Q4 Revenue of $177.6 million, Up 44% year-over-year Q4 SaaS Revenue of $51.3 million, Up 77% year-over-year FY21 Revenue of $608.5 million, Up 42% year-over-year

Elastic (NYSE: ESTC) (“Elastic”), the company behind Elasticsearch and the Elastic Stack, announced strong results for its fourth quarter and full fiscal year (ended April 30, 2021).

Fourth Quarter Fiscal 2021 Financial Highlights

  • Total revenue was $177.6 million, an increase of 44% year-over-year, or 39% on a constant currency basis.
  • SaaS revenue was $51.3 million, an increase of 77% year-over-year, or 73% on a constant currency basis.
  • Calculated billings was $240.9 million, an increase of 38% year-over-year, or 33% on a constant currency basis.
  • Deferred revenue was $397.7 million, an increase of 53% year-over-year.
  • GAAP operating loss was $37.1 million; GAAP operating margin was -21%.
  • Non-GAAP operating loss was $1.2 million; non-GAAP operating margin was -1%.
  • GAAP net loss per share was $0.48; non-GAAP net loss per share was $0.08.
  • Operating cash flow was -$1.6 million with free cash flow of -$3.1 million.
  • Cash and cash equivalents were $400.8 million as of April 30, 2021.

Full Fiscal 2021 Financial Highlights

  • Total revenue was $608.5 million, an increase of 42% year-over-year, or 40% on a constant currency basis.
  • SaaS revenue was $166.3 million, an increase of 80% year-over-year, or 78% on a constant currency basis.
  • GAAP operating loss was $129.5 million; GAAP operating margin was -21%.
  • Non-GAAP operating loss was $7.3 million; Non-GAAP operating margin was -1%.
  • GAAP net loss per share was $1.48; Non-GAAP net loss per share was $0.09.
  • Operating cash flow was $22.5 million with free cash flow of $18.3 million, or 3% free cash flow margin.

“We had a strong fourth quarter capping off an exceptional year, due in large part to the continued adoption of Elastic Cloud and broad-based demand for our enterprise search, observability, and security solutions,” said Shay Banon, Elastic founder, and chief executive officer. “Data volumes keep increasing as companies become more digital and move to the cloud, and our customers are seeing that the ability to search, observe, and protect this ever-increasing amount of data is critical to their success. We believe this continued demand puts us on the path to becoming a $1 billion plus revenue company in fiscal year 2023.”

Fourth Quarter Fiscal 2021 Key Metrics and Recent Business Highlights

Key Customer Metrics

  • Total subscription customer count was over 15,000, compared to over 13,800 in Q3 FY21, and over 11,300 in Q4 FY20.
  • Total customer count with Annual Contract Value (ACV) greater than $100,000 was over 730, compared to over 670 in Q3 FY21, and over 610 in Q4 FY20.
  • Subscription revenue represented 93% of total revenue.
  • Net Expansion Rate was consistent with Q3 FY21 and slightly below 130%.

Product Releases and Other Business Highlights

Elastic released new innovations with versions 7.12 and 7.13 across its enterprise search, observability, and security solutions that help customers simplify their workflows and derive value from their data efficiently and at scale.

Foundational features in 7.12 and 7.13 that can be leveraged across all three solutions include the general availability of the frozen data tier, powered by searchable snapshots, which helps customers store and search more data while maintaining control over cost and performance. Additional features include the general availability 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 our supervised machine learning which provides customers with a single place to store, transform, build, test, and deploy supervised machine learning models.

Expanded capabilities include:

Elastic Enterprise Search

  • Updated data architecture to deliver greater storage efficiency, search performance, and more relevant results, including a new Elastic App Search precision tuning API.
  • Added performance and stability improvements to the Elastic App Search web crawler and support for web crawling standards.
  • Introduced a new Dropbox Paper connector and enhanced custom source APIs in Elastic Workplace Search, enabling users to search across more content in less time.

