Latest news with #ElasticNV
Yahoo
6 days ago
- Business
- Yahoo
Elastic NV (ESTC) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Total Revenue: $388 million, 16% growth year-over-year. Subscription Revenue: $362 million, 16% growth as reported, 17% in constant currency. Elastic Cloud Revenue: 23% growth as reported and in constant currency. Non-GAAP Operating Margin: 15% for Q4 and fiscal year 2025. Adjusted Free Cash Flow Margin: 19% for fiscal year 2025. CRPO (Current Remaining Performance Obligations): Approximately $1 billion, 18% growth year-over-year. Customers with >$1 Million ACV: Grew approximately 27%, with 45 net new customers added. Customers with >$100,000 ACV: Grew approximately 14%, with 180 net new customers added. Q1 Fiscal 2026 Revenue Guidance: $396 million to $398 million, 14% year-over-year growth at midpoint. Fiscal Year 2026 Revenue Guidance: $1.655 billion to $1.67 billion, 12% year-over-year growth at midpoint. Fiscal Year 2026 Non-GAAP Operating Margin Guidance: Approximately 16%. Q1 Fiscal 2026 Non-GAAP EPS Guidance: $0.41 to $0.43. Fiscal Year 2026 Non-GAAP EPS Guidance: $2.24 to $2.32. Warning! GuruFocus has detected 2 Warning Sign with ESTC. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Elastic NV (NYSE:ESTC) achieved a strong quarter with a 16% revenue growth and a 23% increase in Elastic Cloud revenue. The company exceeded guidance across all revenue and profitability metrics, demonstrating platform strength. Elastic NV (NYSE:ESTC) ended FY25 with more than 1,510 customers spending over $100,000, and over 210 customers with more than $1 million in committed annual contract value. The company secured significant deals, including an eight-figure expansion with a global financial institution and a multiyear seven-figure deal with an international banking group. Elastic NV (NYSE:ESTC) continues to see strong adoption of its GenAI applications, with over 2,000 Elastic Cloud customers using it for GenAI use cases. Elastic NV (NYSE:ESTC) faced pressure in the US public sector, impacting sales cycles, particularly in federal civilian agencies. The company is approaching FY26 guidance with prudence due to potential macroeconomic uncertainties. There is a noted sequential headwind due to fewer days in Q4, affecting revenue comparisons. Despite strong performance, the company acknowledges potential uncertainty amidst evolving macro conditions. Elastic NV (NYSE:ESTC) is seeing slower sequential cloud growth in fiscal Q1, attributed to seasonal patterns and consumption headwinds. Q: Navam, the guidance seems conservative. Is it more conservative than past guidance, and what metrics are the best indicators of the business's health? A: Navam Welihinda, CFO: We had a strong Q4 despite US public sector pressure. The guidance reflects a balance between positive demand signals and macro uncertainty. We extrapolated US public sector pressure to the entire business and assumed more consumption headwinds in Q2 through Q4. The best measure of our business remains revenue, with subscription revenue less monthly cloud and CRPO as useful supplemental metrics. Q: Ash, can you discuss the recent partnerships with AWS, NVIDIA, and others? How do these partnerships impact Elastic's market position and go-to-market strategy? A: Ashutosh Kulkarni, CEO: We are being recognized as a leading vector database, working with hyperscalers to be a top third-party service. The NVIDIA partnership extends beyond cloud, allowing enterprises to deploy AI solutions internally. These partnerships enhance our marketplace presence, enabling customers to use EDP commitments to purchase Elastic Cloud, and are crucial for our growth. Q: Ash, what's your view on the adoption of retrieval-augmented generation (RAG) architectures, and how is Elastic positioned in this space? A: Ashutosh Kulkarni, CEO: RAG is essential for providing real-time context to language models, especially as enterprise data is dynamic and large. Elastic's vector database is crucial for retrieval in RAG architectures, and we are seeing strong adoption across various use cases, indicating RAG's durability and Elastic's strong positioning. Q: Can you elaborate on the cloud performance this quarter and any factors affecting sequential growth? A: Navam Welihinda, CFO: Cloud performance was strong, but Q4 has three fewer days than other quarters, impacting consumption. When normalized for days, cloud growth is in the mid-20s. We are seeing emerging seasonal patterns, with Q1 typically showing lower sequential growth due to consumption patterns. Q: Ash, how are the go-to-market changes from last year impacting fiscal year '26, and what are the next steps? A: Ashutosh Kulkarni, CEO: The territory changes have settled and are paying off, with significant growth in our $1 million customer cohort. We are not planning major changes for FY26 but will continue hiring sales capacity and adding security sales specialists to capture more of the security platform consolidation opportunity. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
