Elastic N.V. Reports Strong Third Quarter Fiscal 2019 Financial Results
Total Revenue of $70.8 million, Growing 70% year-over-year
Calculated Billings of $79.8 million, Growing 68% year-over-year
MOUNTAIN VIEW, Calif. & AMSTERDAM–(BUSINESS WIRE)–Elastic N.V. (NYSE: ESTC) (“Elastic”), the company behind Elasticsearch
and the Elastic Stack, today announced strong results for its fiscal
third quarter ended January 31, 2019.
Third Quarter Fiscal 2019 Financial Highlights
- Total revenue was $70.8 million, growing 70% year-over-year.
- Calculated billings was $79.8 million, growing 68% year-over-year.
- Deferred revenue was $137.8 million, growing 73% year-over-year.
- GAAP operating loss was $23.8 million; GAAP operating margin was
-33.6%. - Non-GAAP operating loss was $11.7 million; Non-GAAP operating margin
was -16.6%. - GAAP net loss per share was $0.30; Non-GAAP net loss per share was
$0.16. - Operating cash flow was -$8.7 million with free cash flow of -$9.9
million. - Cash and cash equivalents were $305.8 million as of January 31, 2019.
“We’re very pleased with our strong revenue growth of 70% year-over-year
in Q3,” said Shay Banon, founder and chief executive officer at Elastic.
“Our users and customers continue to embrace our search products that
address an expanding set of use cases. Given the incredible customer and
user demand that we are seeing, we are further accelerating investments
across all parts of the business.”
Third Quarter Fiscal 2019 Key Metrics and Recent Business Highlights
- Total subscription customer count was over 7,200.
- Total customer count with ACV greater than $100,000 was over 380.
- Subscription revenue represented 91% of total revenue.
- Net Expansion Rate remained over 130% for the ninth consecutive
quarter. - Released version 6.6 of the Elastic Stack with better storage
efficiency and performance improvements. New features include frozen
indices and index lifecycle management for more efficient data
retention; Bkd-backed geoshapes for significantly faster geoshape data
analysis; and new Elasticsearch SQL functionality to easily build time
series charts in Canvas. - Made Elastic APM generally available in Elastic’s Elasticsearch
Service and on Elastic Cloud Enterprise. Distributed tracing is also
available in Elastic APM. - Released version 2.1 of Elastic Cloud Enterprise (ECE) making it
easier to centralize APM, logs, and metrics data and furthering our
hybrid cloud capabilities with cross-cluster search. - Introduced the Auditbeat System Module to make it easier to detect
unusual events in audit data, especially security-related anomalies. - Joined the Cloud Native Computing Foundation (CNCF), to support and
promote the use of open technologies and standards, like Kubernetes,
open tracing and metrics. Elastic APM is now compatible with
OpenTracing standards. - The Elastic Stack was named in InfoWorld’s 2019 Technology of the Year
Awards. - Held seven successful Elastic{ON} Tour events to engage with our
community of users, customers, and partners in Anaheim, Atlanta,
Dallas, Madrid, New York City, Paris, and Seoul, with waitlists driven
by strong demand. - Launched the inaugural Elastic Search Awards Program. An evolution
from the Elastic Cause Awards, this new program recognizes and
celebrates community members and organizations that are using Elastic
technology to improve lives. - Commemorated the new, expanded Elastic Amsterdam office with community
members, customers, and partners, along with Prince Constantijn van
Oranje, who is Special Envoy of Startup Delta, a Dutch startup
accelerator.
Financial Outlook
The Company is providing the following guidance:
For its fourth quarter of fiscal 2019 (ending April 30, 2019):
- Total revenue is expected to be between $74 million and $76 million.
- Non-GAAP operating margin is expected to be between -26% and -24%.
- Non-GAAP net loss per share is expected to be between $0.30 and $0.28,
assuming approximately 74 million weighted average ordinary shares
outstanding.
For its fiscal year 2019 (ending April 30, 2019):
- Total revenue is expected to be between $265 million and $267 million.
- Non-GAAP operating margin is expected to be between -22% and -21%.
- Non-GAAP net loss per share is expected to be between $1.13 and $1.11,
assuming approximately 56 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 these 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 p.m. CET 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.
