Curious about Elastic net worth and financial journey in 2024? Elastic has established itself as a major player in the tech industry.
In this article, Ando Money dives into the company’s financial performance, focusing on its revenue sources, financial strategies, and growth trajectory. Let’s explore Elastic’s financial health and business landscape.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Elastic N.V. |
| Full Name | Elastic N.V. |
| Industry | Software & Cloud-Based Services |
| Traded as | NYSE: ESTC Russell 1000 component |
| ISIN | N/A |
| Founded | 2012 |
| Founders | Shay Banon Steven Schuurman Uri Boness Simon Willnauer |
| Country/Territory | Netherlands |
| Headquarters | Amsterdam, the Netherlands Mountain View, California, USA |
| Chief Executive Officer | Shay Banon |
| Number of Employees | N/A |
| Market Cap | $8.11 billion |
| Total Assets | $1.76 billion |
| Total Equity | $455.1 million |
| Revenue (Six Months Ended) | $604.4 million |
| Net Income (Six Months Ended) | ($73.3 million) |
What is the Net Worth/Market Cap Of Elastic in 2024?
As of 2024, Elastic’s market cap stands at $8.11 billion, placing it among several notable tech companies globally.
While this valuation makes it a significant player in the software and cloud-based services sector, it’s interesting to compare Elastic to other companies in its industry. Below are a few entities to consider:
- Splunk
- Datadog
- Microsoft Azure
- Google Cloud
- AWS (Amazon Web Services)
- CrowdStrike
- McAfee
- Broadcom
- Lucidworks
- Algolia
The market cap and positioning allow Elastic to be part of the conversation on the ‘wealthiest tech firms.’
For more information, you can check out how Elastic compares to other financially robust brands among the most valuable companies.
Elastic Financial Performance Overview
Elastic’s financial journey in 2024 reveals a steady revenue increase. For the six months ended October 31, 2023, the total revenue reached $604.4 million.
This growth was influenced by strong subscription revenue and solid demand for cloud-based solutions.
Moreover, financial performance was shaped by strategic investments in sales, research, and market expansion, all contributing to their upward trajectory.
Subscription Revenue and Its Impact on Financial Growth
Subscription revenue remains a dominant force behind Elastic’s financial growth. With a total of $557.99 million from subscriptions over the six-month period, it is clear that this model provides a reliable and recurring income.
Elastic’s cloud-based offerings have been key drivers for this growth, contributing to about 43% of total revenue for this period.
Strategies such as improving customer experience and expanding subscription features have played pivotal roles in maintaining a steady upward trend in this segment.
Services Revenue and Its Role in Financial Expansion
The company’s services revenue, though a smaller share, plays a critical role in financial expansion. Services accounted for $46.37 million of revenue in the same six months.
This revenue primarily came from consulting and training services offered to customers, reflecting Elastic’s diverse approach to generating income.
The focus on providing these supplementary services not only helps Elastic capture new customers but also supports the growth of its overall ecosystem.
Asset Composition and Its Relationship to Financial Stability
Elastic’s total assets as of October 31, 2023, stood at $1.76 billion. Among these, cash and cash equivalents accounted for a significant part, highlighting Elastic’s liquidity and capacity to reinvest in growth opportunities.
The company’s marketable securities, valued at $969.2 million, contribute to its financial flexibility, supporting day-to-day operations and potential expansions.
Cost Structure and Its Influence on Revenue Retention
While revenue has seen significant growth, cost structures play an essential role in net profitability. The total cost of revenue for the six months ended October 31, 2023, was $157.57 million.
The majority of these costs came from the subscription segment, totaling $117.26 million, which was necessary for Elastic’s expansion.
Additionally, services costs were reported at $40.3 million. Monitoring these costs helps Elastic in managing margins and retaining revenue.
Long-Term Debt and Its Effect on Financial Flexibility
Elastic has a long-term debt structure that affects its financial flexibility. The company issued $575 million in senior notes due July 2029, adding a layer of financial obligation.
Interest expenses on this debt were $12.65 million for the first six months, impacting net income and overall financial performance.
Stock-Based Compensation and Its Impact on Financial Results
Stock-based compensation is an important part of Elastic’s financials. For the six-month period ending in October 2023, stock-based compensation expenses reached $117.7 million.
This figure plays a significant role in overall expenses, impacting the net income by adding to operating costs.
The company’s strategy to offer stock-based incentives can be a double-edged sword – attracting top talent while also increasing financial liabilities.
FAQs About Elastic
How Does Elastic Generate Its Revenue?
It primarily generates revenue through subscription-based services, accounting for over 92% of its total revenue. This is supplemented by service-based income from consulting and training.
What Are Elastic’s Total Assets?
As of October 31, 2023, Elastic holds total assets of $1.76 billion, which include cash, cash equivalents, and marketable securities.
How Does Elastic’s Subscription Revenue Impact Its Growth?
Subscription revenue forms the core of Elastic’s financial model, contributing around 93% of its total revenue. It drives steady growth through recurring income from its cloud-based offerings.
What Are the Main Expenses Affecting Elastic’s Net Income?
The primary expenses include cost of revenue (subscription and services), operating expenses like research and development, sales, marketing, and stock-based compensation.
What Is the Total Debt Held by Elastic?
It issued $575 million in senior notes due in 2029, which significantly impacts its financial obligations and overall net income due to interest expenses.
Conclusion
Elastic’s financial story is one of growth, fueled by a diverse revenue model and strong asset management.
For more detailed insights on Elastic and other finance-related content, explore Ando Money. Share your thoughts or connect with us for more discussions!