11-05-2025
- Business
- Yahoo
Elastic N.V. (ESTC): Among Paul Tudor Jones' Stock Picks with Huge Upside Potential
We recently published an article titled . In this article, we are going to take a look at where Elastic N.V. (NYSE:ESTC) stands against Paul Tudor Jones' other stock picks with huge upside potential. It's all gloomy regardless of what US President Donald Trump does. That's the sentiment echoed by billionaire investor Paul Tudor Jones, who is taking issue with the aggressive tariffs aimed at settling the trade deficit between the US and its trading partners. While the US markets have pulled back by up to 8% in response to the tariff war woes, Jones believes the dust is unlikely to settle anytime soon. The hedge fund manager insists stocks are bound to hit new lows even on Trump toning down on aggressive tariffs on China. That's because macroeconomic conditions continue to deteriorate. 'For me, it's pretty clear. You have Trump who's locked in on tariffs. You have the Fed who's locked in on not cutting rates. That's not good for the stock market,' Jones said on CNBC's 'Squawk Box.' 'We'll probably go down to new lows, even when Trump dials back China to 50%.' The remarks come on Trump slapping 145% tariffs on imported Chinese goods as one of the ways of getting Beijing into the negotiation table. While the administration has hinted at the possibility of dialing it back to about 50% or 40%, Jones insists it will be too little too late. READ ALSO: Billionaire Ray Dalio's Bridgewater's 10 Stock Picks with Huge Upside Potential and Billionaire Mario Gabelli's 10 Large-Cap Stock Picks with Huge Upside Potential. 'He'll dial it back to 50% or 40%, whatever. Even when he does that ... it'd be the largest tax increases since the '60s,' Jones said. 'So you can kind of take 2%, 3% off growth.' The tariff war has put the US central bank in a tight spot as it tries to balance interest rates amid a tariff war likely to spark inflation. The US Federal Reserve has had to keep its key overnight lending rate steady since December, on growing concerns that the trade war will trigger a significant spike in inflation. Fed chair Jerome Powell, insisting that policymakers wait for greater clarity, has not only rattled the markets but also triggered a backlash from the US president. Amid the headwinds and uncertainties, Jones has positioned his portfolio to benefit from any bounce back once the selloff dust settles. Jones, who shot to fame on profiting from the 1987 market crash, has etched his name on Wall Street owing to his extraordinary ability to foresee market shifts and try to capitalize on them. Jones has constantly reiterated the need to concentrate on risk management and protecting current investments during heightened market volatility. Instead of daydreaming about possible gains, he advises investors to spend 90% of their time considering the cash at risk in their investments. 'People need to focus on the money that they have at risk and how much capital is at risk in any single investment they have. If everyone spent 90% of their time on that, not 90% of the time on pie-in-the-sky ideas of how much money they're going to make, then they would be incredibly successful investors,' Jones said. Tudor Investment Corporation, founded in 1980, is the investment firm that the hedge fund manager uses to pursue opportunities in the equity markets while leveraging solid risk management strategies. The firm has generated an average return of 19% over the years, affirming a solid stock-picking strategy. With that, let's take a look at the firm's top stock picks with huge upside potential. We combed Tudor Investment Corporation Q4 2024 13F filings to identify Billionaire Paul Tudor Jones' 10 Stocks Picks with Huge Upside Potential. We then settled on stocks with more than 30% upside potential based on analysts ratings and analyzed why the stocks stand out, as solid value investments well poised to generate significant long term value. Finally, we ranked the stocks in ascending order based on the stocks upside potential (as of May 7). We have also mentioned the broader hedge fund sentiment for these stocks, as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A group