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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.
| 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?
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.
- 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.