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Elastic stock stretches upwards following strong Q1 earnings

Shares of Netherlands-based tech firm Elastic NV (NYSE: ESTC) continued its rally on Thursday, a day after it smashed past Wall Street estimates for the first quarter of 2020. Elastic stock, which had gained 21% so far this year till market close on Wednesday, shot up 15% during morning trade on Thursday.

A SaaS leader that offers solutions in data analytics and security, Elastic went public last year.

The company said its first-quarter revenues rose 58% to $89.7 million on strong customer momentum. Analysts had projected Q1 revenues of $86 million.

READ: Coupa Software Q2 earnings: What’s on the cards

Subscription revenues accounted for 92% of total revenues.  Subscription customers increased to over 8,800 in Q1, compared to around 8,100 in the prior sequential quarter.  

Calculated billings improved 51% year-over-year.

Down the line, adjusted loss per share was narrowed by 6 cents to $0.32 in Q1, compared to $0.41 expected by the street.

READ: Nutanix beats the market in Q4, stock jumps

Outlook

For the second quarter, the company expects total revenues between $95 million and $97 million and adjusted loss per share between $0.32 and $0.30.

For the full year, the company gave better guidance. For this period, revenues are expected in the range of $406-412 million, compared to the earlier estimate of $397-403 million.

Adjusted loss per share of $1.40 – $1.24 is expected in the place of the prior projection of a wider loss of $1.49 – $1.33.

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