Lock-Up Release Date and Extension
Pursuant to the lock-up agreements executed in connection with the
Company’s initial public offering, provided the closing price of
Elastic’s ordinary shares on March 4, 2019 is at least 33% greater than
the IPO price of Elastic’s ordinary shares, 25% of the shares subject to
the lock-up agreements will be released from lock-up, and such shares
will become eligible for immediate sale in the public market, at the
open of trading on March 6, 2019, subject to trading limitations on
shares held by affiliates of Elastic and applicable securities laws,
restrictions under Elastic’s insider trading policy and continued
vesting of any unvested equity awards as of such date.
The lock-up restrictions with respect to all remaining shares are
scheduled to expire after the close of the market on April 2, 2019.
However, since the Company will be in its standard quarterly trading
blackout period on that date, insiders will be restricted from selling
shares until the start of the third trading day following the end of
this blackout period. The Company expects to announce its earnings
results for its fiscal year ending April 30, 2019 in early June 2019.
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 search, logging, security, and analytics use cases. Elastic
is a distributed company with Elasticians working in countries around
the world. Learn more at elastic.co.
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 and the fiscal year ending April 30, 2019. 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; 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 prospectus filed with the SEC pursuant to
Rule 424(b)(4) dated October 4, 2018 and our Quarterly Report on Form
10-Q for the fiscal quarter ended October 31, 2018. 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 January 31, | Nine Months Ended January 31, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Revenue | ||||||||||||||||
| License – self-managed | $ | 9,406 | $ | 5,815 | $ | 26,850 | $ | 16,920 | ||||||||
| Subscription – self-managed and SaaS | 55,180 | 33,218 | 147,781 | 86,286 | ||||||||||||
| Total subscription revenue | 64,586 | 39,033 | 174,631 | 103,206 | ||||||||||||
| Professional services | 6,249 | 2,648 | 16,423 | 7,157 | ||||||||||||
| Total revenue | 70,835 | 41,681 | 191,054 | 110,363 | ||||||||||||
| Cost of revenue | ||||||||||||||||
| Cost of license – self-managed | 96 | 96 | 290 | 290 | ||||||||||||
Cost of subscription – self-managed and SaaS | 13,941 | 7,382 | 37,012 | 18,618 | ||||||||||||
| Total cost of revenue – subscription | 14,037 | 7,478 | 37,302 | 18,908 | ||||||||||||
| Cost of professional services | 6,387 | 3,288 | 17,266 | 8,232 | ||||||||||||
| Total cost of revenue | 20,424 | 10,766 | 54,568 | 27,140 | ||||||||||||
| Gross profit | 50,411 | 30,915 | 136,486 | 83,223 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Research and development | 25,850 | 15,092 | 70,163 | 38,098 | ||||||||||||
| Sales and marketing | 37,196 | 20,727 | 102,252 | 54,679 | ||||||||||||
| General and administrative | 11,151 | 7,555 | 33,342 | 19,205 | ||||||||||||
| Total operating expenses | 74,197 | 43,374 | 205,757 | 111,982 | ||||||||||||
| Operating loss | (23,786 | ) | (12,459 | ) | (69,271 | ) | (28,759 | ) | ||||||||
| Other income (expense), net | 1,877 | (175 | ) | 2,737 | (813 | ) | ||||||||||
| Loss before income taxes | (21,909 | ) | (12,634 | ) | (66,534 | ) | (29,572 | ) | ||||||||
