Elastic has reported strong financial results for the fourth quarter of its fiscal year. Revenue rose 16 percent to $388 million (€343 million) compared to the same three months last year. Elastic Cloud, the company’s cloud platform, grew even stronger, up 23 percent to $182 million.
The company behind the search and observability solutions ended its fiscal year with total revenue of $1.48 billion, representing growth of 17 percent. The figures exceeded analysts’ expectations on both revenue and profitability metrics.
Strong demand for Search AI
CEO Ash Kulkarni attributes the growth figures to continued demand for Search AI solutions and the company’s sales performance. “We delivered strong growth, fueled by our sales execution and the persistent demand for our solutions,” said Kulkarni. According to him, customers continue to build and consolidate generative AI applications on the Elastic platform.
The results show that companies are increasingly moving their search and analytics needs to the cloud. Elastic Cloud grew 23 percent, significantly faster than the overall company, confirming this trend. The number of customers with an annual contract value above $100,000 rose to more than 1,510, up from 1,460 in the previous quarter.
Focus on AI and partnerships
The company has further expanded its AI capabilities, including the integration of the Elasticsearch vector database as a native RAG option for Google Cloud’s Vertex AI Platform. It also announced a partnership with Amazon Web Services and Nvidia to deliver GPU-accelerated indexing.
A significant acquisition was that of Keep Alerting, an open source AIOps platform that unifies alerts and automates incident remediation. This aligns with Elastic’s strategy to enhance operational efficiency and service reliability.