Search software company Elastic (NYSE:ESTC) will be reporting earnings tomorrow after the bell. Here's what you need to know.
Last quarter Elastic reported revenues of $274.6 million, up 22.6% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and decelerating customer growth. The company added 60 enterprise customers paying more than $100,000 annually to a total of 1,110.
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 16% year on year to $277.6 million, slowing down from the 34.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 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 5.24%.
Looking at Elastic's peers in the data and analytics software segment, only Alteryx has so far reported results, delivering top-line growth of 26.1% year on year, missing analyst estimates by 0.49%. The stock was down 8.45% on the results. Read our full analysis of Alteryx's earnings results here.
There has been positive sentiment among investors in the software segment, with the stocks up on average 15.4% over the last month. Elastic is up 34.5% during the same time, and is heading into the earnings with analyst price target of $71.7, compared to share price of $73.94.
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The author has no position in any of the stocks mentioned.