Elastic Reports Third Quarter Fiscal 2024 Financial Results
Q3 Revenue of
Q3 Elastic Cloud Revenue of
Third Quarter Fiscal 2024 Financial Highlights
-
Total revenue was
$328 million , an increase of 19% year-over-year, or 18% on a constant currency basis -
Elastic Cloud revenue was
$143 million , an increase of 29% year-over-year as reported and on a constant currency basis -
GAAP operating loss was
$26 million ; GAAP operating margin was -8% -
Non-GAAP operating income was
$43 million ; non-GAAP operating margin was 13% -
GAAP diluted earnings per share was
$1.69 (1); non-GAAP diluted earnings per share was$0.36 -
Operating cash flow was
$52 million with adjusted free cash flow of$63 million -
Cash, cash equivalents, and marketable securities were
$1.015 billion as ofJanuary 31, 2024
“Elastic delivered another strong quarter and I'm pleased with our momentum and execution that drove our third quarter results,” said
Third Quarter Fiscal 2024 Key Metrics and Recent Business Highlights
Key Customer Metrics
-
Total customer count with Annual Contract Value (ACV) greater than
$100,000 was over 1,270 compared to over 1,220 in Q2 FY24, and over 1,110 in Q3 FY23 - Total subscription customer count was approximately 20,800 compared to approximately 20,700 in Q2 FY24, and over 19,900 in Q3 FY23
- Net Expansion Rate was approximately 109%
Product Innovations and Updates
- Delivered scalar quantization for vector search, which provides significantly faster performance at a lower total cost
- Introduced real time alerts with natural language interactions for the Elastic AI Assistant for security
- Delivered cloud security posture management for Microsoft Azure, now integrated with the three largest cloud hyperscalers
- Announced the general availability of the Elastic AI Assistant for observability, which provides site reliability engineers (SREs) with actionable operational insights that are specific to their IT environment
- Delivered general availability of Service Level Objective (SLO) monitoring which allows SREs to manage business operations by tracking service performance, error budgets, reliability, and business goals
-
Delivered deeper integration between
Elasticsearch and Hugging Face, to simplify the developer experience by allowing direct embedding of large language models and other machine learning models hosted on Hugging Face into custom GAI applications built withElasticsearch
Other Business Highlights
-
Appointed
Mark Dodds as Chief Revenue Officer to lead all customer facing functions -
Participated in AWS re:Invent as a Diamond sponsor and hosted ElasticON London and
Sydney events as part of our twelve city customer conference series
Financial Outlook
The Company is providing the following guidance:
For the fourth quarter of fiscal 2024 (ending
-
Total revenue is expected to be between
$328 million and$330 million , representing 18% year-over-year growth at the midpoint (18% year-over-year constant currency growth at the midpoint) - Non-GAAP operating margin is expected to be between 7.4% and 7.8%
-
Non-GAAP diluted earnings per share is expected to be between
$0.18 and$0.20 , assuming between 105.5 million and 106.5 million diluted weighted average ordinary shares outstanding
For fiscal 2024 (ending
-
Total revenue is expected to be between
$1.260 billion and$1.262 billion , representing 18% year-over-year growth at the midpoint (17% year-over-year constant currency growth at the midpoint) - Non-GAAP operating margin is expected to be approximately 11%
-
Non-GAAP diluted earnings per share is expected to be between
$1.15 and$1.18 , assuming between 103.0 million and 104.0 million diluted weighted average ordinary shares outstanding
The guidance assumes, among others, the following exchange rates:
See the section titled “Forward-Looking Statements” below for information on the factors that could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. We present historical and forward-looking non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of these non-GAAP measures. A reconciliation of forward-looking non-GAAP measures to the corresponding GAAP measures for operating margin and net earnings/(loss) per share is not available without unreasonable effort due to the uncertainty regarding, and the potential variability of, many of the costs and expenses that may be incurred in the future. These items necessary to reconcile such non-GAAP measures could be material and have a significant impact on the Company’s results computed in accordance with GAAP.
