Elastic N.V. (ESTC) is a company that specializes in providing a platform for search-powered solutions. The company primarily generates revenue through the sale of subscriptions to its platform, which includes various paid subscription tiers offering different levels of access to proprietary features and support. Elastic also offers consulting and training services to complement its subscription offerings.
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Subscription - Offers access to Elastic's platform through various paid tiers, providing different levels of proprietary features and support. Subscriptions are available on both term-based and consumption-based models, with Elastic Cloud being a significant component.
- Elastic Cloud - Provides cloud-based access to Elastic's platform, allowing customers to utilize its services on a consumption basis.
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Services - Provides consulting and training services to help customers effectively implement and utilize Elastic's platform.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Ashutosh Kulkarni ExecutiveBoard | CEO and Executive Director | None | Ashutosh Kulkarni has been CEO since January 2022 and was elected to the board in March 2022. Previously, he was CPO at Elastic and held senior roles at McAfee and Akamai Technologies. | View Report → |
Shay Banon ExecutiveBoard | CTO | None | Co-founder of Elastic, Shay Banon has served as CTO since January 2022, previously serving as CEO and Chairperson. He is the creator of Elasticsearch. | |
Carolyn Herzog Executive | CLO | None | Carolyn Herzog joined as CLO in May 2022, previously serving as EVP and General Counsel at Arm and holding roles at Symantec. | |
Eric Prengel Executive | Interim CFO | None | Eric Prengel became Interim CFO in December 2024, previously serving as Group VP of Finance. He has a background in investment banking at J.P. Morgan. | |
Ken Exner Executive | CPO | None | Ken Exner joined Elastic as CPO in August 2022, previously leading Developer Tools at AWS. He emphasizes Elastic's leadership in search, security, and observability. | |
Mark Dodds Executive | CRO | None | Appointed as CRO in December 2023, Mark Dodds has 23 years of sales leadership experience from Cisco Systems, focusing on recurring revenue models. | |
Alison Gleeson Board | Board Member | Sales Strategic Advisor to Verkada Inc., Special Advisor at Brighton Park Capital, Board Member at 8x8, Inc. and ZoomInfo Technologies Inc. | Alison Gleeson has been on the board since January 2020, with a background in sales and strategic advisory roles. | |
Chetan Puttagunta Board | Chairperson | General Partner at Benchmark Capital Partners | Chetan Puttagunta has been on the board since January 2017, serving as Chairperson since January 2022. He is a General Partner at Benchmark Capital. | |
Paul Auvil Board | Board Member | Board Member at Cerebras Systems | Paul Auvil joined the board in October 2023, previously CFO at Proofpoint and VMware, and has extensive experience in finance and technology. | |
Shelley Leibowitz Board | Board Member | President of SL Advisory, Director at Morgan Stanley | Shelley Leibowitz has been on the board since October 2021, with a focus on digital transformation and governance, and serves on various boards. | |
Sohaib Abbasi Board | Vice-Chairperson | Executive Council Member at Balderton Capital, Senior Advisor at TPG Global | Sohaib Abbasi joined the board in July 2022, previously CEO of Informatica and held executive roles at Oracle. |
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Given that customer commitments related to generative AI almost doubled quarter-over-quarter and you have over 1,550 customers using Elastic for GenAI use cases , but you don't have a separate SKU or a way to parse out GenAI revenue , how can investors track your progress in this critical area? Will you consider providing more detailed metrics or disclosures on the financial contribution of GenAI to your business?
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Despite improved sales execution in Q2 with pipeline creation and progression returning to normal levels , your guidance implies an exit growth rate of 11% in fiscal Q4 , suggesting conservatism or lingering impacts from earlier sales challenges. Can you elaborate on the factors influencing your guidance and the confidence you have in sustaining the improved sales momentum?
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As competition intensifies in both the GenAI space, with pure-play vector databases and other data platforms developing vector functionality , and in SIEM, with incumbent vendors and market disruptions , how do you plan to differentiate Elastic and maintain your competitive edge? What are the key risks you see in these markets?
