Elastic NV Stock Surges After Q2 Earnings Beat: Retail Sentiment Bounces Back

Shares of Elastic N.V. ($ESTC) jumped over 25% in Thursday’s after-hours session after the search AI provider behind “Elasticsearch” posted strong second-quarter earnings, beating Wall Street estimates and lifting retail sentiment.

The Mountain View, Calif.-based Elasti posted non-GAAP earnings per share (EPS) of $0.59 on revenue of $365.3 million, beating consensus estimates by 54% and 3% respectively, according to Stocktwits data. The company has now beaten its earnings estimates in five consecutive quarters in the past year.

“Elastic delivered a strong second quarter supported by solid sales execution, exceeding our guidance across all revenue and profitability metrics," Ash Kulkarni, CEO of Elastic said. “In Q2 we saw strong customer commitments with key wins across all our solution areas, with continued momentum in GenAI and platform consolidation. Our clear product differentiation, and our relentless pace of innovation is helping us become a natural choice for customers building GenAI applications.”

Elastic also said its CFO and COO Janesh Moorjani will be leaving Elastic to pursue another opportunity, Moorjani’s last day with Elastic will be December 13.

Its revenues from cloud business registered a 25% y-o-y increase to $169 million. Its operating cash flow stood at $38 million, down from $53 million reported for the previous quarter.

Retail sentiment on the stock turned ‘extremely bullish’ (97/100) from ‘bearish’ (37/100) a day ago. Message volumes climbed to ‘extremely high’ levels. (97/100).

ESTC sentiment and message volumes on Nov 21 as of 8:19 pm ET| Source: Stocktwits

The company also issued forward guidance for the third quarter: It expects total revenue to be between $367 million and $369 million, representing 12-13% year-over-year growth.

While its guided to non-GAAP operating margins are expected to be around 15%.

Elastic stock is down 11.65% year-to-date.