Slide 1: Corporate Overview and Q4FY24 Financial Results
Corporate Overview and Q4FY24 Financial Results May 30, 2024
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 ending July 31, 2024 and the fiscal year end
Slide 3: Elastic - The Search AI Company
Elastic - The Search AI Company Find answers that matter. From all data. In real time. At scale. 3
Slide 4: Today's Business Priorities all Connect to Data
Today’s 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 can’t find what they’re 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: A new inflection point has occurred
A new inflection point has occurred Mainframes Microprocessor Databases Modern OS WWW Cloud Mobile, Social & IoT AI 6
Slide 7: Generative AI will disrupt every business
Generative AI will disrupt every business n 100M 300M 10 Chat GPT growth Jobs automated Technology shifts User adoption in less Forecasted impact of Personalization, than 2 months Generative AI* automation & productivity *Source: Goldman Sachs Economics Research, March 2023 7
Slide 8: 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 9: One Search AI Platform
One Search AI Platform Two Out-of-the-Box Solutions The Freedom to Build Anything Out-of-the-Box Solutions Build Your Own Elastic Observability Elastic Security Elastic Search The Elastic Search AI Platform Ingest Secure & Scalable Visualization Workflow AI / ML Search Storage Automation 9
Slide 10: Comprehensive, Open Platform that Delivers Relevant Results in Real-time
Comprehensive, Open Platform that Delivers Relevant Results in Real-time Out-of-the-Box Solutions Build Your Own Any Data, Elastic Observability Elastic Security Elastic Search Business Outcomes Any Source for Everyone Generative AI Apps, Logs, APM, Tracing, Metrics, SIEM, Endpoint, Cloud Product Se
Slide 11: The Speed, Scale, and Flexibility of the Platform
The Speed, Scale, and Flexibility of the Platform WHY CUSTOMERS CHOOSE THE ELASTICSEARCH SEARCH AI PLATFORM Out-of-the-Box Solutions Build Your Own Observability Security Search Generative AI Apps, Logs, APM, Tracing, Metrics, + One of the world's leading digital travel Synthetics, Profiling, RUM SI
Slide 12: A Comprehensive Observability Solution
A Comprehensive Observability Solution Out-of-the-Box Solutions Build Your Own WHY CUSTOMERS CHOOSE ELASTIC OBSERVABILITY Any Data, Observability Any Source Logs, APM, Tracing, Metrics, Synthetics, Profiling, RUM Traditional Signals The Elastic Search AI Platform Logs + Ingests 400 terabytes of tele
Slide 13: A Comprehensive Security Solution
A Comprehensive Security Solution Out-of-the-Box Solutions Build Your Own WHY CUSTOMERS CHOOSE ELASTIC SECURITY Any Data, Security Any Source SIEM, Endpoint, Cloud Bring Your Data Detect, Investigate, and Respond The Elastic Search AI Platform Cloud + Over 1,000 pieces of internal Network network eq
Slide 14: The Flexibility to Build Your Own Search Solution
The Flexibility to Build Your Own Search Solution Out-of-the-Box Solutions Build Your Own WHY CUSTOMERS CHOOSE ELASTICSEARCH Any Data, Search Any Source Generative AI Apps, Product Search, Workplace Search, Custom Search Apps The Elastic Search AI Platform Native Connectors + Customers worldwide sea
Slide 15: Elasticsearch Relevance Engine, Democratizing AI
Elasticsearch Relevance Engine, Democratizing AI Out-of-the-Box Solutions Build Your Own Gives developers a powerful set of machine Observability Security Search learning tools to build Logs, APM, Tracing, Metrics, Synthetics, Profiling, RUM SIEM, Endpoint, Cloud Generative AI Apps, Product Search,
Slide 16: Elasticsearch Relevance Engine
Elasticsearch Relevance Engine Bringing Enterprise Context with Security and Compliance to your Generative AI Solutions ● Sensitive databases ● Multi-system / cloud information ● Private knowledge bases ● Case histories ● Runbooks 16
Slide 17: Years of ML & AI Expertise
Years of ML & AI Expertise Foundational 2018 2021 2022 2023+ technical building Support for Bring your own Native support Support for blocks within the supervised and transformer for vector search domain- specific Elastic Stack unsupervised models (e.g. and embedding generative learning Hugging Face
Slide 18: Foundational AI tools — why Elastic?
