The enterprise search and analytics software vendor
posted better-than-expected results, including an unexpected gain, for the fiscal first quarter ended July 31.
Elastic (ticker: ESTC) reported revenue of $193.1 million, up 50% from a year ago, or 45% adjusted for currency. That was well before both the company’s guidance range from $171 million to $173 million and the Street consensus estimate of $173.2 million.
The company made a non-GAAP profit of 4 cents per share, although it had told investors to expect a loss of 10 to 13 cents per share. The street consensus called for a loss of 10 cents. According to generally accepted accounting principles, the company lost 38 cents a share.
Elastic provides enterprise search tools as well as security and observability software to help companies monitor and protect their networks.
Elastic said cloud revenue was $61.5 million, an 89% increase. Billings grew 27% to $165 million. The total number of customers was more than 16,000, an increase of about 1,000 from the April quarter. Customers with annual contract values over $100,000 rose to over 780, up 50 from the fourth quarter and 150 over a year ago.
“The first quarter was a strong start to the fiscal year, driven by sharp execution, the continued robust growth of Elastic Cloud and our investments against the rich market opportunities ahead,” Founder and CEO Shay Banon said in a statement.
“As companies move to the cloud, they are generating more and more data,” Banon added in an interview with Barron’s. “They want to search it. We provide for that basic need.”
For the October quarter, Elastic expects revenue of $193 million to $195 million, with a non-GAAP loss of 15 to 19 cents per share. The street consensus was $188.7 million in revenue and a loss of 13 cents.
The company now expects revenue for the April 2022 fiscal year of between $808 million and $814 million, up from a previous forecast of $782 million to $788 million. Elastic now sees a full-year non-GAAP loss of 57 to 67 cents per share, slightly ahead of its earlier forecast of a loss of 51 to 60 cents per share.
Banon said the unexpected non-GAAP earnings in the quarter largely reflect stronger-than-expected earnings in the quarter. The more broadly projected full-year non-GAAP loss, he said, is the result of plans to invest for growth, including increased spending on sales and marketing. The company continues to expect to achieve positive free cash flow from the current fiscal year, he said.
Elastic also announced an agreement to acquire cmd, a provider of “infrastructure detection and response” software for Linux-based systems, on Wednesday afternoon. Elastic said the acquisition “will give customers deep insights into cloud workloads and perform expert detection and prevention on cloud-native data.” The terms of the deal have not been disclosed. According to Crunchbase, Vancouver-based Cmd has raised $21 million in venture capital.
Earlier this week, Elastic announced another acquisition: the company buys Construction.Security, an Israeli startup that develops software to define and enforce security policies on corporate networks. The company had raised $6 million in venture financing. The terms of the deal were not announced.
Neither transaction is expected to have a material effect on short-term financial results.
Write to Eric J. Savitz at email@example.com