Elastic N.V. Reports Strong Fourth Quarter and Fiscal 2019 Financial Results
Q4 Revenue of $80.6 million; Up 63% year-over-year (68% in constant
currency)
FY19 Revenue of $271.7 million; Up 70% year-over-year (72% in
constant currency)
Announced proposed acquisition of Endgame, an endpoint security
company
MOUNTAIN VIEW, Calif. & AMSTERDAM, The Netherlands–(BUSINESS WIRE)–Elastic N.V. (NYSE: ESTC) (“Elastic”), the company behind Elasticsearch
and the Elastic Stack, today announced strong results for the fourth
quarter and full fiscal year ended April 30, 2019.
Fourth Quarter Fiscal 2019 Financial Highlights
- Total revenue was $80.6 million, an increase of 63% year-over-year, or
68% on a constant currency basis. - Calculated billings was $115.4 million, an increase of 57%
year-over-year, or 63% on a constant currency basis. - Deferred revenue was $170.7 million, growing 66% year-over-year.
- GAAP operating loss was $32.1 million; GAAP operating margin was -40%.
- Non-GAAP operating loss was $17.5 million; Non-GAAP operating margin
was -22%. - GAAP net loss per share was $0.48; Non-GAAP net loss per share was
$0.28. - Operating cash flow was -$19.8 million with free cash flow of -$20.9
million. - Cash and cash equivalents were $298.0 million as of April 30, 2019.
Full Fiscal 2019 Financial Highlights
- Total revenue was $271.7 million, an increase of 70% year-over-year,
or 72% on a constant currency basis. - GAAP operating loss was $101.4 million; GAAP operating margin was -37%.
- Non-GAAP operating loss was $55.7 million; Non-GAAP operating margin
was -21%. - GAAP net loss per share was $1.86; Non-GAAP net loss per share was
$1.11. - Operating cash flow was -$23.9 million with free cash flow of -$27.4
million, or -10% free cash flow margin.
“Q4 was an incredible ending to a strong fiscal year,” said Shay Banon,
founder and chief executive officer at Elastic. “We are seeing strong
demand across our products and solutions worldwide. We continue to
invest heavily across all parts of the business to drive growth and we
look forward to continued momentum in fiscal 2020.”
In a separate news
release issued today, we announced the proposed acquisition of
Endgame, Inc. (“Endgame”), a security company focused on endpoint
protection, detection, and response.
Fourth Quarter Fiscal 2019 Key Metrics and Recent Business Highlights
- Total subscription customer count was over 8,100.
- Total customer count with ACV greater than $100,000 was over 440.
- Subscription revenue represented 91% of total revenue.
- Net Expansion Rate remained over 130% for the tenth consecutive
quarter. - Released version 6.7 of the Elastic Stack introducing two new
solutions: Elastic Maps, for advanced, layered visualization of
geospatial data on a map, and Elastic Uptime, for real-time monitoring
and availability of systems and services. - Version 6.7 of the Elastic Stack made many proprietary features
generally available, including cross-cluster replication, index
lifecycle management, Elasticsearch SQL (including ODBC and JDBC
clients), Canvas, and Functionbeat. - Released version 7.0 of the Elastic Stack delivering improvements to
query speed and relevance with the introduction of new query types in
Elasticsearch, a fully revamped cluster coordination framework that
hardens resiliency, and a completely redesigned Kibana interface that
simplifies the user experience and navigation. - Released version 2.2 of Elastic Cloud Enterprise (ECE) adding many of
the recent Elastic Stack features in a native way to ECE, and
providing better security and management in multitenant environments. - Announced an expanded partnership with Google Cloud (GCP) and a new
global partnership with Tencent Cloud. - Made certain core security features free, further differentiating our
proprietary, free features in the Basic version of the Elastic Stack.
Users can now encrypt network traffic, create and manage users, define
roles that protect index and cluster level access, and fully secure
Kibana with Spaces. - Released Elastic Cloud on Kubernetes (ECK) in the Basic version of the
Elastic Stack. ECK is an orchestration product based on the Kubernetes
Operator pattern that lets users provision, manage, and operate
Elasticsearch clusters on Kubernetes. - Announced the Beta version of Elastic Enterprise Search, a product
that allows teams and organizations to search all the data scattered
across the many tools that power the productivity of their workforce. - Announced SOC 2 Type 2 and CSA Star Level 2 Attestation for Elastic
Cloud. - Held six successful Elastic{ON} Tour events to engage with our
community of users, customers, and partners in Beijing, Seattle, San
Francisco, São Paolo, Tokyo, and Zurich with waitlists driven by
strong demand. - Appointed Caryn Marooney to the Elastic Board of Directors. Caryn
recently led global communications for Facebook. Prior to joining
Facebook, Caryn co-founded OutCast Communications.
