000170775304-30false2024Q200017077532023-05-012023-10-3100017077532023-11-28xbrli:shares00017077532023-10-31iso4217:USD00017077532023-04-300001707753us-gaap:ConvertiblePreferredStockMember2023-10-31iso4217:EURxbrli:shares0001707753us-gaap:ConvertiblePreferredStockMember2023-04-300001707753estc:OrdinarySharesZeroPointZeroOneMember2023-10-310001707753estc:OrdinarySharesZeroPointZeroOneMember2023-04-300001707753estc:SubscriptionMember2023-08-012023-10-310001707753estc:SubscriptionMember2022-08-012022-10-310001707753estc:SubscriptionMember2023-05-012023-10-310001707753estc:SubscriptionMember2022-05-012022-10-310001707753estc:ProfessionalServicesMember2023-08-012023-10-310001707753estc:ProfessionalServicesMember2022-08-012022-10-310001707753estc:ProfessionalServicesMember2023-05-012023-10-310001707753estc:ProfessionalServicesMember2022-05-012022-10-3100017077532023-08-012023-10-3100017077532022-08-012022-10-3100017077532022-05-012022-10-31iso4217:USDxbrli:shares0001707753us-gaap:CommonStockMember2023-07-310001707753us-gaap:TreasuryStockCommonMember2023-07-310001707753us-gaap:AdditionalPaidInCapitalMember2023-07-310001707753us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-310001707753us-gaap:RetainedEarningsMember2023-07-3100017077532023-07-310001707753us-gaap:CommonStockMember2023-08-012023-10-310001707753us-gaap:AdditionalPaidInCapitalMember2023-08-012023-10-310001707753us-gaap:RetainedEarningsMember2023-08-012023-10-310001707753us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-08-012023-10-310001707753us-gaap:CommonStockMember2023-10-310001707753us-gaap:TreasuryStockCommonMember2023-10-310001707753us-gaap:AdditionalPaidInCapitalMember2023-10-310001707753us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-10-310001707753us-gaap:RetainedEarningsMember2023-10-310001707753us-gaap:CommonStockMember2022-07-310001707753us-gaap:TreasuryStockCommonMember2022-07-310001707753us-gaap:AdditionalPaidInCapitalMember2022-07-310001707753us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-310001707753us-gaap:RetainedEarningsMember2022-07-3100017077532022-07-310001707753us-gaap:CommonStockMember2022-08-012022-10-310001707753us-gaap:AdditionalPaidInCapitalMember2022-08-012022-10-310001707753us-gaap:RetainedEarningsMember2022-08-012022-10-310001707753us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-08-012022-10-310001707753us-gaap:CommonStockMember2022-10-310001707753us-gaap:TreasuryStockCommonMember2022-10-310001707753us-gaap:AdditionalPaidInCapitalMember2022-10-310001707753us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-10-310001707753us-gaap:RetainedEarningsMember2022-10-3100017077532022-10-310001707753us-gaap:CommonStockMember2023-04-300001707753us-gaap:TreasuryStockCommonMember2023-04-300001707753us-gaap:AdditionalPaidInCapitalMember2023-04-300001707753us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-300001707753us-gaap:RetainedEarningsMember2023-04-300001707753us-gaap:CommonStockMember2023-05-012023-10-310001707753us-gaap:AdditionalPaidInCapitalMember2023-05-012023-10-310001707753us-gaap:RetainedEarningsMember2023-05-012023-10-310001707753us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-05-012023-10-310001707753us-gaap:CommonStockMember2022-04-300001707753us-gaap:TreasuryStockCommonMember2022-04-300001707753us-gaap:AdditionalPaidInCapitalMember2022-04-300001707753us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-300001707753us-gaap:RetainedEarningsMember2022-04-3000017077532022-04-300001707753us-gaap:CommonStockMember2022-05-012022-10-310001707753us-gaap:AdditionalPaidInCapitalMember2022-05-012022-10-310001707753us-gaap:RetainedEarningsMember2022-05-012022-10-310001707753us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-05-012022-10-310001707753estc:SaaSSelfManagedMember2023-08-012023-10-310001707753estc:SaaSSelfManagedMemberus-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMember2023-08-012023-10-31xbrli:pure0001707753estc:SaaSSelfManagedMember2022-08-012022-10-310001707753estc:SaaSSelfManagedMemberus-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMember2022-08-012022-10-310001707753estc:SaaSSelfManagedMember2023-05-012023-10-310001707753estc:SaaSSelfManagedMemberus-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMember2023-05-012023-10-310001707753estc:SaaSSelfManagedMember2022-05-012022-10-310001707753estc:SaaSSelfManagedMemberus-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMember2022-05-012022-10-310001707753estc:SelfManagedSubscriptionMember2023-08-012023-10-310001707753estc:SelfManagedSubscriptionMemberus-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMember2023-08-012023-10-310001707753estc:SelfManagedSubscriptionMember2022-08-012022-10-310001707753estc:SelfManagedSubscriptionMemberus-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMember2022-08-012022-10-310001707753estc:SelfManagedSubscriptionMember2023-05-012023-10-310001707753estc:SelfManagedSubscriptionMemberus-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMember2023-05-012023-10-310001707753estc:SelfManagedSubscriptionMember2022-05-012022-10-310001707753estc:SelfManagedSubscriptionMemberus-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMember2022-05-012022-10-310001707753us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMemberestc:SubscriptionMember2023-08-012023-10-310001707753us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMemberestc:SubscriptionMember2022-08-012022-10-310001707753us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMemberestc:SubscriptionMember2023-05-012023-10-310001707753us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMemberestc:SubscriptionMember2022-05-012022-10-310001707753us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMemberestc:ProfessionalServicesMember2023-08-012023-10-310001707753us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMemberestc:ProfessionalServicesMember2022-08-012022-10-310001707753us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMemberestc:ProfessionalServicesMember2023-05-012023-10-310001707753us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMemberestc:ProfessionalServicesMember2022-05-012022-10-310001707753us-gaap:SalesRevenueNetMemberus-gaap:ProductConcentrationRiskMember2023-08-012023-10-310001707753us-gaap:SalesRevenueNetMemberus-gaap:ProductConcentrationRiskMember2022-08-012022-10-310001707753us-gaap:SalesRevenueNetMemberus-gaap:ProductConcentrationRiskMember2023-05-012023-10-310001707753us-gaap:SalesRevenueNetMemberus-gaap:ProductConcentrationRiskMember2022-05-012022-10-310001707753us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2023-05-012023-10-31estc:Customer0001707753estc:CustomerOneMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2023-05-012023-10-310001707753estc:CustomerOneMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2022-05-012022-10-310001707753estc:CustomerOneMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueProductLineMember2023-05-012023-10-310001707753us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueProductLineMember2022-05-012022-10-310001707753us-gaap:CustomerContractsMember2023-10-310001707753us-gaap:CustomerContractsMember2023-04-300001707753us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-10-310001707753us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001707753us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-10-310001707753us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel1Member2023-10-310001707753us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMember2023-10-310001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CertificatesOfDepositMember2023-10-310001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMember2023-10-310001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-10-310001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-10-310001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-10-310001707753us-gaap:FairValueMeasurementsRecurringMember2023-10-310001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2023-10-310001707753us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2023-10-310001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CommercialPaperMember2023-10-310001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2023-10-310001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalNotesMemberus-gaap:FairValueInputsLevel1Member2023-10-310001707753us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalNotesMember2023-10-310001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MunicipalNotesMember2023-10-310001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalNotesMember2023-10-310001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryBondSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-10-310001707753us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryBondSecuritiesMember2023-10-310001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USTreasuryBondSecuritiesMember2023-10-310001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryBondSecuritiesMember2023-10-310001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-10-310001707753us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2023-10-310001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMember2023-10-310001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2023-10-310001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-10-310001707753us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-10-310001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-10-310001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-10-310001707753us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-04-300001707753us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-04-300001707753us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-04-300001707753us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2023-04-300001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-04-300001707753us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-04-300001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-04-300001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-04-300001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel1Member2023-04-300001707753us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMember2023-04-300001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CertificatesOfDepositMember2023-04-300001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMember2023-04-300001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2023-04-300001707753us