Elastic Q4 Sales Rise 17.7% to $449.9M, 15% Subscription Growth Guidance Sinks Stock
Elastic posted Q4 revenue of $449.9 million, up 17.7% year-over-year, and adjusted EPS of $0.73, both topping expectations and prompting an upward revision to full-year earnings guidance. However, its Q1 constant-currency subscription revenue outlook of only 15% growth and overall revenue growth forecast near 14.8% spurred a 15.7% stock decline.
1. Q4 Financial Results
Elastic reported fourth-quarter revenue of $449.9 million, up 17.7% year-over-year, and delivered adjusted earnings per share of $0.73, both exceeding analyst expectations. Management also raised full-year EPS guidance.
2. Q1 Growth Outlook
The company guided first-quarter constant-currency subscription revenue growth of 15% and projected overall revenue growth near 14.8%, signaling a deceleration from current rates and falling short of market forecasts.
3. Investor Reaction
Shares fell 15.7% in afternoon trading on investor concerns over the slower growth outlook, marking one of the largest intraday moves in its recent volatility history.
4. Long-term Trends
Elastic’s customer base with annual contract value above $100,000 grew to over 1,660 from 1,460 a year ago, with a net expansion rate of approximately 112%, though the stock remains 55.3% below its 52-week high.