Elastic(US:ESTC)2024-11-25 21:08Revenue and Growth - Subscription revenue accounted for 93% and 92% of total revenue for the six months ended October 31, 2024 and 2023, respectively [101]. - Elastic Cloud contributed 46% and 42% of total revenue for the six months ended October 31, 2024 and 2023, respectively [106]. - Total revenue for the three months ended October 31, 2023, was $365,361 thousand, a 17.6% increase from $310,612 thousand in the same period last year [119]. - Subscription revenue accounted for 93% of total revenue for both the three months ended October 31, 2024, and 2023 [121]. - Subscription revenue increased by $53.1 million, or 18%, for the three months ended October 31, 2024, driven by a 25% growth in Elastic Cloud, which constituted 46% of total revenue [125]. - Total revenue for the three months ended October 31, 2024, was $365.4 million, an increase of $54.7 million, or 18%, compared to the same period in the prior year [125]. - Subscription revenue for the six months ended October 31, 2024, was $664.6 million, an increase of $106.6 million, or 19%, compared to the same period in the prior year [138]. Customer Metrics - The number of customers increased to approximately 21,300 as of October 31, 2024, compared to approximately 20,700 as of October 31, 2023 [103]. - The number of customers with annual contract value over $100,000 increased to over 1,420 as of October 31, 2024, from over 1,220 as of October 31, 2023 [103]. - The Net Expansion Rate was approximately 112% as of October 31, 2024 [108]. Financial Performance - Gross profit for the six months ended October 31, 2024, was $527,845 thousand, representing a gross margin of 74% [119]. - The net loss for the six months ended October 31, 2024, was $(74,677) thousand, compared to $(73,304) thousand in the same period last year [119]. - Total operating expenses for the three months ended October 31, 2023, were $276,608 thousand, an increase from $252,062 thousand in the same period last year [119]. - Other income, net increased by $0.9 million, or 11%, for the three months ended October 31, 2024, primarily due to a rise in interest and other investment income [134]. - Other income, net increased by $4.8 million, or 31%, for the six months ended October 31, 2024, primarily due to an increase in interest and other investment income [148]. Expenses - Research and development expenses for the three months ended October 31, 2023, were $88,163 thousand, up from $80,108 thousand in the same period last year, indicating a 10.3% increase [119]. - Research and development expenses increased by $8.1 million, or 10%, for the three months ended October 31, 2024, mainly due to a $7.5 million rise in personnel costs [128]. - Research and development expense increased by $16.7 million, or 10%, for the six months ended October 31, 2024, primarily due to increases in personnel and related costs [142]. - Sales and marketing expenses for the three months ended October 31, 2023, were $144,274 thousand, compared to $133,230 thousand in the same period last year, reflecting an 8.4% increase [119]. - Sales and marketing expenses grew by $11.0 million, or 8%, for the three months ended October 31, 2024, attributed to a $15.8 million increase in personnel costs [129]. - Sales and marketing expense increased by $35.2 million, or 13%, for the six months ended October 31, 2024, driven by personnel and related costs [143]. - General and administrative expense increased by $10.1 million, or 13%, for the six months ended October 31, 2024, mainly due to personnel and related costs [144]. Cash Flow and Financial Position - Net cash provided by operating activities was $91.1 million for the six months ended October 31, 2024, compared to $35.4 million for the same period in 2023 [154]. - Net cash provided by investing activities was $10.8 million for the six months ended October 31, 2024, primarily due to sales and maturities of marketable securities [155]. - As of October 31, 2024, the company had cash, cash equivalents, and marketable securities totaling $1.198 billion [151]. - The accumulated deficit was $1.066 billion as of October 31, 2024, reflecting significant operating losses [153]. - As of October 31, 2024, the company had cash, cash equivalents, restricted cash, and marketable securities totaling $1.201 billion [162]. Market and Economic Conditions - Macroeconomic conditions may impact sales cycles and customer spending behavior [104]. - Foreign currency transaction losses recognized were $2.0 million for the six months ended October 31, 2024, compared to $1.1 million for the same period in 2023 [163]. - A 10% increase or decrease in exchange rates would have impacted cash, cash equivalents, restricted cash, and marketable securities by approximately $10.7 million as of October 31, 2024 [165]. - The company has not had a formal hedging program for foreign currency but may consider one if exposure increases [163]. - The company has experienced fluctuations in operating results due to transaction gains or losses from remeasurement of certain asset and liability balances in foreign currencies [163]. Investment Activities - The primary objectives of the company's investment activities include capital preservation and liquidity fulfillment [162]. - The company does not enter into investments for trading or speculative purposes [162]. - An immediate 10% change in interest rates is not expected to materially affect the fair value of the company's investment portfolio [162]. - The fair market value of the Senior Notes is affected by interest rate changes but does not impact the company's financial position or cash flows [162]. - The company issued $575.0 million in Senior Notes in July 2021, which are subject to market and interest rate risk [162].