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2023-04-300001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CommercialPaperMember2023-04-300001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2023-04-300001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-04-300001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-04-300001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-04-300001707753us-gaap:FairValueMeasurementsRecurringMember2023-04-300001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryBondSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-04-300001707753us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryBondSecuritiesMember2023-04-300001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USTreasuryBondSecuritiesMember2023-04-300001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryBondSecuritiesMember2023-04-300001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-04-300001707753us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2023-04-300001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMember2023-04-300001707753us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2023-04-3000017077532021-07-012021-07-3100017077532021-07-310001707753us-gaap:LeaseholdImprovementsMember2023-10-310001707753us-gaap:LeaseholdImprovementsMember2023-04-300001707753estc:ComputerHardwareAndSoftwareMember2023-10-310001707753estc:ComputerHardwareAndSoftwareMember2023-04-300001707753srt:MinimumMemberus-gaap:FurnitureAndFixturesMember2023-10-310001707753us-gaap:FurnitureAndFixturesMembersrt:MaximumMember2023-10-310001707753us-gaap:FurnitureAndFixturesMember2023-10-310001707753us-gaap:FurnitureAndFixturesMember2023-04-300001707753us-gaap:AssetUnderConstructionMember2023-10-310001707753us-gaap:AssetUnderConstructionMember2023-04-300001707753us-gaap:DevelopedTechnologyRightsMember2023-10-310001707753us-gaap:DevelopedTechnologyRightsMember2023-05-012023-10-310001707753us-gaap:CustomerRelationshipsMember2023-10-310001707753us-gaap:CustomerRelationshipsMember2023-05-012023-10-310001707753us-gaap:TradeNamesMember2023-10-310001707753us-gaap:TradeNamesMember2023-05-012023-10-310001707753us-gaap:DevelopedTechnologyRightsMember2023-04-300001707753us-gaap:DevelopedTechnologyRightsMember2022-05-012022-10-310001707753us-gaap:CustomerRelationshipsMember2023-04-300001707753us-gaap:CustomerRelationshipsMember2022-05-012022-10-310001707753us-gaap:TradeNamesMember2023-04-300001707753us-gaap:TradeNamesMember2022-05-012022-10-310001707753estc:SubscriptionSelfManagedAndSaaSMemberus-gaap:CostOfSalesMember2023-08-012023-10-310001707753estc:SubscriptionSelfManagedAndSaaSMemberus-gaap:CostOfSalesMember2022-08-012022-10-310001707753estc:SubscriptionSelfManagedAndSaaSMemberus-gaap:CostOfSalesMember2023-05-012023-10-310001707753estc:SubscriptionSelfManagedAndSaaSMemberus-gaap:CostOfSalesMember2022-05-012022-10-310001707753us-gaap:SellingAndMarketingExpenseMember2023-08-012023-10-310001707753us-gaap:SellingAndMarketingExpenseMember2022-08-012022-10-310001707753us-gaap:SellingAndMarketingExpenseMember2023-05-012023-10-310001707753us-gaap:SellingAndMarketingExpenseMember2022-05-012022-10-3100017077532021-05-012021-10-310001707753us-gaap:SeniorNotesMember2021-07-012021-07-310001707753us-gaap:SeniorNotesMember2021-07-310001707753us-gaap:DebtInstrumentRedemptionPeriodOneMemberus-gaap:SeniorNotesMember2021-07-012021-07-310001707753us-gaap:SeniorNotesMemberus-gaap:DebtInstrumentRedemptionPeriodTwoMember2021-07-012021-07-310001707753us-gaap:DebtInstrumentRedemptionPeriodThreeMemberus-gaap:SeniorNotesMember2021-07-012021-07-310001707753srt:MaximumMember2023-10-310001707753us-gaap:EmployeeStockOptionMember2023-10-310001707753us-gaap:EmployeeStockOptionMember2023-04-300001707753us-gaap:RestrictedStockUnitsRSUMember2023-10-310001707753us-gaap:RestrictedStockUnitsRSUMember2023-04-300001707753estc:TwoThousandTwelveStockOptionPlanMember2023-10-310001707753estc:TwoThousandTwelveStockOptionPlanMember2023-04-300001707753estc:EmployeeStockPurchasePlan2022Member2023-10-310001707753estc:EmployeeStockPurchasePlan2022Member2023-04-300001707753us-gaap:ConvertiblePreferredStockMember2018-10-100001707753us-gaap:EmployeeStockMemberestc:EmployeeStockPurchasePlan2022Member2022-08-012022-08-310001707753us-gaap:EmployeeStockMemberestc:EmployeeStockPurchasePlan2022Member2023-08-012023-10-310001707753us-gaap:EmployeeStockMemberestc:EmployeeStockPurchasePlan2022Member2023-05-012023-10-310001707753estc:TwoThousandTwelveStockOptionPlanMemberestc:ShareBasedPaymentArrangementNewEmployeeMember2023-05-012023-10-310001707753us-gaap:RestrictedStockUnitsRSUMember2023-05-012023-10-310001707753us-gaap:PerformanceSharesMember2023-05-012023-10-310001707753estc:TwoThousandTwelveStockOptionPlanMember2022-05-012022-10-310001707753estc:TwoThousandTwelveStockOptionPlanMember2023-05-012023-10-310001707753us-gaap:EmployeeStockOptionMember2023-05-012023-10-310001707753estc:TwoThousandTwelveStockOptionPlanMemberus-gaap:RestrictedStockUnitsRSUMember2023-04-300001707753estc:TwoThousandTwelveStockOptionPlanMemberus-gaap:RestrictedStockUnitsRSUMember2023-05-012023-10-310001707753estc:TwoThousandTwelveStockOptionPlanMemberus-gaap:RestrictedStockUnitsRSUMember2023-10-310001707753us-gaap:PerformanceSharesMember2023-10-310001707753srt:MinimumMemberus-gaap:PerformanceSharesMember2023-05-012023-10-310001707753srt:MaximumMemberus-gaap:PerformanceSharesMember2023-05-012023-10-310001707753estc:EquitySettledRestrictedStockUnitsRSUMember2023-10-310001707753estc:CostOfSubscriptionSelfManagedAndSaaSMember2023-08-012023-10-310001707753estc:CostOfSubscriptionSelfManagedAndSaaSMember2022-08-012022-10-310001707753estc:CostOfSubscriptionSelfManagedAndSaaSMember2023-05-012023-10-310001707753estc:CostOfSubscriptionSelfManagedAndSaaSMember2022-05-012022-10-310001707753estc:CostOfProfessionalServicesMember2023-08-012023-10-310001707753estc:CostOfProfessionalServicesMember2022-08-012022-10-310001707753estc:CostOfProfessionalServicesMember2023-05-012023-10-310001707753estc:CostOfProfessionalServicesMember2022-05-012022-10-310001707753us-gaap:ResearchAndDevelopmentExpenseMember2023-08-012023-10-310001707753us-gaap:ResearchAndDevelopmentExpenseMember2022-08-012022-10-310001707753us-gaap:ResearchAndDevelopmentExpenseMember2023-05-012023-10-310001707753us-gaap:ResearchAndDevelopmentExpenseMember2022-05-012022-10-310001707753us-gaap:GeneralAndAdministrativeExpenseMember2023-08-012023-10-310001707753us-gaap:GeneralAndAdministrativeExpenseMember2022-08-012022-10-310001707753us-gaap:GeneralAndAdministrativeExpenseMember2023-05-012023-10-310001707753us-gaap:GeneralAndAdministrativeExpenseMember2022-05-012022-10-310001707753us-gaap:EmployeeStockOptionMember2023-05-012023-10-310001707753us-gaap:EmployeeStockOptionMember2022-05-012022-10-310001707753us-gaap:RestrictedStockUnitsRSUMember2023-05-012023-10-310001707753us-gaap:RestrictedStockUnitsRSUMember2022-05-012022-10-310001707753us-gaap:EmployeeStockMember2023-05-012023-10-310001707753us-gaap:EmployeeStockMember2022-05-012022-10-310001707753country:USsrt:MaximumMember2023-05-012023-10-310001707753country:US2023-08-012023-10-310001707753country:US2022-08-012022-10-310001707753country:US2023-05-012023-10-310001707753country:US2022-05-012022-10-310001707753estc:OtherCountriesMember2023-08-012023-10-310001707753estc:OtherCountriesMember2022-08-012022-10-310001707753estc:OtherCountriesMember2023-05-012023-10-310001707753estc:OtherCountriesMember2022-05-012022-10-310001707753country:US2023-08-012023-10-310001707753country:US2022-08-012022-10-310001707753country:US2023-05-012023-10-310001707753country:US2022-05-012022-10-310001707753us-gaap:NonUsMember2023-08-012023-10-310001707753us-gaap:NonUsMember2022-08-012022-10-310001707753us-gaap:NonUsMember2023-05-012023-10-310001707753us-gaap:NonUsMember2022-05-012022-10-310001707753country:US2023-10-310001707753country:US2023-04-300001707753country:NL2023-10-310001707753country:NL2023-04-300001707753country:GB2023-10-310001707753country:GB2023-04-300001707753country:IN2023-10-310001707753country:IN2023-04-300001707753estc:RestOfWorldMember2023-10-310001707753estc:RestOfWorldMember2023-04-300001707753us-gaap:EmployeeSeveranceMember2022-11-302022-11-300001707753us-gaap:EmployeeSeveranceMember2023-05-012023-10-310001707753us-gaap:EmployeeSeveranceMember2023-07-310001707753us-gaap:EmployeeSeveranceMember2023-04-300001707753us-gaap:EmployeeSeveranceMember2023-08-012023-10-310001707753us-gaap:EmployeeSeveranceMember2023-10-310001707753us-gaap:SubsequentEventMemberestc:OpsterMember2023-11-300001707753us-gaap:SubsequentEventMemberestc:OpsterMember2023-11-302023-11-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________________________________________________________________________________________________________________________________________________
FORM 10-Q
____________________________________________________________________________________________________________________________________________________________________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 31, 2023
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                     to
Commission File Number 001-38675
_____________________________________________________________________________________________________________________________________________________________________________________________
Elastic N.V.
(Exact name of registrant as specified in its charter)
____________________________________________________________________________________________________________________________________________________________________________________________
The Netherlands
98-1756035
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
Not Applicable1
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code: Not Applicable1
____________________________________________________________________________________________________________________________________________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Ordinary shares, Par Value €0.01 Per ShareESTCNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   No ☒
As of November 28, 2023, the registrant had 99,630,496 ordinary shares, par value €0.01 per share, outstanding.
1 We are a distributed company. Accordingly, we do not have a principal executive office. For purposes of compliance with applicable requirements of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, any shareholder communication required to be sent to our principal executive offices may be directed to the email address ir@elastic.co.