of software engineers working in an open, futuristic N.V. (NYSE:ESTC) is a search AI company that provides search, observability, and security solutions. It offers a search AI platform built on Elasticsearch that enables businesses to harness AI to find answers to their data in real time. It is one of the billionaire Paul Tudor Jones' 10 stock picks, with huge upside potential, as it increasingly capitalizes on artificial intelligence opportunities. Elastic N.V. (NYSE:ESTC) has already confirmed the availability of Elastic Cloud Serverless on Amazon Web Services. It has also been integrated with Google Cloud's Vertex AI platform. The integration is part of Elastic NV's bid to make it easier for developers to build next-generation generative AI experiences. Additionally, it has inked a strategic partnership with Tines to offer security and observability workflow automation. Elastic N.V. (NYSE:ESTC) remains well-positioned to scale its footprint in cloud native enterprises owing to its partnerships with Google and Amazon. That was clear as the company's top line increased by 17% in the third quarter of fiscal 2023, attributed to a 26% growth in cloud revenues. Likewise, Morgan Stanley analyst Sanjit Singh reiterated an Overweight rating on the stock on April 16 despite cutting the price target to $120 from $140. The bullish stance comes as the analyst expects the integration of generative AI in the cloud and into applications to be a key growth driver. Overall ESTC ranks 1st on our list of Paul Tudor Jones' stock picks with huge upside potential. While we acknowledge the potential of ESTC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ESTC but that trades at less than 5 times its earnings check out our report about this READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-05-2025
- Business
- Yahoo
Elastic N.V. (ESTC): Among Paul Tudor Jones' Stock Picks with Huge Upside Potential
We recently published an article titled . In this article, we are going to take a look at where Elastic N.V. (NYSE:ESTC) stands against Paul Tudor Jones' other stock picks with huge upside potential. It's all gloomy regardless of what US President Donald Trump does. That's the sentiment echoed by billionaire investor Paul Tudor Jones, who is taking issue with the aggressive tariffs aimed at settling the trade deficit between the US and its trading partners. While the US markets have pulled back by up to 8% in response to the tariff war woes, Jones believes the dust is unlikely to settle anytime soon. The hedge fund manager insists stocks are bound to hit new lows even on Trump toning down on aggressive tariffs on China. That's because macroeconomic conditions continue to deteriorate. 'For me, it's pretty clear. You have Trump who's locked in on tariffs. You have the Fed who's locked in on not cutting rates. That's not good for the stock market,' Jones said on CNBC's 'Squawk Box.' 'We'll probably go down to new lows, even when Trump dials back China to 50%.' The remarks come on Trump slapping 145% tariffs on imported Chinese goods as one of the ways of getting Beijing into the negotiation table. While the administration has hinted at the possibility of dialing it back to about 50% or 40%, Jones insists it will be too little too late. READ ALSO: Billionaire Ray Dalio's Bridgewater's 10 Stock Picks with Huge Upside Potential and Billionaire Mario Gabelli's 10 Large-Cap Stock Picks with Huge Upside Potential. 'He'll dial it back to 50% or 40%, whatever. Even when he does that ... it'd be the largest tax increases since the '60s,' Jones said. 'So you can kind of take 2%, 3% off growth.' The tariff war has put the US central bank in a tight spot as it tries to balance interest rates amid a tariff war likely to spark inflation. The US Federal Reserve has had to keep its key overnight lending rate steady since December, on growing concerns that the trade war will trigger a significant spike in inflation. Fed chair Jerome Powell, insisting that policymakers wait for greater clarity, has not only rattled the markets but also triggered a backlash from the US president. Amid the headwinds and uncertainties, Jones has positioned his portfolio to benefit from any bounce back once the selloff dust settles. Jones, who shot to fame on profiting from the 1987 market crash, has etched his name on Wall Street owing to his extraordinary ability to foresee market shifts and try to capitalize on them. Jones has constantly reiterated the need to concentrate on risk management and protecting current investments during heightened market volatility. Instead of daydreaming about possible gains, he advises investors to spend 90% of their time considering the cash at risk in their investments. 