| Provision for (benefit from) income taxes | (558 | ) | 696 | 934 | 1,752 | |||||||||||
| Net loss | $ | (21,351 | ) | $ | (13,330 | ) | $ | (67,468 | ) | $ | (31,324 | ) | ||||
Net loss per share attributable to ordinary shareholders, basic | $ | (0.30 | ) | $ | (0.41 | ) | $ | (1.37 | ) | $ | (0.98 | ) | ||||
Weighted-average shares used to compute net loss per share | 70,725,336 | 32,392,894 | 49,261,240 | 31,838,690 | ||||||||||||
Elastic N.V. CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands, except share and per share amounts) (Unaudited) | ||||||||
January 31, 2019 | April 30, 2018 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 305,826 | $ | 50,941 | ||||
| Restricted cash | 2,664 | 668 | ||||||
Accounts receivable, net of allowance for doubtful accounts of | 54,518 | 53,233 | ||||||
| Deferred contract acquisition costs | 15,795 | 12,125 | ||||||
| Prepaid expenses and other current assets | 22,881 | 15,261 | ||||||
| Total current assets | 401,684 | 132,228 | ||||||
| Property and equipment, net | 4,663 | 4,536 | ||||||
| Goodwill | 19,970 | 19,182 | ||||||
| Intangible assets, net | 7,417 | 8,297 | ||||||
| Deferred contract acquisition costs, non-current | 7,657 | 5,954 | ||||||
| Deferred offering costs | – | 242 | ||||||
| Deferred tax assets | 3,058 | 3,946 | ||||||
| Other assets | 6,549 | 8,628 | ||||||
| Total assets | $ | 450,998 | $ | 183,013 | ||||
Liabilities, Redeemable Convertible Preferred Shares and | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,772 | $ | 2,176 | ||||
| Accrued expenses and other liabilities | 16,716 | 11,816 | ||||||
| Accrued compensation and benefits | 16,992 | 15,191 | ||||||
| Deferred revenue | 126,171 | 95,929 | ||||||
| Total current liabilities | 161,651 | 125,112 | ||||||
| Deferred revenue, non-current | 11,632 | 6,632 | ||||||
| Other liabilities, non-current | 5,616 | 3,877 | ||||||
| Total liabilities | 178,899 | 135,621 | ||||||
| Commitments and contingencies | ||||||||
Redeemable convertible preference shares, par value €0.001 per | – | 200,921 | ||||||
| Shareholders’ (deficit) equity: | ||||||||
Convertible preference shares, €0.01 par value; 165,000,000 shares | – | – | ||||||
Ordinary shares, par value €0.01 per share: 165,000,000 shares | 727 | – | ||||||
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 | 556,143 | 62,542 | ||||||
| Accumulated other comprehensive loss | (2,160 | ) | (961 | ) | ||||
| Accumulated deficit | (282,242 | ) | (214,774 | ) | ||||
| Total shareholders’ (deficit) equity | 272,099 | (153,529 | ) | |||||
Total liabilities, redeemable convertible preference shares and | $ | 450,998 | $ | 183,013 | ||||
Elastic N.V. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) (Unaudited) | ||||||||||||||||
| Three Months Ended January 31, | Nine Months Ended January 31, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Cash flows from operating activities | ||||||||||||||||
| Net loss | $ | (21,351 | ) | $ | (13,330 | ) | $ | (67,468 | ) | $ | (31,324 | ) | ||||
Adjustments to reconcile net loss to cash (used in) provided by | ||||||||||||||||
| Depreciation and amortization | 1,378 | 1,470 | 4,386 | 3,565 | ||||||||||||
| Amortization of deferred contract acquisition costs | 5,870 | 3,200 | 14,718 | 8,798 | ||||||||||||
| Stock-based compensation expense | 11,111 | 3,554 | 28,015 | 8,578 | ||||||||||||
| Other | 51 | – | 66 | 2 | ||||||||||||
Changes in operating assets and liabilities, net of impact of | ||||||||||||||||
| Accounts receivable, net | 396 | (1,088 | ) | (2,228 | ) | (3,180 | ) | |||||||||