Elastic Observability

  • Launched the beta of Elastic APM correlations to instantly surface the root cause of poor application performance and reduce the mean time to resolution.
  • Added support for Microsoft Azure monitoring use cases with native Microsoft Azure console integration.
  • Enabled additional scalability and flexibility of data ingest architectures with the beta release of Fleet Server.

Elastic Security

  • Accelerated threat hunting and investigation workflows with the general availability of analyst-driven correlation powered by Event Query Language (EQL).
  • Added a new layer of ransomware prevention with behavioral analysis in the Elastic Agent.
  • Launched beta support for central management of osquery to help organizations harness the visibility of osquery and the analytical power of Elastic.

Elastic Cloud

  • Launched support for the frozen data tier, powered by searchable snapshots, to enable customers to cost-effectively retain more data and unlock new use cases.
  • Expanded support for autoscaling on Elastic Cloud to automate data lifecycle management and help customers easily scale deployments as resource needs grow.
  • Launched two new Microsoft Azure cloud regions: Azure South Central US (Texas), and Azure East US (Virginia).

Other Business Highlights

  • Announced expanded strategic integration with Microsoft enabling customers to find, deploy, and manage Elasticsearch from directly within the Microsoft Azure portal, accelerating time to value of our solutions on Elastic Cloud.
  • Recognized as a Visionary in the 2021 Gartner Magic Quadrant for Application Performance Monitoring, and as a Challenger in the 2021 Gartner Magic Quadrant for Insight Engines.
  • Expanded open ecosystem of partners with the announcement of strategic integrations and partnerships with Grafana Labs, Confluent, and Swimlane.
  • Delivered nine regional virtual ElasticON events, sponsored and exhibited at KubeCon Europe, RSA, Microsoft Build, and the Google Cloud Data Summit.
  • Raised more than $1.3 million through the Elastic Cares initiative, an employee-match giving program, and employees volunteered more than 4,000 hours as part of the Elastic volunteer time off program in fiscal year 2021.

Financial Outlook

The Company is providing the following guidance:

For its first quarter of fiscal 2022 (ending July 31, 2021):

  • Total revenue is expected to be between $171 million and $173 million.
  • Non-GAAP operating margin is expected to be between -5.0% and -4.0%.
  • Non-GAAP net loss per share is expected to be between $0.13 and $0.10, assuming between 91 million and 92 million weighted average ordinary shares outstanding.

For its fiscal year 2022 (ending April 30, 2022):

  • Total revenue is expected to be between $782 million and $788 million.
  • Non-GAAP operating margin is expected to be between -5.5% and -4.5%.
  • Non-GAAP net loss per share is expected to be between $0.60 and $0.51, assuming between 92.5 million and 94.5 million weighted average ordinary shares outstanding.

See the section titled “Forward-Looking Statements” below for information on the factors that could cause our actual results to differ materially. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, many of the costs and expenses that may be incurred in the future. 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 through Elastic’s Investor Relations website at ir.elastic.co. Slides will accompany the webcast. The replay of the webcast and slides will be available for two months.

About Elastic

Elastic is a search company 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 ending July 31, 2021 and the fiscal year ending April 30, 2022, our expectations regarding demand for our products and solutions and our future revenue, 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: 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 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; 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.

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 April 30,

 

Year Ended April 30,

 

 

2021

 

2020

 

2021

 

2020

Revenue

 

 

 

 

 

 

 

 

License - self-managed

 

$

22,321

 

 

$

16,862

 

 

$

67,994

 

 

$

53,536

 

Subscription - self-managed and SaaS

 

142,218

 

 

97,041

 

 

499,345

 

 

338,634

 

Total subscription revenue

 

164,539

 

 

113,903

 

 

567,339

 

 

392,170

 

Professional services

 

13,071

 

 

9,720

 

 

41,150

 

 

35,450

 

Total revenue

 

177,610

 

 

123,623

 

 

608,489

 

 

427,620

 

Cost of revenue

 

 

 

 

 

 

 

 

Cost of license - self-managed

 

347

 

 

346

 

 

1,386

 

 

948

 

Cost of subscription - self-managed and SaaS

 

34,663

 

 

23,987

 

 

121,127

 

