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Apr 30, 2023

Elastic Q4 2023 Earnings Report

Announced financial results for the fourth quarter and full fiscal year ended April 30, 2023.

Key Takeaways

Elastic's Q4 revenue reached $280 million, a 17% increase year-over-year (19% in constant currency), with Elastic Cloud revenue growing by 28% year-over-year (30% in constant currency). The company reported a GAAP operating loss of $40 million and a non-GAAP operating income of $24 million.

Total revenue was $280 million, an increase of 17% year-over-year, or 19% on a constant currency basis

Elastic Cloud revenue was $112 million, an increase of 28% year-over-year, or 30% on a constant currency basis

GAAP operating loss was $40 million; GAAP operating margin was -14%

Non-GAAP operating income was $24 million; non-GAAP operating margin was 9%

Total Revenue
$280M
Previous year: $239M
+17.0%
EPS
$0.22
Previous year: -$0.16
-237.5%
Net Expansion Rate
117%
Previous year: 130%
-10.0%
Gross Profit
$206M
Previous year: $172M
+19.9%
Cash and Equivalents
$644M
Previous year: $861M
-25.2%
Free Cash Flow
$25.9M
Previous year: -$5.25M
-592.9%
Total Assets
$1.74B
Previous year: $1.64B
+6.1%

Elastic

Elastic

Elastic Revenue by Segment

Forward Guidance

For the first quarter of fiscal 2024, Elastic expects total revenue between $283 million and $286 million, representing 14% year-over-year growth. Non-GAAP operating margin is expected to be between 5.6% and 6.0%, and non-GAAP earnings per share are expected to be between $0.10 and $0.12.

Positive Outlook

  • Total revenue is expected to be between $283 million and $286 million, representing 14% year-over-year growth at the midpoint (14% year-over-year constant currency growth at the midpoint)
  • Non-GAAP operating margin is expected to be between 5.6% and 6.0%
  • Non-GAAP earnings per share is expected to be between $0.10 and $0.12, assuming between 100.5 million and 101.5 million diluted weighted average ordinary shares outstanding
  • Total revenue is expected to be between $1.238 billion and $1.250 billion, representing 16% year-over-year growth at the midpoint (16% year-over-year constant currency growth at the midpoint)
  • Non-GAAP operating margin is expected to be between 9.7% and 10.3%

Challenges Ahead

  • A reconciliation of forward-looking non-GAAP measures to the corresponding GAAP measures for operating margin and net loss per share is not available on a forward-looking basis 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.
  • The guidance assumes, among others, the following exchange rates: 1 Euro = 1.076 US Dollars; and 1 Great British Pound = 1.237 US Dollars.
  • Forward-looking statements that involve substantial risks and uncertainties
  • Our ability to achieve and maintain future profitability

Revenue & Expenses

Visualization of income flow from segment revenue to net income