Elastic N.V. Reports Strong Q2 Growth and Revenue

Elastic N.V. ( (ESTC) ) has released its Q2 earnings. Here is a breakdown of the information Elastic N.V. presented to its investors.

Elastic N.V., a leader in the search, observability, and security solutions industry, leverages its Elastic Search AI Platform to provide real-time data insights across various sectors, including many Fortune 500 companies. The company has reported its financial results for the second quarter of fiscal 2025, showcasing a strong revenue growth of 18% year-over-year with total revenue reaching $365 million. Notably, Elastic Cloud revenue surged by 25%, reflecting the growing demand for cloud-based solutions.

Key financial metrics revealed a GAAP operating loss of $4 million and a non-GAAP operating income of $64 million, reflecting an 18% margin. The company’s net loss per share stood at $0.25 under GAAP, while non-GAAP diluted earnings per share were reported at $0.59. Operating cash flow and adjusted free cash flow were recorded at $38 million, with cash and equivalents totaling $1.198 billion by the end of the quarter.

Strategically, Elastic announced a transition in their financial leadership, with Janesh Moorjani stepping down as CFO and Eric Prengel stepping in as interim CFO. This period also saw significant product innovations such as the introduction of Better Binary Quantization in Elasticsearch for cost-efficient vector search and the launch of AutoOps, enhancing Elastic Cloud’s management capabilities. Furthermore, the company has expanded its AI ecosystem to support enterprise developers in building RAG applications.

Looking ahead, Elastic forecasts a steady revenue growth for the third quarter and the fiscal year 2025, projecting total revenue between $367 million and $369 million for the next quarter, and between $1.451 billion and $1.457 billion for the fiscal year. The non-GAAP operating margin is expected to be around 15% for the upcoming quarter, reflecting continued profitability and operational efficiency.