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Revenue reached $293.8 million, representing a 17% year-on-year increase and surpassing the estimate of $284.8 million. Adjusted earnings per share stood at 25 cents, well above the estimated 11 cents per share.
The adjusted gross margin was 76.5%, up from 73.9% year-on-year.
For the second quarter, Elastic anticipates adjusted earnings per share in the range of 23 cents to 25 cents, topping the consensus estimate of 20 cents.
Additionally, Elastic has provided its revenue forecasts for the same period, expecting revenue to be between $303M and $305M, with the analyst estimate at $302.4M.
The company lifted its FY24 forecast and it now sees revenue of $1.24B to $1.25B, with adjusted EPS seen at $1.06, up from the prior forecast of $1.06.
Analysts were looking for adjusted EPS of $1.01 on revenue of $1.24B.
“We had a strong start to the fiscal year, and delivered better than expected results as customers continued to consolidate vendors and adopt Elastic as their AI-powered data analytics platform of choice for addressing multiple real-time search use cases,” said Ash Kulkarni, CEO, Elastic.
Wells Fargo analysts hiked the price target to $70 per share and said:
“Adoption of the platform for AI use cases is starting to ramp, though it will have more of an impact in FY25.”
RBC analysts also lifted the PT.
“Elastic delivered a strong quarter highlighting momentum in GenAI, specifically Vector Search along with ongoing trends around platform consolidation. Top-line strength flowed through to better-thanexpected profitability as management will look to continue to manage costs while investing in growth drivers, particularly GenAI. Guidance remains prudent given the macro, but likely proves conservative, in our view,” the analysts wrote.
