Elastic Reports Fourth Quarter and Fiscal 2024 Financial Results

May 30, 2024

Q4 Revenue of $335 million, up 20% year-over-year (20% in constant currency)

Q4 Elastic Cloud Revenue of $148 million, up 32% year-over-year (32% in constant currency)

FY24 Revenue of $1.267 billion, up 19% year-over-year (18% in constant currency)

Elastic (NYSE: ESTC) (“Elastic”), the Search AI Company, announced financial results for its fourth quarter and full fiscal year ended April 30, 2024.

Fourth Quarter Fiscal 2024 Financial Highlights

  • Total revenue was $335 million, an increase of 20% year-over-year, as reported and on a constant currency basis
  • Elastic Cloud revenue was $148 million, an increase of 32% year-over-year, as reported and on a constant currency basis
  • GAAP operating loss was $46 million; GAAP operating margin was -14%
  • Non-GAAP operating income was $29 million; non-GAAP operating margin was 9%
  • GAAP net loss per share was $0.41; non-GAAP diluted earnings per share was $0.21
  • Operating cash flow was $61 million with adjusted free cash flow of $60 million
  • Cash, cash equivalents, and marketable securities were $1.084 billion as of April 30, 2024

Full Fiscal 2024 Financial Highlights

  • Total revenue was $1.267 billion, an increase of 19% year-over-year, or 18% on a constant currency basis
  • Elastic Cloud revenue was $548 million, an increase of 29% year-over-year as reported and on a constant currency basis
  • GAAP operating loss was $130 million; GAAP operating margin was -10%
  • Non-GAAP operating income was $142 million; non-GAAP operating margin was 11%
  • GAAP diluted earnings per share was $0.59(1); non-GAAP diluted earnings per share was $1.19
  • Operating cash flow was $149 million with adjusted free cash flow of $169 million

“Elastic delivered another strong quarter and a great finish to the fiscal year,” said Ash Kulkarni, CEO, Elastic. “The strong and sustained adoption we are seeing for our Generative AI capabilities and our continued ability to differentiate and win in search, security and observability with our Search AI Platform reinforces our confidence in the enduring strength of our business.”

Fourth Quarter Fiscal 2024 Key Metrics and Recent Business Highlights

Key Customer Metrics

  • Total customer count with Annual Contract Value (ACV) greater than $100,000 was over 1,330 compared to over 1,270 in Q3 FY24, and over 1,160 in Q4 FY23
  • Total subscription customer count was approximately 21,000 compared to approximately 20,800 in Q3 FY24, and approximately 20,200 in Q4 FY23
  • Net Expansion Rate was approximately 110%

Product Innovations and Updates

  • Introduced first-of-its-kind Search AI Lake, a cloud native architecture to scale low latency search with all of Elastic’s AI capabilities
  • Launched the technical preview of Elastic Cloud Serverless for search, including retrieval augmented generation, observability, and security workloads
  • Announced Attack Discovery, an AI-driven security analytics solution for the modern SOC, combining search and retrieval augmented generation to prioritize attacks, not alerts
  • Added support for Cohere high-performance vector embeddings and Rerank 3 model
  • Delivered native support for the Elasticsearch vector database on Azure AI Studio
  • Expanded Azure Open AI support with chat completions and embeddings support
  • Introduced new detection rules to help customers protect against LLM risks and delivered an LLM Safety Assessment: The Definitive Guide on Avoiding Risk and Abuses guide, which explores LLM safety and provides attack mitigation best practices and suggested countermeasures

Other Business Highlights

  • Awarded Google Cloud Partner of the Year for the fourth time
  • Named one of Fast Company's Most Innovative Companies in the enterprise category for the AI-enabled Elasticsearch Relevance Engine
  • Engaged with thousands of customers and partners at Google Cloud Next, RSA, Microsoft Build and hosted ElasticON events at Chicago, New York, Sao Paulo, Singapore, Toronto, and Washington DC

