Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

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Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

bed22e97e868d0e1520135e72f0206b536ee6b86ad89d5d8c9d618088b87c282

Elastic Cloud

Other Subscription

Total Subscription

Services

Total Revenue

b2d0901471c0d0359bdccfdd93828bc14d75db689a17427023e1a7d41d750927

United States

Rest of World

f419af9c54818a9ec2e18e477dce5188ea100965fed7c1ac955e405f579816ca

Net loss (USD, thousands)

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Deferred contract acquisition costs (changes) (USD, thousands)

Prepaid expenses and other current assets (changes) (USD, thousands)

Other assets (changes) (USD, thousands)

Accounts payable (changes) (USD, thousands)

Accrued expenses and other liabilities (changes) (USD, thousands)

Accrued compensation and benefits (changes) (USD, thousands)

Operating lease liabilities (changes) (USD, thousands)

Deferred revenue (changes) (USD, thousands)

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Purchases of property and equipment (USD, thousands)

Purchases of marketable securities (USD, thousands)

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Proceeds from issuance of ordinary shares upon exercise of stock options (USD, thousands)

Net cash provided by financing activities (USD, thousands)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash (USD, thousands)

Net decrease in cash, cash equivalents, and restricted cash (USD, thousands)

Foreign currency transaction (gain) loss (USD, thousands)

Business acquisitions, net of cash acquired (USD, thousands)

Deferred income taxes (USD, thousands)

Cash, cash equivalents, and restricted cash, beginning of period (USD, thousands)

Cash, cash equivalents, and restricted cash, end of period (USD, thousands)

341856034dcd09b5fc9bca7ab8d41eaae2dd8772ade89139c956e9329920e604

Revenue - Subscription (USD, thousands)

Revenue - Services (USD, thousands)

Total Revenue (USD, thousands)

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Cost of Revenue - Services (USD, thousands)

Total Cost of Revenue (USD, thousands)

Gross Profit (USD, thousands)

Operating Expenses - Research and Development (USD, thousands)

Operating Expenses - Sales and Marketing (USD, thousands)

Operating Expenses - General and Administrative (USD, thousands)

Operating Expenses - Restructuring and Other Related Charges (USD, thousands)

Total Operating Expenses (USD, thousands)

Operating Loss (USD, thousands)

Other Income (Expense), Net - Interest Expense (USD, thousands)

Other Income (Expense), Net - Other income, net (USD, thousands)

Loss Before Income Taxes (USD, thousands)

(Benefit from) Provision for Income Taxes (USD, thousands)

Net Income (Loss) (USD, thousands)

Net Earnings (Loss) per Share Attributable to Ordinary Shareholders, Basic (USD)

Net Earnings (Loss) per Share Attributable to Ordinary Shareholders, Diluted (USD)

Weighted-average Shares Used to Compute Net Earnings (Loss) per Share Attributable to Ordinary Shareholders, Basic (thousands)

Weighted-average Shares Used to Compute Net Earnings (Loss) per Share Attributable to Ordinary Shareholders, Diluted (thousands)

b0b68fc24ca871a540b4a458cfe0e604cc62767d62640d3e594707d8de986189

The dramatic turnaround to positive **Net Income** in Q3 2024 was primarily driven by a **discrete income tax benefit of $207 million** from the release of a valuation allowance for GAAP purposes. This benefit is the key factor that swung the result from a **Net Loss of $72,574 thousand** in Q3 2023 to a **Net Income of $176,124 thousand** in Q3 2024, effectively reversing the prior tax expense.  **[0001707753-24-000003_a24q3erex991.htm:7]** **[0001707753-24-000006_estc-20240131.htm:36]** 

What drove the dramatic turnaround to positive Net Income in Q3 2024?

The sharp decline in Basic EPS in Q4 2024 is explained by a combination of factors. Despite overall improvements in profitability and revenue growth—as evidenced by Elastic’s strong net income for FY2024—the Q4 figure was significantly impacted by higher stock‐based compensation and other adjustments, as well as by an increased weighted-average share count that diluted earnings. These elements collectively led to the negative EPS figure in Q4 2024.  **[0001707753-24-000014_estc-20240430.htm:141]** **[0001628280-24-025782_a24q4erex991.htm:0]** **[0001707753-24-000014_estc-20240430.htm:91]** 

Why did Basic EPS fall so sharply in Q4 2024?

The drastic swing in the income tax provision in **Q3 2024** was primarily caused by the **release of a valuation allowance** against U.S. federal and certain states' deferred tax assets, which amounted to **$250.7 million** and was recorded as a discrete tax benefit. This action was taken based on the company’s assessment of **sustained profitability** and **anticipated future earnings** that increased the likelihood of realizing these deferred tax assets, although the benefit was partially offset by tax expenses from business operations in certain jurisdictions.  **[0001707753-24-000006_estc-20240131.htm:36]** **[0001707753-24-000006_estc-20240131.htm:21]** **[0001707753-24-000006_estc-20240131.htm:37]** 

What caused the drastic swing in the income tax provision in Q3 2024?

The documents indicate that the operating loss in Q1 2025 was **$33,838 thousand** compared to **$36,247 thousand** in Q1 2024 – a **slight improvement** rather than a significant reduction.  **[0001707753-24-000038_estc-20240731.htm:5]** **[0001707753-24-000038_estc-20240731.htm:30]**  While several factors impacted performance during Q1 2025, these include:

- **Sales Segmentation Changes:** The expansion of the strategic segment and redefined territories for new customer acquisition led to disruptions and slower deal progress, particularly impacting the Americas.  **[ESTC_3400219_1]**   
- **Customer Budget Constraints:** Tighter budgets in the EMEA region delayed deal closures, affecting quarterly figures.  **[ESTC_3400219_1]**   
- **Restructuring and Other Related Charges:** Significant charges amounting to **$139,725 thousand** added to operating expenses.  **[0001707753-24-000038_estc-20240731.htm:30]** 

Overall, these factors contributed to the performance dynamics in Q1 2025, but they did not drive a significant reduction in operating loss, rather a modest improvement in the period's results.  **[0001707753-24-000038_estc-20240731.htm:5]** **[0001707753-24-000038_estc-20240731.htm:30]** **[ESTC_3400219_1]** 

What factors contributed to the significant reduction in Operating Loss in Q1 2025?

The remarkable increase in diluted shares in Q3 2024 is primarily explained by the shift from a **net loss** to a **net income** position, which allowed the inclusion of potentially dilutive shares that were previously excluded when the company was reporting a net loss. Additionally, substantial stock-based compensation—specifically, the issuance of **707,545 RSU shares** and **485,203 shares upon the exercise of stock options**—contributed to the increase, as did the inclusion of shares from the **Employee Stock Purchase Plan (ESPP)**.  **[0001707753-24-000006_estc-20240131.htm:20]** **[0001707753-24-000006_estc-20240131.htm:5]** **[0001707753-24-000006_estc-20240131.htm:6]** 

What explains the remarkable increase in diluted shares in Q3 2024?

89756f82288a8c696dc51d83e8b5909c2b963b67ca1de92dad8615a811a0db13

The documents provide conflicting information and do not offer a clear, definitive explanation for the sharp drop in operating cash flow in Q2 2024. One document lists Q2 2024 operating cash flow as **(2,387)** thousand  **[0001707753-23-000058_estc-20231031.htm:7]** , while another discusses factors that led to a significant change—an improvement from Q2 2023’s operating cash flow—by citing improvements such as a lower net loss, higher stock‐based compensation expense, and changes in operating assets and liabilities.  **[0001707753-23-000058_estc-20231031.htm:40]**  However, these factors are explained in the context of a year‐over‐year change for Q2 and do not directly address the decline compared to Q1 2024. Therefore, based on the available documents, a definitive reason for the sharp drop in Q2 2024 cannot be determined.

Why did operating cash flow drop so sharply in Q2 2024?

The surge in Q4 2023 operating cash flow was driven by several factors including a significant **decrease in net loss** (from **$65.6 million** in Q4 2022 to **$46.7 million** in Q4 2023) which positively impacted cash flows, an increase in **stock-based compensation** (non-cash charge rising from **$43.6 million** to **$55.4 million**), and a marked rise in **deferred revenue** (from **$75.5 million** to **$77.7 million**) that reflected higher billings and collections. Additionally, improved **accounts receivable** collections, seen in a greater decrease (from **$72.0 million** to **$60.4 million**), along with other adjustments like depreciation, amortization, and changes in operating assets and liabilities, also contributed to the improvement in operating cash flow.  **[0001707753-23-000011_a23q4erex991.htm:6]** 

What drove the surge in operating cash flow in Q4 2023?

The **significant increase** in FY 2023 was driven by the company's **strategic decision** to invest its excess cash in marketable securities. Unlike in FY 2022 where there were no such purchases, in FY 2023 the company chose to allocate surplus liquidity into **investment-grade fixed-income securities** to optimize returns on its cash reserves.  **[0001707753-23-000021_estc-20230430.htm:129]** **[0001707753-23-000021_estc-20230430.htm:114]** **[0001707753-23-000021_estc-20230430.htm:101]** 

What caused the significant increase in purchases of marketable securities in FY 2023?

In Q1 2024, **accounts receivable, net increased by $75,871,000** due to **timing differences in cash collections**. This jump reflects the collection of outstanding receivables from customers during the quarter, which positively impacted operating cash flow. Such fluctuations are common as they are influenced by the timing of invoicing and customer payments.  **[0001707753-23-000044_a24q1erex991.htm:6]** **[0001707753-23-000048_estc-20230731.htm:7]** 

Why did accounts receivable, net (changes) jump to 75,871 in Q1 2024?

The lower net loss in Q2 2024 was primarily driven by **revenue growth**—with total revenue increasing by **17% year-over-year** largely due to a **31% growth in Elastic Cloud revenue**—as well as by **improved profitability** manifested in a record **non-GAAP operating margin of 13%**, and disciplined **cost management** that balanced strategic investments with expense control. Additionally, while **stock-based compensation** expense increased, its impact was partially offset by these strong operational improvements.  **[0001707753-23-000055_a24q2erex991.htm:0]** **[ESTC_3368629_7]** **[ESTC_3368629_6]** **[0001707753-23-000055_a24q2erex991.htm:6]** 

What factors contributed to the lower net loss in Q2 2024?

7d8888e139cdaacf8c5a7bef6118901de266a41fe5f941fda302a8b28250de5d

Cost of Goods Sold (COGS) (USD, thousands)

SG&A (USD, thousands)

Research and Development (R&D) (USD, thousands)

Depreciation and Amortization (D&A) (USD, thousands)

Interest Expense (USD, thousands)

Operating Income (EBIT) (USD, thousands)

Net Income (USD, thousands)

EPS - Basic (USD)

EPS - Diluted (USD)

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f034e85f672fdeae5aa70ca7c0332eb2930bba0b2ecea1546aaafde629f718f4

Cash and cash equivalents (USD, thousands)

Restricted cash (USD, thousands)

Marketable securities (USD, thousands)

Accounts receivable, net (USD, thousands)

Deferred contract acquisition costs, current (USD, thousands)

Prepaid expenses and other current assets (USD, thousands)

Total current assets (USD, thousands)

Property and equipment, net (USD, thousands)

Goodwill (USD, thousands)

Operating lease right-of-use assets (USD, thousands)

Intangible assets, net (USD, thousands)

Deferred contract acquisition costs, non-current (USD, thousands)

Deferred tax assets (USD, thousands)

Other assets (USD, thousands)

Total assets (USD, thousands)

Accounts payable (USD, thousands)

Accrued expenses and other liabilities (USD, thousands)

Accrued compensation and benefits (USD, thousands)

Operating lease liabilities, current (USD, thousands)

Deferred revenue, current (USD, thousands)

Total current liabilities (USD, thousands)

Deferred revenue, non-current (USD, thousands)

Long-term debt, net (USD, thousands)

Operating lease liabilities, non-current (USD, thousands)

Other liabilities, non-current (USD, thousands)

Total liabilities (USD, thousands)

Treasury stock (USD, thousands)

Additional paid-in capital (USD, thousands)

Accumulated other comprehensive loss (USD, thousands)

Accumulated deficit (USD, thousands)

Total shareholders’ equity (USD, thousands)

Total liabilities and shareholders’ equity (USD, thousands)

1563a439408660802eee6292592d528d4166ae4f39aa1db53cb9bacbffa6a1f3

Elastic NV (ESTC)

Financials