Financial Outlook
The Company is providing the following guidance:
For its first quarter of fiscal 2020 (ending July 31, 2019):
- Total revenue is expected to be between $82 million and $84 million.
- Non-GAAP operating margin is expected to be between -34% and -32%.
- Non-GAAP net loss per share is expected to be between $0.44 and $0.42,
assuming between 74 and 75 million weighted average ordinary shares
outstanding.
For its fiscal year 2020 (ending April 30, 2020):
- Total revenue is expected to be between $397 million and $403 million.
- Non-GAAP operating margin is expected to be between -25% and -23%,
including approximately -2% related to the proposed acquisition of
Endgame. - Non-GAAP net loss per share is expected to be between $1.49 and $1.33,
assuming between 76 and 80 million weighted average ordinary shares
outstanding.
See the section titled “Forward-Looking Statements” below for
information on the factors that could cause our actual results to differ
materially. A reconciliation of non-GAAP guidance measures to
corresponding GAAP measures 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.
Conference Call and Webcast
Elastic’s executive management team will host a conference call today
beginning at 2:00 p.m. PT/ 5:00 p.m. ET/ 11:00 p.m. CEST to discuss the
Company’s financial results and business outlook. A live audio webcast
of the conference call will be available through Elastic’s Investor
Relations website at ir.elastic.co.
Slides will accompany the webcast. The replay of the webcast and slides
will be available for two months.
About Elastic
Elastic is a search company. As the creators of the Elastic Stack
(Elasticsearch, Kibana, Beats, and Logstash), Elastic builds
self-managed and SaaS offerings that make data usable in real time and
at scale for use cases like application search, site search, enterprise
search, logging, APM, metrics, security, business analytics, and many
more.
Elastic and associated marks are trademarks or registered
trademarks of Elastic N.V. and its subsidiaries. All other company and
product names may be trademarks of their respective owners.
Use of Non-GAAP Financial Measures
Reconciliations of non-GAAP financial measures to Elastic’s financial
results as determined in accordance with GAAP are included at the end of
this press release following the accompanying financial data. For a
description of these non-GAAP financial measures, including the reasons
management uses each measure, please see the section of this press
release titled “About Non-GAAP Financial Measures.”
Forward-Looking Statements
This press release contains forward-looking statements which include,
but are not limited to, expected financial results for the fiscal
quarter ending July 31, 2019 and the fiscal year ending April 30, 2020.
These forward-looking statements are subject to the safe harbor
provisions under the Private Securities Litigation Reform Act of 1995.
Our expectations and beliefs regarding these matters may not
materialize. Actual outcomes and results may differ materially from
those contemplated by these forward-looking statements as a result of
uncertainties, risks, and changes in circumstances, including but not
limited to risks and uncertainties related to: our ability to continue
to deliver and improve our offerings and successfully develop new
offerings; customer acceptance and purchase of our existing offerings
and new offerings; our ability to maintain and expand our customer base;
the market for our products not continuing to develop; competition from
other products; the impact of foreign currency exchange rate and
interest rate fluctuations on our results; our business strategy and our
plan to build our business; our ability to effectively manage our
growth; the pace of change and innovation in the markets in which we
participate and the competitive nature of those markets; our
international expansion strategy; our service performance and security,
including the resources and costs required to prevent, detect and
remediate potential security breaches; our operating results and cash
flows; our strategy of acquiring complementary businesses and our
ability to successfully integrate acquired businesses and technologies;
our relationships with third parties, including partners; our ability to
protect our intellectual property rights; our ability to develop our
brands; our ability to attract and retain qualified employees and key
personnel; the impact of expensing stock options and other equity
awards; the sufficiency of our capital resources; our proposed
acquisition of Endgame, including the potential impact on our operating
margin; the impact of the transaction on Elastic’s future product
offerings, and general market, political, economic and business
conditions. Additional risks and uncertainties that could cause actual
outcomes and results to differ materially from those contemplated by the
forward-looking statements are included under the caption “Risk Factors”
and elsewhere in our most recent filings with the Securities and
Exchange Commission (the “SEC”), including our Quarterly Report on Form
10-Q for the fiscal quarter ended January 31, 2019 and any subsequent
reports on Form 10-K, Form 10-Q or Form 8-K filed with the SEC. SEC
filings are available on the Investor Relations section of Elastic’s
website at ir.elastic.co
and the SEC’s website at www.sec.gov.
