Q3 Revenue of $157.1 million, Up 39%
year-over-year Q3 SaaS Revenue of $44.9 million, Up 79%
year-over-year
Elastic (NYSE: ESTC) (“Elastic”), the company behind
Elasticsearch and the Elastic Stack, announced strong results for
its third quarter of fiscal 2021 (ended January 31, 2021).
Third Quarter Fiscal 2021 Financial Highlights
- Total revenue was $157.1 million, an increase of 39%
year-over-year, or 36% on a constant currency basis
- SaaS revenue was $44.9 million, an increase of 79%
year-over-year, or 76% on a constant currency basis
- Calculated billings was $173.2 million, an increase of 41%
year-over-year, or 37% on a constant currency basis
- Deferred revenue was $334.0 million, an increase of 59%
year-over-year
- GAAP operating loss was $34.5 million; GAAP operating margin
was -22%
- Non-GAAP operating loss was $0.0 million; non-GAAP operating
margin was 0%
- GAAP net loss per share was $0.43; non-GAAP net loss per share
was $0.04
- Operating cash flow was $19.4 million with free cash flow of
$18.3 million
- Cash and cash equivalents were $393.1 million as of January 31,
2021
“We had an excellent third quarter, and once again showed strong
execution,” said Shay Banon, Elastic founder and chief executive
officer. “We believe continued innovation across our three
solutions is critical to global enterprises as they look to build
resilience and adapt to the distributed environment of 2021.”
Third Quarter Fiscal 2021 Key Metrics and Recent Business
Highlights
Key Customer Metrics:
- Total subscription customer count was over 13,800, compared to
over 12,900 in Q2 FY21, and over 10,500 in Q3 FY20
- Total customer count with Annual Contract Value (ACV) greater
than $100,000 was over 670, compared to over 650 in Q2 FY21, and
over 570 in Q3 FY20
- Subscription revenue represented 94% of total revenue
- Net Expansion Rate continued to be greater than 130%
Product Releases and Other Business Highlights
Elastic released new innovations with version 7.11 across its
enterprise search, observability and security solutions that enable
customers to optimize for cost, performance, insight and
flexibility.
Foundational features in 7.11 that can be leveraged across all
three solutions include the general availability of searchable
snapshots and the cold data tier to help customers store and search
more data while maintaining control over cost and performance.
Additional features include the beta of schema on read, which
allows customers to discover new data and new workflows by creating
a schema on the fly, and the general availability of a new alerting
framework, which provides customers with the flexibility to create,
manage and monitor alerts across the Elastic Stack.
Expanded capabilities include:
Elastic Enterprise Search
- Launched the beta of a new web crawler for Elastic App Search
that makes content from publicly accessible websites easily
searchable
- Added Box as a content source to Elastic Workplace Search with
a prebuilt connector and document-level permissions
- Extended granular access controls for Elastic Workplace Search
with document-level permissions for Atlassian Jira Cloud and
Confluence Cloud
Elastic Observability
- Launched a new service health overview in Elastic APM to
accelerate root cause analysis and troubleshooting
- Introduced a new host details view in the Elastic Metrics app
to help users troubleshoot infrastructure issues faster and narrow
down next steps of an investigation
- Added new logging libraries in Elastic Common Schema to provide
more context to application troubleshooting workflows by
automatically linking logs and traces
Elastic Security
- Automated detection and operationalized analytics with prebuilt
machine learning jobs and detection rules supporting MITRE
sub-techniques
- Streamlined SOC workflows and accelerated response times with
more customizable alert notifications and an expanded set of rule
actions
- Updated the Timeline workspace to drive more efficient threat
hunting, alert triage and investigations
Elastic Cloud
- Enhanced cross-cluster replication and cross-cluster search
between regions and cloud providers to break down data silos and
improve search performance
- Scaled and streamlined cloud operations with autoscaling of
data and machine learning nodes
- Launched support for the new cold data tier to retain more data
for longer at the same cost
Other Business Highlights
- Moved our Apache 2.0-licensed source code in Elasticsearch and
Kibana to be dual licensed under the Elastic License v2 and the
Server Side Public License
- Appointed Ashutosh Kulkarni as chief product officer
- Delivered eight regional virtual ElasticON events, exhibited at
AWS re:Invent and Black Hat Europe, and sponsored the DeveloperWeek
Virtual Conference
- Raised more than $400,000 on Giving Tuesday through the Elastic
Cares initiative, an employee-match giving program
Financial Outlook
The Company is providing the following guidance:
For the fourth quarter of fiscal 2021 (ending April 30,
2021):
- Total revenue is expected to be between $158 million and $159
million
- Non-GAAP operating margin is expected to be between -8.5% and
-7.5%
- Non-GAAP net loss per share is expected to be between $0.18 and
$0.15, assuming between 90.5 million and 91.5 million weighted
average ordinary shares outstanding
For fiscal 2021 (ending April 30, 2021):
- Total revenue is expected to be between $589 million and $590
million
- Non-GAAP operating margin is expected to be between -3.3% and
-3.0%
- Non-GAAP net loss per share is expected to be between $0.19 and
$0.16, assuming between 87 million and 88 million weighted average
ordinary shares outstanding
We continue to believe it is prudent to expect some near-term
business headwinds as the economic impact from the ongoing COVID-19
pandemic further unfolds. As such, our guidance includes the
expected impact of the COVID‑19 pandemic on our business and
results of operations based on information available to us
today.