Financial Outlook

The Company is providing the following guidance:

For the first quarter of fiscal 2025 (ending July 31, 2024):

  • Total revenue is expected to be between $343 million and $345 million, representing 17% year-over-year growth at the midpoint (17% year-over-year constant currency growth at the midpoint)
  • Non-GAAP operating margin is expected to be between 9.2% and 9.4%
  • Non-GAAP diluted earnings per share is expected to be between $0.24 and $0.26, 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 $1.468 billion and $1.480 billion, representing 16% year-over-year growth at the midpoint (16% year-over-year constant currency growth at the midpoint)
  • Non-GAAP operating margin is expected to be between 11.7% and 12.3%
  • Non-GAAP diluted earnings per share is expected to be between $1.35 and $1.47, assuming between 107.0 million and 109.0 million diluted weighted average ordinary shares outstanding

The guidance assumes, among others, the following exchange rates: 1 Euro = 1.081 US Dollars; and 1 Great British Pound = 1.270 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 earnings/(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.

(1) GAAP diluted earnings per share includes the impact of an income tax benefit of approximately $211 million related to the release of a valuation allowance against certain deferred tax assets. There was no impact to operating results, non-GAAP diluted earnings per share, adjusted free cash flow or cash and cash equivalents.

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 July 31, 2024 and the fiscal year ending April 30, 2025, the expected performance or benefits of our offerings, 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 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, 2023 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 income/(loss), excluding stock-based compensation expense and related employer taxes, amortization of acquired intangible assets, acquisition-related expenses, restructuring and other related charges, one-time litigation settlements, the related income tax effect of the foregoing adjustments, and the income tax benefit from the release of any valuation allowance against deferred tax assets. 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 April 30,

 

Year Ended April 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenue

 

 

 

 

 

 

 

Subscription

$

310,984

 

 

$

256,124

 

 

$

1,176,606

 

 

$

984,762

 

Services

 

24,015

 

 

 

23,817

 

 

 

90,715

 

 

 

84,227

 

Total revenue

 

334,999

 

 

 

279,941

 

 

 

1,267,321

 

 

 

1,068,989

 

Cost of revenue

 

 

 

 

 

 

 

Subscription

 

65,047

 

 

 

54,508

 

 

 

246,285

 

 

 

219,306

 

Services

 

22,824

 

 

 

19,174

 

 

 

83,794

 

 

 

77,320

 

Total cost of revenue

 

87,871

 

 

 

73,682

 

 

 

330,079

 

 

 

296,626

 

Gross profit

 

247,128

 

 

 

206,259

 

 

 

937,242

 

 

 

772,363

 

Operating expenses

 

 

 

 

 

 

 

Research and development

 

93,951

 

 

 

81,765

 

 

 

341,951

 

 

 

313,454

 

Sales and marketing

 

151,628

 

 

 

123,635

 

 

 

559,648

 

 

 

503,537

 

General and administrative

 

43,098

 

 

 

39,523

 

 

 

160,628

 

 

 

143,247

 

Restructuring and other related charges

 

4,163

 

 

 

1,492

 

 

 

4,917

 

 

 

31,297

 

Total operating expenses

 

292,840

 

 

 

246,415

 

 

 

1,067,144

 

 

 

991,535

 

Operating loss

 

(45,712

)

 

 

(40,156

)

 

 

(129,902

)

 

 

(219,172

)

Other income, net

 

 

 

 

 

 

 

Interest expense

 

(7,109

)

 

 

(6,284

)

 

 

(26,132

)

 

 

(25,159

)

Other income, net

 

9,171

 

 

 

6,680

 

 

 

33,278

 

 

 

27,454

 

Loss before income taxes

 

(43,650

)

 

 

(39,760

)

 

 

(122,756

)

 

 

(216,877

)

(Benefit from) provision for income taxes

 

(2,550

)

 

 

6,971

 

 

 

(184,476

)

 

 

19,284

 

Net (loss) income

$

(41,100

)