Elastic assumes no obligation to, and does not currently intend to,
update any such forward-looking statements after the date of this
release, except as required by law.
Contact Information
Anthony Luscri
Elastic Investor Relations
ir@elastic.co
(650)
695-1055
Deborah Wiltshire
Elastic Corporate Communications
press@elastic.co
Elastic N.V. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands, except share and per share amounts) (Unaudited) | ||||||||||||||||
| Three Months Ended April 30, | Year Ended April 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Revenue | ||||||||||||||||
| License – self-managed | $ | 12,624 | $ | 8,839 | $ | 39,474 | $ | 25,759 | ||||||||
| Subscription – self-managed and SaaS | 60,999 | 37,337 | 208,780 | 123,623 | ||||||||||||
| Total subscription revenue | 73,623 | 46,176 | 248,254 | 149,382 | ||||||||||||
| Professional services | 6,976 | 3,396 | 23,399 | 10,553 | ||||||||||||
| Total revenue | 80,599 | 49,572 | 271,653 | 159,935 | ||||||||||||
| Cost of revenue | ||||||||||||||||
| Cost of license – self-managed | 97 | 97 | 387 | 387 | ||||||||||||
| Cost of subscription – self-managed and SaaS | 16,548 | 9,302 | 53,560 | 27,920 | ||||||||||||
| Total cost of revenue – subscription | 16,645 | 9,399 | 53,947 | 28,307 | ||||||||||||
| Cost of professional services | 6,797 | 4,201 | 24,063 | 12,433 | ||||||||||||
| Total cost of revenue | 23,442 | 13,600 | 78,010 | 40,740 | ||||||||||||
| Gross profit | 57,157 | 35,972 | 193,643 | 119,195 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Research and development | 31,004 | 17,543 | 101,167 | 55,641 | ||||||||||||
| Sales and marketing | 45,044 | 27,927 | 147,296 | 82,606 | ||||||||||||
| General and administrative | 13,194 | 9,737 | 46,536 | 28,942 | ||||||||||||
| Total operating expenses | 89,242 | 55,207 | 294,999 | 167,189 | ||||||||||||
| Operating loss | (32,085 | ) | (19,235 | ) | (101,356 | ) | (47,994 | ) | ||||||||
| Other income (expense), net | 704 | (544 | ) | 3,441 | (1,357 | ) | ||||||||||
| Loss before income taxes | (31,381 | ) | (19,779 | ) | (97,915 | ) | (49,351 | ) | ||||||||
| Provision for income taxes | 3,454 | 1,624 | 4,388 | 3,376 | ||||||||||||
| Net loss | $ | (34,835 | ) | $ | (21,403 | ) | $ | (102,303 | ) | $ | (52,727 | ) | ||||
Net loss per share attributable to ordinary | $ | (0.48 | ) | $ | (0.66 | ) | $ | (1.86 | ) | $ | (1.65 | ) | ||||
Weighted-average shares used to compute net loss | 72,307,990 | 32,638,830 | 54,893,365 | 32,033,792 | ||||||||||||
Elastic N.V. CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands, except share and per share amounts) (Unaudited) | ||||||||
| April 30, | ||||||||
| Assets | 2019 | 2018 | ||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 298,000 | $ | 50,941 | ||||
| Restricted cash | 2,280 | 668 | ||||||
Accounts receivable, net of allowance for doubtful accounts of | 81,274 | 53,233 | ||||||
| Deferred contract acquisition costs | 17,215 | 12,125 | ||||||
| Prepaid expenses and other current assets | 30,872 | 15,261 | ||||||
| Total current assets | 429,641 | 132,228 | ||||||
| Property and equipment, net | 5,448 | 4,536 | ||||||
| Goodwill | 19,846 | 19,182 | ||||||
| Intangible assets, net | 6,723 | 8,297 | ||||||
| Deferred contract acquisition costs, non-current | 8,935 | 5,954 | ||||||
| Deferred offering costs | – | 242 | ||||||