Table of Contents
  Page
 
PART I.
  
Item 1.
 
 
 
 
 
 
Item 2.
Item 3.
Item 4.
  
PART II.
  
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.

2

Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:
our business strategy and our plan to build our business;
the impact of macroeconomic conditions, including declining rates of economic growth, supply chain disruptions, inflationary pressures, increased interest rates, and other conditions discussed in this report, on information technology spending, sales cycles, and other factors affecting the demand for our offerings and our results of operations;
our future financial performance, including our expectations regarding our revenue, cost of revenue, gross profit or gross margin, operating expenses (which include changes in sales and marketing, research and development and general and administrative expenses), and our ability to achieve and maintain future profitability;
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, including the expansion and adoption of our cloud-based offerings;
the impact of actions that we are taking to reduce our costs and rebalance investments;
the impact of the evolving conflict in Israel and Gaza and Russia’s invasion of Ukraine on our business and on the businesses of our customers and partners, including their spending priorities;
the impact that increased adoption of consumption-based arrangements could have on our revenue or operating results;
the impact of changes to our licensing of our products, particularly Elasticsearch and Kibana;
our assessments of the strength of our solutions and products;
our service performance and security, including the resources and costs required to prevent, detect and remediate potential security breaches or incidents, including by threat actors;
our ability to maintain and expand our user and customer base;
continued development of the market for our products;
competition from other products and companies with more resources, recognition and presence in our industry;
the impact of foreign currency exchange rate and interest rate fluctuations on our results;
the pace of change and innovation in the markets in which we operate and the competitive nature of those markets;
our ability to effectively manage our growth, including any changes to our pace of hiring;
our international expansion strategy;
our strategy of acquiring complementary businesses and our ability to successfully integrate acquired businesses and technologies;
the impact of acquisitions on our future product offerings;
our beliefs and objectives for future operations;
our relationships with and reliance on third parties, including partners;
our ability to protect our intellectual property rights;
our ability to develop our brands;
the impact of expensing stock options and other equity awards;
the sufficiency of our capital resources;
our ability to successfully defend litigation brought against us;
3

our ability to successfully execute our go-to-market strategy, including the positioning of our solutions and products, and to expand in our existing markets and into new markets;
sufficiency of cash to meet our cash needs for at least the next 12 months;
our ability to comply with laws and regulations that currently apply or may become applicable to our business both in the United States and internationally;
our ability to attract and retain qualified employees and key personnel;
the effect of the loss of key personnel;
our expectations about the impact of natural disasters and public health epidemics and pandemics on our business, results of operations and financial condition;
the seasonality of our business;
the future trading prices of our ordinary shares; and
our ability to service our debt obligations.
In addition, statements that “we believe” and similar statements reflect our beliefs and opinions. These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe this information forms a reasonable basis for such statements, the information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. Our forward-looking statements may not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make.
You should not rely upon forward-looking statements expressed or implied by us as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations regarding future events and trends that we believe may affect our business, financial condition, results of operations, and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors described in the section titled “Risk Factors” in Part II, Item 1A and elsewhere in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this report. Actual results, events, or circumstances could differ materially from those described or implied in the forward-looking statements.
The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events or circumstances as of the date on which such statements are made. We undertake no obligation to update any forward-looking statements after the date on which they are made or to conform such statements to actual results or revised expectations, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements.
4