| Deferred contract acquisition costs | (6,278 | ) | (3,856 | ) | (20,414 | ) | (11,109 | ) | ||||||||
| Prepaid expenses and other current assets | (4,741 | ) | (2,192 | ) | (9,598 | ) | (4,109 | ) | ||||||||
| Other assets | 988 | (695 | ) | 2,631 | (2,522 | ) | ||||||||||
| Accounts payable | (5,233 | ) | 4,728 | (366 | ) | 5,126 | ||||||||||
| Accrued expenses and other liabilities | (925 | ) | 935 | 6,730 | 5,721 | |||||||||||
| Accrued compensation and benefits | 404 | (525 | ) | 2,070 | 1,856 | |||||||||||
| Deferred revenue | 9,633 | 5,951 | 37,311 | 21,686 | ||||||||||||
| Net cash (used in) provided by operating activities | (8,697 | ) | (1,848 | ) | (4,147 | ) | 3,088 | |||||||||
| Cash flows from investing activities | ||||||||||||||||
| Purchases of property and equipment | (1,187 | ) | (945 | ) | (2,359 | ) | (1,841 | ) | ||||||||
| Maturities of short-term investments | – | – | – | 15,000 | ||||||||||||
| Business acquisitions, net of cash acquired | – | – | (1,986 | ) | (3,702 | ) | ||||||||||
| Net cash (used in) provided by investing activities | (1,187 | ) | (945 | ) | (4,345 | ) | 9,457 | |||||||||
| 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 | 755 | 414 | 3,537 | 1,742 | ||||||||||||
Proceeds from the issuance of ordinary shares related to early | – | 500 | – | 500 | ||||||||||||
| Repurchase of ordinary shares | – | – | – | (344 | ) | |||||||||||
| Repurchase of early exercised options | – | – | (500 | ) | – | |||||||||||
| Repayment of notes payable | (53 | ) | (31 | ) | (73 | ) | (90 | ) | ||||||||
| Payments of deferred offering costs | (3,371 | ) | – | (5,673 | ) | – | ||||||||||
| Net cash (used in) provided by financing activities | (2,669 | ) | 883 | 266,805 | 1,808 | |||||||||||
Effect of exchange rate changes on cash, cash equivalents, and | 196 | 1,853 | (1,432 | ) | 1,269 | |||||||||||
Net (decrease) increase in cash, cash equivalents, and restricted | (12,357 | ) | (57 | ) | 256,881 | 15,622 | ||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 320,847 | 75,569 | 51,609 | 59,890 | ||||||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 308,490 | $ | 75,512 | $ | 308,490 | $ | 75,512 | ||||||||
Elastic N.V. REVENUE BY TYPE (amounts in thousands, except percentages) (Unaudited) | ||||||||||||||||||||||||||||||||
| Three Months Ended January 31, | Nine Months Ended January 31, | |||||||||||||||||||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||
| % of | % of | % of | % of | |||||||||||||||||||||||||||||
| Total | Total | Total | Total | |||||||||||||||||||||||||||||
| Amount | Revenue | Amount | Revenue | Amount | Revenue | Amount | Revenue | |||||||||||||||||||||||||
| Self-managed subscription | $ | 52,846 | 74 | % | $ | 32,024 | 77 | % | $ | 142,564 | 74 | % | $ | 85,855 | 78 | % | ||||||||||||||||
| License | 9,406 | 13 | % | 5,815 | 14 | % | 26,850 | 14 | % | 16,920 | 15 | % | ||||||||||||||||||||
| Subscription | 43,440 | 61 | % | 26,209 | 63 | % | 115,714 | 60 | % | 68,935 | 63 | % | ||||||||||||||||||||
| SaaS | 11,740 | 17 | % | 7,009 | 17 | % | 32,067 | 17 | % | 17,351 | 16 | % | ||||||||||||||||||||
| Total subscription revenue | 64,586 | 91 | % | 39,033 | 94 | % | 174,631 | 91 | % | 103,206 | 94 | % | ||||||||||||||||||||
| Professional services | 6,249 | 9 | % | 2,648 | 6 | % | 16,423 | 9 | % | 7,157 | 6 | % | ||||||||||||||||||||
| Total revenue | $ | 70,835 | 100 | % | $ | 41,681 | 100 | % | $ | 191,054 | 100 | % | $ | 110,363 | 100 | % | ||||||||||||||||