 

84,819

 

Total cost of revenue - subscription

 

35,010

 

 

24,333

 

 

122,513

 

 

85,767

 

Cost of professional services

 

10,797

 

 

9,940

 

 

38,541

 

 

36,923

 

Total cost of revenue

 

45,807

 

 

34,273

 

 

161,054

 

 

122,690

 

Gross profit

 

131,803

 

 

89,350

 

 

447,435

 

 

304,930

 

Operating expenses

 

 

 

 

 

 

 

 

Research and development

 

55,437

 

 

45,591

 

 

199,203

 

 

165,370

 

Sales and marketing

 

82,165

 

 

58,180

 

 

273,877

 

 

219,040

 

General and administrative

 

31,278

 

 

20,153

 

 

103,833

 

 

91,625

 

Total operating expenses

 

168,880

 

 

123,924

 

 

576,913

 

 

476,035

 

Operating loss

 

(37,077

)

 

(34,574

)

 

(129,478

)

 

(171,105

)

Other income (expense), net (1)

 

(660

)

 

687

 

 

7,764

 

 

1,963

 

Loss before income taxes

 

(37,737

)

 

(33,887

)

 

(121,714

)

 

(169,142

)

Provision for (benefit from) income taxes

 

5,564

 

 

(2,736

)

 

7,720

 

 

(1,968

)

Net loss

 

$

(43,301

)

 

$

(31,151

)

 

$

(129,434

)

 

$

(167,174

)

Net loss per share attributable to ordinary shareholders, basic and diluted

 

$

(0.48

)

 

$

(0.38

)

 

$

(1.48

)

 

$

(2.12

)

Weighted-average shares used to compute net loss per share attributable to ordinary shareholders, basic and diluted

 

90,028,822

 

 

82,123,381

 

 

87,207,094

 

 

78,799,732

 

(1) Includes a foreign currency transaction loss of $0.6 million and a foreign currency transaction gain of $7.7 million for the three and twelve months ended April 30, 2021, respectively, arising primarily from foreign exchange remeasurement and settlement 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)

   

 

 

April 30,

Assets

 

2021

 

2020

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

400,814

 

 

$

297,081

 

Restricted cash

 

2,894

 

 

2,308

 

Accounts receivable, net of allowance for credit losses of $2,344 and $1,247 as of April 30, 2021 and April 30, 2020, respectively

 

160,415

 

 

128,690

 

Deferred contract acquisition costs

 

36,089

 

 

19,537

 

Prepaid expenses and other current assets

 

37,002

 

 

32,623

 

Total current assets

 

637,214

 

 

480,239

 

Property and equipment, net

 

8,881

 

 

7,760

 

Goodwill

 

198,851

 

 

197,877

 

Operating lease right-of-use assets

 

25,464

 

 

32,783

 

Intangible assets, net

 

36,286

 

 

50,455

 

Deferred contract acquisition costs, non-current

 

50,263

 

 

24,012

 

Deferred tax assets

 

3,697

 

 

3,164

 

Other assets

 

12,516

 

 

7,621

 

Total assets

 

$

973,172

 

 

$

803,911

 

Liabilities and Shareholders’ Equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

7,248

 

 

$

11,485

 

Accrued expenses and other liabilities

 

28,909

 

 

22,210

 

Accrued compensation and benefits

 

52,525

 

 

48,409

 

Operating lease liabilities

 

8,528

 

 

7,639

 

Deferred revenue

 

352,805

 

 

243,324

 

Total current liabilities

 

450,015

 

 

333,067

 

Deferred revenue, non-current

 

44,895

 

 

16,378

 

Operating lease liabilities, non-current

 

19,649

 

 

27,827

 

Other liabilities, non-current

 

7,782

 

 

12,992

 

Total liabilities

 

522,341

 

 

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 April 30, 2021 and April 30, 2020

 

 

 

 

Ordinary shares, par value €0.01 per share: 165,000,000 shares authorized; 90,533,985 shares issued and outstanding as of April 30, 2021 and 82,856,978 shares issued and outstanding as of April 30, 2020