Conference Call and Webcast
Elastic’s executive management team will host a conference call today at
(1) |
GAAP diluted earnings per share includes the impact of a discrete income tax benefit of approximately |
About Elastic
Elastic (NYSE: ESTC), the leading search analytics company, securely harnesses search-powered AI to enable everyone to find the answers they need in real-time using all their data, at scale. Elastic’s solutions for security, observability and search are built on the
Elastic and associated marks are trademarks or registered trademarks of
Forward-Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties, which include, but are not limited to, statements regarding our expected financial results for the fiscal quarter and the fiscal year ending
Any additional or unforeseen effect from the evolving macroeconomic and geopolitical environments may exacerbate these risks. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those expressed or implied in our forward-looking statements are included in our filings with the
Statement Regarding Use of Non-GAAP Financial Measures
In addition to our results determined in accordance with
Reconciliations of historical GAAP financial measures to their respective historical non-GAAP financial measures are included below. In relation to constant currency non-GAAP financial measures, the only reconciling item between GAAP financial measures and non-GAAP financial measures is the effect of foreign currency rate fluctuations. Further details on how we calculate such effects can be found in the definition of “Constant Currency” below.
Non-GAAP Gross Profit and Non-GAAP Gross Margin
We define non-GAAP gross profit and non-GAAP gross margin as GAAP gross profit and GAAP gross margin, respectively, excluding stock-based compensation expense and related employer taxes and amortization of acquired intangible assets. We believe non-GAAP gross profit and non-GAAP gross margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations, as these metrics generally eliminate the effects of certain variables from period to period for reasons unrelated to overall operating performance.
Non-GAAP Operating Income and Non-GAAP Operating Margin
We define non-GAAP operating income and non-GAAP operating margin as GAAP operating loss and GAAP operating margin, respectively, excluding stock-based compensation expense and related employer taxes, amortization of acquired intangible assets, acquisition-related expenses, and restructuring and other related charges. We believe non-GAAP operating income and non-GAAP operating margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations, as these metrics generally eliminate the effects of certain variables from period to period for reasons unrelated to overall operating performance.
Non-GAAP Net Income and Non-GAAP Earnings Per Share
We define non-GAAP net income as GAAP income/(loss), excluding stock-based compensation expense and related employer taxes, amortization of acquired intangible assets, acquisition-related expenses, restructuring and other related charges, litigation settlement, the related income tax effect of the foregoing adjustments, and the income tax benefit from the release of any valuation allowance against deferred tax assets. We define non-GAAP earnings per share, basic, as non-GAAP net income divided by weighted average shares outstanding and non-GAAP earnings per share, diluted, as non-GAAP net income divided by weighted average diluted shares outstanding, which includes the potentially dilutive effect of the company’s employee equity incentive plan awards. We believe non-GAAP earnings per share provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this metric generally eliminates the effects of certain variables from period to period for reasons unrelated to overall operating performance.
Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin
Adjusted free cash flow is a non-GAAP financial measure that we define as net cash provided by operating activities adjusted for cash paid for interest less cash used for investing activities for purchases of property and equipment. Adjusted free cash flow margin is calculated as adjusted free cash flow divided by total revenue. Adjusted free cash flow does not represent residual cash flow available for discretionary expenditures since, among other things, we have mandatory debt service requirements.
