Q: What is Elastic (ESTC) Q1 2025 Earnings Call Transcript Summary?
**Elastic N.V. (ESTC) Q1 2025 Earnings Call Summary**
**Bullish Points:**
1. Total revenue in Q1 grew 18% year over year, reaching $347 million.
2. Cloud revenue grew 30% year over year, totaling $157 million.
3. Delivered a non-GAAP operating margin of 10.7%, better than expected.
4. Outperformed against the high end of revenue and profitability guidance for the quarter.
5. Growing the total number of customers spending over $100,000 to more than 1,370.
6. Strong momentum around generative AI opportunities, accelerating growth in the search business.
7. Ended Q1 with over 1,300 customers using Elastic Cloud for generative AI use cases.
8. Several significant customer wins and expansions, including a leading sales enablement software company, a global leader in the transportation industry, and a large American law firm.
9. Innovations in Q1 expanding competitive advantage in search, GenAI, observability, and security.
10. Ranked as a leader in the 2024 Gartner Magic Quadrant for Observability Platforms and recognized as the 2024 Microsoft U.S. Partner of the Year.
**Bearish Points:**
1. Overall volume of customer commitments closed in Q1 fell short of expectations.
2. Impact of sales segmentation changes made at the beginning of Q1, particularly in the Americas, leading to slower deal progress.
3. Tighter customer budget constraints led to delays in closing deals in EMEA.
4. Shortfall on customer commitments in Q1 will impact both self-managed and Elastic Cloud revenue this fiscal year.
5. Assuming the macro environment will remain the same as in Q1, including no significant changes in EMEA.
6. Slower start to the year on securing commitments will impact Elastic Cloud revenue.
7. Self-service motion on Elastic Cloud expected to stay flattish in dollar terms for the rest of the year.
8. The company experienced significant sales execution issues, particularly in the Americas, affecting all verticals except the U.S. public sector.
9. The execution of account transitions was problematic, leading to a temporary interruption in sales execution.
10. Many deals that slipped out of the quarter are not expected to close in Q2 and may take a while to close out.
For more information about Elastic N.V. (ESTC)'s earnings call, you can read the relevant news: Elastic (ESTC) Q1 2025 Earnings Call Transcript
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