| Deferred tax assets | 1,748 | 3,946 | ||||||
| Other assets | 13,397 | 8,628 | ||||||
| Total assets | $ | 485,738 | $ | 183,013 | ||||
Liabilities, Redeemable Convertible Preferred Shares and | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 4,450 | $ | 2,176 | ||||
| Accrued expenses and other liabilities | 18,740 | 11,816 | ||||||
| Accrued compensation and benefits | 22,147 | 15,191 | ||||||
| Deferred revenue | 158,243 | 95,929 | ||||||
| Total current liabilities | 203,580 | 125,112 | ||||||
| Deferred revenue, non-current | 12,423 | 6,632 | ||||||
| Other liabilities, non-current | 6,723 | 3,877 | ||||||
| Total liabilities | 222,726 | 135,621 | ||||||
| Commitments and contingencies | ||||||||
Redeemable convertible preference shares, par value €0.001 per | – | 200,921 | ||||||
| Shareholders’ equity (deficit): | ||||||||
Convertible preference shares, €0.01 par value; 165,000,000 shares | – | – | ||||||
Ordinary shares, par value €0.01 per share: 165,000,000 shares | 754 | – | ||||||
Ordinary shares, par value of €0.001 per share; 72,000,000 shares | – | 33 | ||||||
Treasury stock, 35,937 shares (repurchased at an average price of | (369 | ) | (369 | ) | ||||
| Additional paid-in capital | 581,135 | 62,542 | ||||||
| Accumulated other comprehensive loss | (1,431 | ) | (961 | ) | ||||
| Accumulated deficit | (317,077 | ) | (214,774 | ) | ||||
| Total shareholders’ equity (deficit) | 263,012 | (153,529 | ) | |||||
Total liabilities, redeemable convertible preference shares and | $ | 485,738 | $ | 183,013 | ||||
Elastic N.V. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) (Unaudited) | ||||||||||||||||
| Three Months Ended April 30, | Year Ended April 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Cash flows from operating activities | ||||||||||||||||
| Net loss | $ | (34,835 | ) | $ | (21,403 | ) | $ | (102,303 | ) | $ | (52,727 | ) | ||||
Adjustments to reconcile net loss to cash used in operating | ||||||||||||||||
| Depreciation and amortization | 1,309 | 1,501 | 5,695 | 5,066 | ||||||||||||
| Amortization of deferred contract acquisition costs | 6,656 | 3,933 | 21,374 | 12,731 | ||||||||||||
| Stock-based compensation expense | 11,927 | 4,164 | 39,942 | 12,742 | ||||||||||||
| Other | 3 | (1 | ) | 69 | 1 | |||||||||||
Changes in operating assets and liabilities, net of impact of | ||||||||||||||||
| Accounts receivable, net | (27,576 | ) | (18,426 | ) | (29,804 | ) | (21,606 | ) | ||||||||
| Deferred contract acquisition costs | (9,592 | ) | (9,388 | ) | (30,006 | ) | (20,497 | ) | ||||||||
| Prepaid expenses and other current assets | (8,451 | ) | (2,811 | ) | (18,049 | ) | (6,920 | ) | ||||||||
| Other assets | (3,725 | ) | (5,320 | ) | (1,094 | ) | (7,842 | ) | ||||||||
| Accounts payable | 2,592 | (5,149 | ) | 2,226 | (23 | ) | ||||||||||
| Accrued expenses and other liabilities | 1,998 | (1,324 | ) | 8,728 | 4,397 | |||||||||||
| Accrued compensation and benefits | 5,339 | 6,189 | 7,409 | 8,045 | ||||||||||||
| Deferred revenue | 34,565 | 24,128 | 71,876 | 45,814 | ||||||||||||
| Net cash used in operating activities | (19,790 | ) | (23,907 | ) | (23,937 | ) | (20,819 | ) | ||||||||
| Cash flows from investing activities | ||||||||||||||||
| Purchases of property and equipment | (1,088 | ) | (1,127 | ) | (3,447 | ) | (2,968 | ) | ||||||||
| Maturities of short-term investments | – | – | – | 15,000 | ||||||||||||