Constant Currency
We compare the percent change in certain results from one period to another period using constant currency information to provide a framework for assessing how our business performed excluding the effect of foreign currency rate fluctuations. In presenting this information, current and comparative prior period results are converted into
Contact Information
Elastic Investor Relations
ir@elastic.co
PR-Team@elastic.co
|
||||||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||||||
(in thousands, except share and per share data) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||||||
Revenue |
|
|
|
|
||||||||||||
Subscription |
$ |
307,632 |
|
$ |
255,613 |
|
$ |
865,622 |
|
$ |
728,638 |
|
||||
Services |
|
20,325 |
|
|
18,953 |
|
|
66,700 |
|
|
60,410 |
|
||||
Total revenue |
|
327,957 |
|
|
274,566 |
|
|
932,322 |
|
|
789,048 |
|
||||
Cost of revenue |
|
|
|
|
||||||||||||
Subscription |
|
63,976 |
|
|
56,146 |
|
|
181,238 |
|
|
164,798 |
|
||||
Services |
|
20,666 |
|
|
19,062 |
|
|
60,970 |
|
|
58,146 |
|
||||
Total cost of revenue |
|
84,642 |
|
|
75,208 |
|
|
242,208 |
|
|
222,944 |
|
||||
Gross profit |
|
243,315 |
|
|
199,358 |
|
|
690,114 |
|
|
566,104 |
|
||||
Operating expenses |
|
|
|
|
||||||||||||
Research and development |
|
87,202 |
|
|
77,472 |
|
|
248,000 |
|
|
231,689 |
|
||||
Sales and marketing |
|
141,621 |
|
|
126,717 |
|
|
408,020 |
|
|
379,902 |
|
||||
General and administrative |
|
40,896 |
|
|
34,711 |
|
|
117,530 |
|
|
103,724 |
|
||||
Restructuring and other related charges |
|
— |
|
|
29,805 |
|
|
754 |
|
|
29,805 |
|
||||
Total operating expenses |
|
269,719 |
|
|
268,705 |
|
|
774,304 |
|
|
745,120 |
|
||||
Operating loss |
|
(26,404 |
) |
|
(69,347 |
) |
|
(84,190 |
) |
|
(179,016 |
) |
||||
Other income (expense), net |
|
|
|
|
||||||||||||
Interest expense |
|
(6,368 |
) |
|
(6,265 |
) |
|
(19,023 |
) |
|
(18,875 |
) |
||||
Other income, net |
|
8,568 |
|
|
5,460 |
|
|
24,107 |
|
|
20,774 |
|
||||
Loss before income taxes |
|
(24,204 |
) |
|
(70,152 |
) |
|
(79,106 |
) |
|
(177,117 |
) |
||||
(Benefit from) provision for income taxes |
|
(200,328 |
) |
|
2,422 |
|
|
(181,926 |
) |
|
12,313 |
|
||||
Net income (loss) |
$ |
176,124 |
|
$ |
(72,574 |
) |
$ |
102,820 |
|
$ |
(189,430 |
) |
||||
Net earnings (loss) per share attributable to ordinary shareholders |
|
|
|
|
||||||||||||
Basic |
$ |
1.76 |
|
$ |
(0.76 |
) |
$ |
1.04 |
|
$ |
(1.99 |
) |
||||
Diluted |
$ |
1.69 |
|
$ |
(0.76 |
) |
$ |
1.00 |
|
$ |
(1.99 |
) |
||||
Weighted-average shares used to compute net earnings (loss) per share attributable to ordinary shareholders |
|
|
|
|
||||||||||||
Basic |
|
100,282,179 |
|
|
96,052,025 |
|
|
99,099,210 |
|
|
95,327,131 |
|
||||
Diluted |
|
104,503,290 |
|
|
96,052,025 |
|
|
103,149,384 |
|
|
95,327,131 |
|
||||
|
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(in thousands, except share and per share data) |
||||||||
(unaudited) |
||||||||
|
As of
|
As of
|
||||||
Assets |
|
|
||||||
Current assets: |
|
|
||||||
Cash and cash equivalents |
$ |
526,893 |
|
$ |
644,167 |
|
||
Restricted cash |
|
2,774 |
|
|
2,473 |
|
||
Marketable securities |
|
488,133 |
|
|
271,041 |
|
||
