Elastic (ESTC) Q1 2024 Earnings Call Transcript Summary
Elastic N.V. (ESTC) recently held its Q1 2024 earnings call, where the company discussed its financial performance and future outlook. Here are the key bullish and bearish points from the call:
Bullish Points:
1. Revenue grew 17% year over year
2. Elastic Cloud grew 24% year over year
3. Over 1,190 customers with annual contract values over 100K
4. Non-GAAP operating margin of 9.9%
5. Significant activity around generative AI
6. Continued push by customers to consolidate onto the Elastic platform for multiple use cases
7. Large, multiyear commitments from customers
8. Innovative AI-powered data analytics platform
9. Strong partnerships with major cloud hyperscalers
10. Named Microsoft Commercial Marketplace Partner of the Year, AWS U.S. ISV Rising Star Partner of the Year, and Google Cloud Global Technology Partner of the Year
Bearish Points:
1. Consumption patterns may continue to fluctuate in the near term
2. Macro-economic climate remains stable but uncertain
3. Net new customer adds of 100K ACV lower than prior quarters
4. Net revenue retention at 113%, potential bottom not yet confirmed
5. Possible fluctuations in consumption in the near term
6. Vector search and semantic search are more compute-intensive than traditional textual search
7. Net adds to the 100Ks was a bit lighter
8. Difficulty in teasing apart customer dynamics between consumption optimization and new workloads
For more information about Elastic N.V.'s earnings call, you can read the relevant news: [Elastic (ESTC) Q1 2024 Earnings Call Transcript](https://www.fool.com/earnings/call-transcripts/2023/09/01/elastic-estc-q1-2024-earnings-call-transcript/)
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