Slide 1: Elastic N.V. (ESTC) Q3 FY2020 Earnings Conference Call
ELASTIC N.V. (ESTC) Q3 FY2020 Earnings Conference Call February 26, 2020 1
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. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looki
Slide 3: Shay Banon, Founder and CEO
Shay Banon Founder and CEO 3
Slide 4: Q3 FY2020 Summary – Strong Results
Q3 FY2020 Summary – Strong Results • Revenue grew 60% year-over-year • Over 10,500 total subscription customers • Over 570 customers with ACV greater than $100K • Net Expansion Rate continued to be greater than 130% 4
Slide 5: Free & Open Distribution Model + Commercial Business Model
Free & Open Distribution Model + Commercial Business Model Free & Open Distribution Model Commercial Business Model Rapid product adoption Strong proprietary innovation & differentiation Strong user community + Paid features Sole committer of code Unified pricing model Single code base Self-managed
Slide 6: Elastic Technology
Elastic Technology Solutions Elastic Enterprise Search Elastic Observability Elastic Security Kibana Powered by the Elastic Stack Elasticsearch Beats Logstash Deployed Elastic Cloud Elastic Cloud Elastic Cloud anywhere Enterprise on Kubernetes SaaS Orchestration 6
Slide 7: Elastic Enterprise Search: 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. 7
Slide 8: Enterprise Search
< RE/MAX ENTERPRISE SEARCH §
Slide 9: Elastic Observability: Unified visibility across your 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. 9
Slide 10: Observability
OBSERVABILITY Leading Global Investment Bank 10
Slide 11: Elastic Security: 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. 11
Slide 12: Security
Public Sector Financial Services SECURITY Telecommunications Technology 12
Slide 13: Expanding the Official Elasticsearch Service
Expanding the Official Elasticsearch Service New GCP Regions (Montreal, Virginia, and Mumbai) New Azure Region (Tokyo) 13
Slide 14: Elastic Cloud Enterprise: Centrally manage your deployments
ELASTIC CLOUD ENTERPRISE Centrally manage your Elastic deployments Provision, manage, and monitor Elastic products and solutions, at any scale, on any infrastructure, while managing everything from a single console. 14
Slide 15: Elastic Cloud Enterprise (ECE)
OBSERVABILITY Elastic Cloud Enterprise (ECE) 15
Slide 16: Elastic Cloud on Kubernetes: Official Operator, and more
ELASTIC CLOUD ON KUBERNETES Official Operator, and more Simplify setup, upgrades, snapshots, scaling, high availability, security, and more when running Elastic products and solutions on Kubernetes. 16
Slide 17: Elastic Cloud on Kubernetes (ECK)
OBSERVABILITY Elastic Cloud on Kubernetes (ECK) 17
Slide 18: Alison Gleeson, Non-executive Director
Alison Gleeson Non-executive Director (Independent Board member) 18 18
Slide 19: Sally Jenkins, Chief Marketing Officer
Sally Jenkins Chief Marketing Officer 19 19
Slide 20: Search. Observe. Protect.
Search. Observe. Protect. 20
Slide 21: Janesh Moorjani, CFO
Janesh Moorjani CFO 21
Slide 22: Revenue Highlights
Revenue Highlights $ millions Q3 FY20 Y/Y Y/Y CC Total Revenue $113.2 60% 61% Total Subscription Revenue $104.2 61% 63% SaaS Revenue $25.1 114% 118% Subscription % of Total Revenue 92% Professional Services Revenue $9.0 44% 45% 22 CC = Constant Currency
Slide 23: Strong Billings and Customer Metrics
Strong Billings and Customer Metrics Q3 FY 20 Q3 FY 20 $ millions Q3 FY20 Y/Y Y/Y CC Calculated Billings1 $122.9 54% 56% Q3 FY20 CUSTOMER METRICS Total Subscription Customers > 10,500 Subscription Customers with ACV > $100,000 > 570 Net Expansion Rate > 130% 1. Calculated Billings represents total r
Slide 24: Non-GAAP Income Statement Highlights
Non-GAAP Income Statement Highlights $ millions, except per share amounts Q3 FY20 % OF REVENUE Total Revenue $113.2 100% Gross Profit/Margin $84.7 75% Research & Development Expense $39.6 35% Sales & Marketing Expense $48.1 43% General & Administrative Expense $17.1 15% Operating Income/Margin -$20.
Slide 25: Select Financial Measures
Select Financial Measures $ millions, except employees Q3 FY20 Free Cash Flow -$24.2 Cash & Cash Equivalents $294.1 Total Deferred Revenue $209.8 Remaining Performance Obligations $426.0 Employees 1,892 25 See appendix for reconciliation to GAAP.
Slide 26: Q4 and Full Year FY 2020 Guidance
Q4 and Full Year FY 2020 Guidance Q4 FY20 FY20 Total Revenue $119M - $120M $423M - $424M Non-GAAP Operating Margin -20.5% to -19.5% Approx. -20.5% Non-GAAP Net loss per share $0.32 to $0.30 $1.13 to $1.12 Weighted average shares outstanding 82M - 83M Approx. 79M (basic & diluted) A reconciliation of
Slide 27: Q&A
Q&A 27
Slide 28: Appendix
Appendix 28
Slide 29: Product Releases
Product Releases Solutions & Elastic Stack SaaS: Elastic Cloud Orchestration: ECK & ECE • 7.6 Released • Announced general availability • Elastic Cloud on Kubernetes of Elastic App Search on Elastic (ECK) 1.0 general availability • Faster Elasticsearch queries, Cloud more turnkey machine learning •
Slide 30: Remaining Performance Obligations (RPO) Historical Trend
Remaining Performance Obligations (RPO) Historical Trend Q1 Q2 Q3 Q4 Q1 Q2 Q3 $ millions FY19 FY19 FY19 FY19 FY20 FY20 FY20 Remaining Performance $228.5 $268.5 $304.2 $352.5 $362.8 $410.0 $426.0 Obligations (RPO) 30
Slide 31: GAAP to Non-GAAP Reconciliations: Gross Profit and Gross Margin
GAAP to Non-GAAP Reconciliations Gross Profit and Gross Margin 31 Sums may not add to totals due to rounding
Slide 32: GAAP to Non-GAAP Reconciliations: Operating Expenses
GAAP to Non-GAAP Reconciliations Operating Expenses 32 Sums may not add to totals due to rounding
Slide 33: GAAP to Non-GAAP Reconciliations: Operating Loss and Net Loss per share
GAAP to Non-GAAP Reconciliations Operating Loss, Operating Margin and Net Loss per share 33 Sums may not add to totals due to rounding
Slide 34: GAAP to Non-GAAP Reconciliations: Calculated Billings, Free Cash Flow
GAAP to Non-GAAP Reconciliations Calculated Billings (excludes acquired Deferred Revenue) Free Cash Flow 34 Sums may not add to totals due to rounding
Slide 35: Elastic N.V. (ESTC) Q3 FY2020 Earnings Conference Call
ELASTIC N.V. (ESTC) Q3 FY2020 Earnings Conference Call https://ir.elastic.co/ 35