Accounts receivable, net of allowance for credit losses of |
|
229,946 |
|
|
260,919 |
|
||
Deferred contract acquisition costs |
|
68,937 |
|
|
55,813 |
|
||
Prepaid expenses and other current assets |
|
45,440 |
|
|
39,867 |
|
||
Total current assets |
|
1,362,123 |
|
|
1,274,280 |
|
||
Property and equipment, net |
|
5,512 |
|
|
5,092 |
|
||
|
|
319,546 |
|
|
303,642 |
|
||
Operating lease right-of-use assets |
|
23,088 |
|
|
19,997 |
|
||
Intangible assets, net |
|
23,822 |
|
|
29,104 |
|
||
Deferred contract acquisition costs, non-current |
|
100,389 |
|
|
95,879 |
|
||
Deferred tax assets |
|
218,693 |
|
|
7,412 |
|
||
Other assets |
|
5,749 |
|
|
8,076 |
|
||
Total assets |
$ |
2,058,922 |
|
$ |
1,743,482 |
|
||
Liabilities and Shareholders’ Equity |
|
|
||||||
Current liabilities: |
|
|
||||||
Accounts payable |
$ |
10,935 |
|
$ |
35,151 |
|
||
Accrued expenses and other liabilities |
|
64,835 |
|
|
63,532 |
|
||
Accrued compensation and benefits |
|
78,049 |
|
|
76,483 |
|
||
Operating lease liabilities |
|
12,788 |
|
|
12,749 |
|
||
Deferred revenue |
|
561,665 |
|
|
528,704 |
|
||
Total current liabilities |
|
728,272 |
|
|
716,619 |
|
||
Deferred revenue, non-current |
|
23,521 |
|
|
34,248 |
|
||
Long-term debt, net |
|
568,341 |
|
|
567,543 |
|
||
Operating lease liabilities, non-current |
|
15,297 |
|
|
13,942 |
|
||
Other liabilities, non-current |
|
15,654 |
|
|
12,233 |
|
||
Total liabilities |
|
1,351,085 |
|
|
1,344,585 |
|
||
Shareholders’ equity: |
|
|
||||||
Preference shares, €0.01 par value; 165,000,000 shares authorized, 0 shares issued and outstanding as of |
|
— |
|
|
— |
|
||
Ordinary shares, par value €0.01 per share: 165,000,000 shares authorized; 100,792,010 shares issued and outstanding as of |
|
1,060 |
|
|
1,024 |
|
||
|
|
(369 |
) |
|
(369 |
) |
||
Additional paid-in capital |
|
1,676,493 |
|
|
1,471,584 |
|
||
Accumulated other comprehensive loss |
|
(18,840 |
) |
|
(20,015 |
) |
||
Accumulated deficit |
|
(950,507 |
) |
|
(1,053,327 |
) |
||
Total shareholders’ equity |
|
707,837 |
|
|
398,897 |
|
||
Total liabilities and shareholders’ equity |
$ |
2,058,922 |
|
$ |
1,743,482 |
|
||
|
||||||||||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||||||||||
(in thousands) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||||||
Cash flows from operating activities |
|
|
|
|
||||||||||||
Net income (loss) |
$ |
176,124 |
|
$ |
(72,574 |
) |
$ |
102,820 |
|
$ |
(189,430 |
) |
||||
Adjustments to reconcile net income (loss) to cash provided by operating activities: |
|
|
|
|
||||||||||||
Depreciation and amortization |
|
4,072 |
|
|
5,045 |
|
|
13,853 |
|
|
15,475 |
|
||||
Amortization of discounts or premiums on marketable securities |
|
(2,750 |
) |
|
— |
|
|
(6,396 |
) |
|
— |
|
||||
Amortization of deferred contract acquisition costs |
|
20,440 |
|
|
15,821 |
|
|
56,392 |
|
|
51,495 |
|
||||
Amortization of debt issuance costs |
|
269 |
|
|
257 |
|
|
798 |
|
|
763 |
|
||||
Non-cash operating lease cost |
|
2,878 |
|
|
2,705 |
|
|
8,148 |
|
|
8,354 |
|
||||
Asset impairment charges |
|
— |
|
|
6,242 |
|
|
— |
|
|
6,242 |
|
||||
Stock-based compensation expense |
|
62,762 |
|
|
54,456 |
|
|
176,344 |
|
|
148,626 |
|
||||