 

$

(46,731

)

 

$

61,720

 

 

$

(236,161

)

Net (loss) earnings per share attributable to ordinary shareholders

 

 

 

 

 

 

 

Basic

$

(0.41

)

 

$

(0.48

)

 

$

0.62

 

 

$

(2.47

)

Diluted

$

(0.41

)

 

$

(0.48

)

 

$

0.59

 

 

$

(2.47

)

Weighted-average shares used to compute net (loss) earnings per share attributable to ordinary shareholders

 

 

 

 

 

 

 

Basic

 

101,323,761

 

 

 

96,978,043

 

 

 

99,646,231

 

 

 

95,729,844

 

Diluted

 

101,323,761

 

 

 

96,978,043

 

 

 

103,980,132

 

 

 

95,729,844

 

Elastic N.V.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

(unaudited)

 

 

As of

April 30, 2024

 

As of

April 30, 2023

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

540,397

 

 

$

644,167

 

Restricted cash

 

2,692

 

 

 

2,473

 

Marketable securities

 

544,002

 

 

 

271,041

 

Accounts receivable, net of allowance for credit losses of $4,979 and $3,409 as of April 30, 2024 and April 30, 2023, respectively

 

323,011

 

 

 

260,919

 

Deferred contract acquisition costs

 

78,030

 

 

 

55,813

 

Prepaid expenses and other current assets

 

42,765

 

 

 

39,867

 

Total current assets

 

1,530,897

 

 

 

1,274,280

 

Property and equipment, net

 

5,453

 

 

 

5,092

 

Goodwill

 

319,380

 

 

 

303,642

 

Operating lease right-of-use assets

 

20,506

 

 

 

19,997

 

Intangible assets, net

 

20,620

 

 

 

29,104

 

Deferred contract acquisition costs, non-current

 

114,509

 

 

 

95,879

 

Deferred tax assets

 

225,544

 

 

 

7,412

 

Other assets

 

5,657

 

 

 

8,076

 

Total assets

$

2,242,566

 

 

$

1,743,482

 

Liabilities and Shareholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

26,075

 

 

$

35,151

 

Accrued expenses and other liabilities

 

75,292

 

 

 

63,532

 

Accrued compensation and benefits

 

93,691

 

 

 

76,483

 

Operating lease liabilities

 

12,187

 

 

 

12,749

 

Deferred revenue

 

663,846

 

 

 

528,704

 

Total current liabilities

 

871,091

 

 

 

716,619

 

Deferred revenue, non-current

 

30,293

 

 

 

34,248

 

Long-term debt, net

 

568,612

 

 

 

567,543

 

Operating lease liabilities, non-current

 

12,898

 

 

 

13,942

 

Other liabilities, non-current

 

21,487

 

 

 

12,233

 

Total liabilities

 

1,504,381

 

 

 

1,344,585

 

Shareholders’ equity:

 

 

 

Preference shares, €0.01 par value; 165,000,000 shares authorized, 0 shares issued and outstanding as of April 30, 2024 and April 30, 2023

 

 

 

 

 

Ordinary shares, par value €0.01 per share: 165,000,000 shares authorized; 101,705,935 shares issued and outstanding as of April 30, 2024 and 97,366,947 shares issued and outstanding as of April 30, 2023

 

1,070

 

 

 

1,024

 

Treasury stock

 

(369

)

 

 

(369

)

Additional paid-in capital

 

1,750,729

 

 

 

1,471,584

 

Accumulated other comprehensive loss

 

(21,638

)

 

 

(20,015

)

Accumulated deficit

 

(991,607

)

 

 

(1,053,327

)

Total shareholders’ equity

 

738,185

 

 

 

398,897

 

Total liabilities and shareholders’ equity

$

2,242,566

 

 

$

1,743,482

 

Elastic N.V.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

Three Months Ended April 30,

 

Year Ended April 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Cash flows from operating activities

 

 

 

 

 

 

 