'People need to focus on the money that they have at risk and how much capital is at risk in any single investment they have. If everyone spent 90% of their time on that, not 90% of the time on pie-in-the-sky ideas of how much money they're going to make, then they would be incredibly successful investors,' Jones said. Tudor Investment Corporation, founded in 1980, is the investment firm that the hedge fund manager uses to pursue opportunities in the equity markets while leveraging solid risk management strategies. The firm has generated an average return of 19% over the years, affirming a solid stock-picking strategy. With that, let's take a look at the firm's top stock picks with huge upside potential. We combed Tudor Investment Corporation Q4 2024 13F filings to identify Billionaire Paul Tudor Jones' 10 Stocks Picks with Huge Upside Potential. We then settled on stocks with more than 30% upside potential based on analysts ratings and analyzed why the stocks stand out, as solid value investments well poised to generate significant long term value. Finally, we ranked the stocks in ascending order based on the stocks upside potential (as of May 7). We have also mentioned the broader hedge fund sentiment for these stocks, as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A group of software engineers working in an open, futuristic N.V. (NYSE:ESTC) is a search AI company that provides search, observability, and security solutions. It offers a search AI platform built on Elasticsearch that enables businesses to harness AI to find answers to their data in real time. It is one of the billionaire Paul Tudor Jones' 10 stock picks, with huge upside potential, as it increasingly capitalizes on artificial intelligence opportunities. Elastic N.V. (NYSE:ESTC) has already confirmed the availability of Elastic Cloud Serverless on Amazon Web Services. It has also been integrated with Google Cloud's Vertex AI platform. The integration is part of Elastic NV's bid to make it easier for developers to build next-generation generative AI experiences. Additionally, it has inked a strategic partnership with Tines to offer security and observability workflow automation. Elastic N.V. (NYSE:ESTC) remains well-positioned to scale its footprint in cloud native enterprises owing to its partnerships with Google and Amazon. That was clear as the company's top line increased by 17% in the third quarter of fiscal 2023, attributed to a 26% growth in cloud revenues. Likewise, Morgan Stanley analyst Sanjit Singh reiterated an Overweight rating on the stock on April 16 despite cutting the price target to $120 from $140. The bullish stance comes as the analyst expects the integration of generative AI in the cloud and into applications to be a key growth driver. Overall ESTC ranks 1st on our list of Paul Tudor Jones' stock picks with huge upside potential. While we acknowledge the potential of ESTC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ESTC but that trades at less than 5 times its earnings check out our report about this READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-05-2025
- Business
- Yahoo
Elastic N.V. (ESTC): Among Chris Rokos' Stock Picks with Huge Upside Potential
We recently published an article titled . In this article, we are going to take a look at where Elastic N.V. (NYSE:ESTC) stands against Chris Rokos' other stock picks with huge upside potential. One of the traits that define investors who become billionaires is the ability to make money regardless of market conditions. Chris Rokos is one example. For instance, in March 2025, the hedge fund gained 3.4% amid heightened volatility. At the same time, fellow big-name asset managers like Point72, Citadel, and Millennium struggled to handle the volatility. Christopher Charles Rokos is a British hedge fund manager. He co-founded Brevan Howard in 2002 after nearly 10 years with Goldman Sachs, where he traded interest rate products. In 2015, he established Rokos Capital Management. The asset manager has approximately $20 billion worth of assets under management (AUM) as of 2025. Rokos is the fund's Chief Investment Officer (CIO). The billionaire hedge fund manager made the most of Trump's election in November last year. According to a Bloomberg report, Rokos netted nearly $1 billion in profits in a single day following Trump's victory. This, according to the report, is a 'standout trading performance' since Rokos Capital started operating in 2015. READ ALSO: Billionaire Ray Dalio's Bridgewater's 10 Stock Picks with Huge Upside Potential and