Deferred income taxes |
|
(210,705 |
) |
|
148 |
|
|
(210,278 |
) |
|
68 |
|
||||
Foreign currency transaction loss |
|
1,845 |
|
|
2,213 |
|
|
2,267 |
|
|
2,261 |
|
||||
Other |
|
(16 |
) |
|
— |
|
|
(34 |
) |
|
67 |
|
||||
Changes in operating assets and liabilities, net of impact of business acquisitions: |
|
|
|
|
||||||||||||
Accounts receivable, net |
|
4,072 |
|
|
(11,143 |
) |
|
31,044 |
|
|
14,050 |
|
||||
Deferred contract acquisition costs |
|
(30,668 |
) |
|
(24,615 |
) |
|
(74,089 |
) |
|
(68,184 |
) |
||||
Prepaid expenses and other current assets |
|
(7,655 |
) |
|
(238 |
) |
|
(5,512 |
) |
|
7,671 |
|
||||
Other assets |
|
(917 |
) |
|
2,297 |
|
|
639 |
|
|
7,106 |
|
||||
Accounts payable |
|
(25,330 |
) |
|
(11,809 |
) |
|
(25,212 |
) |
|
511 |
|
||||
Accrued expenses and other liabilities |
|
2,821 |
|
|
(4,627 |
) |
|
1,428 |
|
|
(6,272 |
) |
||||
Accrued compensation and benefits |
|
12,282 |
|
|
5,786 |
|
|
1,509 |
|
|
(161 |
) |
||||
Operating lease liabilities |
|
(2,902 |
) |
|
(2,831 |
) |
|
(9,096 |
) |
|
(8,404 |
) |
||||
Deferred revenue |
|
45,767 |
|
|
40,037 |
|
|
23,189 |
|
|
17,869 |
|
||||
Net cash provided by operating activities |
|
52,389 |
|
|
7,170 |
|
|
87,814 |
|
|
8,107 |
|
||||
Cash flows from investing activities |
|
|
|
|
||||||||||||
Purchases of property and equipment |
|
(1,077 |
) |
|
(197 |
) |
|
(2,605 |
) |
|
(1,019 |
) |
||||
Purchases of marketable securities |
|
(179,972 |
) |
|
— |
|
|
(358,273 |
) |
|
— |
|
||||
Maturities of marketable securities |
|
74,931 |
|
|
— |
|
|
150,223 |
|
|
— |
|
||||
Business acquisitions, net of cash acquired |
|
(18,951 |
) |
|
— |
|
|
(18,951 |
) |
|
— |
|
||||
Net cash used in investing activities |
|
(125,069 |
) |
|
(197 |
) |
|
(229,606 |
) |
|
(1,019 |
) |
||||
Cash flows from financing activities |
|
|
|
|
||||||||||||
Proceeds from issuance of ordinary shares under employee stock purchase plan |
|
— |
|
|
— |
|
|
9,111 |
|
|
— |
|
||||
Proceeds from issuance of ordinary shares upon exercise of stock options |
|
8,847 |
|
|
4,510 |
|
|
19,490 |
|
|
12,234 |
|
||||
Net cash provided by financing activities |
|
8,847 |
|
|
4,510 |
|
|
28,601 |
|
|
12,234 |
|
||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
1,008 |
|
|
9,940 |
|
|
(3,782 |
) |
|
(2,914 |
) |
||||
Net (decrease) increase in cash, cash equivalents, and restricted cash |
|
(62,825 |
) |
|
21,423 |
|
|
(116,973 |
) |
|
16,408 |
|
||||
Cash, cash equivalents, and restricted cash, beginning of period |
|
592,492 |
|
|
858,622 |
|
|
646,640 |
|
|
863,637 |
|
||||
Cash, cash equivalents, and restricted cash, end of period |
$ |
529,667 |
|
$ |
880,045 |
|
$ |
529,667 |
|
$ |
880,045 |
|
||||
|
||||||||||||||||||||||||
Revenue by Type |
||||||||||||||||||||||||
(in thousands, except percentages) |
||||||||||||||||||||||||
(unaudited) |
||||||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||||||||||||||
|
Amount |
% of
|
Amount |
% of
|
Amount |
% of
|
Amount |
% of
|
||||||||||||||||
Elastic Cloud |
$ |
143,379 |
44 |
% |
$ |
110,743 |
40 |
% |
$ |
399,540 |
43 |
% |
$ |
311,709 |
40 |
% |
||||||||
Other subscription |
|
164,253 |
50 |
% |
|
144,870 |
53 |
% |
|
466,082 |
50 |
% |
|