Foundational AI tools — why Elastic? Advantages of Machine Learning with Elastic Comprehensive Enterprise Scale Fast Time to Value Vector Search Automate and Manage Custom HNSW, Approximate Nearest Neighbors ML APIs , Data Frames, Inference Code: Train, engineer and (ANN) Pipeline, Model Management,
Slide 19: Only Elastic provides ALL the capabilities you need
Only Elastic provides ALL the capabilities you need Most Vector Databases Hybrid Search (text + vector) Store & Search Vector Some Vector Databases Choice & Flexibility Embeddings of embedding models Filtering & Faceting Elasticsearch Create Vector Embeddings Aggregations Autocomplete Search Optimiz
Slide 20: 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 A safer, more Maintains security and confidentiality Recognizes and implements the cost effective appropriate access to the user and data, removes private in
Slide 21: AI Expertise Built into Each Elastic Solution
AI Expertise Built into Each Elastic Solution From Observability to Security to Search Observability Security Search Anomaly Detection Threat Intelligence Semantic Search AIOps Automated Alerting Image Search Interactive Root Cause Analysis AI Assistant Sentiment Analysis Integrated Case Management
Slide 22: A Year of Innovation at Elastic
FY24 A Year of Innovation at Elastic 22 22
Slide 23: Elastic Search AI Platform
Elastic Search AI Platform Elasticsearch Elastic Elastic Cloud Query Language Search Lake Serverless New piped language and query engine A cloud native architecture bringing Hassle-free administration, rapid that transforms, enriches, and simplifies together the expansive storage capacity onboarding
Slide 24: Elasticsearch
Elasticsearch ELSER Vector Database GenAI Ecosystem Elastic Learned Sparse EncodeR (ELSER) Elastic worked with Lucene to deliver up to Elastic has integrated with leading is Elastic’s proprietary zero-shot ML 8x faster performance and 32x higher providers of models and tooling to offer model, improv
Slide 25: Elastic Observability
Elastic Observability OpenTelemetry AI Assistant for Support for More Support Observability Signals Elastic contributed the Elastic Common Accelerate incident management and Support for two new signals: Universal Schema (ECS) to OTEL and changed the root cause analysis, interactively explore Profili
Slide 26: Elastic Security
Elastic Security Attack Discovery AI Assistant for Extended Protections Security for Security Analytics Attack Discovery triages hundreds of The AI Assistant for Security boosts Elastic Security integrates with 3rd party alerts down to the few attacks that cybersecurity operations, makes SIEM endpoi
Slide 27: Leadership in Security Analytics, Log Analytics, and Search
Leadership in Security Analytics, Log Analytics, and Search Observability Security Search Strong Performer in The Forrester Leader in The Forrester Wave™: Leader in the Gartner® Magic Wave™: AIOps, Dec. 2022 Security Analytics Platforms, Dec. Quadrant™ for Insight Engines, Dec. Visionary in the Gart
Slide 28: Trusted by Organizations Around the World
Trusted by Organizations Around the World AUTOMOTIVE / TECHNOLOGY FINANCE TELCO CONSUMER HEALTHCARE PUBLIC SECTOR RETAIL TRANSPORTATION Airbus 28
Slide 29: 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 30: Elastic's Growth Vectors
Elastic’s 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 30
Slide 31: Distribution and Monetization Model
Distribution and Monetization Model Elastic Cloud Paid Standard Gold Platinum Enterprise Self-managed Free & Open Paid No Support Platinum Enterprise ● Resource-based pricing model ←> Consumption-based subscriptions on Elastic Cloud ● Subscriptions generally 1 to 3 years, invoiced annually in advanc
Slide 32: 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 32
Slide 33: 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 33
Slide 34: 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 34
Slide 35: 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 35
Slide 36: Q4 FY24 Results
Q4 FY24 Results 36 36
Slide 37: Q4 and FY24 Results At a Glance