| Business acquisitions, net of cash acquired | – | – | (1,986 | ) | (3,702 | ) | ||||||||||
| Other | (2,850 | ) | – | (2,850 | ) | – | ||||||||||
| Net cash (used in) provided by investing activities | (3,938 | ) | (1,127 | ) | (8,283 | ) | 8,330 | |||||||||
| Cash flows from financing activities | ||||||||||||||||
Net proceeds from issuance of common stock in initial public | – | – | 269,514 | – | ||||||||||||
Proceeds from issuance of ordinary shares upon exercise of stock | 15,015 | 595 | 18,552 | 2,337 | ||||||||||||
Proceeds from the issuance of ordinary shares related to early | – | 1,066 | – | 1,566 | ||||||||||||
| Repurchase of ordinary shares | – | – | – | (344 | ) | |||||||||||
| Repurchase of early exercised options | – | – | (500 | ) | – | |||||||||||
| Repayment of notes payable | (33 | ) | (42 | ) | (106 | ) | (132 | ) | ||||||||
| Payments of deferred offering costs | 1 | – | (5,672 | ) | – | |||||||||||
| Net cash provided by financing activities | 14,983 | 1,619 | 281,788 | 3,427 | ||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and | 535 | (488 | ) | (897 | ) | 781 | ||||||||||
Net (decrease) increase in cash, cash equivalents, and restricted | (8,210 | ) | (23,903 | ) | 248,671 | (8,281 | ) | |||||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 308,490 | 75,512 | 51,609 | 59,890 | ||||||||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 300,280 | $ | 51,609 | $ | 300,280 | $ | 51,609 | ||||||||
Elastic N.V. REVENUE BY TYPE (amounts in thousands, except percentages) (Unaudited) | ||||||||||||||||||||||||||||||||
| Three Months Ended April 30, | Year Ended April 30, | |||||||||||||||||||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||
| % of | % of | % of | % of | |||||||||||||||||||||||||||||
| Total | Total | Total | Total | |||||||||||||||||||||||||||||
| Amount | Revenue | Amount | Revenue | Amount | Revenue | Amount | Revenue | |||||||||||||||||||||||||
Self-managed subscription | $ | 59,855 | 74 | % | $ | 38,043 | 77 | % | $ | 202,419 | 74 | % | $ | 123,898 | 77 | % | ||||||||||||||||
| License | 12,624 | 16 | % | 8,839 | 18 | % | 39,474 | 14 | % | 25,759 | 16 | % | ||||||||||||||||||||
| Subscription | 47,231 | 58 | % | 29,204 | 59 | % | 162,945 | 60 | % | 98,139 | 61 | % | ||||||||||||||||||||
| SaaS | 13,768 | 17 | % | 8,133 | 16 | % | 45,835 | 17 | % | 25,484 | 16 | % | ||||||||||||||||||||
| Total subscription revenue | 73,623 | 91 | % | 46,176 | 93 | % | 248,254 | 91 | % | 149,382 | 93 | % | ||||||||||||||||||||
| Professional services | 6,976 | 9 | % | 3,396 | 7 | % | 23,399 | 9 | % | 10,553 | 7 | % | ||||||||||||||||||||
| Total revenue | $ | 80,599 | 100 | % | $ | 49,572 | 100 | % | $ | 271,653 | 100 | % | $ | 159,935 | 100 | % | ||||||||||||||||
Elastic N.V. RECONCILIATION OF GAAP TO NON-GAAP DATA CALCULATED BILLINGS (amounts in thousands) (Unaudited) | ||||||||||||||||
| Three Months Ended April 30, | Year Ended April 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Total revenue | $ | 80,599 | $ | 49,572 | 271,653 | $ | 159,935 | |||||||||
Add: Increase in total deferred revenue | 34,565 | 24,128 | 71,876 | 45,814 | ||||||||||||
Less: Decrease (increase) in | 223 | (382 | ) | (571 | ) | (25 | ) | |||||||||
| Calculated billings | $ | 115,387 | $ | 73,318 | $ | 342,958 | $ | 205,724 | ||||||||
