Slide 1: Q1 FY2021 Earnings Conference Call
ELASTIC N.V. (ESTC) Q1 FY2021 Earnings Conference Call August 26, 2020
Slide 2: Forward Looking Statements and Non-GAAP Disclaimer
Forward Looking Statements and Non-GAAP Disclaimer 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 expected financial results for the fiscal quarter ending October
Slide 3: Shay Banon, Founder and CEO
Shay Banon Founder and CEO 3
Slide 4: Q1 FY2021 Summary – Strong Results
Q1 FY2021 Summary – Strong Results • Revenue grew 44% year-over-year • Over 12,100 subscription customers • Over 630 customers with ACV greater than $100K • Net Expansion Rate continued to be greater than 130% 4
Slide 5: Q1 FY2021 Impact from COVID-19
Q1 FY2021 Impact from COVID-19 HEADWINDS TAILWINDS Elastic Enterprise Elastic Elastic Security Search Observability Lengthening Sales Cycles Customer Priorities Aligning to Our Solutions Reduced Demand in Some Verticals Increased Demand in Some Verticals (e.g. Hospitality, Transportation) (e.g. E-Co
Slide 6: 3 solutions
3 solutions Elastic Enterprise Search Elastic Observability Elastic Security 6
Slide 7: Resource-based Pricing
Resource-based Pricing Elastic Enterprise Search Elastic Observability Elastic Security Site Search APM SIEM No query-based pricing No agent-based pricing No seat/ingest-based pricing App Search Logs Endpoint Security No docs-based pricing No ingest-based pricing No endpoint-based pricing Workplace
Slide 8: 3 solutions powered by 1 stack
3 solutions powered by 1 stack Elastic Enterprise Search Elastic Observability Elastic Security Kibana Elasticsearch Beats Logstash Elastic Stack 8
Slide 9: Elastic Enterprise Search
Elastic Enterprise Search Workplace Search App Search Site Search 9
Slide 10: Search everything, anywhere
ELASTIC ENTERPRISE SEARCH Search everything, anywhere Easily implement powerful, modern search experiences across your website, app, or digital workplace. Search it all, simply. 10
Slide 11: Enterprise Search customers
Telecommunications Automotive ENTERPRISE SEARCH Public Sector 11 11
Slide 12: Elastic Observability
Elastic Observability Logs Metrics APM Uptime 12
Slide 13: Observability customers
Automotive OBSERVABILITY Supply Chain Management 13
Slide 14: Unified visibility across your entire ecosystem
ELASTIC OBSERVABILITY Unified visibility across your entire ecosystem Bring your logs, metrics, and traces together into a single stack so you can monitor, detect, and react to events with speed. 14
Slide 15: Unified Agent
Unified Agent Radically simplify ingest Enabling one-click data onboarding for log, metric, and endpoint security data 15
Slide 16: Elastic Security
Elastic Security Endpoint SIEM 16
Slide 17: Prevent, collect, detect, respond
ELASTIC SECURITY Prevent, collect, detect, respond Elastic Security integrates endpoint security and SIEM to give you prevention, collection, detection, and response capabilities for unified protection across your infrastructure. 17
Slide 18: Security customers
Financial Services Professional Services SECURITY 18
Slide 19: Cloud
CLOUD 19
Slide 20: Expanding the Official Elasticsearch Service
Expanding the Official Elasticsearch Service Now available in 39 regions across AWS, GCP, and Azure New AWS Regions (Canada, Paris, Seoul, GovCloud - US East); FedRAMP Moderate authorization 20
Slide 21: Paul Appleby, President, Worldwide Field Operations
Paul Appleby President, Worldwide Field Operations 21
Slide 22: Search. Observe. Protect.
Search. Observe. Protect. 22
Slide 23: Janesh Moorjani, CFO
Janesh Moorjani CFO 23
Slide 24: Revenue Highlights
Revenue Highlights Q1 FY21 Y/Y $ millions Q1 FY21 Q1 FY21 Y/Y CC Total Revenue $128.9 44% 45% Total Subscription Revenue $121.3 47% 48% SaaS Revenue $32.6 86% 86% Subscription % of Total Revenue 94% Professional Services Revenue $7.5 3% 4% CC = Constant Currency 25
Slide 25: Strong Billings and Customer Metrics
Strong Billings and Customer Metrics Q1 FY21 Y/Y $ millions Q1 FY21 Q1 FY21 Y/Y CC Calculated Billings(1) $130.0 45% 47% Q1 FY21 CUSTOMER METRICS Total Subscription Customers > 12,100 Subscription Customers with ACV > $100,000 > 630 Net Expansion Rate > 130% (1) Calculated Billings represents total
Slide 26: Non-GAAP Income Statement Highlights
Non-GAAP Income Statement Highlights $ millions, except per share amounts Q1 FY21 % OF REVENUE Total Revenue $128.9 100% Gross Profit/Margin $98.7 77% Research & Development Expense $37.6 29% Sales & Marketing Expense $47.4 37% General & Administrative Expense $18.0 14% Operating Income/Margin -$4.3
Slide 27: Select Financial Measures
Select Financial Measures $ millions, except employees Q1 FY21 Free Cash Flow $21.6 Cash & Cash Equivalents $350.4 Total Deferred Revenue $277.5 Remaining Performance Obligations $576.4 Employees 1,962 28 See appendix for reconciliation to GAAP.
Slide 28: Search. Observe. Protect.
Search. Observe. Protect. 29
Slide 29: Q2 and Full Year FY2021 Guidance
Q2 and Full Year FY2021 Guidance Q2 FY21 FY21 Total Revenue $129M - $131M $544M - $550M Non-GAAP Operating Margin -11.5% to -10.5% -13.5% to -11.5% Non-GAAP Net loss per share $0.22 to $0.20 $0.83 to $0.69 Weighted average shares outstanding 86M - 87M 87M - 89M (basic & diluted) A reconciliation of
Slide 30: Appendix
Appendix 32
Slide 31: Recent Product Releases
Recent Product Releases Continuing Rapid Pace of Innovation Elastic Enterprise Search Elastic Observability Elastic Security Elastic Cloud • Launched Elastic Workplace • Launched beta of unified • Announced first major beta • Provided easier, integrated Search on Elastic Cloud agent to simplify data
Slide 32: Remaining Performance Obligations (RPO) Historical Trend
Remaining Performance Obligations (RPO) Historical Trend Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 $ millions Remaining Performance $362.8 $410.0 $426.0 $535.6 $576.4 Obligations (RPO) 34
Slide 33: Accounting Benefit from Unrealized Foreign Currency Exchange Gains
Accounting Benefit from Unrealized Foreign Currency Exchange Gains Q1 FY2021 ● Due to significant EUR/USD rate changes, we recognized an accounting benefit of $10.1M in unrealized foreign exchange gains, arising out of certain intercompany balances. ● Intercompany balances are eliminated on consolida
Slide 34: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Gross Profit and Gross Margin 36 Sums may not add to totals due to rounding
Slide 35: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Operating Expenses 37 Sums may not add to totals due to rounding
Slide 36: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Operating Loss, Operating Margin and Net Loss per share 38 Sums may not add to totals due to rounding
Slide 37: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Calculated Billings Free Cash Flow *Free cash flow margin represents free cash flow divided by total revenue 39 Sums may not add to totals due to rounding
Slide 38: Q1 FY2021 Earnings Conference Call
ELASTIC N.V. (ESTC) Q1 FY2021 Earnings Conference Call https://ir.elastic.co/