See the section titled “Forward-Looking Statements” below for
information on the factors that could cause our actual results to
differ materially. A reconciliation of non-GAAP guidance measures
to corresponding GAAP measures is not available on a
forward-looking basis without unreasonable effort due to the
uncertainty regarding, and the potential variability of, many of
the costs and expenses that may be incurred in the future. These
items necessary to reconcile such non-GAAP measures could be
material and have a significant impact on the Company’s results
computed in accordance with GAAP.
Conference Call and Webcast
Elastic’s executive management team will host a conference call
today at 2:00 p.m. PT/ 5:00 p.m. ET to discuss the Company’s
financial results and business outlook. A live audio webcast of the
conference call will be available on Elastic’s Investor Relations
website at ir.elastic.co. Slides will accompany the webcast. The
replay of the webcast and slides will be available for two
months.
About Elastic
Elastic is a search company built on a free and open heritage.
Anyone can use Elastic products and solutions to get started
quickly and frictionlessly. Elastic offers three solutions for
enterprise search, observability, and security, built on one
technology stack that can be deployed anywhere. From finding
documents to monitoring infrastructure to hunting for threats,
Elastic makes data usable in real time and at scale. Founded in
2012, Elastic is a distributed company with Elasticians around the
globe. 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 U.S. 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 that
involve substantial risk and uncertainties, which include, but are
not limited to, our expected financial results for the fiscal
quarter and the fiscal year ending April 30, 2021, our expectations
regarding the impact of the COVID-19 pandemic, our assessments of
the strength of our solutions and products, the expected
performance or benefits of our offerings, and our expectations
regarding the benefits of our investments. These forward-looking
statements are subject to the safe harbor provisions under the
Private Securities Litigation Reform Act of 1995. Our expectations
and beliefs in light of currently available information regarding
these matters may not materialize. Actual outcomes and results may
differ materially from those contemplated by these forward-looking
statements due to uncertainties, risks, and changes in
circumstances, including but not limited to those related to: the
impact of the COVID-19 pandemic on the macroeconomic environment,
on our business, operations, hiring and financial results, and on
businesses of our customers and partners, including their spending
priorities, the effect of lockdowns, restrictions and new
regulations; 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 develop new offerings, including
security-related product and SaaS offerings; customer acceptance
and purchase of our existing offerings and new offerings, including
the expansion and adoption of our SaaS offerings; our inability to
realize value from investments in the business, including R&D
investments; our ability to maintain and expand our user and
customer base; the impact of our licensing model on the use and
adoption of our software; the impact of foreign currency exchange
rate and interest rate fluctuations on our results; our
international expansion strategy; our operating results and cash
flows; our beliefs and objectives for future operations; the
sufficiency of our capital resources; our ability to successfully
execute our go-to-market strategy, including by expanding our
relationships with our partners, and expand in our existing markets
and into new markets, and our ability to forecast customer
retention and expansion; and general market, political, economic
and business conditions (including developments and volatility
arising from the COVID-19 pandemic).
