NYSE$ESTC

Elastic NV · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported second quarter fiscal 2023 financial results with revenue of $264.4 million.

Elastic's Q2 2023 results exceeded revenue and profitability targets, with revenue growing 34% year-over-year in constant currency. The company is implementing cost optimization actions to align investments with strategic priorities, expecting to accelerate non-GAAP operating income growth and achieve a 10% non-GAAP operating margin in fiscal 2024.

  • Total revenue was $264.4 million, an increase of 28% year-over-year, or 34% on a constant currency basis.
  • Elastic Cloud revenue was $103.2 million, an increase of 50% year-over-year, or 52% on a constant currency basis.
  • GAAP operating loss was $49.0 million; GAAP operating margin was -18%.
  • Non-GAAP operating income was $4.9 million; non-GAAP operating margin was 2%.

Headline financials

Total Revenue

$264M

Previous: $206M+28.4%
EPS (adj)

-$0.50

Previous: -$0.09-455.6%
Net Expansion Rate

125.0%

Previous: 130.0%-3.8%
Capital Expenditures

-$822K

Previous: -$751K-9.5%
Free Cash Flow

$115K

Previous: $2.92M-96.1%
Net Income

-$47.3M

Previous: -$47M-0.6%
Operating Income

-$49M

Previous: -$37.2M-31.9%
Gross Profit

$190M

Previous: $152M+24.7%
Cash & Equivalents

$856M

Previous: $876M-2.3%
Total Assets

$1.59B

Previous: $1.56B+2.1%

Revenue & EPS history

Elastic · Revenue · Quarterly

$264M

Q2 2023+28.4%vs Q2 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Elastic · $264M total across 3 segments · Q2 2023

  • Other Subscription
    $138M+13.8%
  • Elastic Cloud
    $103M+49.6%
  • Services
    $23.2M+47.5%

Forward guidance

The Company expects the following results for the third quarter of fiscal 2023 and is updating its prior full-year fiscal 2023 guidance as follows:

Tailwinds

  • Total revenue is expected to be between $272 million and $274 million, representing 22% year-over-year growth at the midpoint (26% year-over-year constant currency growth at the midpoint)
  • Non-GAAP operating margin is expected to be between 4.3% and 4.7%
  • Non-GAAP earnings per share is expected to be between $0.04 and $0.07, assuming between 98.5 million and 99.5 million diluted weighted average ordinary shares outstanding
  • Total revenue is expected to be between $1,067 million and $1,073 million, representing 24% year-over-year growth at the midpoint (28% year-over-year constant currency growth at the midpoint)
  • Non-GAAP earnings per share is expected to be between -$0.03 and $0.03, assuming between 95.0 million and 97.0 million basic weighted average ordinary shares outstanding and 98.5 million and 100.5 million diluted weighted average ordinary shares outstanding

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.2%

Avg return

Earnings day

-0.4%

Avg return

5 days after

-2.5%

Avg return

30 days after

40%

12 / 30 earnings

Positive

+38.4%

Q2 2024

Best reaction

-26.0%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026-15.4%-15.8%-21.2%
Q2 2026-15.6%-14.8%-6.9%
Q1 2026-3.1%-1.7%-2.1%
Q4 2025-12.1%-8.9%-10.1%
Q3 2025+14.9%+8.2%-9.5%
Q2 2025+22.0%+25.9%+17.0%
Q1 2025-26.0%-28.9%-24.9%
Q4 2024+1.7%+0.7%+11.3%
Q3 2024-9.8%-16.4%-22.7%
Q2 2024+38.4%+45.2%+41.5%
Q1 2024+22.2%+23.5%+33.7%
Q4 2023-0.7%-1.9%-11.9%
Q3 2023+10.7%+6.3%+0.3%
Q2 2023-3.1%-11.3%-12.7%
Q1 2023-0.2%+1.9%-18.1%
Q4 2022+19.4%+20.2%+15.5%
Q3 2022-6.8%-11.2%+8.0%
Q2 2022-23.9%-28.9%-20.8%
Q1 2022-3.4%+0.3%+4.9%
Q4 2021+9.7%+12.0%+23.8%
Q3 2021-14.0%-5.3%-27.5%
Q2 2021+11.8%+17.1%+21.0%
Q1 2021+6.5%+4.1%+2.0%
Q4 2020-3.3%-7.4%+6.6%
Q3 2020+8.7%+10.0%-18.9%
Q2 2020-17.4%-19.9%-15.0%
Q1 2020+11.5%+10.4%+4.2%
Q4 2019-1.7%-2.7%-3.9%
Q3 2019-6.9%-7.3%-17.8%
Q2 2019-8.1%-15.7%-21.9%
Q1 2019
Q4 2018
Q3 2017
Q2 2017
Q1 2017

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