Cost of subscription - self-managed and SaaS

 

$

19,741

 

 

 

(946

)

 

 

(166

)

 

 

(861

)

 

 

-

 

 

 

-

 

 

$

17,768

 

Total cost of revenue - subscription

 

$

19,899

 

 

 

(946

)

 

 

(166

)

 

 

(1,019

)

 

 

-

 

 

 

-

 

 

$

17,768

 

Cost of professional services

 

$

8,862

 

 

 

(638

)

 

 

(86

)

 

 

-

 

 

 

-

 

 

 

-

 

 

$

8,138

 

Total cost of revenue

 

$

28,761

 

 

 

(1,584

)

 

 

(252

)

 

 

(1,019

)

 

 

-

 

 

 

-

 

 

$

25,906

 

Gross profit

 

$

72,345

 

 

 

1,584

 

 

 

252

 

 

 

1,019

 

 

 

-

 

 

 

-

 

 

$

75,200

 

Gross margin (2)

 

 

71.6

%

 

 

1.6

%

 

 

0.2

%

 

 

1.0

%

 

 

0.0

%

 

 

 

 

 

 

74.4

%

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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