Slide 1: Corporate Overview and Q3FY25 Financial Results
Corporate Overview and Q3FY25 Financial Results February 27, 2025
Slide 2: Forward Looking Statements; Use of Non-GAAP Measures
This presentation and the accompanying oral presentation contain forward-looking statements that involve substantial risks and uncertainties, which include, but are not limited to, statements regarding our expected financial results for the fiscal quarter and the fiscal year ending April 30, 2025, o
Slide 3: Elastic, the Search AI Company
Elastic, the Search AI Company, combines the precision of search with the intelligence of AI to help everyone find answers that matter from all data. In real time. At scale. 3
Slide 4: Today's Business Priorities all Connect to Data
Todayʼs Business Priorities all Connect to Data Elevating Customer Experiences Improving Operational Resilience Mitigating Security Risk 4
Slide 5: But the mountain of data is enormous
But the mountain of data is enormous People canʼt find what theyʼre looking for 480EB 1 EB 1000 PB 1,000,000 TB Data produced daily by 2025 *Source: IDC Global DataSphere and StorageSphere Forecasts 5
Slide 6: Generative AI is disrupting every business
Generative AI is disrupting every business n 72% 300M 10 ORGANIZATIONS JOBS AUTOMATED TECHNOLOGY SHIFTS have adopted AI in 1 or more Forecasted impact of Personalization, business functions* Generative AI automation & productivity Mainframes Databases Microprocessor Modern OS WWW Cloud Mobile GAI 1
Slide 7: Search is critical for Generative AI
Relevance & natural language understanding Search is at the forefront of latest advancements Optimized to scale large data volumes Search is critical Search delivers results with speed and for Generative AI at a lower cost Foundational framework for AI apps Search is an investment in harvesting data
Slide 8: One Search AI Platform
One Search AI Platform Two Out-of-the-Box Solutions The Freedom to Build Anything Build Your Own Out-of-the-Box Solutions Elasticsearch Observability Security Search AI Platform Ingest Process Storage & Search AI & ML Visualization Workflow Replication Analysis Automation Search AI Lake 8
Slide 9: A Comprehensive and Open Platform that Delivers Relevant Results in Real-time
A Comprehensive and Open Platform that Delivers Relevant Results in Real-time Any Data, Business Outcomes Any Source for Everyone Build Your Own Out-of-the-Box Solutions Databases Elasticsearch Observability Security Legacy 69% Systems Improvement in customer and employee Public Cloud Search AI Plat
Slide 10: Featuring the Industry's Only Search AI Lake
Featuring the Industryʼs Only Search AI Lake Build Your Own Out-of-the-Box Solutions Elasticsearch Observability Security Search AI Platform Ingest Process Storage & Search AI & ML Visualization Workflow Replication Analysis Automation Search AI Lake 10
Slide 11: Search AI Lake: A Whole New Architecture for the Gen AI Era
Search AI Lake: A Whole New Architecture for the Gen AI Era Data Warehouse Data Lake Lakehouse Search AI Lake Response Time: Response Time: Response Time: Response Time: Minutes 10s of Seconds Seconds Milliseconds Elasticʼs Search AI Lake is a stateless, AI-optimized data repository for both structu
Slide 12: Adopting Search AI Has Never Been Easier
Adopting Search AI Has Never Been Easier + + Elastic Self-Managed Elastic Cloud Hosted Elastic Cloud Serverless Spin up Elastic Self-Managed AutoOps on Elastic Cloud Hosted Deploy and use Elastic via Elastic with one simple command. provides easy cluster management, Cloud Serverless without managing
Slide 13: The Speed, Scale, and Flexibility of the Search AI Platform
The Speed, Scale, and Flexibility of the Search AI Platform WHY CUSTOMERS CHOOSE THE SEARCH AI PLATFORM + One of the world's leading digital travel Build Your Own Out-of-the-Box Solutions companies, ingesting 100 terabytes of data per day to support customers Elasticsearch Observability Security + C
Slide 14: The Flexibility to Build Your Own Search Experiences
The Flexibility to Build Your Own Search Experiences WHY CUSTOMERS CHOOSE ELASTICSEARCH + Customers worldwide searching across millions of unique permutations of car configurations + Chose Elastic for the ability to deliver a centralized, searchable repository, tailored to different sales channels,
Slide 15: A Comprehensive, AI Driven Observability Solution
A Comprehensive, AI Driven Observability Solution WHY CUSTOMERS CHOOSE ELASTIC OBSERVABILITY + Ingests 400 terabytes of telemetry data per day with Elastic Observability + Provides a single view across infrastructure, monitoring changes including more than 50,000 software builds a day + “Elastic pro
Slide 16: A Comprehensive, AI Driven Security Solution
A Comprehensive, AI Driven Security Solution WHY CUSTOMERS CHOOSE ELASTIC SECURITY + Over 1,000 pieces of internal network equipment and multiple security data silos + Chose Elastic for the ability to ingest all their security data, standardize it, and automatically detect threats + Now they can con
Slide 17: Years of Search and AI Expertise to Search AI
Years of Search and AI Expertise ⟶ Search AI Foundational 2018 2021 2022 2023 2024 technical building Support for Bring your own Native support Support for Most downloaded blocks within the supervised and transformer for vector search domain- specific Vector DB Elastic Stack unsupervised models (e.