Elastic N.V. RECONCILIATION OF GAAP TO NON-GAAP DATA CALCULATED BILLINGS (amounts in thousands) (Unaudited) | |||||||||||||||
| Three Months Ended January 31, | Nine Months Ended January 31, | ||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Total revenue | $ | 70,835 | $ | 41,681 | $ | 191,054 | $ | 110,363 | |||||||
| Add: Increase in total deferred revenue | 9,633 | 5,951 | 37,311 | 21,686 | |||||||||||
Less: (Increase) decrease in unbilled accounts receivable | (639 | ) | (151 | ) | (794 | ) | 357 | ||||||||
| Calculated billings | $ | 79,829 | $ | 47,481 | $ | 227,571 | $ | 132,406 | |||||||
Elastic N.V. RECONCILIATION OF GAAP TO NON-GAAP DATA FREE CASH FLOW (amounts in thousands, except percentages) (Unaudited) | ||||||||||||||||
| Three Months Ended January 31, | Nine Months Ended January 31, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Net cash (used in) provided by operating activities | $ | (8,697 | ) | $ | (1,848 | ) | $ | (4,147 | ) | $ | 3,088 | |||||
| Less: Purchases of property and equipment | (1,187 | ) | (945 | ) | (2,359 | ) | (1,841 | ) | ||||||||
| Free cash flow | $ | (9,884 | ) | $ | (2,793 | ) | $ | (6,506 | ) | $ | 1,247 | |||||
| Net cash (used in) provided by investing activities | $ | (1,187 | ) | $ | (945 | ) | $ | (4,345 | ) | $ | 9,457 | |||||
| Net cash (used in) provided by financing activities | $ | (2,669 | ) | $ | 883 | $ | 266,805 | $ | 1,808 | |||||||
Net cash (used in) provided by operating activities (as a | (12 | )% | (5 | )% | (2 | )% | 3 | % | ||||||||
Less: Purchases of property and equipment (as a percentage of | (2 | )% | (2 | )% | (1 | )% | (2 | )% | ||||||||
| Free cash flow margin | (14 | )% | (7 | )% | (3 | )% | 1 | % | ||||||||
Elastic N.V. RECONCILIATION OF GAAP TO NON-GAAP DATA For the three months ended January 31, 2019 (amounts in thousands, except percentages, share and per share (Unaudited) | ||||||||||||||||||||||||
| GAAP | Stock-Based Compensation Expense | Amortization of Acquired Intangibles | Acquisition Related Expenses | Tax Adjustment (1) | Non-GAAP (2) | |||||||||||||||||||
| Cost of revenue | ||||||||||||||||||||||||
| Cost of license – self-managed | $ | 96 | $ | – | $ | (96 | ) | $ | – | $ | – | $ | – | |||||||||||
Cost of subscription – self-managed and SaaS | $ | 13,941 | $ | (1,095 | ) | $ | (638 | ) | $ | – | $ | – | $ | 12,208 | ||||||||||
| Total cost of revenue – subscription | $ | 14,037 | $ | (1,095 | ) | $ | (734 | ) | $ | – | $ | – | $ | 12,208 | ||||||||||
Cost of professional services | $ | 6,387 | $ | (364 | ) | $ | – | $ | – | $ | – | $ | 6,023 | |||||||||||
| Total cost of revenue | $ | 20,424 | $ | (1,459 | ) | $ | (734 | ) | $ | – | $ | – | $ | 18,231 | ||||||||||
| Gross profit | $ | 50,411 | $ | 1,459 | $ | 734 | $ | – | $ | – | $ | 52,604 | ||||||||||||
| Gross margin (2) | 71.2 | % | 2.1 | % | 1.0 | % | 0.0 | % | 74.3 | % | ||||||||||||||
| Operating expenses | ||||||||||||||||||||||||
| Research and development | $ | 25,850 | $ | (4,604 | ) | $ | – | $ | (173 | ) | $ | – | $ | 21,073 | ||||||||||
| Sales and marketing | $ | 37,196 | $ | (3,471 | ) | $ | (38 | ) | $ | – | $ | – | $ | 33,687 | ||||||||||
| General and administrative | $ | 11,151 | $ | (1,577 | ) | $ | – | $ | – | $ | – | $ | 9,574 | |||||||||||
| Total operating expenses | $ | 74,197 | $ | (9,652 | ) | $ | (38 | ) | $ | (173 | ) | $ | – | $ | 64,334 | |||||||||
| Operating loss | $ | (23,786 | ) | $ | 11,111 | $ | 772 | $ | 173 | $ | – | $ | (11,730 | ) | ||||||||||