Elastic N.V. RECONCILIATION OF GAAP TO NON-GAAP DATA FREE CASH FLOW (amounts in thousands, except percentages) (Unaudited) | ||||||||||||||||
| Three Months Ended April 30, | Year Ended April 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Net cash used in operating activities | $ | (19,790 | ) | $ | (23,907 | ) | $ | (23,937 | ) | $ | (20,819 | ) | ||||
| Less: Purchases of property and equipment | (1,088 | ) | (1,127 | ) | (3,447 | ) | (2,968 | ) | ||||||||
| Free cash flow | $ | (20,878 | ) | $ | (25,034 | ) | $ | (27,384 | ) | $ | (23,787 | ) | ||||
| Net cash (used in) provided by investing activities | $ | (3,938 | ) | $ | (1,127 | ) | $ | (8,283 | ) | $ | 8,330 | |||||
| Net cash provided by financing activities | $ | 14,983 | $ | 1,619 | $ | 281,788 | $ | 3,427 | ||||||||
Net cash used in operating activities | (25 | )% | (48 | )% | (9 | )% | (13 | )% | ||||||||
Less: Purchases of property and equipment | (1 | )% | (3 | )% | (1 | )% | (2 | )% | ||||||||
| Free cash flow margin | (26 | )% | (51 | )% | (10 | )% | (15 | )% | ||||||||
Elastic N.V. RECONCILIATION OF GAAP TO NON-GAAP DATA For the three months ended April 30, 2019 (amounts in thousands, except percentages, share and per share (Unaudited) | ||||||||||||||||||||||||||||
| GAAP | Stock-Based Compensation Expense | Employer | Amortization of Acquired Intangibles | Acquisition Related Expenses | Tax Adjustment(1) | Non-GAAP(2) | ||||||||||||||||||||||
| Cost of revenue | ||||||||||||||||||||||||||||
Cost of license – self-managed | $ | 97 | – | – | (97 | ) | – | – | $ | – | ||||||||||||||||||
Cost of subscription – self-managed | $ | 16,548 | (1,195 | ) | (28 | ) | (570 | ) | – | – | $ | 14,755 | ||||||||||||||||
Total cost of revenue – subscription | $ | 16,645 | (1,195 | ) | (28 | ) | (667 | ) | – | – | $ | 14,755 | ||||||||||||||||
Cost of professional services | $ | 6,797 | (440 | ) | (10 | ) | – | – | – | $ | 6,347 | |||||||||||||||||
| Total cost of revenue | $ | 23,442 | (1,635 | ) | (38 | ) | (667 | ) | – | – | $ | 21,102 | ||||||||||||||||
| Gross profit | $ | 57,157 | 1,635 | 38 | 667 | – | – | $ | 59,497 | |||||||||||||||||||
| Gross margin (2) | 70.9 | % | 2.0 | % | 0.0 | % | 0.8 | % | 0.0 | % | 0.0 | % | 73.8 | % | ||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||
| Research and development | $ | 31,004 | (4,714 | ) | (939 | ) | – | (168 | ) | – | $ | 25,183 | ||||||||||||||||
| Sales and marketing | $ | 45,044 | (3,911 | ) | (747 | ) | (33 | ) | – | – | $ | 40,353 | ||||||||||||||||
| General and administrative | $ | 13,194 | (1,667 | ) | (90 | ) | – | – | – | $ | 11,437 | |||||||||||||||||
Total operating expenses | $ | 89,242 | (10,292 | ) | (1,776 | ) | (33 | ) | (168 | ) | – | $ | 76,973 | |||||||||||||||
| Operating loss | $ | (32,085 | ) | 11,927 | 1,814 | 700 | 168 | – | $ | (17,476 | ) | |||||||||||||||||
| Operating margin (2) | (39.8 | )% | 14.8 | % | 2.3 | % | 0.9 | % | 0.2 | % | 0.0 | % | (21.7 | )% | ||||||||||||||
| Other income, net | $ | 704 | – | – | – | – | $ | 704 | ||||||||||||||||||||
| Loss before income taxes | $ | (31,381 | ) | 11,927 | 1,814 | 700 | 168 | – | $ | (16,772 | ) | |||||||||||||||||
| Provision for income taxes | $ | 3,454 | – | – | – | – | 246 | $ | 3,700 | |||||||||||||||||||
| Tax rate (2) | (11.0 | )% | (22.1 | )% | ||||||||||||||||||||||||
| Net loss | $ | (34,835 | ) | 11,927 | 1,814 | 700 | 168 | (246 | ) | $ | (20,472 | ) | ||||||||||||||||
