Elastic N.v. · NYSE:ESTC
Elastic — Investor Day (September 2022)
187 slides from Elastic's investor day presentation, Sep 19, 2022
Slide 1: Elastic Financial Analyst Day 2022
Elastic Financial Analyst Day 2022 September 19, 2022 1
Slide 2: Forward-looking statements and non-GAAP
This presentation and the accompanying oral presentation contain forward-looking statements that involve substantial risk and uncertainties, which include, but are not limited to, our future results of operations and financial position, including our expected financial results for the fiscal fiscal
Slide 3: Elastic Investor Day 2022
Elastic Investor Day 2022 Ash Kulkarni Shay Banon Janesh Moorjani Michael Cremen Rick Laner CEO Co-Founder & CTO CFO & COO Chief Sales Officer Chief Customer Officer Steve Kearns Sajai Krishnan Santosh Krishnan Matt Riley Nikolay Beliov VP GM GM GM VP Elastic Platform Elastic Observability Elastic S
Slide 4: Agenda
Agenda Topic Presenter Time Elastic Business Strategy Ash Kulkarni 1:00pm PT Elastic Search Platform Shay Banon with GMs & Product Leads 1:30pm PT Break 3:00pm PT Accelerating GTM Michael Cremen 3:15pm PT Customer Panel Rick Laner 3:45pm PT Journey to $2B with Profitable Growth Janesh Moorjani 4:15p
Slide 5: Elastic Business Strategy
Elastic Business Strategy Ash Kulkarni CEO 5
Slide 6: We live in a world of exponential data growth & increasing complexity
We live in a world of exponential data growth & increasing complexity Increasing User Expectations Digital Transformation Cloud Migration Unstructured Data Semi-structured Data Structured Data 6 6
Slide 7: Organizations need to
Organizations need to Visualize and Explore Search and Analyze Ingest Everything Public cloud Hybrid On-premises 7
Slide 8: Search-Powered Solutions
3 Search-Powered Solutions Enterprise Search Observability Security Observability Security Enterprise Search Visualize and Explore Unified dev and ops interface, workflow Interactive visualizations, investigation Relevance workflows, for accelerated root cause & response workflows, automation & resp
Slide 9: Elastic Search Platform
Elastic Search Platform Enterprise Search Observability Security Kibana Visualize and Explore Elasticsearch Search and Analyze Integrations Ingest Everything Public cloud Hybrid On-premises 9
Slide 10: Key differentiators of the Elastic Search Platform
Key differentiators of the Elastic Search Platform Powered by Delivered in Designed with search technology one platform open architecture 10
Slide 11: Powered by search technology
Powered by search technology Speed Real-time (milliseconds) Scale Petabyte scale Relevance ML, vector search Insight Analytics and visualization 11
Slide 12: Delivered in one platform
Delivered in one platform Simple getting started experience Unified end-to-end workflows across solutions for all three solutions Single resource-based pricing model Effortlessly correlate and reuse data and consumption billing for all three across use cases and solutions in a solutions single data
Slide 13: Designed with an open architecture
Designed with an open architecture ● A robust community with 12 years of history ● 200+ pre-built connectors ● A rich ecosystem of partners (Hyperscalers, GSIs, MSSPs, Technology Partners) 13
Slide 14: Built on a ubiquitous foundation
Built on a ubiquitous foundation Sep 2022 3.6B+ Downloads 3.6B 103K+ GitHub Stars 183K+ Pull Requests IPO - 2018 350M Cumulative downloads 14 * GitHub stars, and PRs across Elasticsearch, Kibana, Logstash, and Beats
Slide 15: Available wherever our customers are
Available wherever our customers are Public cloud Hybrid On-premises 53 regions globally 6B search requests per day Amazon Web Services Google Cloud Microsoft Azure 15 15
Slide 16: Why customers choose: Observability
WHY CUSTOMERS CHOOSE Infrastructure Synthetic RUM + Mobile Continuous Log Analytics APM Monitoring Monitoring Monitoring Profiling + More than 40 on-prem and Visualize and Explore cloud applications to observe Unified dev and ops interface workflow for accelerated root cause & response + Chose Elast
Slide 17: Why customers choose: Security
WHY CUSTOMERS CHOOSE Endpoint Cloud SIEM / Security Analytics Continuous Automated Investigation & Threat Monitoring Threat Protection Incident Response Hunting + Over 1,000 pieces of internal Visualize and Explore network equipment and multiple Interactive visualizations, investigation workflows, a
Slide 18: Why customers choose: Search (BMW)
WHY CUSTOMERS CHOOSE Search Applications Embedded Search Customer Support Marketplace Search BMW App Search Workplace Search + Customers worldwide searching Visualize and Explore across millions of unique Relevance workflows, pre-configured experiences permutations of car configurations Search and A
Slide 19: Our total addressable market
Our total addressable market $88B $31B $88B $25B $45B $20B $12B 2018 2023 Significant expansion from organic growth & expanding into new markets Source for 2023 TAM: IDC Semiannual Software Tracker - Final Historical 2021 | H2; IDC Semiannual Security Products Tracker - Final Historical 2021 | H2 Se
Slide 20: Elastic's growth vectors
Elastic’s growth vectors As new customers As customer data As customers adopt adopt Elastic volume grows more use cases As customers adopt As customers adopt As customers adopt higher more solutions the cloud subscription tiers Almost 400 customers 39% of revenue via Cloud, Enterprise tier is the >$
Slide 21: Go to Market Strategy
Go to Market Strategy Bottom Up Top Down Community Instrumentation Cloud Marketplaces Expansion Onboarding Customer Buying Journey 21
Slide 22: Our Go to Market Strategy: Land
Land with: SIEM Land with: Log analytics Our Go to Market Strategy: Land Land with: Search applications 22 22
Slide 23: Our Go to Market Strategy: Expand within
