Search software company Elastic (NYSE:ESTC) will be reporting results tomorrow afternoon. Here's what to expect.
Last quarter Elastic reported revenues of $264.4 million, up 28.4% year on year, beating analyst revenue expectations by 1.05%. It was a weak quarter for the company, with revenue guidance for the next quarter and the full year guidance missing analysts' expectations. The company added 40 enterprise customers paying more than $100,000 annually to a total of 1,050.
Is Elastic buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Elastic's revenue to grow 22.1% year on year to $273.4 million, slowing down from the 42.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 6.07%.
Looking at Elastic's peers in the data and analytics software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Confluent delivered top-line growth of 40.6% year on year, beating analyst estimates by 2.7% and Amplitude reported revenues up 32% year on year, exceeding estimates by 2.63%. Both companies (Confluent and Amplitude) traded flat on the results. Read our full analysis of Confluent's results here and Amplitude's results here.
Investors in the software segment have had steady hands going into the earnings, with the stocks down on average 1.5% over the last month. Elastic is up 0.1% during the same time, and is heading into the earnings with analyst price target of $71.9, compared to share price of $58.9.
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The author has no position in any of the stocks mentioned.