Any additional or unforeseen effect from the COVID-19 pandemic
may exacerbate these risks. Additional risks and uncertainties that
could cause actual outcomes and results to differ materially are
included in our filings with the Securities and Exchange Commission
(the “SEC”), including our Annual Report on Form 10-K for the
fiscal year ended April 30, 2020 and any subsequent reports filed
with the SEC. SEC filings are available on the Investor Relations
section of Elastic’s website at ir.elastic.co and the SEC’s website
at www.sec.gov. Elastic assumes no obligation to, and does not
currently intend to, update any such forward-looking statements,
except as required by law.
Contact Information
Anthony Luscri Elastic Investor Relations ir@elastic.co
(650) 695-1055
Lisa Boughner Elastic Corporate Communications
lisa.boughner@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,
2021
2020
2021
2020
Revenue
License - self-managed
$
15,280
$
14,495
$
45,673
$
36,674
Subscription - self-managed and SaaS
131,969
89,703
357,127
241,593
Total subscription revenue
147,249
104,198
402,800
278,267
Professional services
9,866
8,983
28,079
25,730
Total revenue
157,115
113,181
430,879
303,997
Cost of revenue
Cost of license - self-managed
346
347
1,039
602
Cost of subscription - self-managed and
SaaS
31,426
23,196
86,464
60,832
Total cost of revenue - subscription
31,772
23,543
87,503
61,434
Cost of professional services
10,196
9,862
27,744
26,983
Total cost of revenue
41,968
33,405
115,247
88,417
Gross profit
115,147
79,776
315,632
215,580
Operating expenses
Research and development
51,400
46,119
143,766
119,779
Sales and marketing
71,087
54,829
191,712
160,860
General and administrative
27,121
21,096
72,555
71,472
Total operating expenses
149,608
122,044
408,033
352,111
Operating loss
(34,461
)
(42,268
)
(92,401
)
(136,531
)
Other income (expense), net (1)
(2,377
)
(1,339
)
8,424
1,276
Loss before income taxes
(36,838
)
(43,607
)
(83,977
)
(135,255
)
Provision for income taxes
1,136
674
2,156
768
Net loss
$
(37,974
)
$
(44,281
)
$
(86,133
)
$
(136,023
)
Net loss per share attributable to
ordinary shareholders, basic and diluted
$
(0.43
)
$
(0.55
)
$
(1.00
)
$
(1.75
)
Weighted-average shares used to compute
net loss per share attributable to ordinary shareholders, basic and
diluted
88,341,038
80,737,237
86,296,028
77,713,604
(1) Includes a foreign currency transaction loss of $2.3 million
and a foreign currency transaction gain of $8.3 million for the
three and nine months ended January 31, 2021, respectively, arising
primarily from foreign exchange remeasurement of intercompany
balances. Intercompany balances are eliminated on
consolidation.
Elastic N.V.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(amounts in thousands, except
share and per share amounts)
(Unaudited)
Assets
As of January 31,
2021
As of April 30,
2020
Current assets:
Cash and cash equivalents
$
393,134
$
297,081
Restricted cash
2,355
2,308
Accounts receivable, net of allowance for
credit losses of $1,831 and $1,247 as of January 31, 2021 and April
30, 2020, respectively
120,049
128,690
Deferred contract acquisition costs
29,596
19,537
Prepaid expenses and other current
assets
28,906
32,623
Total current assets
574,040
480,239
Property and equipment, net
8,665
7,760
Goodwill
198,665
197,877
Operating lease right-of-use assets
29,340
32,783
Intangible assets, net
39,823
50,455
Deferred contract acquisition costs,
non-current
42,591
24,012
Deferred tax assets
3,970
3,164
Other assets
2,886
7,621
Total assets
$
899,980
$
803,911
Liabilities and Shareholders’
Equity
Current liabilities:
Accounts payable
$
5,825
$
11,485
Accrued expenses and other liabilities
25,224
22,210
Accrued compensation and benefits
42,507
48,409
Operating lease liabilities
8,176
7,639
Deferred revenue
289,689
243,324
Total current liabilities
371,421
333,067