Expand within: + Endpoint + Cloud + XDR Expand within: + APM + Infrastructure + Digital exp (RUM + synth) Expand within: + eCommerce + Workplace search + Customer support Our Go to Market Strategy: Expand within 23 23
Slide 24: Our Go to Market Strategy: Expand across
Expand across: DevSecOps Expand across: Trusted Customer Experiences Expand across: Observability for Our Go to Market Customer Experiences Strategy: Expand across 24 24
Slide 25: Emirates NBD
Emirates NBD 25 @eastic
Slide 26: 1. Started with Log Analytics
1. Started with Log Analytics 1 26 26
Slide 27: 2. Added on APM for greater observability
1. Started with Log Analytics 2. Added on APM for greater observability 27 27
Slide 28: 3. Expanded to protect their entire digital ecosystem w/ SIEM
3. Expanded to protect their entire digital ecosystem w/ SIEM 1. Started with Log Analytics 2. Added on APM for greater observability 28 28
Slide 29: Booking.com
29 Booking.com @eiastic
Slide 30: 1. Start with search
30 Booking.com 1. Start with search )} Elastic Enterprise Search @eastic
Slide 31: 2. Expand into log analytics
2. Expand into log analytics 1. Start with search 31 31
Slide 32: 3. Adopt for SIEM
3. Adopt for SIEM 2. Expand into log analytics 1. Start with search 32 32
Slide 33: Building a generational company
Building a generational company Durable growth Competitive moat Profitable growth Cement leadership in log analytics, The power of search across Efficient bottom up adoption SIEM, and search applications unstructured data Frictionless marketplace Support customer shift to Cloud Leverage from buildin
Slide 34: Elastic Search Platform
Elastic Search Platform Shay Banon Co-Founder & Chief Technology Officer 34
Slide 35: Accelerating Elastic through the platform
Accelerating Elastic through the platform ● Director to Vice President ● 20 years in Search & Analytics ● 8 years at Elastic Steve Kearns VP Platform Product Management 35
Slide 36: One data analytics platform for search-powered solutions
One data analytics platform for search-powered solutions Enterprise Search Observability Security Kibana Elasticsearch Integrations Public cloud Hybrid On-premises 36
Slide 37: One platform to buy, maintain, and manage
One platform to buy, maintain, and manage Observability Security Enterprise Search Kibana Elasticsearch Integrations Public Hybrid On-premises No edge of the map Tool consolidation Operational efficiencies 37
Slide 38: Pricing model encourages expansion
Pricing model encourages expansion Customers only pay for resources consumed Consistent across Easy to add new self-managed and use cases cloud deployments 38
Slide 39: Drive Efficiency
4x faster Designed for speed queries in 3 years Drive Designed to scale 20x more data Efficiency for the same cost Build once, Force multiplier benefit 3 solutions 39
Slide 40: Drive Consistency
Drive Consistency Common UX Single Common datastore schema Elastic Customers One UI One set of integrations One stack 40
Slide 41: Innovate Faster
Features Simplified in developed once Elastic Cloud Innovate Faster Accelerated solution Easy to develop development new use cases 41
Slide 42: Enabling Elastic Solutions to Grow Faster
Enabling Elastic Solutions to Grow Faster Expand across: Lead with: DevSecOps SIEM Expand within: + Endpoint + Cloud + XDR Adding a use case is as simple as adding another data source Lead with: Expand across: Log analytics Expand Trusted Customer within: Experiences Shorter sales cycle, + APM + Inf
Slide 43: Continuous Innovations in the platform
Continuous Innovations in the platform Vector Search Elastic Agent Searchable Snapshots Kibana Lens 100 Million downloads Acquired Found ELK Stack is (Elastic Cloud) Elasticsearch/ formed Kibana is born 2010 2012 2015 2017 2019 2020 2021 2022 43 43
Slide 44: Cloud first, hybrid ready
Cloud first, hybrid ready 3 clicks to deployment Easy to adopt Elastic Cloud User experience targeted to specific ecosystem Search across on-prem & Elastic Cloud 44 44
Slide 45: Doubling down on time series metrics
Doubling down on time series metrics Combining structured metrics > 70% Storage efficiency Protection from security with unstructured logs and for time series metrics threats, deeper insights traces 45
Slide 46: Enabling more powerful data analytics
Enabling more powerful data analytics Powerful queries that even Faster analysis of New query execution engine novice analysts can write complex security & enables joins & transforms observability issues 46
Slide 47: Leaning into Cloud for even more scale and speed, and reduced TCO
Leaning into Cloud for even more scale and speed, and reduced TCO Stateless Elasticsearch: Lower TCO with flexibility Elasticsearch On-Demand Independently scale each service for increased speed and cost efficiency Evolved Searchable Snapshots Decouple services like search and index from storage for
Slide 48: Summary
Summary Enterprise Search Observability Security Kibana Elasticsearch Integrations Public cloud Hybrid On-premises 48
Slide 49: Elastic Observability
Elastic Observability ● 5 months at Elastic ● GM Wavefront Observability at VMware ● 17 years GM/CEO ● Partner Booz Allen & Hamilton Sajai Krishnan General Manager, Observability 49
Slide 50: Cloud, containers, microservices, mobile are creating exploding complexity
Cloud, containers, microservices, mobile are creating exploding system dynamism and complexity, requiring new approaches to observability 50
Slide 51: Doubling developer productivity
Elastic unified observability monitors 400 services ● Easily correlate app and infra performance across AWS services (Kinesis, Lambda, ECS, Fargate etc.) Doubling ● Accolade owns the data developer ● Track business impact (e.g. patient wait time) productivity ”With Elastic, we are now able to cross-
Slide 52: Positive Elastic APM Momentum