| Operating margin (2) | (33.6 | )% | 15.7 | % | 1.1 | % | 0.2 | % | (16.6 | )% | ||||||||||||||
| Other income, net | $ | 1,877 | $ | – | $ | – | $ | – | $ | – | $ | 1,877 | ||||||||||||
| Loss before income taxes | $ | (21,909 | ) | $ | 11,111 | $ | 772 | $ | 173 | $ | – | $ | (9,853 | ) | ||||||||||
Provision for (benefit from) income taxes | $ | (558 | ) | $ | – | $ | – | $ | – | $ | 1,856 | $ | 1,298 | |||||||||||
| Tax rate (2) | 2.5 | % | (13.2 | )% | ||||||||||||||||||||
| Net loss | $ | (21,351 | ) | $ | 11,111 | $ | 772 | $ | 173 | $ | (1,856 | ) | $ | (11,151 | ) | |||||||||
Net loss per share attributable to ordinary shareholders, basic and diluted (2)(3) | $ | (0.30 | ) | $ | 0.16 | $ | 0.01 | $ | 0.00 | $ | (0.03 | ) | $ | (0.16 | ) | |||||||||
| (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 70,725,336 weighted-average shares, basic and diluted. | |
Elastic N.V. RECONCILIATION OF GAAP TO NON-GAAP DATA For the three months ended January 31, 2018 (amounts in thousands, except percentages, share and per share (Unaudited) | ||||||||||||||||||||||||
| GAAP | Stock-Based Compensation Expense | Amortization of Acquired Intangibles | Acquisition Related Expenses | Tax Adjustment (1) | Non-GAAP (2) | |||||||||||||||||||
| Cost of revenue | ||||||||||||||||||||||||
| Cost of license – self-managed | $ | 96 | – | (96 | ) | – | – | $ | – | |||||||||||||||
Cost of subscription – self-managed and SaaS | $ | 7,382 | (191 | ) | (554 | ) | – | – | $ | 6,637 | ||||||||||||||
| Total cost of revenue – subscription | $ | 7,478 | (191 | ) | (650 | ) | – | – | $ | 6,637 | ||||||||||||||
| Cost of professional services | $ | 3,288 | (97 | ) | – | – | – | $ | 3,191 | |||||||||||||||
| Total cost of revenue | $ | 10,766 | (288 | ) | (650 | ) | – | – | $ | 9,828 | ||||||||||||||
| Gross profit | $ | 30,915 | 288 | 650 | – | – | $ | 31,853 | ||||||||||||||||
| Gross margin (2) | 74.2 | % | 0.7 | % | 1.6 | % | 0.0 | % | 76.4 | % | ||||||||||||||
| Operating expenses | ||||||||||||||||||||||||
| Research and development | $ | 15,092 | (1,352 | ) | – | (174 | ) | – | $ | 13,566 | ||||||||||||||
| Sales and marketing | $ | 20,727 | (960 | ) | (38 | ) | – | – | $ | 19,729 | ||||||||||||||
| General and administrative | $ | 7,555 | (954 | ) | – | – | – | $ | 6,601 | |||||||||||||||
| Total operating expenses | $ | 43,374 | (3,266 | ) | (38 | ) | (174 | ) | – | $ | 39,896 | |||||||||||||
| Operating loss | $ | (12,459 | ) | 3,554 | 688 | 174 | – | $ | (8,043 | ) | ||||||||||||||
| Operating margin (2) | (29.9 | )% | 8.5 | % | 1.7 | % | 0.4 | % | (19.3 | )% | ||||||||||||||
| Other income, net | $ | (175 | ) | – | – | – | – | $ | (175 | ) | ||||||||||||||
| Loss before income taxes | $ | (12,634 | ) | 3,554 | 688 | 174 | – | $ | (8,218 | ) | ||||||||||||||
| Provision for income taxes | $ | 696 | – | – | – | (220 | ) | $ | 476 | |||||||||||||||
| Tax rate (2) | (5.5 | )% | (5.8 | )% | ||||||||||||||||||||
| Net loss | $ | (13,330 | ) | 3,554 | 688 | 174 | 220 | $ | (8,694 | ) | ||||||||||||||
| Net loss per share attributable to ordinary shareholders, basic and diluted (2)(3) | $ | (0.41 | ) | $ | 0.11 | $ | 0.02 | $ | 0.01 | $ | 0.01 | $ | (0.27 | ) | ||||||||||
| (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 32,392,894 weighted-average shares, basic and diluted. | |
Contacts
Anthony Luscri
Elastic Investor Relations
ir@elastic.co
(650)
695-1055
Deborah Wiltshire
Elastic Corporate Communications
press@elastic.co
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