Elastic NV Stock Surges Ahead of Q2 Earnings: Retail Sentiment Jumps

Shares of Elastic N.V. ($ESTC) were up nearly 5.2% on Thursday morning ahead of the data analytics provider’s second-quarter earnings release, lifting retail sentiment.

Wall Street analysts expect the Mountain View, Calif.-based-based Elastic to report earnings per share (EPS) of $0.38 on revenue of $354.2 million, according to Stocktwits data. The company has beaten its earnings estimates in all four quarters in the past year.

For its first quarter, Elastic’s revenues grew 18.3% year-over-year (YoY) to $347.4 million, beating estimates. Its revenues from cloud business rose 30% to $157 million while operating cash flow stood at $53 million with adjusted free cash flow of $64 million.

Retail sentiment on the stock rose to ‘extremely bullish’ (97/100) from ‘extremely bearish’ (17/100) a day ago. Message volumes continued to be in the ‘extremely high’ levels.

ESTC sentiment and message volumes on Nov 21 as of 10:23 am ET| Source: Stocktwits

Elastic has said earlier it is seeing a solid market opportunity to capture the growing demand for GenAI.

“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,” Ash Kulkarni, Elastic CEO said at the time of the first quarter earnings report. 
He also warned that the company had a “slower start to the year with the volume of customer commitments impacted by segmentation changes” it made earlier in the year that could impact its revenue this year.

Elastic stock is up 44.5% year-to-date.