Top 3 APM customers with 100 - 200 TBs of APM data Positive Elastic APM Momentum US Digital Media Leader 206.95 US HealthCare 126.82 Services Leader ● 31% of all observability clusters in Elastic Cloud now have APM APJ CloudCo 101.22 Leader ● A US mutual fund co. is monitoring over 1800 services wit
Slide 53: Observability is business critical even in uncertain times
Observability is business critical …even in uncertain times Observability is essential Increasing customer interest Increasing cloud & "Tool-zoo" consolidation + container adoption cloud transformation initiative ● Increasing Scale, Dynamism Ongoing customer conversation on consolidation, across var
Slide 54: Elastic: Broad adoption/familiarity, at scale
Elastic : Broad adoption/familiarity, at scale 3.6B+ downloads of ELK; a widely adopted solution for modernization ASSESS OpenTelemetry Thanos TRIAL Kiali Cloudwatch Lightstep Sentry Statsd Splunk ADOPT Jaeger OpenMetrics Datadog Prometheus Grafana Among top 3 vendors, Gartner APM and for 5 of 6 use
Slide 55: 100% integrated observability
100% integrated observability Full-stack, open and extensible Foundation in log analytics Growing into Observability Native OpenTelemetry Expanding to “Always-on” integration profiling and Cloud-first Machine Learning platform Synthetics APM User experience, Joins forces with Index Lifecycle Basic S
Slide 56: Full-stack, multi-cloud, comprehensive, performant, economical, intelligent
Customer Experience, Innovation, Cloud Adoption RUM + Log Infrastructure Synthetic Continuous APM Mobile Analytics Monitoring Monitoring Profiling Full-stack, Monitoring multi-cloud, Visualize and Explore Unified dev and ops interface comprehensive, Workflow for accelerated root cause & response Sea
Slide 57: Elastic advantage - One platform, single store
Elastic advantage - One platform, single store High cardinality, dimensionality data at scale Powerful ML & Analytics Metrics ● Anomaly detection across (keep ALL your data) all telemetry ● Unlimited Logging ● Out-of-the box & no rehydration required, customizable ML Integrated Machine always indexe
Slide 58: Elastic log analytics: A solid foundation for building upon
Elastic log analytics : A solid foundation for building upon Enterprise logs are ubiquitous, have a large footprint, and are difficult to replace Elastic Frozen 100 80 120 Log Vendor 60 Elastic 140 Hot Warm & Cold 40 160 20 180 1-18 Log Vendor Elastic Warm 0 200 Hot months 7-30 with days rollups Unl
Slide 59: Observability: Why we win
OBSERVABILITY CAPABILITIES Why we win Industry leader for log analytics Integrated observability: Open: Best-in-class - scale, performance, TCO Full-stack, multi+hybrid cloud OpenTelemetry support CAPABILITIES PLATFORM ML “everywhere” - actionable Deploy and adopt all Enduring economics: insights ac
Slide 60: FY23 Elastic Observability investments
FY23 Elastic Observability investments “Always on, continuous profiling” Cloud Synthetic Monitoring Differentiated AIops leveraging Profile everything, all the time, Cloud- and developer-first single integrated store & unified zero instrumentation, synthetic monitoring observability, underlying ML 1
Slide 61: Demo
61 Demo @eiastic
Slide 62: acmefinancial demo
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Slide 63: Elastic Observability
Elastic Observability Getting business and operational Onboard data into Elastic Observability Automatically get more out of your Insights observability data and take actions Grow and Expand Observability as the business Expand scales 63 63
Slide 64: Elastic Observability data onboarding
Elastic Observability data onboarding Single unified Agent for telemetry, forwarding data and protection Centrally managed Standardized with Open Telemetry 200+ ready-built integrations Enabled with a single click 64 64
Slide 65: Elastic Observability guided root cause analysis
Elastic Observability guided root cause analysis Correlate Traces, Logs, Metrics for better resolution Machine learning as a core driver of the root case analysis workflow 65 65
Slide 66: Logs: Unstructured at scale, with speed
Logs: Unstructured at scale, with speed Collect unstructured and structured logs Stream, categorize, analyze logs Reduce investigation time with a single pane of glass 66 66
Slide 67: Unified Observability from the user to the kernel
Unified Observability from the user to the kernel Availability monitoring, from the highest to the lowest level of the stack User experience analysis with Synthetic Monitoring 67 67
Slide 68: Federated observability - Deploy anywhere, observe everything
Federated observability - Deploy anywhere, observe everything Across Elastic Cloud, private cloud, and on-premises - in any combination Decentralized observability, with first pane experience Replication at every level, data loss prevention 68 68
Slide 69: Unique dimensions of Elastic Observability
Unique dimensions of Elastic Observability Keeping total cost of ownership under control Petabyte + scale observability Limitless Limitless retention scale Speed Federated All-in-one multi-Cloud Most flexible multi-signal observability deployment observability model Full multi-tenancy Strong root Un
Slide 70: Elastic Security
Elastic Security ● CEO of Cmd prior to acquisition ● 20+ years of product leadership ● 7+ years in Cybersecurity ● 1 year at Elastic Santosh Krishnan General Manager, Security 70
Slide 71: Modern security challenges are all connected to data
Beneath the surface, modern security challenges are all connected to data 71
Slide 72: Expand security data visibility & coverage
● Increased security related log collection from 500 GB per month to over 10 TB per month ● Reduced response times for security Expand security data incidents by 30% visibility & coverage with “Protecting OLX mission-critical data with Elastic Security gives us and our customers the confidence that
Slide 73: Vision: Modernize security operations with the power of data