PART I—FINANCIAL INFORMATION
Item 1. Financial Statements
Elastic N.V.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
As of
October 31, 2023
As of
April 30, 2023
Assets
Current assets:
Cash and cash equivalents$589,685 $644,167 
Restricted cash2,807 2,473 
Marketable securities376,674 271,041 
Accounts receivable, net of allowance for credit losses of $3,569 and $3,409 as of October 31, 2023 and April 30, 2023, respectively
232,250 260,919 
Deferred contract acquisition costs62,733 55,813 
Prepaid expenses and other current assets37,620 39,867 
Total current assets1,301,769 1,274,280 
Property and equipment, net4,996 5,092 
Goodwill303,494 303,642 
Operating lease right-of-use assets18,236 19,997 
Intangible assets, net21,008 29,104 
Deferred contract acquisition costs, non-current95,627 95,879 
Deferred tax assets6,824 7,412 
Other assets5,892 8,076 
Total assets$1,757,846 $1,743,482 
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable$35,382 $35,151 
Accrued expenses and other liabilities63,873 63,532 
Accrued compensation and benefits65,407 76,483 
Operating lease liabilities11,588 12,749 
Deferred revenue510,981 528,704 
Total current liabilities687,231 716,619 
Deferred revenue, non-current25,096 34,248 
Long-term debt, net568,072 567,543 
Operating lease liabilities, non-current12,160 13,942 
Other liabilities, non-current10,151 12,233 
Total liabilities1,302,710 1,344,585 
Commitments and contingencies (Notes 7 and 8)



Shareholders’ equity:
Preference shares, €0.01 par value; 165,000,000 shares authorized, 0 shares issued and outstanding as of October 31, 2023 and April 30, 2023
  
Ordinary shares, par value €0.01 per share: 165,000,000 shares authorized; 99,599,262 shares issued and outstanding as of October 31, 2023 and 97,366,947 shares issued and outstanding as of April 30, 2023
1,048 1,024 
Treasury stock(369)(369)
Additional paid-in capital1,604,896 1,471,584 
Accumulated other comprehensive loss(23,808)(20,015)
Accumulated deficit(1,126,631)(1,053,327)
Total shareholders’ equity 455,136 398,897 
Total liabilities and shareholders’ equity$1,757,846 $1,743,482 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
5

Elastic N.V.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
(unaudited)
Three Months Ended October 31,Six Months Ended October 31,
2023202220232022
Revenue
Subscription$287,743 $241,211 $557,990 $473,025 
Services22,869 23,190 46,375 41,457 
Total revenue310,612 264,401 604,365 514,482 
Cost of revenue
Subscription59,996 55,101 117,262 108,652 
Services20,093 19,656 40,304 39,084 
Total cost of revenue80,089 74,757 157,566 147,736 
Gross profit230,523 189,644 446,799 366,746 
Operating expenses
Research and development80,108 75,568 160,798 154,217 
Sales and marketing133,230 128,179 266,399 253,185 
General and administrative38,695 34,925 76,634 69,013 
Restructuring and other related charges29  754  
Total operating expenses252,062 238,672 504,585 476,415 
Operating loss(21,539)(49,028)(57,786)(109,669)
Other income, net
Interest expense(6,349)(6,209)(12,655)(12,610)
Other income, net8,239 14,975 15,539 15,314 
Loss before income taxes(19,649)(40,262)(54,902)(106,965)
Provision for income taxes5,147 7,043 18,402 9,891 
Net loss$(24,796)$(47,305)$(73,304)$(116,856)
Net loss per share attributable to ordinary shareholders, basic and diluted$(0.25)$(0.50)$(0.74)$(1.23)
Weighted-average shares used to compute net loss per share attributable to ordinary shareholders, basic and diluted
99,073,401 95,307,146 98,507,725 94,964,423 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
6

Elastic N.V.
Condensed Consolidated Statements of Comprehensive Loss
(in thousands)
(unaudited)
Three Months Ended October 31,Six Months Ended October 31,
2023202220232022
Net loss$(24,796)$(47,305)$(73,304)$(116,856)
Other comprehensive loss:
Unrealized loss on available-for-sale securities(196) (1,607) 
Foreign currency translation adjustments(3,961)(6,282)(2,186)(8,906)
Other comprehensive loss
(4,157)(6,282)(3,793)(8,906)
Total comprehensive loss$(28,953)$(53,587)$(77,097)$(125,762)
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
7

Elastic N.V.
Condensed Consolidated Statements of Shareholders’ Equity
(in thousands, except share data)
(unaudited)
Ordinary SharesTreasury
Shares
Amount
Additional
Paid-in
Capital
Accumulated
Other
Comprehensive
Loss
Accumulated
Deficit
Total
Shareholders'
Equity
SharesAmount
Balances as of July 31, 202398,377,727 $1,035 $(369)$1,532,543 $(19,651)$(1,101,835)$411,723 
Issuance of ordinary shares upon exercise of stock options451,558 4 — 6,796 — — 6,800 
Issuance of ordinary shares upon release of restricted stock units575,872 7 — (7)— —  
Issuance of ordinary shares under employee stock purchase plan194,105 2 — 9,109 — — 9,111 
Stock-based compensation— — — 56,455 — — 56,455 
Net loss— — — — — (24,796)(24,796)
Other comprehensive loss— — — — (4,157)— (4,157)
Balances as of October 31, 202399,599,262 $1,048 $(369)$1,604,896 $(23,808)$(1,126,631)$455,136 
Ordinary SharesTreasury
Shares
Amount
Additional
Paid-in
Capital
Accumulated
Other
Comprehensive
Loss
Accumulated
Deficit
Total
Shareholders'
Equity
SharesAmount
Balances as of July 31, 202294,970,627 $999 $(369)$1,300,379 $(20,754)$(886,717)$393,538 
Issuance of ordinary shares upon exercise of stock options258,813 3 — 4,324 — — 4,327 
Issuance of ordinary shares upon release of restricted stock units346,335 3 — (3)— —  
Stock-based compensation— — — 47,287 — — 47,287 
Net loss— — — — — (47,305)(47,305)
Other comprehensive loss— — — — (6,282)— (6,282)
Balances as of October 31, 202295,575,775 $1,005 $(369)$1,351,987 $(27,036)$(934,022)$391,565 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
8

