Elastic – Jan quarter results with Conference Call comments mixed in
Total Revenue of $71 million, up 70%
Calculated Billings of $80 million, up 68%. Calculated billings can fluctuate from quarter to quarter based on the timing of renewals and billings duration. So an additional way to look at calculated billing growth is on a trailing 12 month basis, which provides a longer term view of the business.
Trailing 12 month calculated billings were up 76%. This compares to 77% in sequentially. We are very pleased with the calculated billings growth this quarter and the underlying demand that is driving our business
Adj Subscription Gross Margin was 81.1%, in line with the past couple of quarters. In the near term we will continue to invest in our SaaS business and it will remain a modest headwind to gross margin overall.
Deferred revenue was $138 million, up 73%.
Adj operating loss was $11.7 million; Adj operating margin was minus 16.6%.
Adj net loss per share was $0.16.
Operating cash flow was -$8.7 million with free cash flow of -$9.9 million. [Saul’s comment: Market was hoping for positive]
Cash was $306 million.
We’re very pleased with our strong revenue growth of 70% year-over-year in Q3. Our users and customers continue to embrace our search products that address an expanding set of use cases. Given the incredible customer and user demand that we are seeing, we are further accelerating investments across all parts of the business.
• Subscription customer count was over 7,200. This is up from 6,300 sequentially (Wow!).
• Customers with ACV greater than $100,000 was over 380, up 40 sequentially.
Subscription revenue was 91% of total revenue.
SaaS revenue was 16.5% of total revenue and growing at 67%. While we remain very excited about the SaaS opportunity ahead of us, we remain agnostic to customers preferences on how to purchase our subscriptions, whether SaaS or self-managed. Over time we expect SaaS to gradually increase as a percentage of revenue based on customer adoption patterns.
Professional Services revenue was 9% of total revenue and up 136%. It will remain small and will fluctuate.
International Revenue was 44% of the total.
Remaining performance obligations were $304 million, of which we expect to recognize 86% as revenue over the next 24 months. We were pleased with its growth which signals continuing long term customer commitment to our technology
• Net Expansion Rate remained over 130% for the ninth consecutive quarter.
• Released version 6.6 of the Elastic Stack
• Made Elastic APM generally available
• Released version 2.1 of Elastic Cloud Enterprise (ECE), furthering our hybrid cloud capabilities with cross-cluster search.
• Introduced the Auditbeat System Module to make it easier to detect unusual events in audit data, especially security-related anomalies.
• Joined the Cloud Native Computing Foundation (CNCF), to support and promote the use of open technologies and standards, like Kubernetes, open tracing and metrics. Elastic APM is now compatible with OpenTracing standards.
• The Elastic Stack was named in InfoWorld’s 2019 Technology of the Year Awards.
• Held seven successful Elastic{ON} Tour events to engage with our community of users, customers, and partners in Anaheim, Atlanta, Dallas, Madrid, New York City, Paris, and Seoul, with waitlists driven by strong demand.
• Welcomed the new, expanded Elastic Amsterdam office
Lock-Up Release Date and Extension
25% of the shares subject to the lock-up agreements will be released from lock-up, and will become eligible for immediate sale in the public market, at the open of trading on March 6, 2019.
The lock-up restrictions with respect to all remaining shares are as follows: insiders will be restricted from selling shares until the start of the third trading day following the end of this blackout period. We expect to announce earnings results for the fiscal year ending April 30, in early June.
Saul - My take – They are growing like mad, but growing expenses also to capture greenfield opportunities. Issues are their open source model and that they aren’t focussed on SaaS, but what the heck, they are growing at 70% the way it is. I love it.