Vision: Modernize security operations with the power of data Expand Detect and prevent Reduce time to Integrate security Ready for hybrid visibility into threat threats in real time response and tooling into a and multi-cloud surface protection consolidated environments offering 73
Slide 74: From analytics to a comprehensive offering
From analytics to a comprehensive offering Gartner Launch Cloud Launch SOAR for modern “Voice of security SOC customer”, & Elastic recognized in Security Labs Forrester XDR & EDR Wave Join forces with Release build.security Limitless and Cmd XDR- GA Enable limitless Endpoint data with Security searc
Slide 75: Elastic Security solution overview
Endpoint Cloud SIEM / Security Analytics Continuous Automated Investigation & Threat Monitoring Threat Protection Incident Response Hunting Visualize and Explore Interactive visualizations, investigation workflows, automation & response Search and Analyze Automated threat detection, machine learning
Slide 76: Market Tailwinds and Where We Win
Market Tailwinds and Where We Win Replace legacy SIEM with an Future-proof EDR with Consolidate fragmented analytics-based eXtended Detection and tools with unified next-generation product Response (XDR) cloud security 76 76
Slide 77: Elastic Security by the numbers
Elastic Security by the numbers 69% 10x 25% #5 Decreases impact of Over 10x faster at ~25% of ACV in Top 5 in market share, top 3 threats by 69%, with lower cost FY22 in growth 90% customer satisfaction (Forrester TEI) (IDC Worldwide SIEM (Annual Value Study) Market Shares, 2021) 77 77
Slide 78: Security: Why we win
CAPABILITIES SECURITY Why we win Open & integrated Native protections Automated insights Consolidated use cases, OOTB detections powered by ML Insights driven investigate rich integrations models and threat research workflows and incident response CAPABILITIES PLATFORM One platform Data management S
Slide 79: FY23 Elastic Security investments
FY23 Elastic Security investments ● Remediation center ● CWP for cloud-native workloads, containers, and hosted Kubernetes ● File and process operations CWP & ● CSPM across native and hosted K8s Response actions ● Integrated and native SOAR CSPM Endpoint Cloud SIEM ● New tools to integrate ● Host an
Slide 80: Demo
80 Demo @eiastic
Slide 81: Elastic Security
Elastic Security Search, Detect, Detecting the most complex Investigate threats, powered by search Expand into automation and Automation, prevention with actions and Elastic Prevention and Agent Remediation Arm organizations with tools, Open and knowledge and confidence to tackle transparent the ski
Slide 82: Dedicated views: Multiple teams, one platform
Dedicated views: Multiple teams, one platform Pivot between solutions with a single click Use the same agent to collect data, regardless of the source Check for compliance, and take preventative action 82 82
Slide 83: Complex searches over unstructured data, with ease
Complex searches over unstructured data, with ease 83 83
Slide 84: Cross Cluster Search and Autoscaling
Cross Cluster Search and Autoscaling Deploy in any cloud provider, in the region of choice Significant cost savings in data egress Deployments scale, as and when needed 84 84
Slide 85: Timeline: One unified investigative interface
Timeline: One unified investigative interface World-class investigation and response experience Correlate data sources, take notes, view machine learning anomalies and much more 85 85
Slide 86: Detection Actions: Security automation for the Enterprise
Detection Actions: Security automation for the Enterprise Automate high-fidelity preventions and actions with existing tools 86 86
Slide 87: Attack prevention: Protect users and customer data, on any device
Attack prevention: Protect users and customer data, on any device Prevent attacks on any device, without having to worry about license quotas Run Elastic Agent whenever and wherever you need it 87 87
Slide 88: Case Management
Case Management Keep track of ongoing incidents in the most collaborative way possible Integrate with any existing ticketing systems 88 88
Slide 89: Canvas: Executive Reporting, and more
Canvas: Executive Reporting, and more Executive-level reports with ease Real-time view, or export at the click of a button 89 89
Slide 90: Data Lifecycle Management
Data Lifecycle Management Data lifecycle functionality promotes extended or perpetual retention Change data retention policies on the fly, with ease 90 90
Slide 91: Searchable Snapshot View
Searchable Snapshot View Search and look back across all data, with no change to the analyst experience Save in infrastructure and storage costs, or costly data retrieval expenses When the next supply chain attack hits, checking if you’re vulnerable is just a search away 91 91
Slide 92: Detections and Investigation Guides
Detections and Investigation Guides Elastic helps with the cyber skills shortage by providing 100’s of prebuilt detection rules and investigation guides Giving teams all the help they need, right from the same console 92 92
Slide 93: Elastic Security Labs
Elastic Security Labs Teams can leverage research articles and malware analysis via Elastic Security Labs 93 93
Slide 94: Protections Artifacts
94 'v Protections Artifacts Directory Feder Deserintion Questions? Problems? Sugg: License ee Detection Rules This repotony ws fret ennouneed an East's blog pos Eos Table of Contents Overview of this repository Detection Rule contains mare han jst stator fs. This . Pon itary for ansing he AP 1 Pron
Slide 95: Unique dimensions of Elastic Security
Unique dimensions of Elastic Security Reducing risk, complexity and cost Petabyte+ scale security Limitless Limitless retention scale Speed Federated Native endpoint multi-Cloud Most flexible detection and security deployment response model Full multi-tenancy Open and Integrated machine transparent