416,929 |
52 |
% |
||||||||
Total subscription |
|
307,632 |
94 |
% |
|
255,613 |
93 |
% |
|
865,622 |
93 |
% |
|
728,638 |
92 |
% |
||||||||
Services |
|
20,325 |
6 |
% |
|
18,953 |
7 |
% |
|
66,700 |
7 |
% |
|
60,410 |
8 |
% |
||||||||
Total revenue |
$ |
327,957 |
100 |
% |
$ |
274,566 |
100 |
% |
$ |
932,322 |
100 |
% |
$ |
789,048 |
100 |
% |
||||||||
|
|||||||||||||||
Reconciliation of GAAP to Non-GAAP Data |
|||||||||||||||
Supplementary Information |
|||||||||||||||
(in thousands, except percentages) |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three Months
|
% Change
|
% Change
|
% Change
|
% Change
|
||||||||||
Revenue |
|
|
|
|
|
||||||||||
Elastic Cloud |
$ |
143,379 |
29 |
% |
29 |
% |
6 |
% |
6 |
% |
|||||
Other subscription |
$ |
164,253 |
13 |
% |
12 |
% |
8 |
% |
7 |
% |
|||||
Total subscription |
$ |
307,632 |
20 |
% |
19 |
% |
7 |
% |
7 |
% |
|||||
Total revenue |
$ |
327,957 |
19 |
% |
18 |
% |
6 |
% |
6 |
% |
|||||
Total deferred revenue |
$ |
585,186 |
21 |
% |
21 |
% |
9 |
% |
9 |
% |
|||||
Total remaining performance obligations |
$ |
1,176,486 |
18 |
% |
18 |
% |
5 |
% |
5 |
% |
|||||
Nine Months
|
% Change
|
% Change
|
|||||||||||||
Revenue |
|||||||||||||||
Elastic Cloud |
$ |
399,540 |
28 |
% |
28 |
% |
|||||||||
Other subscription |
$ |
466,082 |
12 |
% |
11 |
% |
|||||||||
Total subscription |
$ |
865,622 |
19 |
% |
18 |
% |
|||||||||
Total revenue |
$ |
932,322 |
18 |
% |
17 |
% |
|||||||||
|
||||||||||||||||
Reconciliation of GAAP to Non-GAAP Data |
||||||||||||||||
Adjusted Free Cash Flow |
||||||||||||||||
(in thousands, except percentages) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||||||
Net cash provided by operating activities |
$ |
52,389 |
|
$ |
7,170 |
|
$ |
87,814 |
|
$ |
8,107 |
|
||||
Less: Purchases of property and equipment |
|
(1,077 |
) |
|
(197 |
) |
|
(2,605 |
) |
|
(1,019 |
) |
||||
Add: Interest paid on long-term debt |
|
11,859 |
|
|
11,859 |
|
|
23,719 |
|
|
23,719 |
|
||||
Adjusted free cash flow (1) |
$ |
63,171 |
|
$ |
18,832 |
|
$ |
108,928 |
|
$ |
30,807 |
|
||||
Net cash used in investing activities |
$ |
(125,069 |
) |
$ |
(197 |
) |
$ |
(229,606 |
) |
$ |
(1,019 |
) |
||||
Net cash provided by financing activities |
$ |
8,847 |
|
$ |
4,510 |
|
$ |
28,601 |
|
$ |
12,234 |
|
||||
Net cash provided by operating activities (as a percentage of total revenue) |
|
16 |
% |
|
3 |
% |
|
9 |
% |
|
1 |
% |
||||
Less: Purchases of property and equipment (as a percentage of total revenue) |
|
— |
% |
|
— |
% |
|
— |
% |
|
— |
% |
||||
Add: Interest paid on long-term debt (as a percentage of total revenue) |
|
3 |
% |
|
4 |
% |
|
3 |
% |
|
3 |
% |
||||
Adjusted free cash flow margin |
|
19 |
% |
|
7 |
% |
|
12 |
% |
|
4 |
% |
||||
(1) Adjusted free cash flow includes cash paid for restructuring and other charges of |
||||||||||||||||
|
||||||||||||||||
Reconciliation of GAAP to Non-GAAP Data |
||||||||||||||||
(in thousands, except percentages, share and per share data) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||||||
Gross Profit Reconciliation: |
|
|
|
|
||||||||||||
GAAP gross profit |
$ |
243,315 |
|
$ |
199,358 |
|
$ |
690,114 |
|
$ |
566,104 |
|
||||