Deferred revenue, non-current
44,321
16,378
Operating lease liabilities,
non-current
23,769
27,827
Other liabilities, non-current
4,888
12,992
Total liabilities
444,399
390,264
Commitments and contingencies
Shareholders’ equity:
Convertible preference shares, €0.01 par
value; 165,000,000 shares authorized, 0 shares issued and
outstanding as of January 31, 2021 and April 30, 2020
—
—
Ordinary shares, par value €0.01 per
share: 165,000,000 shares authorized; 89,644,940 shares issued and
outstanding as of January 31, 2021 and 82,856,978 shares issued and
outstanding as of April 30, 2020
937
856
Treasury stock
(369
)
(369
)
Additional paid-in capital
1,033,598
898,788
Accumulated other comprehensive loss
(8,568
)
(1,377
)
Accumulated deficit
(570,017
)
(484,251
)
Total shareholders’ equity
455,581
413,647
Total liabilities and shareholders’
equity
$
899,980
$
803,911
Elastic N.V.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(amounts in thousands)
(Unaudited)
Three Months Ended January
31,
Nine Months Ended January
31,
2021
2020
2021
2020
Cash flows from operating
activities
Net loss (1)
$
(37,974
)
$
(44,281
)
$
(86,133
)
$
(136,023
)
Adjustments to reconcile net loss to cash
provided by (used in) operating activities:
Depreciation and amortization
4,290
5,235
12,856
8,573
Amortization of deferred contract
acquisition costs
10,282
6,660
28,455
20,581
Non-cash operating lease cost
1,822
2,156
5,256
5,170
Stock-based compensation expense
25,227
15,588
65,305
42,775
Non-cash acquisition expense settled with
shares
—
—
—
8,834
Deferred income taxes
(2
)
50
(288
)
(621
)
Foreign currency transaction (gains) loss
(2)
1,461
—
(9,463
)
—
Other
22
809
11
1,132
Changes in operating assets and
liabilities:
Accounts receivable, net
15,183
6,023
15,246
10,873
Deferred contract acquisition costs
(16,740
)
(9,416
)
(54,612
)
(26,441
)
Prepaid expenses and other current
assets
3,717
(3,526
)
4,817
(4,345
)
Other assets
1,197
1,874
5,237
3,780
Accounts payable
(3,683
)
2,900
(6,321
)
7,104
Accrued expenses and other liabilities
2,757
(1,852
)
1,696
1,520
Accrued compensation and benefits
(5,168
)
(12,837
)
(5,859
)
3,377
Operating lease liabilities
(1,867
)
(1,798
)
(5,402
)
(4,586
)
Deferred revenue
18,877
9,188
53,309
33,666
Net cash provided by (used in) operating
activities (3)
19,401
(23,227
)
24,110
(24,631
)
Cash flows from investing
activities
Purchases of property and equipment
(1,076
)
(1,007
)
(2,732
)
(4,237
)
Business acquisition, net of cash
acquired
—
—
—
(24,373
)
Other
—
—
1,320
—
Net cash used in investing activities
(1,076
)
(1,007
)
(1,412
)
(28,610
)
Cash flows from financing
activities
Proceeds from issuance of ordinary shares
upon exercise of stock options
22,324
11,054
67,554
50,622
Payment of withholding taxes related to
acquisition expense settled in shares
—
—
—
(2,834
)
Repayment of notes payable
—
(30
)
—
(90
)
Net cash provided by financing
activities
22,324
11,024
67,554
47,698
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
3,529
2,029
5,848
1,630
Net increase (decrease) in cash, cash
equivalents, and restricted cash
44,178
(11,181
)
96,100
(3,913
)
Cash, cash equivalents, and restricted
cash, beginning of period
351,311
307,548
299,389
300,280
Cash, cash equivalents, and restricted
cash, end of period
$
395,489
$
296,367
$
395,489
$
296,367
(1) Includes foreign currency transaction losses of $1.5 million
and gains of $9.5 million for the three and nine months ended
January 31, 2021, respectively, arising primarily from foreign
exchange remeasurement of intercompany balances. Intercompany
balances are eliminated on consolidation.
(2) Removes the foreign currency transaction losses of $1.5
million and gains of $9.5 million for the three and nine months
ended January 31, 2021, respectively, included in net loss.
(3) Unaffected by foreign currency transaction gains.
Elastic N.V.
