SAN FRANCISCO - Elastic NV (NYSE:ESTC) shares jumped over 31% in premarket trading Friday after the search and data analytics company reported fiscal second quarter results that exceeded analyst expectations and raised its full-year guidance.
For the quarter ended October 31, Elastic posted adjusted earnings of $0.59 per share, significantly beating the consensus estimate of $0.38. Revenue grew 18% year-over-year to $365 million, topping analyst projections of $354.3 million.
"Elastic delivered a strong second quarter supported by solid sales execution, exceeding our guidance across all revenue and profitability metrics," said CEO Ash Kulkarni in a statement.
The company's Elastic Cloud revenue, a key growth driver, increased 25% year-over-year to $169 million. Total (EPA:TTEF) subscription customer count rose to approximately 21,300, up from 20,700 in the same quarter last year.
Looking ahead, Elastic provided an upbeat outlook that surpassed Wall Street's forecasts. For the current third quarter, the company expects adjusted EPS of $0.46-$0.48 on revenue of $367-369 million, above consensus estimates of $0.41 EPS and $366.7 million in revenue.
For the full fiscal year 2025, Elastic raised its guidance, now projecting adjusted EPS of $1.68-$1.72 on revenue of $1.451-1.457 billion. This outlook is higher than analysts' expectations of $1.53 EPS and $1.442 billion in revenue.
Following the report, Baird analysts upgraded Elastic stock to Outperform, citing "a significant unexpected turnaround in execution," evident in the Q2 print. This is highlighted by strong commitments, healthy consumption, improved win-rates and GenAI-inflection validating our medium-term/long-term thesis," analysts said.
Baird also raised the price target from $95 to $135.
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