Elastic N.V. ESTC reported upbeat first-quarter financial results and issued second-quarter revenue guidance below estimates.
Elastic reported quarterly earnings of 35 cents per share, which beat the analyst consensus estimate of 25 cents by 40%. Quarterly sales clocked in at $347.42 million, which beat the consensus estimate by 0.79% and is a 18.27% increase from the same period last year.
"We delivered solid first-quarter results, outperforming the high end of our guidance for both revenue and profitability, and we continued to see strong adoption of our GenAI offerings. However, we had a slower start to the year with the volume of customer commitments impacted by segmentation changes that we made at the beginning of the year, which are taking longer than expected to settle. We have been taking steps to address this, but it will impact our revenue this year," said Ash Kulkarni, CEO of Elastic.
Elastic expects total revenue to be between $353 million and $355 million in the second quarter, versus the $360.87 million estimate.
Elastic shares gained 0.6% to close at $103.64 on Thursday.
These analysts made changes to their price targets on Elastic following earnings announcement.
Baird analyst Shrenik Kothari downgraded Elastic from Outperform to Neutral and lowered the price target from $135 to $95.
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B of A Securities analyst Koji Ikeda downgraded Elastic from Buy to Neutral and slashed the price target from $140 to $94.
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