Elastic N.V., a search artificial intelligence (AI) company, has recently released its 10-Q report. The company is known for delivering hosted and managed solutions designed to run in hybrid, public or private clouds, and multi-cloud environments in the United States and internationally. Elastic primarily offers the Elastic Stack, a set of software products that ingest and store data from various sources and formats, as well as performs search, analysis, and visualization on that data. The company's Elastic Stack product portfolio comprises Elasticsearch, Kibana, Elasticsearch Relevance Engine, Elastic Agent, Logstash, and Beats, providing solutions for search AI applications, logs, metrics, application performance monitoring, synthetic monitoring, and security information and event management.
In the 10-Q report, Elastic discussed its management's discussion and analysis of financial condition and results of operations. The report highlighted that as of January 31, 2025, the company had approximately 21,350 customers compared to approximately 20,800 customers as of January 31, 2024. The majority of new customers use Elastic Cloud. Additionally, the report mentioned that the number of customers who represented greater than $100,000 in annual contract value was over 1,460 as of January 31, 2025. Elastic also emphasized its business model, primarily based on a combination of a paid Elastic-managed hosted service offering and paid and free proprietary self-managed software. The company generates revenue primarily from sales of subscriptions to its platform, with subscriptions accounting for 93% of total revenue for the nine months ended January 31, 2025 and 2024.
Elastic also discussed key factors affecting its performance, including the increasing adoption of Elastic Cloud, growing the Elastic community, developing new features for the Elastic Stack, converting users of its software to paid subscribers, and expanding within its current customer base. The company highlighted that Elastic Cloud contributed 46% of its total revenue for the nine months ended January 31, 2025 and 43% for the same period in 2024. Elastic emphasized its strategy of providing access to source available software, on both a paid and free-of-charge basis, and fostering a community of users and developers, aiming to capitalize on significant untapped potential for the use of its technology. Additionally, the report mentioned that the company plans to continue investing in building new features and solutions that expand the capabilities of the Elastic Stack and drive usage of its products and ultimately its growth. The market has reacted to these announcements by moving the company's shares 13.7% to a price of $115.12. Check out the company's full 10-Q submission here.