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You observed stronger-than-expected consumption among larger customers in Q2 , but you are not factoring this into future guidance due to prudence and historical fluctuations . Is there a risk that you are being overly conservative and potentially underestimating your growth potential, especially if these consumption trends continue?
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With plans to increase investments in the second half of the year, particularly in GenAI , how do you balance the need for increased investment to capture growth opportunities with your commitment to improving operating margins? Do you believe your current level of investment is sufficient to capitalize on the significant market opportunity in GenAI without sacrificing future growth?
Research analysts who have asked questions during Elastic earnings calls.
Raimo Lenschow
Barclays
5 questions for ESTC
Brent Thill
Jefferies
4 questions for ESTC
Howard Ma
Guggenheim Securities, LLC
4 questions for ESTC
Matthew Hedberg
RBC Capital Markets
4 questions for ESTC
Pinjalim Bora
JPMorgan Chase & Co.
4 questions for ESTC
Tyler Radke
Citigroup Inc.
4 questions for ESTC
Koji Ikeda
Bank of America
3 questions for ESTC
Sanjit Singh
Morgan Stanley
3 questions for ESTC
Andrew Nowinski
Wells Fargo
2 questions for ESTC
Joel Fishbein
Truist Securities
2 questions for ESTC
Kash Rangan
Goldman Sachs
2 questions for ESTC
Kasthuri Rangan
Goldman Sachs
2 questions for ESTC
Michael Cikos
Needham & Company
2 questions for ESTC
Patrick Colville
Scotiabank
2 questions for ESTC
Robbie Owens
Piper Sandler
2 questions for ESTC
Andrew Sherman
Cowen
1 question for ESTC
Austin Dietz
UBS
1 question for ESTC
Brian Essex
JPMorgan Chase & Co.
1 question for ESTC
George Iwanyc
Oppenheimer & Co. Inc.
1 question for ESTC
George McGreehan
Bank of America
1 question for ESTC
Ittai Kidron
Oppenheimer & Company
1 question for ESTC
Jacob Roberge
William Blair
1 question for ESTC
Jake Roberge
William Blair & Company, L.L.C
1 question for ESTC
Mike Cikos
Needham & Company, LLC
1 question for ESTC
Rob Owens
Piper Sandler Companies
1 question for ESTC
Shrenik Kothari
Robert W. Baird & Co.
1 question for ESTC
Simran B
RBC Capital Markets
1 question for ESTC
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Opster Ltd. | 2023 | The acquisition was completed on November 30, 2023, for a cash consideration of approximately $20.0 million. Opster’s AutoOps platform will be integrated to enhance cluster health and cost-optimized search performance, aligning with Elastic’s strategic focus despite no immediate revenue impact. |
Optimyze.cloud Inc. (Optimyze) | 2021 | Completed on November 1, 2021, for $20.0 million (a mix of cash and future payments), this acquisition brings an "always-on" continuous profiling platform using eBPF technology to bolster Elastic’s observability tools for cloud-native environments like Kubernetes. |
cmdWatch Security Inc. (Cmd) | 2021 | Finalized on September 17, 2021, for a total of $77.8 million (including escrow and replacement equity awards), this deal adds Linux-first, cloud-native security solutions and broadens Elastic’s endpoint-to-cloud workload security, with purchase price allocation to developed technology and goodwill. |
Build Security Ltd. (build.security) | 2021 | Completed on September 2, 2021, for $39.3 million, with purchase price allocated primarily to developed technology and goodwill (plus post-combination expense provisions). It is aimed at enhancing security for cloud-native workloads during both the build and runtime phases. |
Recent press releases and 8-K filings for ESTC.
- Elastic reported strong Q1 results, with total top-line revenue growing 20% and sales-led revenue (excluding monthly cloud) growing 22%, achieving an operating margin just below 16%.
- In Q1, Elastic implemented price increases for its self-managed and cloud businesses, which positively impacted consumption and were supported by added platform value that reduces customer total cost of ownership.
- The company launched a serverless cloud offering that is fully managed and available on major cloud providers, designed to enhance margins and reduce costs for customers.
- Elastic is strategically positioned in the generative AI market, having developed vector database capabilities since 2017 to support the entire workflow for building AI applications.