Slide 96: Elastic Enterprise Search
Elastic Enterprise Search ● CEO of Swiftype prior to acquisition ● 12 years in Product Leadership ● 5 years at Elastic Matt Riley General Manager, Enterprise Search 96
Slide 97: Search powers our business
Search powers our business 97
Slide 98: Enterprise Search
Put search power at the heart of customer and employee experiences Search Applications Enterprise Embedded Search Customer Support Marketplace Search Search App Search Workplace Search Visualize and Explore The gold standard Relevance workflows, pre-configured experiences for building search Search
Slide 99: Leading home supplies retailer
Leading home supplies retailer • Consumer-facing Ecommerce Search application for web and mobile – Proprietary dense vector models via Machine Learning – Nearest Neighbor search at scale • Quote Center System • Order Management System • Several other search-powered applications 99 99
Slide 100: A leading multinational pharmaceutical corporation
Goals: A leading multinational ● Accelerate drug discovery by searching across scientific and experimental data pharmaceutical ● Mitigate regulatory risk with validated, real-time corporation answers to auditor questions Expediting research with structured and unstructured data searches Results: ● I
Slide 101: Elastic captures all of these use cases
Elastic captures all of these use cases, which propels our business in this market 101 101
Slide 102: Common fundamental attributes
Common fundamental attributes Unstructured Requires real-time Applications built by data at scale search & discovery developers 102 102
Slide 103: Consistent investment to maintain leadership
Consistent investment to maintain leadership Vector Search Machine Learning Model Management Enterprise Search on Elastic Cloud App Search Swiftype Launched Acquisition Prelert Acquisition ELK Stack is formed Elasticsearch is born 2010 2012 2016 2017 2018 2019 2021 2022 103
Slide 104: Searching for
Searching for ● Machine learning to scale ● A better shopping experience ● Faster implementation ● Custom search experiences ● Real time analytics ● Peak user experience And more… 104 104
Slide 105: Key product goals
Key product goals Ease of use Flexibility & power Technology leadership Critical to both developer Driving our ability to We create the search adoption and Enterprise capture such a diverse set capabilities that have readiness of use cases defined this market 105 105
Slide 106: Search: Why we win
CAPABILITIES SEARCH Why we win Established leadership Vibrant ecosystem World-class relevance 3.6B+ Downloads 183k+ Pull Requests Full-text, vector, and hybrid search Recognized leader with credibility & A passionate community of developers, yields relevant results from vast widely established footp
Slide 107: FY23 Enterprise Search investments
FY23 Enterprise Search investments Continuing to anticipate developer needs The best, unified platform for Enable increasingly sophisticated Capture the ever-increasing developer search applications use cases, based on emerging behavioral analytical data that in the Cloud technologies, at production
Slide 108: Demo
108 Demo @eiastic
Slide 109: Delivering search-powered applications; analyzing behavior
Delivering search-powered applications Analyzing behavior and tailoring outcomes 109 109
Slide 110: Demo application screen
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Slide 111: Demo application screen
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Slide 112: Demo application screen
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Slide 113: Personalized discovery and navigation experience
Personalized discovery and navigation experience, powered by full-text search Personalized recommendations, powered by machine learning search Customer support powered by natural language understanding search Legacy system offloading, powered by search 113 113
Slide 114: Trending searches demo
114 covered calls pharmaceuticals segment performance SHOP:NYSE market predictions Q4 2022 federal reserve meeting notes 1099 form great resignation Trending Trending Trending Trending
Slide 115: Personalized search history and trending searches
Personalized search history Locally and globally trending searches, based on user behavior and portfolio Typo tolerant query suggestions Relevant results across multiple data sources Adaptive relevance based on trends, recency and other configurable factors Highlighting, for best-in-class user exper
Slide 116: Market intelligence recommendations demo
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Slide 117: Personalized recommendations based on user attributes and behavior
Personalized recommendations based on user attributes and behavior Made possible by a unique combination of native machine learning techniques and vector search algorithms to create a tailored content experience Uniquely influenced by customer behavior and traits data collected and stored directly w
Slide 118: How can I help you today?
118 9/19/2022 2:02PM i! How can | help you today? On hold orders are generally cleared within 72 hours. Here are a few links to review: Guide: Reviewing a pending/held order > Forum: List of On Hold scenarios with actions > iling an On Hold Complaint > Message Ask your question
Slide 119: Automate first-touch and instantly engage with customers
Automate first-touch and instantly engage with customers, while mitigating support costs Natural language understanding enabling human, conversational expression of intent in a variety of contexts Question answering capabilities powered by unique combination of native machine learning techniques and
Slide 120: Order history and market view demo
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Slide 121: Surface critical information in end-user applications