Elastic N.V.
Condensed Consolidated Statements of Shareholders’ Equity
(in thousands, except share data)
(unaudited)
Ordinary SharesTreasury
Shares
Amount
Additional
Paid-in
Capital
Accumulated
Other
Comprehensive
Loss
Accumulated
Deficit
Total
Shareholders'
Equity
SharesAmount
Balances as of April 30, 202397,366,947 $1,024 $(369)$1,471,584 $(20,015)$(1,053,327)$398,897 
Issuance of ordinary shares upon exercise of stock options715,386 7 — 10,636 — — 10,643 
Issuance of ordinary shares upon release of restricted stock units1,322,824 15 — (15)— —  
Issuance of ordinary shares under employee stock purchase plan194,105 2 — 9,109 — — 9,111 
Stock-based compensation— — — 113,582 — — 113,582 
Net loss— — — — — (73,304)(73,304)
Other comprehensive loss— — — — (3,793)— (3,793)
Balances as of October 31, 202399,599,262 $1,048 $(369)$1,604,896 $(23,808)$(1,126,631)$455,136 
Ordinary SharesTreasury
Shares
Amount
Additional
Paid-in
Capital
Accumulated
Other
Comprehensive
Loss
Accumulated
Deficit
Total
Shareholders'
Equity
SharesAmount
Balances as of April 30, 202294,174,914 $990 $(369)$1,250,108 $(18,130)$(817,166)$415,433 
Issuance of ordinary shares upon exercise of stock options484,076 6 — 7,718 — — 7,724 
Issuance of ordinary shares upon release of restricted stock units916,785 9 — (9)— —  
Stock-based compensation— — — 94,170 — — 94,170 
Net loss— — — — — (116,856)(116,856)
Other comprehensive loss— — — — (8,906)— (8,906)
Balances as of October 31, 202295,575,775 $1,005 $(369)$1,351,987 $(27,036)$(934,022)$391,565 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
9

Elastic N.V.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Six Months Ended October 31,
20232022
Cash flows from operating activities
Net loss$(73,304)$(116,856)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization9,781 10,430 
Amortization of premium and accretion of discount on marketable securities, net(3,646) 
Amortization of deferred contract acquisition costs35,952 35,674 
Amortization of debt issuance costs529 506 
Non-cash operating lease cost5,270 5,649 
Stock-based compensation expense113,582 94,170 
Deferred income taxes427 (80)
Foreign currency transaction loss422 48 
Other(18)67 
Changes in operating assets and liabilities:
Accounts receivable, net26,972 25,193 
Deferred contract acquisition costs(43,421)(43,569)
Prepaid expenses and other current assets2,143 7,909 
Other assets1,556 4,809 
Accounts payable118 12,320 
Accrued expenses and other liabilities(1,393)(1,645)
Accrued compensation and benefits(10,773)(5,947)
Operating lease liabilities(6,194)(5,573)
Deferred revenue(22,578)(22,168)
Net cash provided by operating activities
35,425 937 
Cash flows from investing activities
Purchases of property and equipment(1,528)(822)
Purchases of marketable securities(178,301) 
Maturities of marketable securities75,292  
Net cash used in investing activities(104,537)(822)
Cash flows from financing activities
Proceeds from issuance of ordinary shares under employee stock purchase plan
9,111  
Proceeds from issuance of ordinary shares upon exercise of stock options
10,643 7,724 
Net cash provided by financing activities19,754 7,724 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(4,790)(12,854)
Net decrease in cash, cash equivalents, and restricted cash(54,148)(5,015)
Cash, cash equivalents, and restricted cash, beginning of period646,640 863,637 
Cash, cash equivalents, and restricted cash, end of period$592,492 $858,622 
Supplemental disclosures of cash flow information
Cash paid for interest$12,127 $12,104 
Cash paid for income taxes, net$14,990 $3,861 
Cash paid for operating lease liabilities$6,790 $6,605 
Supplemental disclosures of non-cash investing and financing information
Changes in property and equipment included in accounts payable$79 $64 
Operating lease right-of-use assets for new lease obligations$3,584 $10,770 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
10

Elastic N.V.
Notes to Condensed Consolidated Financial Statements
(unaudited)



11

1. Organization and Description of Business
Elastic N.V. (“Elastic” or the “Company”) was incorporated under the laws of the Netherlands in 2012. The Company created the Elastic Stack, a powerful set of software products that ingest and store data from any source and in any format, and perform search, analysis, and visualization on that data. Developers build on top of the Elastic Stack to apply the power of search to their data and solve business problems. The Company offers three software solutions built into the Elastic Stack: Search, Observability, and Security. The Elastic Stack and the Company’s solutions are designed to run across hybrid clouds, public or private clouds, and multi-cloud environments.
2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying interim condensed consolidated balance sheet as of October 31, 2023, interim condensed consolidated statements of operations, comprehensive loss, and shareholders’ equity for the three and six months ended October 31, 2023 and 2022, and interim condensed consolidated statements of cash flows for the six months ended October 31, 2023 and 2022 are unaudited. These interim condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and, in the opinion of management, include all normal recurring adjustments necessary to fairly state the Company’s financial position as of October 31, 2023; results of the Company’s operations for the three and six months ended October 31, 2023 and 2022; statements of shareholders’ equity for the three and six months ended October 31, 2023 and 2022; and statements of cash flows for the six months ended October 31, 2023 and 2022. The financial data and other financial information disclosed in the notes to these interim condensed consolidated financial statements related to the three and six month periods are also unaudited. The results for the three and six months ended October 31, 2023 are not necessarily indicative of the operating results expected for the fiscal year ending April 30, 2024, or any other future period.
The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the financial statements of the Company and its wholly-owned subsidiaries. All intercompany transactions and accounts have been eliminated in consolidation.
Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). The condensed balance sheet data as of April 30, 2023 was derived from the Company’s audited financial statements, but does not include all disclosures required by U.S. GAAP. Therefore, these unaudited interim condensed consolidated financial statements and accompanying footnotes should be read in conjunction with the Company’s annual consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the fiscal year ended April 30, 2023 filed with the SEC on June 16, 2023 (the “Company’s Annual Report on Form 10-K”).
Fiscal Year
The Company’s fiscal year ends on April 30. References to fiscal 2024, for example, refer to the fiscal year ended April 30, 2024.
Use of Estimates and Judgments
The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Such estimates include, but are not limited to, allocation of revenue between recognized and deferred amounts, deferred contract acquisition costs, allowance for credit losses, valuation of stock-based compensation, fair value of ordinary shares in periods prior to the Company’s initial public offering, fair value of acquired intangible assets and goodwill, useful lives of acquired intangible assets and property and equipment, whether an arrangement is or contains a lease, discount rate used for operating leases, and valuation allowance for deferred income taxes. The Company bases these estimates on historical and anticipated results, trends and various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events.
12

Estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require the exercise of judgment. As of the date of issuance of these financial statements, the Company is not aware of any specific event or circumstance that would require the Company to update its estimates, judgments or revise the carrying value of the Company’s assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to the Company’s financial statements.
Significant Accounting Policies
There have been no changes to the Company’s significant accounting policies described in the Company’s Annual Report on Form 10-K that have had a material impact on its condensed consolidated financial statements and related notes.
Recently Adopted Accounting Pronouncements
Acquisitions: In October 2021, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, improving consistency in accounting for acquired revenue contracts with customers in a business combination by requiring that acquirers apply ASC 606 to recognize contract assets and contract liabilities as if they had originated the contracts. If the acquiree prepared its financial statements in accordance with U.S. GAAP, the resulting acquired contract assets and liabilities should generally be consistent with the acquiree’s financial statements. The Company adopted ASU No. 2021-08 on May 1, 2023. The Company’s adoption of this ASU did not have any impact on its condensed consolidated financial statements.
New Accounting Pronouncements Not Yet Adopted
There have been no new accounting pronouncements or changes in accounting pronouncements during the six months ended October 31, 2023 that are significant or potentially significant to the Company.
3. Revenue
Disaggregation of Revenue
The following table presents revenue by category (in thousands):
Three Months Ended October 31,Six Months Ended October 31,
2023202220232022
Amount% of
Total
Revenue
Amount% of
Total
Revenue
Amount% of
Total
Revenue
Amount% of
Total
Revenue
Elastic Cloud$134,989 43 %$103,237 39 %$256,161 42 %$200,966 39 %
Other subscription152,754 50 %137,974 52 %301,829 50 %272,059 53 %
Total subscription287,743 93 %241,211 91 %557,990 92 %473,025 92 %
Services22,869 7 %23,190 9 %46,375 8 %41,457 8 %
Total revenue$310,612 100 %$264,401 100 %$604,365 100 %$514,482 100 %
Concentration of Credit Risk
One customer, a channel partner, accounted for 11% and 12% of net accounts receivable as of October 31, 2023 and April 30, 2023, respectively. The same customer accounted for 10% of total revenue during the three and six months ended October 31, 2023. No customer accounted for more than 10% of the Company’s total revenue for the three and six months ended October 31, 2022.
Deferred Revenue
The Company recognized revenue of $371.2 million and $301.4 million during the six months ended October 31, 2023 and 2022, respectively, that was included in the deferred revenue balance at the beginning of each of the respective periods.
Unbilled Accounts Receivable
Unbilled accounts receivable is recorded as part of accounts receivable, net in the Company’s condensed consolidated balance sheets. As of October 31, 2023 and April 30, 2023, unbilled accounts receivable was $2.2 million.
13

Remaining Performance Obligations
As of October 31, 2023, the Company had $1.117 billion of remaining performance obligations. As of October 31, 2023, the Company expects to recognize approximately 90% of its remaining performance obligations as revenue over the next 24 months and the remainder thereafter.
Deferred Contract Acquisition Costs
Amortization expense with respect to deferred contract acquisition costs was $36.0 million and $35.7 million for the six months ended October 31, 2023 and 2022, respectively. The Company did not recognize any impairment of deferred contract acquisition costs during the six months ended October 31, 2023 and 2022.
4. Fair Value Measurements
Financial Assets
The Company measures financial assets and liabilities that are measured at fair value on a recurring basis at each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company considers all highly liquid investments, including money market funds with an original maturity of three months or less at the date of purchase, to be cash equivalents. Its marketable securities are classified as available for sale and, as they are available to support current operations, are classified as short-term. The Company uses quoted prices in active markets for identical assets to determine the fair value of its Level 1 investments in money market funds.
The following table summarizes assets that are measured at fair value on a recurring basis as of October 31, 2023 (in thousands):
Level 1Level 2Level 3Total
Financial Assets:
Cash and cash equivalents:
Money market funds$299,934 $ $ $299,934 
Certificates of deposit
 8,202  8,202 
Total included in cash and cash equivalents299,934 8,202  308,136 
Marketable securities:
Certificates of deposit 53,092  53,092 
Commercial paper 30,044  30,044 
Municipal securities 2,495  2,495 
U.S. treasury securities68,919   68,919 
Corporate debt securities
 178,297  178,297 
U.S. agency bonds 43,827  43,827 
Total marketable securities68,919 307,755  376,674 
Total financial assets$368,853 $315,957 $ $684,810 
14

The following table summarizes assets that are measured at fair value on a recurring basis as of April 30, 2023 (in thousands):
Level 1Level 2Level 3Total
Financial Assets:
Cash and cash equivalents:
Money market funds$194,261 $ $ $194,261 
U.S. agency securities 27,406  27,406 
Certificates of deposit 21,750  21,750 
Commercial paper 60,750  60,750 
Total included in cash and cash equivalents194,261 109,906  304,167 
Marketable securities:
Certificates of deposit 31,645  31,645 
Commercial paper 33,735  33,735 
U.S. treasury securities47,627   47,627 
Corporate debt securities 118,228  118,228 
U.S. agency bonds 39,806  39,806 
Total marketable securities47,627 223,414  271,041 
Total financial assets$241,888 $333,320 $ $575,208 
Interest income from the Company’s cash, cash equivalents and marketable securities was $7.1 million and $13.2 million for the three and six months ended October 31, 2023, respectively, and $3.4 million and $4.8 million for the three and six months ended October 31, 2022, respectively, and is included in other income, net in the condensed consolidated statement of operations.
As of October 31, 2023 and April 30, 2023, net unrealized losses on the marketable securities were immaterial. The fluctuations in market interest rates impact the unrealized losses or gains on these securities.
As of October 31, 2023 and April 30, 2023, the contractual maturities of the Company’s available-for-sale debt securities, excluding those securities classified within cash and cash equivalents on the condensed consolidated balance sheet, did not exceed 36 months. The fair values of available-for-sale securities, by remaining contractual maturity, are as follows (in thousands):
As of
October 31, 2023
As of
April 30, 2023
Due within 1 year$257,868 $168,264 
Due between 1 year and 3 years118,806 102,777 
Total marketable securities$376,674 $271,041 
Financial Liabilities
In July 2021, the Company issued $575.0 million aggregate principal amount of 4.125% Senior Notes due July 15, 2029 (the “Senior Notes”) in a private placement. Based on the trading prices of the Senior Notes, the fair value of the Senior Notes as of October 31, 2023 was approximately $484.1 million. While the Senior Notes are recorded at cost, the fair value of the Senior Notes was determined based on quoted prices in markets that are not active; accordingly, the Senior Notes are categorized as Level 2 for purposes of the fair value measurement hierarchy.
15