Slide 18: Elastic provides ALL the capabilities you need to power GenAI
Elastic provides ALL the capabilities you need to power GenAI Most Vector Databases Hybrid Search (text + vector) Store & Search Vector Some Vector Databases Embeddings Choice & Flexibility of embedding models Inference Filtering & Faceting Service Elasticsearch Create Vector Embeddings Aggregations
Slide 19: A safer, more cost effective approach to GenAI
Delivers the most relevant content Before GenAI composes a response, Elasticsearch delivers the most relevant content to best answer the query Maintains security and confidentiality Recognizes and implements the A safer, more cost appropriate access to the user and data, effective approach removes p
Slide 20: Search AI Expertise Built into Each Elastic Solution
Search AI Expertise Built into Each Elastic Solution From Search to Observability to Security Elasticsearch Observability Security Semantic Search Anomaly Detection Threat Intelligence Image Search AIOps Automated Alerting Sentiment Analysis Automatic Import AI Assistant Recommendations Interactive
Slide 21: Recognized Leadership in Search, Log Analytics, and Security Analytics
Recognized Leadership in Search, Log Analytics, and Security Analytics Elasticsearch Observability Security Leader in the IDC Marketscape: Leader in the Gartner® Magic Leader in IDC Marketscape for SIEM Knowledge Discovery for Quadrant™ for Observability 2024 External-Facing Use Cases 2024 Platforms
Slide 22: Trusted by Organizations Around the World
Trusted by Organizations Around the World AUTOMOTIVE / TECHNOLOGY FINANCE TELCO CONSUMER HEALTHCARE PUBLIC SECTOR RETAIL TRANSPORTATION 22
Slide 23: Why Elastic Wins
Why Elastic Wins Power of the Platform Power of the Community ● Solving problems from a search and AI lens: ● Millions of developers with billions of speed, scale, relevance downloads ● Strong foundation in AI/ML, with support for AI ● Facilitates bottom up adoption within across solutions enterpris
Slide 24: Elastic's Growth Vectors
Elasticʼs Growth Vectors New customers Customer data Customers adopt adopt Elastic volume grows more use cases Customers adopt Customers adopt Customers adopt higher more solutions the cloud subscription tiers 24
Slide 25: Distribution and Monetization Model
Distribution and Monetization Model Elastic Cloud Paid Hosted Standard Gold Platinum Enterprise Serverless Search Observability Security Free & Open Paid Self-managed No Support Platinum Enterprise ● Resource-based pricing model ↔ Consumption-based subscriptions on Elastic Cloud ● Subscriptions gene
Slide 26: Low-friction Go-to-Market Model
Low-friction Go-to-Market Model Customer Segment Coverage Model Enterprise Direct Sales Services Partner Ecosystem Cloud, OEM/MSP, GSI, Resellers) Commercial SMB High automation, self-serve product-led motion 26
Slide 27: Scaling with Hyperscaler Cloud Partners
● Multi-year strategic agreements with co-investments Scaling with ● Powerful technology integrations to Hyperscaler Cloud accelerate Elastic Cloud adoption Partners ● Preferential access and relationships under ISV programs ● Joint sales pursuits with sales incentives for hyperscaler sales teams 27
Slide 28: Elastic is Wherever Your Data Lives
Elastic is Wherever Your Data Lives Public Cloud Hybrid On-Premises Amazon Web Services Google Cloud Microsoft Azure 55 Cloud Regions Globally 28
Slide 29: Sustaining the Cloud Momentum
Sustaining the Cloud Momentum Track record of Organic Growth Strong Customer Robust growth at scale Acquisition Expansion Strong Sustained, Organic GTM Momentum Thriving Hyperscaler Consumption Mix Shift to Cloud Partnerships Patterns 29
Slide 30: Q3 FY25 Results
Q3 FY25 Results 30 30