Net (loss) income

$

(41,100

)

 

$

(46,731

)

 

$

61,720

 

 

$

(236,161

)

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

 

 

 

 

 

 

 

Depreciation and amortization

 

4,146

 

 

 

4,758

 

 

 

17,999

 

 

 

20,233

 

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

 

(2,412

)

 

 

(772

)

 

 

(8,808

)

 

 

(772

)

Amortization of deferred contract acquisition costs

 

22,157

 

 

 

17,405

 

 

 

78,549

 

 

 

68,900

 

Amortization of debt issuance costs

 

271

 

 

 

260

 

 

 

1,069

 

 

 

1,023

 

Non-cash operating lease cost

 

2,862

 

 

 

2,526

 

 

 

11,010

 

 

 

10,880

 

Asset impairment charges

 

 

 

 

 

 

 

 

 

 

6,242

 

Stock-based compensation expense

 

62,793

 

 

 

55,413

 

 

 

239,137

 

 

 

204,039

 

Deferred income taxes

 

(6,917

)

 

 

(2,075

)

 

 

(217,195

)

 

 

(2,007

)

Foreign currency transaction (loss) gains

 

(337

)

 

 

(3,647

)

 

 

1,930

 

 

 

(1,386

)

Other

 

 

 

 

(23

)

 

 

(34

)

 

 

44

 

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

 

 

 

 

 

 

 

Accounts receivable, net

 

(94,563

)

 

 

(60,403

)

 

 

(63,519

)

 

 

(46,353

)

Deferred contract acquisition costs

 

(45,745

)

 

 

(33,833

)

 

 

(119,834

)

 

 

(102,017

)

Prepaid expenses and other current assets

 

2,637

 

 

(6,348

)

 

 

(2,875

)

 

 

1,323

 

Other assets

 

1,267

 

 

 

1,419

 

 

 

1,906

 

 

 

8,525

 

Accounts payable

 

15,214

 

 

 

5,793

 

 

 

(9,998

)

 

 

6,304

 

Accrued expenses and other liabilities

 

16,716

 

 

 

10,582

 

 

 

18,144

 

 

 

4,310

 

Accrued compensation and benefits

 

15,848

 

 

 

8,485

 

 

 

17,357

 

 

 

8,324

 

Operating lease liabilities

 

(3,295

)

 

 

(3,001

)

 

 

(12,391

)

 

 

(11,405

)

Deferred revenue

 

111,406

 

 

 

77,747

 

 

 

134,595

 

 

 

95,616

 

Net cash provided by operating activities

 

60,948

 

 

 

27,555

 

 

 

148,762

 

 

 

35,662

 

Cash flows from investing activities

 

 

 

 

 

 

 

Purchases of property and equipment

 

(845

)

 

 

(1,665

)

 

 

(3,450

)

 

 

(2,684

)

Business acquisitions, net of cash acquired

 

(149

)

 

 

 

 

 

(19,100

)

 

 

 

Purchases of marketable securities

 

(178,560

)

 

 

(270,268

)

 

 

(536,833

)

 

 

(270,268

)

Maturities and redemptions of marketable securities

 

121,200

 

 

 

 

 

 

271,423

 

 

 

 

Net cash used in investing activities

 

(58,354

)

 

 

(271,933

)

 

 

(287,960

)

 

 

(272,952

)

Cash flows from financing activities

 

 

 

 

 

 

 

Proceeds from issuance of ordinary shares under employee stock purchase plan

 

10,024

 

 

 

 

 

 

19,135

 

 

 

 

Proceeds from issuance of ordinary shares upon exercise of stock options

 

1,429

 

 

 

5,237

 

 

 

20,919

 

 

 

17,471

 

Net cash provided by financing activities

 

11,453

 

 

 

5,237

 

 

 

40,054

 

 

 

17,471

 

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

 

(625

)

 

 

5,736

 

 

 

(4,407

)

 

 

2,822

 

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

 

13,422

 

 

 

(233,405

)

 

 

(103,551

)

 

 

(216,997

)

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

 

529,667

 

 

 

880,045

 

 

 

646,640

 

 

 

863,637

 

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

$

543,089

 

 

$

646,640

 

 

$

543,089

 

 

$

646,640

 

Elastic N.V.