REVENUE BY TYPE
(amounts in thousands, except
percentages)
(Unaudited)
Three Months Ended January
31,
Nine Months Ended January
31,
2021
2020
2021
2020
Amount
% of Total
Revenue
Amount
% of Total
Revenue
Amount
% of Total
Revenue
Amount
% of Total
Revenue
Self-managed subscription
$
102,320
65%
$
79,105
70%
$
287,816
66%
$
214,947
71%
License
15,280
10%
14,495
13%
45,673
11%
36,674
12%
Subscription
87,040
55%
64,610
57%
242,143
55%
178,273
59%
SaaS
44,929
29%
25,093
22%
114,984
27%
63,320
21%
Total subscription revenue
147,249
94%
104,198
92%
402,800
93%
278,267
92%
Professional services
9,866
6%
8,983
8%
28,079
7%
25,730
8%
Total revenue
$
157,115
100%
$
113,181
100%
$
430,879
100%
$
303,997
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,
2021
2020
2021
2020
Total revenue
$
157,115
$
113,181
$
430,879
$
303,997
Add: Increase in deferred revenue
18,877
9,188
53,309
33,666
Less: Decrease (increase) in unbilled
accounts receivable
(2,790
)
535
(3,214
)
(64
)
Calculated billings
$
173,202
$
122,904
$
480,974
$
337,599
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,
2021
2020
2021
2020
Net cash provided by (used in) operating
activities
$
19,401
$
(23,227
)
$
24,110
$
(24,631
)
Less: Purchases of property and
equipment
(1,076
)
(1,007
)
(2,732
)
(4,237
)
Free cash flow
$
18,325
$
(24,234
)
$
21,378
$
(28,868
)
Net cash used in investing activities
$
(1,076
)
$
(1,007
)
$
(1,412
)
$
(28,610
)
Net cash provided by financing
activities
$
22,324
$
11,024
$
67,554
$
47,698
Net cash provided by (used in) operating
activities (as a percentage of total revenue)
13
%
(20
)%
6
%
(8
)%
Less: Purchases of property and equipment
(as a percentage of total revenue)
(1
)%
(1
)%
(1
)%
(1
)%
Free cash flow margin
12
%
(21
)%
5
%
(9
)%
Elastic N.V.
RECONCILIATION OF GAAP TO
NON-GAAP DATA
(amounts in thousands, except
percentages, share and per share amounts)
(Unaudited)
Three Months Ended January
31,
Nine Months Ended January
31,
2021
2020
2021
2020
Gross Profit Reconciliation:
GAAP gross profit
$
115,147
$
79,776
$
315,632
$
215,580
Stock-based compensation expense
3,198
1,887
8,352
4,947
Employer payroll taxes on employee stock
transactions
589
37
911
457
Amortization of acquired intangibles
2,110
3,007
6,328
4,659
Non-GAAP gross profit
$
121,044
$
84,707
$
331,223
$
225,643
Gross Margin Reconciliation(1):
GAAP gross margin
73.3
%
70.5
%
73.3
%
70.9
%
Stock-based compensation expense
2.0
%
1.7
%
1.9
%
1.6
%
Employer payroll taxes on employee stock
transactions
0.4
%
0.0
%
0.2
%
0.2
%
Amortization of acquired intangibles
1.3
%
2.7
%
1.5
%
1.5
%
Non-GAAP gross margin
77.0
%
74.8
%
76.9
%
74.2
%
Operating Loss Reconciliation:
GAAP operating loss
$
(34,461
)
$
(42,268
)
$
(92,401
)
$
(136,531
)
Stock-based compensation expense
25,227
15,588
65,305
42,775
Employer payroll taxes on employee stock
transactions
5,685
739
10,436
6,648
Amortization of acquired intangibles
3,538
4,458
10,630
6,518
Acquisition-related expenses
—
1,328
—
17,762
Non-GAAP operating loss
$
(11
)
$
(20,155
)
$
(6,030
)
$
(62,828
)
Operating Margin
Reconciliation(1):
GAAP operating margin
(21.9
)%
(37.3
)%
(21.4
)%
(44.9
)%
Stock-based compensation expense
16.1
%
13.8
%
15.2
%
14.1
%
Employer payroll taxes on employee stock
transactions
3.6
%
0.7
%
2.4
%
2.2
%
Amortization of acquired intangibles
2.3
%
3.9
%
2.5
%
2.1
%
Acquisition-related expenses
0.0
%
1.2
%
0.0
%
5.8
%
Non-GAAP operating margin
0.0
%
(17.8
)%
(1.4
)%
(20.7
)%
Net Loss Reconciliation:
GAAP net loss
$
(37,974
)
$
(44,281
)
$
(86,133
)
$
(136,023
)
Stock-based compensation expense
25,227
15,588
65,305
42,775
Employer payroll taxes on employee stock
transactions
5,685
739
10,436
6,648
Amortization of acquired intangibles
3,538
4,458
10,630
6,518
Acquisition-related expenses
—
1,328
—
17,762
Income tax(2)
(427
)
(51
)
(577
)
(1,165
)
Non-GAAP net loss
$
(3,951
)
$
(22,219
)
$
(339
)
$
(63,485
)
Non-GAAP net loss per share
attributable to ordinary shareholders, basic and diluted
$
(0.04
)
$
(0.28
)
$
—
$
(0.82
)
Weighted-average shares used to compute
net loss per share attributable to ordinary shareholders, basic and
diluted
88,341,038
80,737,237
86,296,028
77,713,604
(1) Totals may not sum, due to rounding. Gross margin, operating
margin, and earnings per share are calculated based upon the
respective underlying, non-rounded data.
