
Elastic N.V (ESTC) Stock Forecast & Price Target
Elastic N.V (ESTC) Analyst Ratings
Bulls say
Elastic has demonstrated strong financial growth, with Q2 total revenue reaching $423.5 million, reflecting a 16% year-over-year increase, which exceeded prior estimates by nearly 2%. The company’s Elastic Cloud revenue, now comprising 49% of total revenue, grew 22% year-over-year to $206 million, indicating robust demand for its AI-search, observability, and security solutions. Additionally, the subscriber count for customers with annual contract values over $100,000 increased to approximately 1.6K, supported by a net expansion rate of around 112%, highlighting effective customer retention and growth strategies.
Bears say
The financial analysis indicates a negative outlook for Elastic's stock primarily due to disappointing quarterly performance relative to guidance, coupled with a decline in incremental operating margins. Despite signing a number of high-value deals, concerns remain regarding potential weakening in annual recurring revenue (ARR) growth as software sales cycles lengthen and the adoption of new products by customers slows. Additionally, management's previous optimism regarding the impact of the US government shutdown on renewals faltered, further emphasizing the challenges Elastic faces in maintaining momentum in a competitive market for AI applications.
This aggregate rating is based on analysts' research of Elastic N.V and is not a guaranteed prediction by Public.com or investment advice.
Elastic N.V (ESTC) Analyst Forecast & Price Prediction
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