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Elastic (NYSE: ESTC) posts narrower-than-expected loss in Q2

Elastic NV (NYSE: ESTC) reported a wider loss in the second quarter of 2020 due to higher costs and expenses despite a 59% jump in the top line. The bottom line was narrower than the analysts’ expectations while the top line exceeded consensus estimates. Further, the Netherlands-based tech firm guided third-quarter results above the Street’s view.

Net loss was $49.97 million or $0.64 per share compared to a loss of $27.54 million or $0.63 per share in the previous year quarter. Adjusted loss per share narrowed to $0.22 from $0.38 a year ago.

Total revenues jumped by 59% year-over-year to $101.1 million backed by strong customer momentum and higher calculated billings. The software-as-a-service revenue was $20.6 million, up 106% year-over-year, or 114% on a constant currency basis.

For the third quarter, the company expects total revenues of $106-108 million and an adjusted loss per share of $0.36-0.34. For the full year, the company lifted its revenue outlook to the range of $415-417 million from the previous range of $406-412 million. Adjusted loss per share guidance is narrowed to the range of $1.24-1.17 from the prior range of $1.40-1.24.

For the second quarter, calculated billings climbed by 41% to $125.3 million. Deferred revenue surged by 58% to $201.3 million. Total subscription customer count was over 9,700, compared to over 8,800 in Q1. Total customer count with ACV greater than $100,000 was over 525, compared to over 475 in Q1.

Read: CrowdStrike Q3 earnings preview

During the quarter, the company closed the purchase of Endgame, a leader in endpoint security and threat prevention, detection, and response. This remained an exciting step toward realizing Elastic’s vision by offering users with a powerful threat hunting solution with superior endpoint protection.

The company introduced Elastic Endpoint Security, an endpoint protection solution that integrates with Elastic SIEM in the Elastic Stack, and eliminates endpoint pricing. This enables organizations to automatically and flexibly respond to threats in real-time, whether in the cloud, on-premises or in hybrid environments.

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Tags: IT services
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