Slide 31: Q3 FY25 Results At a Glance
Q3 FY25 Results At a Glance 17% 26% 17% Total Revenue Growth Elastic Cloud Revenue Growth Non-GAAP 1,460 year-over-year year-over-year Operating Customers with Margin* ACV $100K 47% of Total Revenue ACV Annual contract value 31 See appendix for reconciliation to GAAP operating margin
Slide 32: Revenue Highlights
Revenue Highlights $ millions Q3 FY25 Y/Y Y/Y CC Total Revenue $382 17% 17% Total Subscription Revenue $358 16% 17% Elastic Cloud Revenue $180 26% 26% Subscription % of Total Revenue 94% Professional Services Revenue $24 18% 18% CC Constant Currency 32
Slide 33: Strong track record of driving growth
Strong track record of driving growth 19% 20% 18% 18% 17% 29% 32% 30% 25% 26% 18% 20% 18% 17% 17% 29% 32% 30% 25% 26% As Reported Y/Y Growth % 44% 44% 45% 46% 47% As Reported Y/Y Growth % Constant Currency Y/Y Growth % Constant Currency Y/Y Growth % Cloud Revenue as a % of Total Revenue 33
Slide 34: $100K ACV Customer Trend
$100K ACV Customer Trend Change from Prior Quarter 60 50 30 30 50 60 40 50 40 34
Slide 35: $10K ACV Customer Trend
$10K ACV Customer Trend Change from Prior Quarter 100 100 70 60 60 80 60 50 60 35
Slide 36: Healthy Net Expansion Rate
Healthy Net Expansion Rate Trailing twelve month measure 112% Includes only consumption, not commitments, Q3 FY25 for customers on Cloud consumption contracts 36
Slide 37: Non-GAAP Income Statement Highlights
Non-GAAP Income Statement Highlights $ millions, except per share amounts Q3 FY25 % of Revenue Total Revenue $382 100% Gross Profit/Margin $293 77% Research & Development Expense $68 18% Sales & Marketing Expense $131 34% General & Administrative Expense $31 8% Operating Income/Margin $64 17% Earnin
Slide 38: Select Financial Measures
Select Financial Measures $ millions, except employees Q3FY25 Adjusted Free Cash Flow* $99 Cash, Cash Equivalents, and Marketable Securities $1,284 Total Deferred Revenue $707 Remaining Performance Obligations $1,354 Employees 3,403 See appendix for reconciliation to GAAP 38
Slide 39: Q4 and Full Year FY2025 Guidance
Q4 and Full Year FY2025 Guidance Q4FY25 FY25 Total Revenue $379M - $381M $1.474B - $1.476B Year-over-year growth % 13% 16% Constant currency year-over-year growth % 15% 17% Non-GAAP Operating Margin 13.5% 14.7% Non-GAAP Diluted Earnings Per Share $0.36 - $0.37 $1.91 - $1.96 Diluted Weighted Average
Slide 40: Appendix
Appendix 40
Slide 41: GAAP to Non-GAAP Reconciliations
1% GAAP to Non-GAAP Reconciliations Gross Profit and Gross Margin $ in millions except percentages Q3 FY25 GAAP gross profit $285 Stock-based compensation expense and related employer taxes 7 Amortization of acquired intangibles 2 Non-GAAP gross profit $293 GAAP gross margin % 75 % Stock-based compe
Slide 42: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Operating Expenses $ in millions except percentages Q3 FY25 GAAP sales & marketing expenses $154 Stock-based compensation expense and related employer taxes (23) Amortization of acquired intangibles — Non-GAAP sales & marketing expenses $131 Y/Y 9% GAAP research & de
Slide 43: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Operating Loss / Income, Operating Margin, and Loss / Earnings per Share $ in millions except percentages and per share amounts Q3 FY25 GAAP operating loss $(5) Stock-based compensation expense and related employer taxes 67 Amortization of acquired intangibles 2
Slide 44: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Adjusted Free Cash Flow $ in millions Q3 FY25 Net cash provided by operating activities $88 Less: Purchases of property and equipment $(1) Add: Interest paid on long-term debt $12 Adjusted free cash flow $99 Net cash provided by operating activities (as a percentage