 

948

 

 

856

 

Treasury stock

 

(369

)

 

(369

)

Additional paid-in capital

 

1,071,675

 

 

898,788

 

Accumulated other comprehensive loss

 

(8,105

)

 

(1,377

)

Accumulated deficit

 

(613,318

)

 

(484,251

)

Total shareholders’ equity

 

450,831

 

 

413,647

 

Total liabilities and shareholders’ equity

 

$

973,172

 

 

$

803,911

Elastic N.V.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in thousands)

(Unaudited)

 

 

 

Three Months Ended April 30,

 

Year Ended April 30,

 

 

2021

 

2020

 

2021

 

2020

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net loss (1)

 

$

(43,301

)

 

$

(31,151

)

 

$

(129,434

)

 

$

(167,174

)

Adjustments to reconcile net loss to cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

4,381

 

 

4,286

 

 

17,237

 

 

12,859

 

Amortization of deferred contract acquisition costs

 

12,536

 

 

7,733

 

 

40,991

 

 

28,314

 

Non-cash operating lease cost

 

2,671

 

 

2,252

 

 

7,927

 

 

7,422

 

Stock-based compensation expense

 

28,375

 

 

17,232

 

 

93,680

 

 

60,007

 

Non-cash acquisition expense settled with shares

 

 

 

 

 

 

 

8,834

 

Deferred income taxes

 

321

 

 

(918

)

 

33

 

 

(1,539

)

Foreign currency transaction (gains) loss (2)

 

(44

)

 

 

 

(9,507

)

 

 

Other

 

(153

)

 

(9

)

 

(142

)

 

1,123

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

(39,283

)

 

(57,626

)

 

(24,037

)

 

(46,753

)

Deferred contract acquisition costs

 

(26,525

)

 

(19,776

)

 

(81,137

)

 

(46,217

)

Prepaid expenses and other current assets

 

(9,009

)

 

1,395

 

 

(4,192

)

 

(2,950

)

Other assets

 

(9,344

)

 

1,823

 

 

(4,107

)

 

5,603

 

Accounts payable

 

1,546

 

 

(1,136

)

 

(4,775

)

 

5,968

 

Accrued expenses and other liabilities

 

6,422

 

 

3,700

 

 

8,118

 

 

5,220

 

Accrued compensation and benefits

 

9,726

 

 

16,333

 

 

3,867

 

 

19,710

 

Operating lease liabilities

 

(2,512

)

 

(2,075

)

 

(7,914

)

 

(6,661

)

Deferred revenue

 

62,628

 

 

52,004

 

 

115,937

 

 

85,670

 

Net cash provided by (used in) operating activities (3)

 

(1,565

)

 

(5,933

)

 

22,545

 

 

(30,564

)

Cash flows from investing activities

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

(1,180

)

 

(826

)

 

(3,912

)

 

(5,063

)

Business acquisition, net of cash acquired

 

 

 

 

 

 

 

(24,373

)

Capitalization of internal-use software costs

 

(317

)

 

 

 

(317

)

 

 

Other

 

1,391

 

 

249

 

 

2,711

 

 

249

 

Net cash used in investing activities

 

(106

)

 

(577

)

 

(1,518

)

 

(29,187

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

Proceeds from issuance of ordinary shares upon exercise of stock options

 

9,704

 

 

10,841

 

 

77,258

 

 

61,463

 

Payment of withholding taxes related to acquisition expense settled in shares

 

 

 

 

 

 

 

(2,834

)

Repayment of notes payable

 

 

 

 

 

 

 

(90

)

Net cash provided by financing activities

 

9,704

 

 

10,841

 

 

77,258

 

 

58,539

 

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

186

 

 

(1,309

)

 

6,034

 

 

321

 

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

8,219

 

 

3,022

 

 

104,319

 

 

(891

)

Cash, cash equivalents, and restricted cash, beginning of period

 

395,489

 

 

296,367

 

 

299,389

 

 

300,280

 

Cash, cash equivalents, and restricted cash, end of period

 

$

403,708

 

 