Revenue by Type

(in thousands, except percentages)

(unaudited)

 

 

Three Months Ended April 30,

 

Year Ended April 30,

 

2024

 

2023

 

2024

 

2023

 

Amount

 

% of

Total

Revenue

 

Amount

 

% of

Total

Revenue

 

Amount

 

% of

Total

Revenue

 

Amount

 

% of

Total

Revenue

Elastic Cloud

$ 147,980

 

44 %

 

$ 112,344

 

40 %

 

$ 547,520

 

43 %

 

$ 424,053

 

40 %

Other subscription

163,004

 

49 %

 

143,780

 

51 %

 

629,086

 

50 %

 

560,709

 

52 %

Total subscription

310,984

 

93 %

 

256,124

 

91 %

 

1,176,606

 

93 %

 

984,762

 

92 %

Services

24,015

 

7 %

 

23,817

 

9 %

 

90,715

 

7 %

 

84,227

 

8 %

Total revenue

$ 334,999

 

100 %

 

$ 279,941

 

100 %

 

$ 1,267,321

 

100 %

 

$ 1,068,989

 

100 %

Elastic N.V.

Reconciliation of GAAP to Non-GAAP Data

Supplementary Information

(in thousands, except percentages)

(unaudited)

 

 

Three Months Ended

April 30, 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

$

147,980

 

32

%

 

32

%

 

3

%

 

3

%

Other subscription

$

163,004

 

13

%

 

13

%

 

(1

)%

 

(1

)%

Total subscription

$

310,984

 

21

%

 

21

%

 

1

%

 

1

%

Total revenue

$

334,999

 

20

%

 

20

%

 

2

%

 

2

%

Total deferred revenue

$

694,139

 

23

%

 

24

%

 

19

%

 

19

%

Total remaining performance obligations

$

1,351,109

 

22

%

 

24

%

 

15

%

 

15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

April 30, 2024

 

% Change Year Over Year

 

% Change

Year Over Year Excluding Currency Changes

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

Elastic Cloud

$

547,520

 

29

%

 

29

%

 

 

 

 

Other subscription

$

629,086

 

12

%

 

11

%

 

 

 

 

Total subscription

$

1,176,606

 

19

%

 

19

%

 

 

 

 

Total revenue

$

1,267,321

 

19

%

 

18

%

 

 

 

 

Elastic N.V.

Reconciliation of GAAP to Non-GAAP Data

Adjusted Free Cash Flow

(in thousands, except percentages)

(unaudited)

 

 

Three Months Ended April 30,

 

Year Ended April 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net cash provided by operating activities

$

60,948

 

 

$

27,555

 

 

$

148,762

 

 

$

35,662

 

Less: Purchases of property and equipment

 

(845

)

 

 

(1,665

)

 

 

(3,450

)

 

 

(2,684

)

Add: Interest paid on long-term debt

 

 

 

 

 

 

 

23,719

 

 

 

23,719

 

Adjusted free cash flow (1)

$

60,103

 

 

$

25,890

 

 

$

169,031

 

 

$

56,697

 

Net cash used in investing activities

$

(58,354

)

 

$

(271,933

)

 

$

(287,960

)

 

$

(272,952

)

Net cash provided by financing activities

$

11,453

 

 

$

5,237

 

 

$

40,054

 

 

$

17,471

 

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

 

18

%

 

 

10

%

 

 

12

%

 

 

3

%

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

 

%

 

 

(1

)%

 

 

%

 

 

%

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

 

%

 

 

%

 

 

1

%

 

 

2

%

Adjusted free cash flow margin

 

18

%

 

 

9

%

 

 

13

%

 

 