Billionaire Mario Gabelli's 10 Large-Cap Stock Picks with Huge Upside Potential. And the winning didn't stop there. Since that election victory, Trump has fueled rallies and routs in almost equal measure. But, interestingly, Rokos keeps turning up profits regardless of market conditions. Thanks to the Trump-fueled rally in November 2024, Rokos Capital Management ended the year with 31% in returns. In early April 2025, Trump's tariffs triggered a large sell-off, and many hedge funds lost money. But not Rokos. The asset manager advanced 4.5% in the first two weeks of the month. This gain helped the hedge fund's returns for the year to reach 8% as of mid-April 2025. But whether Rokos Capital Management will keep winning this year is something that remains to be seen, especially in light of the conditions in the market. On Monday, May 5, 2025, the S&P 500 snapped out of a nine-day rally—the longest winning streak in 20 years. The broader market index fell 0.64%, while the Nasdaq shed 0.74% and the Dow lost 0.24%. Market observers quoted by CNN put the decline on tariffs. For instance, Argent Capital Management's Jed Ellerbroek said that the 'market is intensely focused on where the tariff rates end up, and it's bouncing around day to day as those assessments change.' Veteran technical strategist Tom DeMark told Bloomberg that a bear market is a likely scenario shortly. 'A top is imminent. Too much technical damage has been done. Stocks are vulnerable right now and can easily get hit pretty badly if anything quickly changes on the global trade outlook.' However, it won't come as a surprise that Rokos Capital manages gains out of the bleak market (if the current predictions hold). They have done it before. As such, it appears wise to get an idea of the hedge fund's stock picks, especially those with a huge upside potential. We combed through Rokos Capital Management's SEC Q4 2024 13F filings. We focused on the fund's most valuable equities holdings (excluding ETFs and options) and then ranked the stocks based on analyst price targets as of May 7, 2025. We picked stocks with an upside potential of at least 30% and then picked the top 10. We have also mentioned the broader hedge fund sentiment for these stocks, as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A group of software engineers working in an open, futuristic N.V. (NYSE:ESTC) is a search and data analytics company that markets itself as "The Search AI Company." The company offers a suite of solutions, including Elasticsearch (a search engine for applications), Kibana (a visualization tool), and Elastic Security, among others. The past month has been busy for Elastic N.V. (NYSE:ESTC). On April 29, the company announced Automatic Migration. This is a new feature that simplifies the transition from incumbent SIEM (Security Information and Event Management) solutions to Elastic Security. It automatically maps existing detection rules to equivalent Elastic-built rules without requiring manual rebuilding. This innovation reduces the cost, complexity, and risk associated with migrating from legacy security systems. Just days earlier, Elastic N.V. (NYSE:ESTC) had unveiled the general availability of Elastic Cloud Serverless on Google Cloud Marketplace. This allows developers to quickly scale the company's solutions without managing infrastructure. This builds on their industry-first Search AI Lake architecture. These product innovations position Elastic N.V. (NYSE:ESTC) to capitalize on the growing demand for advanced security and search capabilities. The company's focus on performance optimization is evident in its announcement that Elasticsearch runs up to 40% faster on Google Axion processors. This performance gain enables users to index data more efficiently and improve search performance. On April 16, 2025, Morgan Stanley analyst Sanjit Singh lowered the firm's price target on Elastic N.V. (NYSE:ESTC) to $120 from $140 while maintaining an Overweight rating. The analyst said in a note that the adjustment is part of a broader risk/reward reassessment across software companies in light of tariff risk uncertainty. Overall ESTC ranks 3rd on our list of Chris Rokos' stock picks with huge upside potential. While we acknowledge the potential of ESTC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ESTC but that trades at less than 5 times its earnings check out our report about this READ NEXT: and . Disclosure: None. This article is originally published at . 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Yahoo
28-02-2025
- Business
- Yahoo
Elastic NV (ESTC) Q3 2025 Earnings Call Highlights: Strong Revenue Growth and Cloud Momentum