(2) 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. 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.
Elastic N.V.
RECONCILIATION OF GAAP TO
NON-GAAP DATA
(amounts in thousands)
(Unaudited)
Three Months Ended January
31,
Nine Months Ended January
31,
2021
2020
2021
2020
Cost of revenue reconciliation:
GAAP cost of license - self-managed
$
346
$
347
$
1,039
$
602
Amortization of acquired intangibles
(346
)
(347
)
(1,039
)
(602
)
Non-GAAP cost of license - self
-managed
$
—
$
—
$
—
$
—
GAAP cost of subscription - self-managed
and SaaS
$
31,426
$
23,196
$
86,464
$
60,832
Stock-based compensation expense
(1,839
)
(1,008
)
(5,065
)
(2,869
)
Employer payroll taxes on employee stock
transactions
(267
)
(21
)
(487
)
(321
)
Amortization of acquired intangibles
(1,764
)
(2,660
)
(5,289
)
(4,057
)
Non-GAAP cost of subscription -
self-managed and SaaS
$
27,556
$
19,507
$
75,623
$
53,585
GAAP cost of professional services
$
10,196
$
9,862
$
27,744
$
26,983
Stock-based compensation expense
(1,359
)
(879
)
(3,287
)
(2,078
)
Employer payroll taxes on employee stock
transactions
(322
)
(16
)
(424
)
(136
)
Non-GAAP cost of professional services
$
8,515
$
8,967
$
24,033
$
24,769
Operating expenses
reconciliation:
GAAP research and development expense
$
51,400
$
46,119
$
143,766
$
119,779
Stock-based compensation expense
(9,516
)
(6,256
)
(24,309
)
(17,087
)
Employer payroll taxes on employee stock
transactions
(1,243
)
(238
)
(2,702
)
(1,886
)
Acquisition-related expenses
—
—
—
(34
)
Non-GAAP research and development
expense
$
40,641
$
39,625
$
116,755
$
100,772
GAAP sales and marketing expense
$
71,087
$
54,829
$
191,712
$
160,860
Stock-based compensation expense
(8,372
)
(4,540
)
(22,519
)
(13,506
)
Employer payroll taxes on employee stock
transactions
(1,723
)
(335
)
(3,494
)
(2,816
)
Amortization of acquired intangibles
(1,428
)
(1,451
)
(4,302
)
(1,859
)
Acquisition-related expenses
—
(395
)
—
(508
)
Non-GAAP sales and marketing expenses
$
59,564
$
48,108
$
161,397
$
142,171
GAAP general and administrative
expense
$
27,121
$
21,096
$
72,555
$
71,472
Stock-based compensation expense
(4,141
)
(2,905
)
(10,125
)
(7,235
)
Employer payroll taxes on employee stock
transactions
(2,130
)
(129
)
(3,329
)
(1,489
)
Acquisition-related expenses
—
(933
)
—
(17,220
)
Non-GAAP general and administrative
expense
$
20,850
$
17,129
$
59,101
$
45,528
About Non-GAAP Financial Measures
In addition to our results determined in accordance with U.S.