Surface critical information usually stored in systems not generally designed for consumption in end-user applications Provide users with complete freedom to analyze and review large amounts of historical data in milliseconds Keep user data safe with tight security controls for sensitive, personal d
Slide 122: Delivering search-powered applications; analyzing behavior
Delivering search-powered applications Analyzing behavior and tailoring outcomes 122 122
Slide 123: Onboard any data within seconds on Elastic Cloud
Onboard any data within seconds on Elastic Cloud with broad portfolio of ecosystem integrations to the most adopted enterprise business systems Continuously scale searchable datasets with a few clicks at any point in time, with no operational downtime 123 123
Slide 124: User behavior and characteristics automatically captured
User behavior and characteristics automatically captured and stored along with searchable data Understand and analyze information about users, including search behavior, actions taken, content viewed and more 124 124
Slide 125: Take immediate action based on user behavior
Take immediate action based on user behavior and business objectives and key performance metrics Automate relevance improvements with intelligent suggestions designed to leverage global and local behavioral trends 125 125
Slide 126: Take immediate action based on user behavior
Take immediate action based on user behavior and business objectives and key performance metrics Automate relevance improvements with intelligent suggestions designed to leverage global and local behavioral trends 126 126
Slide 127: Native search experience instrumentation with Elastic Observability
Native search experience instrumentation with Elastic Observability, all from a single pane of glass Find bottlenecks or optimization points for the most fine-tuned performance, at any scale 127 127
Slide 128: Unique dimensions of Elastic Enterprise Search
Unique dimensions of Elastic Enterprise Search Delivering tailored relevance at scale Enterprise-ready scale Limitless Speed scale Designed for real-world, high query volume use cases Set up in minutes with One data connectors, crawlers Personalization, platform adaptive relevance for all Multi-clou
Slide 129: Accelerating GTM
Accelerating GTM ● Account Exec to Chief Sales Officer ● International / Local Experience ● 20 years in Data ● 1 year at Elastic Michael Cremen Chief Sales Officer 129
Slide 130: The Elastic Opportunity
The Elastic Opportunity Why I’m Excited About Elastic’s Future 130
Slide 131: Market and enterprise traction
Market and enterprise traction Total Customers Customers with ACV > $100K Customers with ACV > $1M >960 >18,600 >115 >730 >15,000 >610 >11,300 >75 Q1-FY23 >440 Q1-FY23 >8,100 ------ ------ >50 >19,300 >1,010 >30 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 131
Slide 132: Customers are increasingly choosing Elastic Cloud
Customers are increasingly choosing Elastic Cloud Cloud % of Total Revenue 17% 22% 27% 35% FY19 FY20 FY21 FY22 >50% of new logo dollars in Q1FY23 132
Slide 133: Why we are Winning
Differentiated One platform, hybrid Value deployment, one price model Why we are Cloud Any hyperscaler, monthly Winning or annual contract Large Elastic community, Open Heritage bottom up entry point 133
Slide 134: Opportunity to Scale GTM
Customer Top Down to Expand base Opportunity to Sales force Growing and evolving Scale GTM sales force Ecosystem Who want to do more with us (Hyperscalers, MSPs, MSSPs, GSIs, partners) 134
Slide 135: $2B and beyond
$2B and beyond Cloud Enterprise Expansion acceleration focus across platform 135
Slide 136: Cloud Acceleration: Customer Journey
Cloud Customer Journey Go to market Onboarding customers Cloud Acceleration Sales motion 136
Slide 137: Cloud Acceleration: Ecosystem Leverage
Ecosystem Leverage Cloud Acceleration Hyperscaler $150B+* MSP / MSSP / GSI 137 * $100B AWS (CY22Q2 earnings call), $51B GCP (2021-Q4 Earnings Call), Azure (not published)
Slide 138: Annual Subscription Spend: Financial Services Company
Large Enterprise Financial Services Company $1.2M Annual Subscription Spend $496K Cloud Acceleration $23K FY20 FY21 FY22 Log analytics Log analytics Log analytics SIEM SIEM 138
Slide 139: Enterprise Focus: Field Focus
Field Focus Segmentation / Verticals Investment in Enterprise Coverage Enterprise Focus SMB PLG / Automation Resource Alignment 139
Slide 140: Enterprise Focus: Sales Strategy
Sales Strategy Field operating system Sales methodology Enterprise Focus Talent / development Selling motion 140
Slide 141: Enterprise Focus: New Customer Acquisition
New Customer Acquisition / enterprise Outbound motion (SDR) Enterprise Focus 141
Slide 142: Expansion Across the Platform: Customer Cross-sell
Customer Cross-sell Net new workloads / solutions Outbound takeout / consolidation Expansion Across the Single pricing model Platform Agility via Cloud 142
Slide 143: Expansion Across the Platform: Enablement
Enablement & Instrumentation Finding whitespace with C360 ID Opportunities for customer value Expansion Across the Upsell with ML/AI Platform Platinum to Enterprise 143
Slide 144: Expansion Across the Platform: Methodology
Strategic Selling Methodology Customer buying journey Customer lifecycle Expansion Across the Platform 144
Slide 145: Annual Subscription Spend: Enterprise CPG Company
Large Enterprise CPG Company $2M Annual Subscription Spend $1.4M $1.2 Expansion Across $1M the Platform $220K Up to FY19 FY20 FY21 FY22 Log Analytics Log Analytics Log Analytics Log Analytics (Elastic Cloud) Search Search Search Security Security Security 145
Slide 146: Customer Panel
Customer Panel ● Consultant to Chief Customer Officer ● International / Local Experience ● 20+ years in Customer Success, Services leadership ● 1 year at Elastic Rick Laner Chief Customer Officer 146
