Q4 2024 Earnings Summary
Reported on May 30, 2024 (After Market Close)
Pre-Earnings Price$93.18Last close (May 30, 2024)
Post-Earnings Price$107.00Open (May 31, 2024)
Price Change
$13.82(+14.83%)
- Steady consumption trends and increasing customer commitments are leading to strong performance in Elastic Cloud, with the company's land-and-expand strategy working well, particularly in the enterprise and commercial segments, indicating durable growth prospects in cloud revenue. ,
- Significant adoption of Elastic's Generative AI (GenAI) capabilities, with over 1,000 paying customers, including more than 145 customers with annual contract values over $100,000, indicating strong leading indicators of future growth potential as these customers move from adoption to production, expecting to significantly increase total addressable market in the long run. ,
- Elastic is well-positioned to capitalize on shifts in the SIEM and security analytics market, leveraging its strong data platform and AI automation capabilities to displace incumbents, benefiting from market consolidation and increasing customer awareness of their differentiated offering, indicating strong competitive positioning and growth potential in security solutions. ,
- Limited revenue impact from GenAI expected in FY25: The company stated that they are "not assuming meaningful revenue upside from GenAI either in self-managed or in the cloud" for fiscal 2025, indicating that the adoption of their GenAI capabilities may take longer to translate into significant revenue growth.
- Ongoing macroeconomic challenges in the SMB segment: Elastic acknowledged that the SMB segment, which is served through their self-serve monthly cloud offering, is "expected to remain challenged from a macroeconomic perspective," potentially impacting revenue growth in this segment.
- Price increases and new offerings not significantly boosting near-term revenue: The recent price increase for self-managed products "is not a significant impact to revenue" in the near term due to the timing of contract renewals, and the gradual adoption of the new serverless offering "will not contribute meaningful revenues" in fiscal 2025.
Research analysts covering Elastic.