Total Revenue: $382 million, up 17% year over year. Subscription Revenue: $358 million, up 16% year over year. Elastic Cloud Revenue: $180 million, growing 26% year over year. Professional Services Revenue: $24 million, growing 18% year over year. Non-GAAP Operating Margin: 16.8% of revenue. Gross Margin: 76.7%. Diluted Earnings Per Share: $0.63. Adjusted Free Cash Flow: Approximately $99 million, translating to a 26% margin. Customers with ACV over $100,000: Over 1,460. Net Expansion Rate: Approximately 112%. Q4 Revenue Guidance: $379 million to $381 million, representing 13% year over year growth at the midpoint. Full Fiscal Year Revenue Guidance: $1.474 billion to $1.476 billion, representing 16% year over year growth at the midpoint. Full Fiscal Year Non-GAAP Operating Margin Guidance: Approximately 14.7%. Warning! GuruFocus has detected 3 Warning Sign with ESTC. Release Date: February 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Elastic NV (NYSE:ESTC) reported a 17% year-over-year increase in total revenue, with cloud revenue growing by 26%. The company saw a significant increase in customers spending over $100,000, reaching over 1,460, demonstrating strong customer engagement. Elastic NV (NYSE:ESTC) signed multiple seven-figure deals, including a notable contract with a digital native career platform, showcasing its competitive edge. The company is experiencing strong momentum in its GenAI applications, with over 1,750 Elastic Cloud customers using these solutions. Elastic NV (NYSE:ESTC) achieved a non-GAAP operating margin of 16.8%, exceeding expectations and reflecting strong financial discipline. Elastic NV (NYSE:ESTC) faced sales execution issues in Q1 due to field segmentation changes, which impacted early fiscal year performance. The company anticipates a sequential revenue headwind of approximately $10 million in Q4 due to having three fewer days in the quarter. Elastic NV (NYSE:ESTC) is cautious about the sustainability of its Q3 cloud strength and has provided prudent guidance for Q4. The self-service cloud business, targeted at SMBs, remained flat, indicating challenges in this market segment. The company faces potential headwinds from the recent strength of the US dollar, impacting revenue by an estimated $1 to $2 million. Q: Can you explain the unexpected strength in cloud revenue despite earlier concerns about moderation due to Q1 execution issues? A: Eric Prengel, Interim CFO: The Q3 outperformance was driven by strong customer commitments and healthy consumption levels in the cloud, particularly from enterprise and commercial accounts. While we saw strength from larger customers, we are being prudent with our Q4 guidance and do not expect the same sequential strength as seen between Q2 and Q3. Q: What is the long-term vision for the serverless product, and how might it impact the P&L? A: Ashutosh Kulkarni, CEO: Serverless offers a better user experience with minimal management effort and a more efficient pricing model. Our long-term vision is for serverless to become the primary way customers experience Elastic Cloud. Over time, we will provide migration tools and expand functionality, which should lead to more workloads moving to serverless, potentially improving our gross margins. Q: How is the self-service part of the business performing, and what impact did sales changes have on it? A: Ashutosh Kulkarni, CEO: The self-service cloud business, targeting the SMB segment, remained consistent and flattish, reflecting market conditions rather than sales changes. Our sales-led motion focuses on enterprise and mid-market customers, and we are pleased with the sales execution and pipeline progression. Q: How is the security event management space evolving, and what are customers looking for? A: Ashutosh Kulkarni, CEO: Customers are seeking more AI-led automation and the ability to analyze data at scale. Our innovations in efficient data storage, machine learning, and AI functionalities like attack discovery differentiate us. Customers are consolidating onto our platform due to these capabilities and our value-for-cost advantage. Q: How is Gen AI impacting Elastic's business, and what opportunities does it present? A: Ashutosh Kulkarni, CEO: Gen AI is a significant driver across all parts of our business, including search, observability, and security. We see customers using Elastic as a runtime platform for Gen AI applications, leveraging our vector database and other functionalities. This broad-based strength is helping us consolidate workloads and expand our market opportunity. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