Slide 147: Customer Panel
Customer Panel Marcel Matus Biji John Kevin Serafin Development Manager Director, Cloud Security Director, Incident Response 147
Slide 148: Journey to $2B with Profitable Growth
Journey to $2B with Profitable Growth Janesh Moorjani CFO and COO 148
Slide 149: Strong track record of driving growth
Strong track record of driving growth Total Revenue Cloud Revenue $ millions $ millions $250 $239 $98 $224 $206 $88 $193 $80 $178 $69 $157 $62 $145 $129 $51 $45 $37 $33 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 44% 43% 39% 44% 50% 42%
Slide 150: Durable Growth – Path to $2B Driving Profitable Growth
Durable Growth – Path to $2B Driving Profitable Growth 150 150
Slide 151: Durable Growth – Customer Model and Deployment Model
Durable Growth – Path to $2B Customer Model Deployment Model Land & Expand Cloud and Self-managed 151 151
Slide 152: Rapid, Diversified Customer Growth
Rapid, Diversified Customer Growth Subscription Customers >19,300 >18,600 >15,000 >11,300 >8,100 FY19 FY20 FY21 FY22 Q1-23 152 152
Slide 153: Customers among the top 10 companies of each industry
Customers among the top 10 companies of each industry 10/10 10/10 9/10 9/10 9/10 Software Aerospace & Telecom Consumer Durables Media Companies Defense Services / Auto 8/10 7/10 7/10 6/10 6/10 Technology Healthcare Shipping & Diversified Hardware & Equipment & Utilities Transportation Financials Equ
Slide 154: Strong rate of new customer additions
Strong rate of new customer additions Net Customer Additions ● Over 90% of new customers landed on Cloud 1,200 Focus Shift 1,000 1,000 ● Monthly Cloud is predominant customer 900 900 acquisition motion 800 800 700 700 ● Deliberate change in customer acquisition approach starting Q4 22, to focus on c
Slide 155: Strong expansion across cohorts
Strong expansion across cohorts Net Expansion Rate slightly below 130% 1.4x in 1 year 2.1x in 2 years 2.1x in 3 years 3.3x in 4 years Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21 Apr-22 155 FY16 FY17 FY18 FY19 FY20 FY21 FY22 155
Slide 156: Elastic's Expansion Vectors
Elastic’s Expansion Vectors As customer data As customers adopt volume grows more use cases As customers adopt As customers adopt As customers adopt more solutions the cloud higher subscription tiers Almost 400 customers 39% of revenue via Cloud, Enterprise tier is the >$100K ACV with 2+ Q1 FY23 fas
Slide 157: Cloud Enterprise Subscription tier growing the fastest
Cloud Enterprise Subscription tier growing the fastest Enterprise Tier Mix in Cloud 13% ● Enterprise typically 30%-40% list price uplift vs Platinum FY22 Mix ● Driven by our innovation engine: ○ Hybrid cross-cluster search & replication 2% ○ ○ Searchable Snapshots Searchable Cold & Frozen storage FY
Slide 158: Strong expansion reflected in customer count >$100K
Strong expansion reflected in customer count >$100K Customers > $100K Spend >1,010 >960 50 >890 70 >830 60 >780 50 >730 50 >650 >670 60 >630 20 20 20 >960 >890 >830 >780 >730 >650 >670 >630 >610 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Customer Count as of Prior Quarter Net Adds in Quar
Slide 159: With significant Cloud opportunity and robust NER
…With significant Cloud opportunity and robust NER Hybrid Cloud Customers represent NER For Customers in >$100K Band significant Cloud expansion opportunity within > $100K Band * NER >135% Cloud Only 17% Hybrid Cloud ** 52% Self-Managed 31% Q1-22 Q2-22 Q3-22 Q4-22 * Based on annual customer spend of
Slide 160: Customers >$100K ACV account for 69% of customer spend
Customers >$100K ACV account for 69% of customer spend 31% 31% 31% ● Customers over $100K ACV have constituted 69% of customer spend on subscriptions in each of FY20, FY21 and FY22 69% 69% 69% ● Consistent mix from: ○ Strong new customer additions and expansion <$100K FY20 FY21 FY22 ○ Expansion >$10
Slide 161: Significant opportunity to drive wallet share expansion
Significant opportunity to drive wallet share expansion Initial Annual > $100K > $1M Contract Customer Customer $34K ~$0.6M ~$3.0M Avg. Spend Avg. Spend Avg. Spend ~18x ~5x increase increase Excludes Services 161 161
Slide 162: Revenue build framework
Revenue build framework FY22 >$100K Customers (end of year) 960+ x Annualized Spend / Customer ($M) $0.6 ÷ Mix 69% = Total Annual Customer Spend ($B) $0.9B Subscription Revenue during Year $0.8B Services Revenue $0.1B Total Revenue $0.9B Numbers rounded for presentation purposes. Underlying calculat
Slide 163: Bridge to $2B
Bridge to $2B Illustrative Scenario FY22 FY25 >$100K Customers 960+ 45 new customers / qtr 1,500+ 18% annual growth x Annualized Spend / Customer ($M) $0.6 $1.0 (NER is significantly higher) ÷ Mix 69% Maintain mix 69% = Total Annual Customer Spend ($B) $0.9B $2.2B Subscription Revenue $0.8B No chang
Slide 164: Bridge to $2bn: Core assumptions
Bridge to $2bn: Core assumptions Assumption Observations 45 quarterly net adds ● Significantly stronger historical track record >$100K ● Not dependent on new logos – Projected 1,500+ customers (compared to existing base of 3,000+ enterprise & public sector accounts) 18% spend growth per ● Net Expans
Slide 165: Deployment Model Cloud and Self-managed
Deployment Model Cloud and Self-managed 165 165
Slide 166: Robust Elastic Cloud growth
Robust Elastic Cloud growth Elastic Cloud Revenue & % of Total Revenue 39% $ Millions 35% $299 27% 22% 17% $166 $92 $98 $46 FY19 FY20 FY21 FY22 Q1-23 Y/Y Growth 80% 101% 80% 80% 59% Cloud Revenue ($M) Cloud Revenue % of Total 166
Slide 167: Sustaining the Cloud Momentum
Sustaining the Cloud Momentum Track record of Organic Growth Strong customer Robust expansion growth at scale Expansion from workload growth, acquisition >140% NER for several quarters: not driving forced migrations expand within and across ~$400M run-rate with 62% from self-managed >90% of customer
