Elastic Stock Surges on Strong Earnings, Outlook Amid AI Boom
Key Takeaways
Elastic (
ESTC
) shares jumped Friday after the data analytics software provider reported better-than-expected earnings on strong demand for products related to
artificial intelligence
.
The company posted adjusted earnings per share (EPS) of 63 cents for the fiscal third quarter, above analysts’ estimates compiled by Visible Alpha. Revenue was up about 17% year-over-year to $382.1 million, also ahead of expectations.
Elastic said the gains came as its total subscription customers grew about 3% to approximately 21,300. Customers with an annual contract value greater than $100,000 rose 15% to 1,460.
“Continued interest from customers building
Generative AI
applications and consolidating onto a single platform helped drive our outperformance during the quarter,” CEO Ash Kulkarni said in a release.
The company projected current-quarter EPS of 36 cents to 37 cents and revenue of $379 million to $381 million, above the analyst consensus. Its full-year outlook of $1.91 to $1.96 in EPS, and revenue of $1.474 billion to $1.476 billion also exceeded expectations.
Shares of Elastic surged close to 13% in intraday trading Friday and have added about 15% since the start of the year.
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