$

299,389

 

 

$

403,708

 

 

$

299,389

 

(1) Includes foreign currency transaction losses of less than $0.1 million and gains of $9.5 million for the three and twelve months ended April 30, 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 less than $0.1 million and gains of $9.5 million for the three and twelve months ended April 30, 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 April 30,

 

Year Ended April 30,

 

 

2021

 

2020

 

2021

 

2020

 

 

Amount

 

% of Total Revenue

 

Amount

 

% of Total Revenue

 

Amount

 

% of Total Revenue

 

Amount

 

% of Total Revenue

Self-managed subscription

 

$

113,204

 

64

%

 

$

84,933

 

69

%

 

$

401,020

 

66

%

 

$

299,880

 

70

%

License

 

22,321

 

13

%

 

16,862

 

14

%

 

67,994

 

11

%

 

53,536

 

12

%

Subscription

 

90,883

 

51

%

 

68,071

 

55

%

 

333,026

 

55

%

 

246,344

 

58

%

SaaS

 

51,335

 

29

%

 

28,970

 

23

%

 

166,319

 

27

%

 

92,290

 

22

%

Total subscription revenue

 

164,539

 

93

%

 

113,903

 

92

%

 

567,339

 

93

%

 

392,170

 

92

%

Professional services

 

13,071

 

7

%

 

9,720

 

8

%

 

41,150

 

7

%

 

35,450

 

8

%

Total revenue

 

$

177,610

 

100

%

 

$

123,623

 

100

%

 

$

608,489

 

100

%

 

$

427,620

 

100

%

 

Elastic N.V.

RECONCILIATION OF GAAP TO NON-GAAP DATA

CALCULATED BILLINGS

(amounts in thousands)

(Unaudited)

 

 

 

Three Months Ended April 30,

 

Year Ended April 30,

 

 

2021

 

2020

 

2021

 

2020

Total revenue

 

$

177,610

 

$

123,623

 

 

$

608,489

 

 

$

427,620

 

Add: Increase in deferred revenue

 

62,628

 

52,004

 

 

115,937

 

 

85,670

 

Less: Decrease (increase) in unbilled accounts receivable

 

632

 

(528

)

 

(2,582

)

 

(592

)

Calculated billings

 

$

240,870

 

$

175,099

 

 

$

721,844

 

 

$

512,698

 

 

Elastic N.V.

RECONCILIATION OF GAAP TO NON-GAAP DATA

FREE CASH FLOW

(amounts in thousands, except percentages)

(Unaudited)

 

 

 

Three Months Ended April 30,

 

Year Ended April 30,

 

 

2021

 

2020

 

2021

 

2020

Net cash provided by (used in) operating activities

 

$

(1,565

)

 

$

(5,933

)

 

$

22,545

 

 

$

(30,564

)

Less: Purchases of property and equipment

 

(1,180

)

 

(826

)

 

(3,912

)

 

(5,063

)

Less: Capitalization of internal-use software

 

(317

)

 

$

 

 

(317

)

 

$

 

Free cash flow

 

$

(3,062

)

 

$

(6,759

)

 

$

18,316

 

 

$

(35,627

)

Net cash used in investing activities

 

$

(106

)

 

$

(577

)

 

$

(1,518

)

 

$

(29,187

)

Net cash provided by financing activities

 

$

9,704

 

 

$

10,841

 

 

$

77,258

 

 

$

58,539

 

Net cash provided by (used in) operating activities (as a percentage of total revenue)

 

(1

)%

 

(5

)%

 

4

%

 

(7

)%

Less: Purchases of property and equipment (as a percentage of total revenue)

 

(1

)%

 

%

 

(1

)%

 

(1

)%

Less: Capitalization of internal-use software (as a percentage of total revenue)

 

%

 

%

 

%

 

%

Free cash flow margin

 

(2

)%

 

(5

)%

 

3

%

 

(8

)%

 

Elastic N.V.

