Elastic N.V. Stock Price, News & Analysis

Elastic (NYSE: ESTC) reported strong Q2 FY2025 results with total revenue reaching $365 million, up 18% year-over-year. Elastic Cloud revenue grew 25% to $169 million. The company reported a GAAP operating loss of $4 million and non-GAAP operating income of $64 million. Total customer count with ACV greater than $100,000 increased to over 1,420, while total subscription customers reached approximately 21,300. The company maintains a healthy cash position of $1.198 billion and projects Q3 FY2025 revenue between $367-369 million with non-GAAP operating margin of approximately 15%.

Elastic (NYSE: ESTC) has announced its AI ecosystem to accelerate enterprise development of Retrieval Augmented Generation (RAG) applications. The ecosystem provides developers with integrated AI technologies and tools for the Elasticsearch vector database, featuring pre-built integrations from leading AI companies.

The initiative includes partnerships with major tech players like AWS, Google Cloud, Microsoft, OpenAI, and NVIDIA, focusing on delivering relevant experiences through RAG, data preparation, AI model experimentation, GenAI development frameworks, and secure AI application deployment.

Elastic (NYSE: ESTC) has announced Kubernetes observability support in their Elastic Distributions of OpenTelemetry (EDOT) portfolio using OpenTelemetry Operator. The new feature provides Site Reliability Engineers (SREs) with out-of-the-box configurations for streamlined collector deployment, application auto-instrumentation, and lifecycle management. This 100% OpenTelemetry-native solution eliminates the need for schema conversions, offering real-time visibility across Kubernetes clusters through application metrics, logs, and traces. The unified OTel experience with OTel operator is currently available in tech preview.

Elastic (NYSE: ESTC) has introduced Better Binary Quantization (BBQ) in Elasticsearch, a new quantization approach evolved from RaBitQ technology. The innovation achieves a 95% reduction in memory requirements for storing vectorized data while maintaining high-ranking quality and similar storage efficiency as scalar quantization. BBQ is available as a tech preview for both self-managed and cloud users of Elasticsearch, and will be contributed to Apache Lucene.

Elastic (NYSE: ESTC) has scheduled the release of its second quarter fiscal 2025 financial results for Thursday, November 21, 2024, after U.S. market close. The company will host a conference call at 2:00 p.m. PT/5:00 p.m. ET on the same day to discuss financial results and business outlook. The conference call will be available via webcast on Elastic's investor relations website, with a replay accessible for two months.

Elastic (NYSE: ESTC) has announced the full integration of AutoOps, a monitoring and management tool, into Elastic Cloud. The integration provides users with simplified cluster management, performance recommendations, and real-time issue detection capabilities. Key features include tailored utilization insights, pre-configured alerts for various issues, root cause analysis with resolution suggestions, and cost optimization recommendations.

AutoOps is now available free of charge for Elastic Cloud users running on AWS US-East-1, with plans for rapid expansion to other regions.

Elastic (NYSE: ESTC) announced a successful collaboration with LG CNS to enhance the company's global knowledge management services. By integrating Elasticsearch into LG CNS's KeyLook AI search algorithm, the company achieved a 95% increase in search relevance and reduced data retrieval time by over 50%. The KeyLook AI algorithm, developed at LG CNS's AI Center, uses generative AI models to encode corporate data and index it within Elasticsearch, delivering user-friendly answers through a large language model (LLM). This integration has improved the system's ability to understand user intent and perform context-based vector searches across multiple languages.

Elastic (NYSE: ESTC) has released its 2024 Elastic Global Threat Report, revealing key cybersecurity trends based on over 1 billion data points. The report highlights three main findings:

1. Adversaries are heavily using offensive security tools (OSTs), with Cobalt Strike and Metasploit accounting for ~54% of observed malware alerts.

2. Cloud environment misconfigurations are creating vulnerabilities, with nearly 47% of Microsoft Azure failures tied to storage account misconfigurations and 44% of Google Cloud users failing BigQuery encryption checks.

3. Attackers are increasingly focusing on credential access, making up ~23% of all cloud behaviors, primarily in Microsoft Azure environments. There's also a 12% increase in Brute Force techniques.

The report notes a 6% decrease in Defense Evasion behaviors over the last year, suggesting that defender technologies are working but adversaries are adapting their strategies.

Elastic (NYSE: ESTC) has announced that its Elasticsearch Open Inference API now supports the Gemini Developer API through Google AI Studio. This integration allows developers to interact with data in Elasticsearch indexes, run experiments, and build applications using Google's models like Gemini 1.5 Flash.

Google AI Studio, which releases the latest models from Google DeepMind, provides the fastest way to start building with Gemini. The integration enables developers to iterate on and prototype generative AI experiments using Elastic as a vector store. Elastic's founder and CTO, Shay Banon, emphasized that this integration gives developers access to Elastic's complete range of advanced search retrieval capabilities.

Support for Google AI Studio is available immediately, allowing developers to test, iterate, and quickly bring their generative AI applications to production.