© Reuters. Elastic shares surge 15% after Q2 beat
(Up to date – December 1, 2023 5:31 AM EST)
Elastic N.V. (NYSE:) shares jumped greater than 18% pre-open Friday after the corporate reported Q2 outcomes, with EPS of $0.37 coming in higher than the consensus estimate of $0.24.
Income grew 17% year-over-year to $311 million, beating the consensus estimate of $304.44M. Elastic Cloud income was $135M, representing a rise of 31% year-over-year.
Whole subscription buyer depend in Q2 was roughly 20,700 in comparison with roughly 20,500 in Q1/24, and over 19,700 in Q2/23. Whole buyer depend with annual contract worth (ACV) higher than $100,000 was over 1,220 in comparison with over 1,190 in Q1/24, and over 1,050 in Q2/23.
For Q3/24, the corporate expects EPS within the vary of $0.30-$0.32, in comparison with the consensus of $0.28, and income of $319-$321M, in comparison with the consensus of $318.6M.
For the complete yr, the corporate sees EPS at $1.06-$1.15, in comparison with the consensus of $1.09, and income at $1.247-$1.253 billion, in comparison with the consensus estimate of $1.247 billion.
Wells Fargo analysts upgraded the inventory’s ranking to Chubby as they anticipate income progress “will bottom out in FQ4 and accelerate in FY25 largely driven by GenAI and share gains in the Log/SIEM markets.”
“We believe Elastic is well-positioned to capture GenAI workloads, leveraging key features like ESRE and vector search. Elastic is also capitalizing on recent M&A activity to gain share in the log analytics/SIEM markets, leveraging the new ESQL, which makes it easier to convert from a legacy vendor. Finally, we see further upside to the current valuation (~5x EV/Sales) if either of these new catalysts take off,” the analysts stated.
Oppenheimer analysts stay bullish on the inventory as additionally they highlighted AI power.
“We believe Elastic can sustain its momentum as it helps customers consolidate observability and security spend and as adoption for GenAI increases, driving upgrades to higher price tiers and supporting consumption growth, and longer-term, a rebound in NRR. Overall, we remain positive and believe Elastic is well-positioned to address the GenAI opportunity.”
Further reporting by Senad Karaahmetovic