RECONCILIATION OF GAAP TO NON-GAAP DATA

(amounts in thousands, except percentages, share and per share amounts)

(Unaudited)

   

 

 

Three Months Ended April 30,

 

Year Ended April 30,

 

 

2021

 

2020

 

2021

 

2020

Gross Profit Reconciliation:

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

131,803

 

 

$

89,350

 

 

$

447,435

 

 

$

304,930

 

Stock-based compensation expense

 

3,577

 

 

2,180

 

 

11,929

 

 

7,127

 

Employer payroll taxes on employee stock transactions

 

424

 

 

70

 

 

1,335

 

 

527

 

Amortization of acquired intangibles

 

2,109

 

 

2,109

 

 

8,437

 

 

6,768

 

Non-GAAP gross profit

 

$

137,913

 

 

$

93,709

 

 

$

469,136

 

 

$

319,352

 

Gross Margin Reconciliation(1):

 

 

 

 

 

 

 

 

GAAP gross margin

 

74.2

%

 

72.3

%

 

73.5

%

 

71.3

%

Stock-based compensation expense

 

2.0

%

 

1.8

%

 

2.0

%

 

1.7

%

Employer payroll taxes on employee stock transactions

 

0.2

%

 

0.1

%

 

0.2

%

 

0.1

%

Amortization of acquired intangibles

 

1.2

%

 

1.7

%

 

1.4

%

 

1.6

%

Non-GAAP gross margin

 

77.6

%

 

75.8

%

 

77.1

%

 

74.7

%

Operating Loss Reconciliation:

 

 

 

 

 

 

 

 

GAAP operating loss

 

$

(37,077

)

 

$

(34,574

)

 

$

(129,478

)

 

$

(171,105

)

Stock-based compensation expense

 

28,375

 

 

17,232

 

 

93,680

 

 

60,007

 

Employer payroll taxes on employee stock transactions

 

3,940

 

 

845

 

 

14,376

 

 

7,493

 

Amortization of acquired intangibles

 

3,537

 

 

3,550

 

 

14,167

 

 

10,068

 

Acquisition-related expenses

 

 

 

212

 

 

 

 

17,974

 

Non-GAAP operating loss

 

$

(1,225

)

 

$

(12,735

)

 

$

(7,255

)

 

$

(75,563

)

Operating Margin Reconciliation(1):

 

 

 

 

 

 

 

 

GAAP operating margin

 

(20.9

)%

 

(28.0

)%

 

(21.3

)%

 

(40.0

)%

Stock-based compensation expense

 

16.0

 %

 

13.9

 %

 

15.4

 %

 

14.0

 %

Employer payroll taxes on employee stock transactions

 

2.2

 %

 

0.7

 %

 

2.4

 %

 

1.8

 %

Amortization of acquired intangibles

 

2.0

 %

 

2.9

 %

 

2.3

 %

 

2.4

 %

Acquisition-related expenses

 

0.0

 %

 

0.2

 %

 

0.0

 %

 

4.2

 %

Non-GAAP operating margin

 

(0.7

)%

 

10.3

 %

 

(1.2

)%

 

(17.7

)%

Net Loss Reconciliation:

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(43,301

)

 

$

(31,151

)

 

$

(129,434

)

 

$

(167,174

)

Stock-based compensation expense

 

28,375

 

 

17,232

 

 

93,680

 

 

60,007

 

Employer payroll taxes on employee stock transactions

 

3,940

 

 

845

 

 

14,376

 

 

7,493

 

Amortization of acquired intangibles

 

3,537

 

 

3,550

 

 

14,167

 

 

10,068

 

Acquisition-related expenses

 

 

 

212

 

 

 

 

17,974

 

Income tax(2)

 

(200

)

 

(458

)

 

(777

)

 

(1,623

)

Non-GAAP net loss

 

$

(7,649

)

 

$

(9,770

)

 

$

(7,988

)

 

$

(73,255

)

Non-GAAP net loss per share attributable to ordinary shareholders, basic and diluted

 

$

(0.08

)

 

$

(0.12

)

 

$

(0.09

)

 

$

(0.93

)

Weighted-average shares used to compute net loss per share attributable to ordinary shareholders, basic and diluted

 

