
Elastic N.V (ESTC) Stock Forecast & Price Target
Elastic N.V (ESTC) Analyst Ratings
Bulls say
Elastic's Q2 report highlighted a significant increase in Elastic Cloud Revenue, which reached $206 million, representing 49% of total revenue and a 22% year-on-year growth, exceeding expectations. Furthermore, the number of subscribers with an annual contract value of $100,000 or more grew to approximately 1,600, demonstrating a stable net expansion rate and fostering confidence in their premium offerings. Additionally, total revenue for Q2 grew by 16% year-on-year to $423.5 million, slightly surpassing estimates, and the operating margins also exceeded expectations at 16.5%, underscoring the company's solid financial performance and growth trajectory.
Bears say
Elastic's recent financial performance raised concerns, as its operating income only marginally exceeded consensus expectations while experiencing a decline in incremental operating margins, resulting in a ~13% drop in shares post-earnings announcement. There are worries regarding the potential weakening of annual recurring revenue (ARR) growth due to prolonged software sales cycles and slower-than-anticipated adoption of new product modules, compounded by delays in government renewals. Additionally, despite signing several notable deals, management's previous optimism about the impact of the U.S. government shutdown on business now appears unwarranted, highlighting the challenges in the current market, particularly in the custom AI application sector.
This aggregate rating is based on analysts' research of Elastic N.V and is not a guaranteed prediction by Public.com or investment advice.
Elastic N.V (ESTC) Analyst Forecast & Price Prediction
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