Net loss per share attributable to ordinary | $ | (0.48 | ) | $ | 0.16 | $ | 0.03 | $ | 0.01 | $ | 0.00 | $ | (0.00 | ) | $ | (0.28 | ) | |||||||||||
(1) | Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating the non-GAAP financial measures presented above as well as significant tax adjustments, such as adjustments resulting from the 2017 Tax Cut and Jobs Act. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our actual tax liabilities. | |
(2) | Totals may not sum, due to rounding. Gross margin, operating margin, tax rate and earnings per share are calculated based upon the respective underlying, non-rounded data. | |
(3) | Calculated based upon 72,307,990 weighted-average shares, basic and diluted. | |
Elastic N.V. RECONCILIATION OF GAAP TO NON-GAAP DATA For the three months ended April 30, 2018 (amounts in thousands, except percentages, share and per share (Unaudited) | ||||||||||||||||||||||||||||
| GAAP | Stock-Based Compensation Expense | Employer | Amortization of Acquired Intangibles | Acquisition Related Expenses | Tax Adjustment(1) | Non-GAAP(2) | ||||||||||||||||||||||
| Cost of revenue | ||||||||||||||||||||||||||||
Cost of license – self-managed | $ | 97 | – | – | (97 | ) | – | – | $ | – | ||||||||||||||||||
Cost of subscription – self-managed and SaaS | $ | 9,302 | (253 | ) | – | (554 | ) | – | – | $ | 8,495 | |||||||||||||||||
Total cost of revenue – subscription | $ | 9,399 | (253 | ) | – | (651 | ) | – | – | $ | 8,495 | |||||||||||||||||
Cost of professional services | $ | 4,201 | (120 | ) | – | – | – | – | $ | 4,081 | ||||||||||||||||||
| Total cost of revenue | $ | 13,600 | (373 | ) | – | (651 | ) | – | – | $ | 12,576 | |||||||||||||||||
| Gross profit | $ | 35,972 | 373 | – | 651 | – | – | $ | 36,996 | |||||||||||||||||||
| Gross margin (2) | 72.6 | % | 0.8 | % | 1.3 | % | 0.0 | % | 0.0 | % | 74.6 | % | ||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||
| Research and development | $ | 17,543 | (1,618 | ) | – | – | (167 | ) | – | $ | 15,758 | |||||||||||||||||
| Sales and marketing | $ | 27,927 | (1,112 | ) | – | (37 | ) | – | – | $ | 26,778 | |||||||||||||||||
| General and administrative | $ | 9,737 | (1,061 | ) | – | – | – | – | $ | 8,676 | ||||||||||||||||||
Total operating expenses | $ | 55,207 | (3,791 | ) | – | (37 | ) | (167 | ) | – | $ | 51,212 | ||||||||||||||||
| Operating loss | $ | (19,235 | ) | 4,164 | – | 688 | 167 | – | $ | (14,216 | ) | |||||||||||||||||
| Operating margin (2) | (38.8 | )% | 8.4 | % | 0.0 | % | 1.4 | % | 0.3 | % | 0.0 | % | (28.7 | )% | ||||||||||||||
| Other expense, net | $ | (544 | ) | – | – | – | – | – | $ | (544 | ) | |||||||||||||||||
| Loss before income taxes | $ | (19,779 | ) | 4,164 | – | 688 | 167 | – | $ | (14,760 | ) | |||||||||||||||||
| Provision for income taxes | $ | 1,624 | – | – | – | – | 1,131 | $ | 2,755 | |||||||||||||||||||
| Tax rate (2) | (8.2 | )% | (18.7 | )% | ||||||||||||||||||||||||
| Net loss | $ | (21,403 | ) | 4,164 | – | 688 | 167 | (1,131 | ) | $ | (17,515 | ) | ||||||||||||||||
Net loss per share attributable to ordinary | $ | (0.66 | ) | $ | 0.13 | $ | – | $ | 0.02 | $ | 0.01 | $ | (0.03 | ) | $ | (0.54 | ) | |||||||||||
Contacts
Anthony Luscri
Elastic Investor Relations
ir@elastic.co
(650)
695-1055
Deborah Wiltshire
Elastic Corporate Communications
press@elastic.co
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