GAAP, we believe the non-GAAP measures listed below are useful in
evaluating our operating performance. We use these non-GAAP
financial measures to evaluate our ongoing operations and for
internal planning and forecasting purposes. We believe that
non-GAAP financial information, when taken collectively, may be
helpful to investors because it provides consistency and
comparability with past financial performance. However, non-GAAP
financial information is presented for supplemental informational
purposes only, has limitations as an analytical tool and should not
be considered in isolation or as a substitute for financial
information presented in accordance with U.S. GAAP. In particular,
free cash flow is not a substitute for cash used in operating
activities. Additionally, the utility of free cash flow as a
measure of our liquidity is further limited as it does not
represent the total increase or decrease in our cash balance for a
given period. In addition, other companies, including companies in
our industry, may calculate similarly-titled non-GAAP measures
differently or may use other measures to evaluate their
performance, all of which could reduce the usefulness of our
non-GAAP financial measures as tools for comparison. A
reconciliation of our historical non-GAAP financial measures to
their most directly comparable financial measure stated in
accordance with U.S. GAAP has been provided in the financial
statement tables included in this press release. Investors are
cautioned that there are a number of limitations associated with
the use of non-GAAP financial measures and key metrics as
analytical tools. Investors are encouraged to review these
reconciliations, and not to rely on any single financial measure to
evaluate our business.
Non-GAAP Gross Profit and Non-GAAP Gross Margin
We define non-GAAP gross profit and non-GAAP gross margin as
GAAP gross profit and GAAP gross margin, respectively, excluding
stock-based compensation expense, employer payroll taxes on
employee stock transactions, and amortization of acquired
intangible assets. We believe non-GAAP gross profit and non-GAAP
gross margin provide our management and investors consistency and
comparability with our past financial performance and facilitate
period-to-period comparisons of operations, as these metrics
generally eliminate the effects of certain variables from period to
period for reasons unrelated to overall operating performance.
Non-GAAP Operating Loss and Non-GAAP Operating Margin
We define non-GAAP operating loss and non-GAAP operating margin
as GAAP operating loss and GAAP operating margin, respectively,
excluding stock-based compensation expense, employer payroll taxes
on employee stock transactions, amortization of acquired intangible
assets, and acquisition-related expenses. We believe non-GAAP
operating loss and non-GAAP operating margin provide our management
and investors consistency and comparability with our past financial
performance and facilitate period-to-period comparisons of
operations, as these metrics generally eliminate the effects of
certain variables from period to period for reasons unrelated to
overall operating performance.
Non-GAAP Net Loss Per Share
We define non-GAAP net loss per share as GAAP net loss per
share, excluding stock-based compensation expense, employer payroll
taxes on employee stock transactions, amortization of acquired
intangible assets, acquisition-related expenses and the tax effects
related to the foregoing. We believe non-GAAP net loss per share
provides our management and investors consistency and comparability
with our past financial performance and facilitates
period-to-period comparisons of operations, as this metric
generally eliminates the effects of certain variables from period
to period for reasons unrelated to overall operating
performance.
Free Cash Flow and Free Cash Flow Margin
Free cash flow is a non-GAAP financial measure that we define as
net cash (used in) provided by operating activities less purchases
of property and equipment. Free cash flow margin is calculated as
free cash flow divided by total revenue. We believe that free cash
flow and free cash flow margin are useful indicators of liquidity
that provide information to management and investors about the
amount of cash generated from our core operations that, after the
purchases of property and equipment, can be used for strategic
initiatives, including investing in our business and selectively
pursuing acquisitions and strategic investments.
Calculated Billings
We define calculated billings as total revenue plus the increase
in total deferred revenue as presented on or derived from our
consolidated statements of cash flows less the (increase) decrease
in total unbilled accounts receivable in a given period. Calculated
billings exclude deferred revenue and unbilled accounts receivable
acquired through acquisitions in the period of acquisition. We
typically invoice our customers annually in advance, and to a
lesser extent multi-year in advance, quarterly in advance, monthly
in advance, monthly in arrears or upon delivery. Our management
uses calculated billings to understand and evaluate our near-term
cash flows and operating results.
Constant Currency
We compare the percent change in certain results from one period
to another period using constant currency information to provide a
framework for assessing how our business performed excluding the
effect of foreign currency rate fluctuations. In presenting this
information, current and comparative prior period results are
converted into United States dollars at the exchange rates in
effect on the last day of our prior fiscal year, rather than the
actual exchange rates in effect during the respective periods.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210224005820/en/
Anthony Luscri Elastic Investor Relations ir@elastic.co
(650) 695-1055
Lisa Boughner Elastic Corporate Communications
lisa.boughner@elastic.co
Elastic NV (NYSE:ESTC)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Elastic NV (NYSE:ESTC)
Historical Stock Chart
Von Apr 2023 bis Apr 2024