Slide 168: Elastic Cloud customer growth
Elastic Cloud customer growth >16,600 >16,000 >15,300 >14,500 >13,600 >12,700 >11,600 >10,700 >9,900 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Includes customers with Hybrid Cloud deployments 168
Slide 169: Strong expansion across cohorts in Cloud
Strong expansion across cohorts in Cloud Elastic Cloud Net Expansion Rate >140% Net Expansion Rate stronger 2.0x in 1 year for newer cohorts 2.5x in 2 years 2.6x in 3 years 4.0x in 4 years Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21 Apr-22 FY16 FY17 FY18 FY19 FY20 FY21 FY22 169 169
Slide 170: FY24 and FY25 Growth Model
FY24 and FY25 Growth Model Total Revenue $2.000B ● Strong start to FY23 revenue growth ○ Q1 23: 34% Y/Y CC ○ Q2 23: 32% Y/Y CC guidance 36% $1.083B CAGR ● Increased cloud mix of ~6%-7% per year provides natural Y/Y growth acceleration of ~3% in FY24 and additional ~3% in FY25 ● Self-managed grows at
Slide 171: Driving Profitable Growth
Driving Profitable Growth 171 171
Slide 172: Operating leverage inherent in the model
Operating leverage inherent in the model FY18 FY22 FY23* Non-GAAP Operating Margin % -20.0% 0.1% 0.5% Slightly Adjusted Free Cash Flow Margin % -14.9% 1.2% positive FY23: Absorbing ~200-300 bps gross margin impact from Cloud mix shift plus return of travel (~$8M-$12M) * Guidance midpoint/outlook as
Slide 173: Non-GAAP gross margin leverage
Non-GAAP gross margin leverage Non-GAAP Gross Non-GAAP Gross Margin Profit ($M) ● Elastic Cloud to remain a $793 modest headwind to FY23 to non-GAAP gross margin $804 * 76.2% 73.2% (~200-300 bps) to $657 74.2% ● Non-GAAP gross margin leverage through: ○ Higher Enterprise tier mix ○ Investments in pr
Slide 174: Increasing R&D investment and innovation while driving leverage
Increasing R&D investment and innovation while driving leverage Non-GAAP R&D Non-GAAP R&D % of Spending ($M) Revenue ● High velocity of innovation with proprietary features drives competitive advantage and 26.3% $204 rapid monetization $160 ● Operating leverage through: 23.7% ○ Single code base acro
Slide 175: Scaling Go-to-Market efficiently to drive growth
Scaling Go-to-Market efficiently to drive growth Non-GAAP S&M Non-GAAP S&M % of Spending ($M) Revenue ● Cloud focus + Enterprise focus 40.7% ● 1Q-3Q FY22 accelerated build of $351 sales capacity; continued but disciplined investment since 38.0% $231 ● Focus on customers with higher propensity to spe
Slide 176: G&A leverage natural with scale
G&A leverage natural with scale Non-GAAP G&A Non-GAAP G&A % of Spending ($M) Revenue $100 14.0% $85 ● Top line growth > investment growth 11.6% ● Continued efficiencies with scale FY21 FY22 Long-term FY21 FY22 Long-term 176 176
Slide 177: Long-term Financial Framework
Long-term Financial Framework Re-accelerating top line while delivering non-GAAP operating margin expansion ● $2B in total revenue by FY25; Recurring revenue > 90% of total revenue ● Cloud 50% of total revenue in Q4 24 ● Non-GAAP Operating Margin expansion by several percentage points in FY24 and FY
Slide 178: Re-accelerating top line while delivering non-GAAP operating margin expansion
Re-accelerating top line while delivering non-GAAP operating margin expansion ● Strong product-market fit with differentiated value proposition across solutions ● Track record of strong, consistent GTM execution ● On track to achieve goal of Cloud at 50% of revenue in Q4 FY24 ● Confident path to $2B
Slide 179: Q&A
Q&A 179
Slide 180: Appendix
180 Appendix @eiastic
Slide 181: Demonstrated success in growing solutions rapidly
Demonstrated success in growing solutions rapidly FY22 Mix FY22 Growth Rate Path to $2B (FY25) ● Land: SIEM Security ~ 25% Fastest ● Expand: endpoint + cloud security In-line with ● Land: log analytics Observability 40%+ overall ● Expand: APM + Infr. monitoring ● Land: App Search Enterprise Search S
Slide 182: Elastic Cloud contracting models
Elastic Cloud contracting models Annual Model Monthly Model ● Committed capacity contracts, mainly ● Month-to-month self-service option - consumption-based efficient customer acquisition engine ● Typically one year or longer ● Includes on-demand usage above contracted levels for annual customers ● G
Slide 183: SBC Expense and Net Dilution
SBC Expense and Net Dilution 2.6% 0.9% $141 ● Focused on managing economic impact of stock grants, i.e. dilution $94 ● Managed FY22 dilution (2.6%) comfortably below target (5%) despite market volatility ● Targeting ~5% annual share count dilution (excluding acquisitions) FY21 FY22 SBC to Revenue 15
Slide 184: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Gross Profit and Gross Margin $ in millions, except percentages FY22 GAAP gross profit $630.2 (+) Stock based compensation 14.8 (+) Amortization of acquired intangibles 10.5 (+) Employer payroll taxes on employee stock transactions 1.4 Non-GAAP gross profit $656.9 GA
Slide 185: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Operating Margin FY18 FY22 GAAP operating margin % (30.0%) (20.1%) (+) Stock based compensation 8.0% 16.4% (+) Amortization of acquired intangibles 1.3% 1.8% (+) Acquisition-related expenses 0.8% 0.9% (+) Employer payroll taxes on employee stock transactions 0.0% 1.2
Slide 186: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Operating Expenses FY21 FY22 $ in millions, except percentages FY21 FY22 % of Revenue % of Revenue GAAP sales & marketing expenses $273.9 $406.7 45.0% 47.2% (-) Stock based compensation (31.6) (45.8) (5.2%) (5.3%) (-) Amortization of acquired intangibles (5.7) (5.3)
Slide 187: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Adjusted Free Cash Flow Margin FY18 FY22 Net cash provided by (used in) operating activities (as a percentage of total revenue) (13.0%) 0.7% (-) Purchase of property and equipment (as a percentage of total revenue) (1.9%) (0.3%) (-) Capitalization of internal-use sof