Earnings To Watch: Elastic (ESTC) Reports Q1 Results Tomorrow

Anthony Lee /
2024/05/29 3:03 am EDT

Search software company Elastic (NYSE:ESTC) will be reporting earnings tomorrow after the bell. Here's what to look for.

Elastic beat analysts' revenue expectations by 2.2% last quarter, reporting revenues of $328 million, up 19.4% year on year. It was a mixed quarter for the company, with an impressive beat of analysts' billings estimates but decelerating customer growth. It added 50 enterprise customers paying more than $100,000 annually to reach a total of 1,270.

Is Elastic a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Elastic's revenue to grow 17.8% year on year to $329.8 million, in line with the 17% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 per share.

Elastic Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Elastic has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 1.8% on average.

Looking at Elastic's peers in the data and analytics software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Confluent delivered year-on-year revenue growth of 24.6%, beating analysts' expectations by 2.5%, and Teradata reported a revenue decline of 2.3%, in line with consensus estimates. Confluent traded up 12.7% following the results while Teradata was down 13.8%.

Read our full analysis of Confluent's results here and Teradata's results here.

Investors in the data and analytics software segment have had steady hands going into earnings, with share prices up 1.3% on average over the last month. Elastic is down 1.9% during the same time and is heading into earnings with an average analyst price target of $132 (compared to the current share price of $100.31).

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