Elastic(US:ESTC)2024-08-30 20:17Revenue and Growth - For the three months ended July 31, 2024, subscription revenue accounted for 93% of total revenue, compared to 92% for the same period in 2023[82] - Elastic Cloud contributed 45% of total revenue for the three months ended July 31, 2024, up from 41% in the same period of 2023[85] - Subscription revenue increased by $53.5 million, or 20%, for the three months ended July 31, 2024, compared to the same period of the prior year[107] - Elastic Cloud adoption grew 30% over the prior year, increasing its contribution to 45% of total revenue for the three months ended July 31, 2024, up from 41% in the same period of 2023[107] - Total revenue for the three months ended July 31, 2024, was $347,420 thousand, an increase of $53,667 thousand, or 18%, compared to $293,753 thousand for the same period in 2023[107] Customer Metrics - The number of customers increased to approximately 21,200 as of July 31, 2024, compared to approximately 20,500 as of July 31, 2023[83] - The number of customers with annual contract value (ACV) greater than $100,000 rose to over 1,370 as of July 31, 2024, from over 1,190 in 2023[83] - The Net Expansion Rate was approximately 112% as of July 31, 2024[87] Financial Performance - Total cost of revenue increased by $14,280 thousand, or 18%, for the three months ended July 31, 2024, totaling $91,757 thousand compared to $77,477 thousand in the prior year[108] - Gross profit for the three months ended July 31, 2024, was $255,663 thousand, reflecting an increase of $39,387 thousand, or 18%, from $216,276 thousand in the same period of 2023[108] - The net loss for the three months ended July 31, 2024, was $49,227 thousand, compared to a net loss of $48,508 thousand for the same period in 2023[96] Expenses - Research and development expenses for the three months ended July 31, 2024, were $89,332 thousand, up from $80,690 thousand in the prior year[96] - Sales and marketing expenses increased to $157,357 thousand for the three months ended July 31, 2024, compared to $133,169 thousand in the same period of 2023[96] - General and administrative expenses rose to $42,673 thousand for the three months ended July 31, 2024, compared to $37,939 thousand in the prior year[96] - Research and development expenses increased by $8.6 million, or 11%, to $89.3 million for the three months ended July 31, 2024, compared to the same period last year[109] - Sales and marketing expenses rose by $24.2 million, or 18%, to $157.4 million for the three months ended July 31, 2024, driven by increases in personnel and related costs[110] - General and administrative expenses increased by $4.7 million, or 12%, to $42.7 million for the three months ended July 31, 2024, primarily due to higher personnel costs[111] - Restructuring and other related charges decreased by $0.6 million, or 81%, to $0.1 million for the three months ended July 31, 2024, reflecting lower severance and termination benefit charges[112] Tax and Other Income - Provision for income taxes rose by $6.8 million, or 51%, to $20.1 million for the three months ended July 31, 2024, influenced by growth in taxable income[115] - Other income, net increased by $3.9 million, or 54%, to $11.2 million for the three months ended July 31, 2024, mainly due to higher investment income[114] Cash Flow and Financial Position - Net cash provided by operating activities was $52.8 million for the three months ended July 31, 2024, compared to $37.8 million for the same period last year[120] - Net cash used in investing activities was $3.5 million for the three months ended July 31, 2024, down from $55.1 million in the prior year[121] - Net cash provided by financing activities was $4.7 million for the three months ended July 31, 2024, consistent with proceeds from stock option exercises[122] - As of July 31, 2024, the company had cash, cash equivalents, and marketable securities totaling $1.147 billion[116] Foreign Currency and Risk Management - The company has recognized foreign currency transaction losses of $0.2 million and $0.7 million for the three months ended July 31, 2024 and 2023, respectively[127] - A 10% increase or decrease in exchange rates as of July 31, 2024, would have impacted the company's cash, cash equivalents, restricted cash, and marketable securities balances by approximately $8.5 million[127] - As of July 31, 2024, the company's cash, cash equivalents, restricted cash, and marketable securities were primarily denominated in U.S. dollars, Euros, and British Pound Sterling[127] - The company has not had a formal hedging program for foreign currency but may adopt one in the future if exposure increases[127] Management and Legal Matters - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended July 31, 2024[129] - The company's management believes that its disclosure controls and procedures are effective at providing reasonable assurance of achieving their objectives[130] - The company is not currently a party to any legal proceedings that would materially affect its business or financial condition[132] - Future litigation may be necessary to defend the company’s proprietary rights, which could have an adverse impact due to costs and resource diversion[132]