5. Balance Sheet Components
Property and Equipment, Net
The cost and accumulated depreciation of property and equipment were as follows (in thousands):
Useful Life (in years)As of
October 31, 2023
As of
April 30, 2023
Leasehold improvementsLesser of estimated useful life or remaining lease term$11,423 $10,081 
Computer hardware and software33,125 2,220 
Furniture and fixtures
3-5
6,803 6,093 
Assets under construction243 1,734 
Total property and equipment21,594 20,128 
Less: accumulated depreciation(16,598)(15,036)
Property and equipment, net$4,996 $5,092 
Depreciation expense related to property and equipment was $0.8 million and $1.7 million for the three and six months ended October 31, 2023, respectively, and $1.0 million and $2.0 million for the three and six months ended October 31, 2022, respectively.
Intangible Assets, Net
Intangible assets consisted of the following as of October 31, 2023 (in thousands):
Gross Fair ValueAccumulated AmortizationNet Book ValueWeighted Average
Remaining
Useful Life
(in years)
Developed technology$70,130 $49,089 $21,041 2.3
Customer relationships19,598 19,598  0.0
Trade names2,872 2,872  0.0
Total$92,600 $71,559 $21,041 2.3
Foreign currency translation adjustment(33)
Total$21,008 
Intangible assets consisted of the following as of April 30, 2023 (in thousands):
Gross Fair ValueAccumulated AmortizationNet Book ValueWeighted Average
Remaining
Useful Life
(in years)
Developed technology$70,130 $43,136 $26,994 2.7
Customer relationships19,598 17,641 1,957 0.4
Trade names2,872 2,686 186 0.4
Total$92,600 $63,463 $29,137 2.5
Foreign currency translation adjustment(33)
Total$29,104 
16

Amortization expense for the intangible assets for the three and six months ended October 31, 2023 and 2022 was as follows (in thousands):
Three Months Ended October 31,Six Months Ended October 31,
2023202220232022
Cost of revenue – subscription$2,977 $2,961 $5,953 $5,925 
Sales and marketing911 1,232 2,143 2,463 
Total amortization of acquired intangible assets$3,888 $4,193 $8,096 $8,388 
The expected future amortization expense related to the intangible assets as of October 31, 2023 was as follows (in thousands, by fiscal year):
Remainder of 2024$5,887 
20258,018 
20265,057 
20272,046 
2028 
Thereafter 
Total$21,008 
Goodwill
The following table represents the changes to goodwill (in thousands):
Carrying Amount
Balance as of April 30, 2023$303,642 
Foreign currency translation adjustment(148)
Balance as of October 31, 2023$303,494 
There was no impairment of goodwill during the six months ended October 31, 2023 and 2022.
Accrued Expenses and Other Liabilities
Accrued expenses and other liabilities consisted of the following (in thousands):
As of
October 31, 2023
As of
April 30, 2023
Accrued expenses$29,934 $24,163 
Income taxes payable12,685 9,738 
Value added taxes payable6,670 9,403 
Accrued interest6,918 6,918 
Other7,666 13,310 
Total accrued expenses and other liabilities$63,873 $63,532 
Accrued Compensation and Benefits
Accrued compensation and benefits consisted of the following (in thousands):
As of
October 31, 2023
As of
April 30, 2023
Accrued vacation$30,637 $30,026 
Accrued commissions15,328 26,175 
Accrued payroll and withholding taxes8,390 6,586 
Other11,052 13,696 
Total accrued compensation and benefits$65,407 $76,483 
17

Allowance for Credit Losses
The following is a summary of the changes in the Company’s allowance for credit losses (in thousands):
Six Months Ended October 31,
20232022
Beginning balance$3,409 $2,700 
Bad debt expense1,660 785 
Accounts written off(1,500)(1,684)
Ending balance$3,569 $1,801 
6. Senior Notes
In July 2021, the Company issued $575.0 million aggregate principal amount of 4.125% Senior Notes due July 15, 2029 in a private placement.
Interest on the Senior Notes is payable semi-annually in arrears on January 15 and July 15 of each year, commencing on January 15, 2022. The Company received net proceeds from the offering of the Senior Notes of $565.7 million after deducting underwriting commissions of $7.2 million and incurred additional issuance costs of $2.1 million. Total debt issuance costs of $9.3 million are being amortized to interest expense using the effective interest method over the term of the Senior Notes. The Company may redeem the Senior Notes, in whole or in part, at any time prior to July 15, 2024 at a price equal to 100% of the principal amount thereof plus a “make-whole” premium and accrued and unpaid interest, if any. The Company may at its election redeem all or a part of the Senior Notes on or after July 15, 2024, on any one or more occasions, at the redemption prices set forth in the indenture governing the Senior Notes (the “Indenture”), plus, in each case, accrued and unpaid interest thereon, if any, to, but excluding, the applicable redemption date. In addition, at any time prior to July 15, 2024, the Company may on any one or more occasions redeem up to 40% of the aggregate principal amount of the Senior Notes outstanding under the Indenture with the net cash proceeds of one or more equity offerings at a redemption price equal to 104.125% of the principal amount of the Senior Notes then outstanding, plus accrued and unpaid interest thereon, if any, to, but excluding, the applicable redemption date. The Company may also at its election redeem the Senior Notes in whole, but not in part, at a price equal to 100% of the principal amount thereof plus accrued and unpaid interest, if any, if certain changes in tax law occur as set forth in the Indenture.
If the Company experiences a change of control triggering event (as defined in the Indenture), the Company must offer to repurchase the Senior Notes at a repurchase price equal to 101% of the principal amount of the Senior Notes to be repurchased, plus accrued and unpaid interest, if any, to the repurchase date.
The Indenture contains covenants limiting the Company’s ability and the ability of certain subsidiaries to create liens on certain assets to secure debt; grant a subsidiary guarantee of certain debt without also providing a guarantee of the Senior Notes; and consolidate or merge with or into, or sell or otherwise dispose of all or substantially all of its assets to, another person. These covenants are subject to a number of limitations and exceptions. Certain of these covenants will not apply during any period in which the Senior Notes are rated investment grade by Moody’s Investors Service, Inc. and Standard & Poor’s Ratings Services.
The net carrying amount of the Senior Notes was as follows (in thousands):
As of
October 31, 2023
As of
April 30, 2023
Principal$575,000 $575,000 
Unamortized debt issuance costs(6,928)(7,457)
Net carrying amount$568,072 $567,543 
The following table sets forth the interest expense recognized related to the Senior Notes (in thousands):
Three Months Ended October 31,Six Months Ended October 31,
2023202220232022
Contractual interest expense$5,930 $5,929 $11,859 $11,859 
Amortization of debt issuance costs266 254 529 506 
Total interest expense related to the Senior Notes$6,196 $6,183 $12,388 $12,365 
18

