
Elastic N.V (ESTC) Stock Forecast & Price Target
Elastic N.V (ESTC) Analyst Ratings
Bulls say
Elastic demonstrated strong financial performance in its Q2 results, with total revenue growing 16% year-over-year to reach $423.5 million, surpassing expectations. Elastic Cloud Revenue specifically showed a notable increase of 22% year-over-year, now accounting for 49% of total revenue, indicating robust demand for its AI-search and observability offerings. Additionally, the steady growth in the $100k+ annual contract value subscriber count, coupled with a net retention rate of approximately 112%, underscores the company's effective customer engagement and expanding market presence.
Bears say
The financial analysis highlights a negative outlook for Elastic's stock based on disappointing operational performance, with incremental operating margins declining and only a slight margin exceeding consensus expectations. The company faces risks associated with potential weakening in annual recurring revenue (ARR) growth, exacerbated by slower software sales cycles as the impact of the Covid crisis abates, and delays in customer adoption of new modules. Additionally, challenges in the self-managed subscription segment, coupled with renewal delays linked to external factors such as the US government shutdown, contributed to a lackluster financial performance, ultimately leading to a decline in investor confidence.
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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