- Elastic is expanding its security and observability offerings, including highly-rated EDR capabilities, and is leveraging AI to enhance these platforms and drive customer consolidation.
- Elastic reported strong Q1 results, with total top line revenue growing 20% and sales-led revenue increasing 22%, achieving an operating margin just below 16%.
- The company is strategically positioned in the Generative AI market, having been a vector database since 2017, providing essential search capabilities to deliver context to large language models.
- Elastic is experiencing success in its security and observability segments, expanding its offerings into EDR and cloud security and leveraging AI to automate tasks and improve efficiency for users.
- A new fully managed serverless cloud offering recently went generally available across major cloud providers, designed to improve efficiency, provide better margins, and lower costs for customers.
- Elastic reported strong Q1 results, with total top-line business growing 20% and sales-led revenue growing 22%, achieving an operating margin just below 16%.
- The company emphasized its strategic position in Generative AI, leveraging its long-standing vector database capabilities (since 2017) to support the entire Gen AI application workflow.
- Elastic is experiencing success and consolidation in its security (SIEM, EDR, cloud security) and observability (logs, metrics, APM) businesses, significantly aided by AI.
- A new serverless cloud offering (fully managed SaaS) has been launched on Google, AWS, and Azure, aiming for increased efficiency and improved margins.
- A price increase in Q1 for self-managed and cloud businesses positively impacted consumption, reflecting the added value in the platform.
- Elastic reported strong Q1 results, with total top-line business growth of 20% and sales-led revenue (subscription revenue excluding monthly cloud) growth of 22%, achieving an operating margin just below 16%.
- The company implemented a price increase in Q1 for its self-managed and cloud businesses, which immediately and positively impacted cloud business consumption, contributing to increased customer spend.
- Elastic is strategically positioned in the Generative AI market, having developed vector database capabilities since 2017, and is experiencing strong momentum in security and observability, driven by AI and market consolidation.
- Elastic recently launched a serverless cloud offering, a fully managed SaaS solution available on Google, AWS, and Azure, designed to enhance efficiency and improve margins.
- Elastic unifies logs, metrics, and traces with security events on its search-driven platform for improved observability and intrusion detection.
- The developer platform offers built-in LCRT embedding and reranking models for semantic vector search enabled by default in Elastic Cloud.
- Security suite includes end-to-end SIEM with prebuilt detection rules and AI-powered attack discovery surfacing multi-step intrusions across alerts.
- Acquired Keep Alerting to integrate workflow automation for SOAR and AI-ops, and named default vector database in NVIDIA’s Enterprise AI Factory reference architecture.
- Elastic NV reported strong Q4 performance with 16% revenue growth, 19% subscription revenue less monthly cloud growth, and a 400 basis point margin expansion, underscoring robust financial performance.
- The company introduced new metrics—subscription revenue less monthly cloud and CRPO—to provide greater clarity on sales performance and forward revenue expectations.
- Management emphasized a balanced sales strategy across self-managed and cloud solutions while capturing emerging opportunities in generative AI with live production examples from key clients.
- Guidance incorporates caution over macroeconomic impacts on US public sector and SMB segments, with a continued focus on investing in sales and R&D to sustain growth while managing margins.
- Revenue Growth: Achieved 16% revenue growth in Q4 2025 with Elastic Cloud growing 23% and a non-GAAP operating margin of 15%.
- Customer Expansion: Ended FY 2025 with over 1,510 customers spending more than $100,000 and more than 210 customers with over $1M ACV, marking record additions.
- Strategic Partnerships & Innovation: Secured significant deals—including an 8-figure expansion with a global financial institution—and expanded partnerships with AWS, Google, and NVIDIA to drive leadership in GenAI and vector database innovation.
- FY26 Guidance: Provided conservative FY26 guidance with total revenue expected between $1.655B and $1.67B and a maintained non-GAAP operating margin of 16%.
- Pomerantz LLP has filed a class action lawsuit against Elastic N.V. and certain officers, alleging misleading statements regarding the company’s sales operations and revenue stability for FY 2025.
- The suit targets investors who purchased Elastic securities between May 31, 2024 and August 29, 2024, with affected parties having until April 14, 2025 to seek lead plaintiff status.