90,028,822

 

 

82,123,381

 

 

87,207,094

 

 

78,799,732

 

(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 April 30,

 

Year Ended April 30,

 

 

2021

 

2020

 

2021

 

2020

Cost of revenue reconciliation:

 

 

 

 

 

 

 

 

GAAP cost of license - self-managed

 

$

347

 

 

$

346

 

 

$

1,386

 

 

$

948

 

Amortization of acquired intangibles

 

(347

)

 

(346

)

 

(1,386

)

 

(948

)

Non-GAAP cost of license - self -managed

 

$

 

 

$

 

 

$

 

 

$

 

GAAP cost of subscription - self-managed and SaaS

 

$

34,663

 

 

$

23,987

 

 

$

121,127

 

 

$

84,819

 

Stock-based compensation expense

 

(2,040

)

 

(1,278

)

 

(7,105

)

 

(4,147

)

Employer payroll taxes on employee stock transactions

 

(187

)

 

(28

)

 

(674

)

 

(349

)

Amortization of acquired intangibles

 

(1,762

)

 

(1,763

)

 

(7,051

)

 

(5,820

)

Non-GAAP cost of subscription - self-managed and SaaS

 

$

30,674

 

 

$

20,918

 

 

$

106,297

 

 

$

74,503

 

GAAP cost of professional services

 

$

10,797

 

 

$

9,940

 

 

$

38,541

 

 

$

36,923

 

Stock-based compensation expense

 

(1,537

)

 

(902

)

 

(4,824

)

 

(2,980

)

Employer payroll taxes on employee stock transactions

 

(237

)

 

(42

)

 

(661

)

 

(178

)

Non-GAAP cost of professional services

 

$

9,023

 

 

$

8,996

 

 

$

33,056

 

 

$

33,765

 

Operating expenses reconciliation:

 

 

 

 

 

 

 

 

GAAP research and development expense

 

$

55,437

 

 

$

45,591

 

 

$

199,203

 

 

$

165,370

 

Stock-based compensation expense

 

(10,958

)

 

(6,534

)

 

(35,267

)

 

(23,621

)

Employer payroll taxes on employee stock transactions

 

(968

)

 

(293

)

 

(3,670

)

 

(2,179

)

Acquisition-related expenses

 

 

 

 

 

 

 

(34

)

Non-GAAP research and development expense

 

$

43,511

 

 

$

38,764

 

 

$

160,266

 

 

$

139,536

 

GAAP sales and marketing expense

 

$

82,165

 

 

$

58,180

 

 

$

273,877

 

 

$

219,040

 

Stock-based compensation expense

 

(9,062

)

 

(5,828

)

 

(31,581

)

 

(19,334

)

Employer payroll taxes on employee stock transactions

 

(1,905

)

 

(421

)

 

(5,399

)

 

(3,237

)

Amortization of acquired intangibles

 

(1,428

)

 

(1,441

)

 

(5,730

)

 

(3,300

)

Acquisition-related expenses

 

 

 

(14

)

 

 

 

(522

)

Non-GAAP sales and marketing expenses

 

$

69,770

 

 

$

50,476

 

 

$

231,167

 

 

$

192,647

 

GAAP general and administrative expense

 

$

31,278

 

 

$

20,153

 

 

$

103,833

 

 

$

91,625

 

Stock-based compensation expense

 

(4,778

)

 

(2,690

)

 

(14,903

)

 

(9,925

)

Employer payroll taxes on employee stock transactions

 

(643

)

 

(61

)

 

(3,972

)

 

(1,550

)

Acquisition-related expenses

 

 

 

(198

)

 

 

 

(17,418

)

Non-GAAP general and administrative expense

 

$

25,857

 

 

$

17,204

 

 

$

84,958

 

 

$

62,732

 

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 and capitalized internal-use software costs. 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.

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 Jun 2021 bis Jul 2021 Click Here for more Elastic NV Charts.
Elastic NV (NYSE:ESTC)
Historical Stock Chart
Von Jul 2020 bis Jul 2021 Click Here for more Elastic NV Charts.