7. Commitments and Contingencies
Cloud Hosting Commitments
During the six months ended October 31, 2023, there were no material changes, outside the ordinary course of business, to the Company’s contractual obligations and commitments reported in the Company's Annual Report on Form 10-K.
Letters of Credit
The Company had a total of $2.3 million in letters of credit outstanding in favor of certain landlords for office space as of October 31, 2023.
Legal Matters
From time to time, the Company has become involved in claims and other legal matters arising in the ordinary course of business. The Company investigates these claims as they arise. Although claims are inherently unpredictable, the Company is currently not aware of any matters that, if determined adversely to the Company, would individually or taken together have a material adverse effect on its business, results of operations, financial position or cash flows.
The Company accrues estimates for resolution of legal and other contingencies when losses are probable and reasonably estimable.
Indemnification
The Company enters into indemnification provisions under its agreements with other companies in the ordinary course of business, including business partners, landlords, contractors and parties performing its research and development. Pursuant to these arrangements, the Company agrees to indemnify, hold harmless, and reimburse the indemnified party for certain losses suffered or incurred by the indemnified party as a result of the Company’s activities. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the fair value of these agreements is not material. The Company maintains commercial general liability insurance and product liability insurance to offset certain of the Company’s potential liabilities under these indemnification provisions.
In addition, the Company indemnifies its officers, directors and certain key employees against certain liabilities that may arise as a result of their affiliation with the Company. To date, there have been no claims under any indemnification provisions.
8. Leases
The Company’s leases provide for rental of corporate office space under non-cancelable operating lease agreements that expire at various dates through fiscal 2029. The Company does not have any finance leases.
Lease Costs
Components of lease costs included in the condensed consolidated statement of operations were as follows (in thousands):
Three Months Ended October 31,Six Months Ended October 31,
2023202220232022
Operating lease cost$2,985 $3,318 $5,840 $6,451 
Short-term lease cost500 565 974 1,348 
Variable lease cost285 (3)522 227 
Total lease cost$3,770 $3,880 $7,336 $8,026 
Lease term and discount rate information are summarized as follows:
As of
October 31, 2023
Weighted average remaining lease term (in years)2.42
Weighted average discount rate4.78 %
19

Future minimum lease payments under non-cancelable operating leases on an undiscounted cash flow basis as of October 31, 2023 were as follows (in thousands, by fiscal year):
Remainder of 2024$6,728 
20259,728 
20265,420 
20271,491 
20281,501 
Thereafter271 
Total minimum lease payments25,139 
Less imputed interest(1,391)
Present value of future minimum lease payments23,748 
Less current lease liabilities(11,588)
Operating lease liabilities, non-current$12,160 
9. Ordinary Shares
The Company’s authorized ordinary share capital pursuant to our articles of association amounts to 165 million ordinary shares at a par value per ordinary share of €0.01.
Each holder of ordinary shares has the right to one vote per ordinary share. The holders of ordinary shares are also entitled to receive dividends whenever funds are legally available and when proposed by the Company’s board of directors and adopted by the general meeting of shareholders, subject to the prior rights of holders of all classes of shares outstanding having priority rights to dividends. No dividends have been declared from the Company’s inception through October 31, 2023.
The board of directors has been authorized by the general meeting, on the Company’s behalf, to issue the Company’s ordinary shares and grant rights to acquire the Company’s ordinary shares in an amount up to 20% of the issued share capital of the Company as of August 21, 2023. This authorization is valid for a period of 18 months from October 5, 2023.
Ordinary Shares Reserved for Issuance
The Company has reserved ordinary shares for issuance as follows:
As of
October 31, 2023
As of
April 30, 2023
Stock options issued and outstanding3,225,368 4,038,238 
RSUs issued and outstanding
6,593,346 7,494,399 
Available for future grants
22,106,970 17,564,133 
Available for employee stock purchases5,805,895 6,000,000 
Total ordinary shares reserved
37,731,579 35,096,770 
Preference Shares
The Company’s authorized preference share capital pursuant to our articles of association amounts to 165 million preference shares at a par value per preference share of €0.01. Each holder of preference shares has rights and preferences, including the right to one vote per preference share. As of October 31, 2023, there were no preference shares issued or outstanding.
Preference shares in the capital of the Company may currently only be issued pursuant to a resolution adopted by the general meeting of shareholders at the proposal of the board of directors.
10. Equity Incentive Plans
2022 Employee Stock Purchase Plan
In August 2022, the Company’s board of directors adopted and, in October 2022, the Company’s shareholders approved the 2022 Employee Stock Purchase Plan (“2022 ESPP”). The Company reserved 6.0 million of the Company’s ordinary shares for future purchase and issuance under the 2022 ESPP in January 2023. The 2022 ESPP allows eligible
20

employees to acquire ordinary shares of the Company at a discount at periodic intervals through accumulated payroll deductions. Eligible employees purchase ordinary shares of the Company during a purchase period at 85% of the market value of the Company’s ordinary shares at either the beginning or end of an offering period, whichever is lower. Offering periods under the 2022 ESPP are approximately six months long and begin on each of March 16 or September 16 or the next trading day thereafter.
For the three and six months ended October 31, 2023, 194,105 ordinary shares were purchased under the 2022 ESPP. Stock-based compensation expense recognized related to the 2022 ESPP was $1.8 million and $3.6 million for the three and six months ended October 31, 2023, respectively.
2012 Stock Option Plan
In September 2012, the Company’s board of directors adopted and the Company’s shareholders approved the 2012 Stock Option Plan, which was amended and restated in September 2018 and further amended in December 2021 (as amended and restated, the “2012 Plan”). Under the 2012 Plan, the board of directors, the compensation committee, as administrator of the 2012 Plan, and any other duly authorized committee may grant stock options and other equity-based awards, such as Restricted Stock Awards (“RSAs”), Restricted Stock Units (“RSUs”), and performance-based RSUs (“PSUs”), to eligible employees, directors, and consultants to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to employees, directors and consultants, and to promote the success of the Company’s business.
The Company’s board of directors, compensation committee or other duly authorized committee determines the vesting schedule for all equity-based awards. Stock options and RSUs granted to employees generally vest over four years, subject to the employees’ continued service to the Company. During the six months ended October 31, 2023, the Company granted PSUs that vest over three years with a one-year performance period. The Company’s compensation committee may explicitly deviate from the general vesting schedules in its approval of an equity-based award, as it may deem appropriate. Stock options expire ten years after the date of grant. Stock options, RSAs and RSUs (including PSUs) that are canceled under certain conditions become available for future grant or sale under the 2012 Plan unless the 2012 Plan is terminated.
The equity awards available for grant were as follows: 
Six Months Ended October 31, 2023
Available at beginning of fiscal year17,564,133 
Awards authorized4,868,347 
Options canceled
96,261 
RSUs granted (1)
(1,030,554)
RSUs canceled (2)
608,783 
Available at end of period22,106,970 
(1) Includes 132,960 PSUs granted during the six months ended October 31, 2023.
(2) Includes 16,437 PSUs canceled during the six months ended October 31, 2023.
Stock Options
The following table summarizes stock option activity:
Stock Options Outstanding
Number of
Stock Options
Outstanding
Weighted-
Average
Exercise
Price
Remaining
Contractual
Term
(in years)
Aggregate
Intrinsic
Value
(in thousands)
Balance as of April 30, 20234,038,238 $32.74 5.35$134,778 
Stock options exercised(715,386)$14.88 
Stock options canceled(96,261)$95.90 
Stock options assumed in acquisition canceled(1,223)$75.42 
Balance as of October 31, 20233,225,368 $34.80 4.97$147,640 
Exercisable as of October 31, 20232,881,360 $27.94 4.63$146,658 
Aggregate intrinsic value represents the difference between the exercise price of the stock options to purchase the Company’s ordinary shares and the fair value of the Company’s ordinary shares. The weighted-average grant-date fair value per share of stock options granted was $