SAN FRANCISCO - Elastic N.V. (NYSE: NYSE:ESTC), the Search AI Company, reported a robust fourth quarter, surpassing Wall Street's expectations for both earnings and revenue.
The company posted adjusted earnings per share (EPS) of $0.21, edging out analysts' estimates by $0.02. Revenue for the quarter was also a beat, coming in at $335 million against the consensus estimate of $329.2 million.
The positive earnings report sent Elastic's stock soaring by 6%.
For the first quarter of fiscal 2025, Elastic anticipates adjusted EPS to be in the range of $0.24 to $0.26, straddling the analyst consensus of $0.25. The company's revenue guidance for the same period is projected to be between $343 million and $345 million, with the midpoint slightly below the consensus estimate of $344.7 million.
Elastic's strong performance in the fourth quarter was marked by a 20% year-over-year (YoY) increase in total revenue, consistent in reported terms and constant currency. Notably, the Elastic Cloud revenue surged by 32% YoY to $148 million, showcasing the company's growing strength in this segment.
Ash Kulkarni, CEO of Elastic, expressed confidence in the company's trajectory, attributing the strong quarter to sustained adoption of their Generative AI capabilities and their competitive edge in search, security, and observability through their Search AI Platform.
Looking at the full fiscal year 2024, total revenue climbed to $1.267 billion, up 19% YoY, with Elastic Cloud revenue contributing $548 million, a 29% YoY increase. The company's operating results reflected a non-GAAP operating income of $29 million with a non-GAAP operating margin of 9%.
Elastic's financial outlook for fiscal 2025 forecasts total revenue to range from $1.468 billion to $1.480 billion, which would represent a 16% YoY growth at the midpoint. The non-GAAP operating margin is expected to be between 11.7% and 12.3%, and non-GAAP diluted earnings per share are projected to be between $1.35 and $1.47.
The company's solid financial position is further underscored by a cash, cash equivalents, and marketable securities balance of $1.084 billion as of April 30, 2024, providing a strong foundation for continued growth and investment in innovation.
Elastic's achievements have been recognized with several accolades, including being named Google (NASDAQ:GOOGL) Cloud Partner of the Year for the fourth time and making Fast Company's list of Most Innovative Companies in the enterprise category for their AI-enabled Elasticsearch Relevance Engine.
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