Search software company Elastic (NYSE:ESTC) will be announcing earnings results tomorrow afternoon. Here’s what you need to know.
Elastic beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $335 million, up 19.7% year on year. It was a solid quarter for the company, with an impressive beat of analysts’ billings estimates and accelerating customer growth. It added 60 enterprise customers paying more than $100,000 annually to reach a total of 1,330.
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 17.3% year on year to $344.6 million, in line with the 17.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.25 per share.
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 1.6% on average.
Looking at Elastic’s peers in the data and analytics software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Confluent delivered year-on-year revenue growth of 24.1%, beating analysts’ expectations by 2.1%, and Teradata reported a revenue decline of 5.6%, falling short of estimates by 2.5%. Confluent traded down 17.6% following the results while Teradata was also down 14.2%.
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 flat over the last month. Elastic’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $127.3 (compared to the current share price of $105.54).
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