After posting a solid earnings beat, Elastic’s stock bounces higher in extended trading
Shares of the enterprise search software company Elastic N.V. soared more than 19% in extended trading today after the company delivered fiscal first-quarter results that easily beat Wall Street’s targets.
The company reported earnings before certain costs such as stock compensation of 70 cents per share, breezing past the analyst consensus estimate of 58 cents. Revenue for the quarter rose 15% from a year earlier, to $478 million, topping the Street’s $470 million forecast.
It was a strong showing by Elastic, and it helped the company to improve its bottom line. Although it still posted a net loss of $16.7 million for the quarter, that was a big improvement on the $24.6 million loss it reported in the same quarter a year ago.
Elastic might not be a household name, but it’s well-known in the enterprise. It’s the company behind the open-source search engine called Elasticsearch, which is used by thousands of midsized and larger businesses all over the world. Elastic makes the platform free to download, monetizing it by selling a special, cloud-hosted version with premium features. It also has a growing business selling application observability and threat detection tools.
