Elastic NV (NYSE: ESTC) stock rose over 14.3% on 29th August, 2019 (as of 11:49 am GMT-4 ; Source: Google finance) as the company posted better than expected results for the first quarter of FY 20. ESTC had more than 8,800 subscription customers at the end of the quarter, which included over 475 with annual contract value of more than $100,000 and the net expansion rate continues to be over 130%.
ESTC in the first quarter of FY 20 has reported the adjusted loss per share of 32 cents, beating the analysts’ estimates for the adjusted loss per share of 42 cents. The company had reported the adjusted revenue growth of 58 percent to $89.7 million in the first quarter of FY 20, beating the analysts’ estimates for revenue of $83.2 million.
Elastic now expects an adjusted loss of $1.24 to $1.40 a share and $406 million to $412 million in revenue for the year that ends April 30, compared with its earlier view of an adjusted loss of $1.33 to $1.49 a share and $397 million to $403 million in revenue.
For the second quarter, total revenue is expected to be between $95 million and $97 million, Non-GAAP operating margin is expected to be between -23.5% and -21.5% and Non-GAAP net loss per share is expected to be between $0.32 and $0.30, assuming between 77 million and 78 million weighted average ordinary shares outstanding.
Meanwhile, in the US public sector, the company closed new business with the US Defense Information Systems agency. They replaced their legacy SIEM solution with Elastic to power security analytics for the joint regional security staff program. This is a part of the DoD strategy to modernize and improve network security, reduce attack surface, and improve situational awareness, insuring timely delivery of critical information to war fighters around the globe.
Further, Elastic was also selected for use with the US Department of Homeland Security Continuous Diagnostic And Mitigation or CDM dashboard, as part of the solution proposed by the partner ECS. CDM deploys tools to every civilian agency to increase their cyber security posture by ingesting, analyzing, and visualizing data that provides insights into asset management, identity and access management, network security, and data protection management.
In Elastic Cloud, the company rolled out a new Amazon Web Services region in London, and a new Google Cloud Platform region in Tokyo this quarter. This expands the presence across these two major cloud providers.