Stock-based compensation expense and related employer taxes |
|
5,902 |
|
|
4,947 |
|
|
16,483 |
|
|
14,124 |
|
||||
Amortization of acquired intangibles |
|
3,186 |
|
|
2,977 |
|
|
9,139 |
|
|
8,902 |
|
||||
Non-GAAP gross profit |
$ |
252,403 |
|
$ |
207,282 |
|
$ |
715,736 |
|
$ |
589,130 |
|
||||
Gross Margin Reconciliation(1): |
|
|
|
|
||||||||||||
GAAP gross margin |
|
74.2 |
% |
|
72.6 |
% |
|
74.0 |
% |
|
71.7 |
% |
||||
Stock-based compensation expense and related employer taxes |
|
1.8 |
% |
|
1.8 |
% |
|
1.8 |
% |
|
1.8 |
% |
||||
Amortization of acquired intangibles |
|
1.0 |
% |
|
1.1 |
% |
|
1.0 |
% |
|
1.1 |
% |
||||
Non-GAAP gross margin |
|
77.0 |
% |
|
75.5 |
% |
|
76.8 |
% |
|
74.7 |
% |
||||
Operating Income Reconciliation: |
|
|
|
|
||||||||||||
GAAP operating loss |
$ |
(26,404 |
) |
$ |
(69,347 |
) |
$ |
(84,190 |
) |
$ |
(179,016 |
) |
||||
Stock-based compensation expense and related employer taxes |
|
65,847 |
|
|
56,155 |
|
|
183,564 |
|
|
153,507 |
|
||||
Amortization of acquired intangibles |
|
3,186 |
|
|
4,209 |
|
|
11,282 |
|
|
12,597 |
|
||||
Acquisition-related expenses |
|
682 |
|
|
899 |
|
|
2,240 |
|
|
5,100 |
|
||||
Restructuring and other related charges |
|
— |
|
|
29,805 |
|
|
754 |
|
|
29,805 |
|
||||
Non-GAAP operating income |
$ |
43,311 |
|
$ |
21,721 |
|
$ |
113,650 |
|
$ |
21,993 |
|
||||
Operating Margin Reconciliation(1): |
|
|
|
|
||||||||||||
GAAP operating margin |
|
(8.1 |
)% |
|
(25.3 |
)% |
|
(9.0 |
)% |
|
(22.7 |
)% |
||||
Stock-based compensation expense and related employer taxes |
|
20.1 |
% |
|
20.4 |
% |
|
19.7 |
% |
|
19.4 |
% |
||||
Amortization of acquired intangibles |
|
1.0 |
% |
|
1.5 |
% |
|
1.2 |
% |
|
1.6 |
% |
||||
Acquisition-related expenses |
|
0.2 |
% |
|
0.3 |
% |
|
0.2 |
% |
|
0.6 |
% |
||||
Restructuring and other related charges |
|
— |
% |
|
10.9 |
% |
|
0.1 |
% |
|
3.8 |
% |
||||
Non-GAAP operating margin |
|
13.2 |
% |
|
7.9 |
% |
|
12.2 |
% |
|
2.8 |
% |
||||
Net Income (Loss) Reconciliation: |
|
|
|
|
||||||||||||
GAAP net income (loss) |
$ |
176,124 |
|
$ |
(72,574 |
) |
$ |
102,820 |
|
$ |
(189,430 |
) |
||||
Stock-based compensation expense and related employer taxes |
|
65,847 |
|
|
56,155 |
|
|
183,564 |
|
|
153,507 |
|
||||
Amortization of acquired intangibles |
|
3,186 |
|
|
4,209 |
|
|
11,282 |
|
|
12,597 |
|
||||
Acquisition-related expenses |
|
682 |
|
|
899 |
|
|
2,240 |
|
|
5,100 |
|
||||
Restructuring and other related charges |
|
— |
|
|
29,805 |
|
|
754 |
|
|
29,805 |
|
||||
Litigation settlement |
|
— |
|
|
— |
|
|
— |
|
|
(10,150 |
) |
||||
Income tax effects related to the above adjustments(2) |
|
(780 |
) |
|
(1,599 |
) |
|
7,988 |
|
|
1,929 |
|
||||
Discrete income tax benefit from the release of a valuation allowance against deferred tax assets |
|
(207,456 |
) |
|
— |
|
|
(207,456 |
) |
|
— |
|
||||
Non-GAAP net income |
$ |
37,603 |
|
$ |
16,895 |
|
$ |
101,192 |
|
$ |
3,358 |
|
||||
Non-GAAP earnings per share attributable to ordinary shareholders, basic(1) |
$ |
0.37 |
|
$ |
0.18 |
|
$ |
1.02 |
|
$ |
0.04 |
|
||||
Non-GAAP earnings per share attributable to ordinary shareholders, diluted(1) |
$ |
0.36 |
|
$ |
0.17 |
|
$ |
0.98 |
|
$ |
0.03 |
|
||||