Q4 and FY24 Results At a Glance Q4 FY24 20% 32% 9% Total Revenue Growth Elastic Cloud Revenue Growth Non-GAAP year-over-year year-over-year Operating Margin* 44% of Total Revenue >1,330 Customers with ACV > $100K 19% (18% in CC) 29% 11% FY24 Total Revenue Growth Elastic Cloud Revenue Growth Non-GAAP
Slide 38: Revenue Highlights
Revenue Highlights $ millions Q4 FY24 Y/Y Y/Y CC FY24 Y/Y Y/Y CC Total Revenue $335 20% 20% $1,267 19% 18% Total Subscription $311 21% 21% $1,177 19% 19% Revenue Elastic Cloud $148 32% 32% $548 29% 29% Revenue Subscription % of 93% 93% Total Revenue Professional $24 1% 1% $91 8% 7% Services Revenue
Slide 39: Strong track record of driving growth
Strong track record of driving growth 17% 17% 17% 19% 20% 28% 24% 31% 29% 32% 19% 17% 16% 18% 20% 30% 24% 30% 29% 32% As Reported Y/Y Growth % 40% 41% 43% 44% 44% Constant Currency Y/Y Growth % As Reported Y/Y Growth % Constant Currency Y/Y Growth % Cloud Revenue as a % of Total Revenue 39
Slide 40: >$100K ACV Customer Trend
>$100K ACV Customer Trend Change from Prior Quarter 70 50 40 60 50 30 30 50 60 40
Slide 41: >$10K ACV Customer Trend
>$10K ACV Customer Trend Change from Prior Quarter 130 90 80 100 100 70 60 60 80 41
Slide 42: >$1M ACV Customer Trend
>$1M ACV Customer Trend Change from Prior Fiscal Year 40 25 40 25 25
Slide 43: Healthy Net Expansion Rate
Healthy Net Expansion Rate Trailing twelve month measure ~110% Includes only consumption, not commitments, Q4 FY24 for customers on Cloud consumption contracts 43
Slide 44: Non-GAAP Income Statement Highlights
Non-GAAP Income Statement Highlights % of % of $ millions, except per share amounts Q4 FY24 FY24 Revenue Revenue Total Revenue $335 100% $1,267 100% Gross Profit/Margin $257 77% $972 77% Research & Development Expense $68 20% $242 19% Sales & Marketing Expense $129 39% $475 38% General & Administrat
Slide 45: Select Financial Measures
Select Financial Measures $ millions, except employees FY24 Adjusted Free Cash Flow* $169 Cash, Cash Equivalents, and Marketable Securities $1,084 Total Deferred Revenue $694 Remaining Performance Obligations $1,351 Employees 3,187 *See appendix for reconciliation to GAAP 45
Slide 46: Q1 and Full Year FY2025 Guidance
Q1 and Full Year FY2025 Guidance Q1 FY25 FY25 Total Revenue $343M - $345M $1.468B - $1.480B Year-over-year growth % 17% 16% Constant currency year-over-year growth % 17% 16% Non-GAAP Operating Margin 9.2% - 9.4% 11.7% - 12.3% Non-GAAP Diluted Earnings Per Share $0.24 - $0.26 $1.35 - $1.47 Diluted We
Slide 47: Appendix
Appendix 47
Slide 48: GAAP to Non-GAAP Reconciliations
1% GAAP to Non-GAAP Reconciliations Gross Profit and Gross Margin $ in millions except percentages Q4 FY24 FY24 GAAP gross profit $247 $937 Stock-based compensation expense and related employer taxes 6 23 Amortization of acquired intangibles 3 12 Non-GAAP gross profit $257 $972 GAAP subscription gro
Slide 49: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Operating Expenses $ in millions except percentages Q4 FY24 FY24 GAAP sales & marketing expenses $152 $560 Stock-based compensation expense and related employer taxes (22) (82) Amortization of acquired intangibles — (2) Non-GAAP sales & marketing expenses $129 $475 Y
Slide 50: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Operating Income/(Loss), Operating Margin, and Earnings/(Loss) per Share $ in millions except percentages and per share amounts Q4 FY24 FY24 GAAP operating loss $(46) $(130) Stock-based compensation expense and related employer taxes 67 250 Amortization of acquired i
Slide 51: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Earnings per Share FY24 GAAP earnings per share - Diluted $0.59 Stock-based compensation expense and related employer taxes 2.41 Amortization of acquired intangibles 0.14 Acquisition-related expenses 0.02 Restructuring and other related charges 0.05 Litigation settle
Slide 52: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Adjusted Free Cash Flow $ in millions Q4 FY24 FY24 Net cash provided by operating activities $60.9 $148.8 Less: Purchases of property and equipment (0.8) (3.5) Add: Interest paid on long-term debt — 23.7 Adjusted free cash flow $60.1 $169.0 Net cash provided by opera