5

%

(1) Adjusted free cash flow includes cash paid for restructuring and other charges of $0.6 million and $2.1 million during the three months and year ended April 30, 2024, respectively, and $4.8 million and $22.8 million during the three months and year ended April 30, 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 April 30,

 

Year Ended April 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Gross Profit Reconciliation:

 

 

 

 

 

 

 

GAAP gross profit

$

247,128

 

 

$

206,259

 

 

$

937,242

 

 

$

772,363

 

Stock-based compensation expense and related employer taxes

 

6,260

 

 

 

4,464

 

 

 

22,743

 

 

 

18,588

 

Amortization of acquired intangibles

 

3,214

 

 

 

2,879

 

 

 

12,353

 

 

 

11,781

 

Non-GAAP gross profit

$

256,602

 

 

$

213,602

 

 

$

972,338

 

 

$

802,732

 

Gross Margin Reconciliation(1):

 

 

 

 

 

 

 

GAAP gross margin

 

73.8

%

 

 

73.7

%

 

 

74.0

%

 

 

72.3

%

Stock-based compensation expense and related employer taxes

 

1.9

%

 

 

1.6

%

 

 

1.8

%

 

 

1.8

%

Amortization of acquired intangibles

 

1.0

%

 

 

1.0

%

 

 

1.0

%

 

 

1.1

%

Non-GAAP gross margin

 

76.6

%

 

 

76.3

%

 

 

76.7

%

 

 

75.1

%

Operating Income Reconciliation:

 

 

 

 

 

 

 

GAAP operating loss

$

(45,712

)

 

$

(40,156

)

 

$

(129,902

)

 

$

(219,172

)

Stock-based compensation expense and related employer taxes

 

66,895

 

 

 

57,665

 

 

 

250,459

 

 

 

211,172

 

Amortization of acquired intangibles

 

3,214

 

 

 

4,071

 

 

 

14,496

 

 

 

16,668

 

Acquisition-related expenses

 

210

 

 

 

878

 

 

 

2,450

 

 

 

5,978

 

Restructuring and other related charges

 

4,163

 

 

 

1,492

 

 

 

4,917

 

 

 

31,297

 

Non-GAAP operating income

$

28,770

 

 

$

23,950

 

 

$

142,420

 

 

$

45,943

 

Operating Margin Reconciliation(1):

 

 

 

 

 

 

 

GAAP operating margin

 

(13.6

)%

 

 

(14.3

)%

 

 

(10.3

)%

 

 

(20.5

)%

Stock-based compensation expense and related employer taxes

 

20.0

%

 

 

20.6

%

 

 

19.8

%

 

 

19.8

%

Amortization of acquired intangibles

 

1.0

%

 

 

1.5

%

 

 

1.1

%

 

 

1.6

%

Acquisition-related expenses

 

0.1

%

 

 

0.3

%

 

 

0.2

%

 

 

0.6

%

Restructuring and other related charges

 

1.2

%

 

 

0.5

%

 

 

0.4

%

 

 

2.9

%

Non-GAAP operating margin

 

8.6

%

 

 

8.6

%

 

 

11.2

%

 

 

4.3

%

Net Income (Loss) Reconciliation:

 

 

 

 

 

 

 

GAAP net (loss) income

$

(41,100

)

 

$

(46,731

)

 

$

61,720

 

 

$

(236,161

)

Stock-based compensation expense and related employer taxes

 

66,895

 

 

 

57,665

 

 

 

250,459

 

 

 

211,172

 

Amortization of acquired intangibles

 

3,214

 

 

 

4,071

 

 

 

14,496

 

 

 

16,668

 

Acquisition-related expenses

 

210

 

 

 

878

 

 

 

2,450

 

 

 

5,978

 

Restructuring and other related charges

 

4,163

 

 

 

1,492

 

 

 

4,917

 

 

 

31,297

 

Litigation settlement

 

(350

)

 

 

(250

)

 

 

(350

)

 

 

