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Jan 31, 2025
Elastic Q3 2025 Earnings Report
Elastic reported strong revenue growth in Q3 2025, with significant contributions from its cloud business and improved profitability.
Key Takeaways
Elastic delivered a solid Q3 FY25 performance, achieving total revenue of $382 million, reflecting a 17% year-over-year increase. Elastic Cloud revenue grew by 26% year-over-year, highlighting strong demand for its cloud offerings. The company reported a GAAP operating loss of $5 million, while non-GAAP operating income reached $64 million. Free cash flow improved to $99 million, underscoring strong cash generation.
Total revenue grew 17% YoY to $382 million.
Elastic Cloud revenue increased 26% YoY to $180 million.
Non-GAAP EPS was $0.63, exceeding expectations.
Free cash flow surged to $99 million, reflecting strong cash management.
Revenue by Segment
Forward Guidance
Elastic expects continued revenue growth in Q4 FY25, with steady demand for its cloud offerings driving momentum.
Positive Outlook
- Total revenue projected between $379M and $381M.
- Non-GAAP operating margin expected to be 13.5%.
- Non-GAAP EPS guidance set between $0.36 and $0.37.
- Fiscal 2025 revenue forecasted at $1.474B to $1.476B.
- Continued growth driven by AI and cloud-based solutions.
Challenges Ahead
- Macroeconomic uncertainties could impact IT spending.
- Currency fluctuations may affect reported revenue.
- Competition in cloud and AI sectors remains high.
- Operational expenses may increase due to expansion plans.
- Ongoing market volatility poses a potential risk to profitability.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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