Search AI platform provider Elastic (NYSE: ESTC) will be reporting earnings this Thursday after market hours. Here’s what you need to know.
Elastic beat analysts’ revenue expectations last quarter, reporting revenues of $450.7 million, up 16% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ billings estimates but a slight miss of analysts’ annual recurring revenue estimates.
Is Elastic a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Elastic’s revenue to grow 13.2% year on year, slowing from the 19.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Elastic has a history of exceeding Wall Street’s expectations.
Looking at Elastic’s peers in the data and analytics software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Teradata posted flat year-on-year revenue, beating analysts’ expectations by 3.5%, and Palantir Technologies reported revenues up 92.8%, topping estimates by 6.7%. Teradata traded down 23.7% following the results while Palantir Technologies was up 29.5%.
Read our full analysis of Teradata’s results here and Palantir Technologies’s results here.
There has been positive sentiment among investors in the data and analytics software segment, with share prices up 14.3% on average over the last month. Elastic is up 28.8% during the same time and is heading into earnings with an average analyst price target of $83.67 (compared to the current share price of $78.87).
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