(10,400

)

Income tax effects related to the above adjustments(2)

 

(6,770

)

 

 

4,770

 

 

 

1,218

 

 

 

6,699

 

Income tax benefit from the release of a valuation allowance against deferred tax assets

 

(3,886

)

 

 

 

 

 

(211,342

)

 

 

 

Non-GAAP net income

$

22,376

 

 

$

21,895

 

 

$

123,568

 

 

$

25,253

 

Non-GAAP earnings per share attributable to ordinary

 

shareholders, basic(1)

$

0.22

 

 

$

0.23

 

 

$

1.24

 

 

$

0.26

 

Non-GAAP earnings per share attributable to ordinary

 

shareholders, diluted(1)

$

0.21

 

 

$

0.22

 

 

$

1.19

 

 

$

0.25

 

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

 

101,323,761

 

 

 

96,978,043

 

 

 

99,646,231

 

 

 

95,729,844

 

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

 

105,380,793

 

 

 

100,076,763

 

 

 

103,980,132

 

 

 

99,273,692

 

(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 April 30,

 

Year Ended April 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Cost of revenue reconciliation:

 

 

 

 

 

 

 

GAAP subscription

$

65,047

 

 

$

54,508

 

 

$

246,285

 

 

$

219,306

 

Stock-based compensation expense and related employer taxes

 

(2,389

)

 

 

(1,997

)

 

 

(9,378

)

 

 

(8,730

)

Amortization of acquired intangibles

 

(3,214

)

 

 

(2,879

)

 

 

(12,353

)

 

 

(11,781

)

Non-GAAP subscription

$

59,444

 

 

$

49,632

 

 

$

224,554

 

 

$

198,795

 

GAAP services

$

22,824

 

 

$

19,174

 

 

$

83,794

 

 

$

77,320

 

Stock-based compensation expense and related employer taxes

 

(3,871

)

 

 

(2,467

)

 

 

(13,365

)

 

 

(9,858

)

Non-GAAP services

$

18,953

 

 

$

16,707

 

 

$

70,429

 

 

$

67,462

 

Operating expenses reconciliation:

 

 

 

 

 

 

 

GAAP research and development expense

$

93,951

 

 

$

81,765

 

 

$

341,951

 

 

$

313,454

 

Stock-based compensation expense and related employer taxes

 

(26,218

)

 

 

(22,408

)

 

 

(98,174

)

 

 

(82,628

)

Acquisition-related expenses

 

(210

)

 

 

(841

)

 

 

(1,385

)

 

 

(5,875

)

Non-GAAP research and development expense

$

67,523

 

 

$

58,516

 

 

$

242,392

 

 

$

224,951

 

GAAP sales and marketing expense

$

151,628

 

 

$

123,635

 

 

$

559,648

 

 

$

503,537

 

Stock-based compensation expense and related employer taxes

 

(22,482

)

 

 

(18,779

)

 

 

(82,023

)

 

 

(71,363

)

Amortization of acquired intangibles

 

 

 

 

(1,192

)

 

 

(2,143

)

 

 

(4,887

)

Non-GAAP sales and marketing expenses

$

129,146

 

 

$

103,664

 

 

$

475,482

 

 

$

427,287

 

GAAP general and administrative expense

$

43,098

 

 

$

39,523

 

 

$

160,628

 

 

$

143,247

 

Stock-based compensation expense and related employer taxes

 

(11,935

)

 

 

(12,014

)

 

 

(47,519

)

 

 

(38,593

)

Acquisition-related expenses

 

 

 

 

(37

)

 

 

(1,065

)

 

 

(103

)

Non-GAAP general and administrative expense

$

31,163

 

 

$

27,472

 

 

$

112,044

 

 

$

104,551

 

 

 

 

 

 

 

 

 

 

Anthony Luscri

Elastic Investor Relations

ir@elastic.co



Madge Miller

Elastic Corporate Communications

PR-Team@elastic.co

Source: Elastic N.V.