Earnings: After a blockbuster IPO, Elastic stretches gains on strong Q2

Open source search engine Elastic (ESTC), which debuted in the New York Stock Exchange in October, posted better-than-expected second quarter results after the closing bell on Tuesday. Total revenue jumped 72% in Q2 to $63.6 million, as subscription revenue improved 68% year-over-year.

Adjusted net loss for the period stood at $0.38 per share, beating analysts’ estimate by 9 cents. The company ended the quarter with over 6,300 subscription customers.

CEO Shay Banon said, “Search is an incredible foundation to enable our users and customers to address a variety of use cases. We’re proud of the pace of innovation across our self-managed and SaaS offerings and the rapid adoption of the Elastic Stack and our solutions by our users and customers.”

For the third quarter, Elastic expects total revenue between $64 million and $66 million, while adjusted net loss per share is estimated to in the range of $0.32 to $0.30.

The Amsterdam-based company expects to end the year with a total revenue of $254 to $258 million. Non-GAAP net loss for the full year is anticipated between $1.35 and $1.30 per share.

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ESTC shares rose 2.7% during aftermarket trading on Tuesday. The stock, which was offered at an IPO price of $36, had closed its first trading day at $70. The sharp gain outshined even the exceptional debut-day performances by DocuSign (DOCU) and Dropbox (DBX).

Currently, the stock is up over 100% since launch.

Though Elastic offers its search services primarily through the cloud divisions of Amazon (AMZN) and Google (GOOGL), the trio also competes with each other. The other competitors include Micro Focus and Splunk.

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