Weighted-average shares used to compute earnings per share attributable to ordinary shareholders, basic |
|
100,282,179 |
|
|
96,052,025 |
|
|
99,099,210 |
|
|
95,327,131 |
|
||||
Weighted-average shares used to compute earnings per share attributable to ordinary shareholders, diluted |
|
104,503,290 |
|
|
98,902,515 |
|
|
103,149,384 |
|
|
98,834,408 |
|
||||
(1) Totals may not sum, due to rounding. Gross margin, operating margin, and earnings per share are calculated based upon the respective underlying, non-rounded data. |
||||||||||||||||
(2) Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating the non-GAAP financial measures presented above as well as other significant tax adjustments. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our actual tax liabilities. |
||||||||||||||||
|
||||||||||||||||
Reconciliation of GAAP to Non-GAAP Data |
||||||||||||||||
(in thousands) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||||||
Cost of revenue reconciliation: |
|
|
|
|
||||||||||||
GAAP subscription |
$ |
63,976 |
|
$ |
56,146 |
|
$ |
181,238 |
|
$ |
164,798 |
|
||||
Stock-based compensation expense and related employer taxes |
|
(2,400 |
) |
|
(2,291 |
) |
|
(6,989 |
) |
|
(6,733 |
) |
||||
Amortization of acquired intangibles |
|
(3,186 |
) |
|
(2,977 |
) |
|
(9,139 |
) |
|
(8,902 |
) |
||||
Non-GAAP subscription |
$ |
58,390 |
|
$ |
50,878 |
|
$ |
165,110 |
|
$ |
149,163 |
|
||||
GAAP services |
$ |
20,666 |
|
$ |
19,062 |
|
$ |
60,970 |
|
$ |
58,146 |
|
||||
Stock-based compensation expense and related employer taxes |
|
(3,502 |
) |
|
(2,656 |
) |
|
(9,494 |
) |
|
(7,391 |
) |
||||
Non-GAAP services |
$ |
17,164 |
|
$ |
16,406 |
|
$ |
51,476 |
|
$ |
50,755 |
|
||||
Operating expenses reconciliation: |
|
|
|
|
||||||||||||
GAAP research and development expense |
$ |
87,202 |
|
$ |
77,472 |
|
$ |
248,000 |
|
$ |
231,689 |
|
||||
Stock-based compensation expense and related employer taxes |
|
(25,989 |
) |
|
(21,462 |
) |
|
(71,956 |
) |
|
(60,220 |
) |
||||
Acquisition-related expenses |
|
— |
|
|
(870 |
) |
|
(1,175 |
) |
|
(5,034 |
) |
||||
Non-GAAP research and development expense |
$ |
61,213 |
|
$ |
55,140 |
|
$ |
174,869 |
|
$ |
166,435 |
|
||||
GAAP sales and marketing expense |
$ |
141,621 |
|
$ |
126,717 |
|
$ |
408,020 |
|
$ |
379,902 |
|
||||
Stock-based compensation expense and related employer taxes |
|
(21,142 |
) |
|
(19,883 |
) |
|
(59,541 |
) |
|
(52,584 |
) |
||||
Amortization of acquired intangibles |
|
— |
|
|
(1,232 |
) |
|
(2,143 |
) |
|
(3,695 |
) |
||||
Non-GAAP sales and marketing expenses |
$ |
120,479 |
|
$ |
105,602 |
|
$ |
346,336 |
|
$ |
323,623 |
|
||||
GAAP general and administrative expense |
$ |
40,896 |
|
$ |
34,711 |
|
$ |
117,530 |
|
$ |
103,724 |
|
||||
Stock-based compensation expense and related employer taxes |
|
(12,814 |
) |
|
(9,863 |
) |
|
(35,584 |
) |
|
(26,579 |
) |
||||
Acquisition-related expenses |
|
(682 |
) |
|
(29 |
) |
|
(1,065 |
) |
|
(66 |
) |
||||
Non-GAAP general and administrative expense |
$ |
27,400 |
|
$ |
24,819 |
|
$ |
80,881 |
|
$ |
77,079 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240228788857/en/
Elastic Investor Relations
ir@elastic.co
PR-Team@elastic.co
Source: