Elastic recently presented positive quarterly figures, but also had to issue a revenue warning. The value of Elastic shares fell 25 percent as a result.
Good quarterly figures, but the shares still fell sharply on the stock exchange. This happened to the American-Dutch software company Elastic yesterday on the American stock exchange.
Solid quarterly figures
In the first quarter of fiscal 2025, Elastic reported a revenue of $347 million (€313 million). This was 18 percent higher than the same quarter a year ago. The result also exceeded the $344.66 million forecast by analysts. Cloud services revenue rose 30 percent to a total of $157 million last quarter.
The number of customers with annual revenue over $100,000 increased to 1,370. There were 1,330 in the last quarter of the (fiscal) year and 1,190 in the period a year earlier. Overall, Elastic had 21,000 subscription-based customers last quarter, up slightly from the 20,500 it had a year ago.
Snag
By themselves, these are solid numbers from Elastic, but the catch was in the accompanying remarks from CEO Ash Kulkarni. According to him, the company had a slow start to the financial year with a disappointing volume of customer commitments.
This is because of the changes in segmentation that Elastic made at the beginning of the year. However, it is taking longer than expected for the company to adjust to this. The necessary steps have been taken, but the practical turnaround takes time.
Impact on quarterly and annual figures
The latter is going to impact this fiscal year’s sales, according to the CEO. For the coming quarter, the company expects sales of between $353 million and $355 million. This is considerably less than the previously expected revenue of $360.8 million.
Expectations for full-year revenue are also now lower than previously expected. For the full (fiscal) year 2025, Elastic is now counting on revenue of between $1.436 and $1.444 billion. This is lower than analysts’ expected revenue of around $1,478 billion.
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