Q4 Revenue of $177.6 million, Up 44%
year-over-year Q4 SaaS Revenue of $51.3 million, Up 77%
year-over-year FY21 Revenue of $608.5 million, Up 42%
year-over-year
Elastic (NYSE: ESTC) (“Elastic”), the company behind
Elasticsearch and the Elastic Stack, announced strong results for
its fourth quarter and full fiscal year (ended April 30, 2021).
Fourth Quarter Fiscal 2021 Financial Highlights
- Total revenue was $177.6 million, an increase of 44%
year-over-year, or 39% on a constant currency basis.
- SaaS revenue was $51.3 million, an increase of 77%
year-over-year, or 73% on a constant currency basis.
- Calculated billings was $240.9 million, an increase of 38%
year-over-year, or 33% on a constant currency basis.
- Deferred revenue was $397.7 million, an increase of 53%
year-over-year.
- GAAP operating loss was $37.1 million; GAAP operating margin
was -21%.
- Non-GAAP operating loss was $1.2 million; non-GAAP operating
margin was -1%.
- GAAP net loss per share was $0.48; non-GAAP net loss per share
was $0.08.
- Operating cash flow was -$1.6 million with free cash flow of
-$3.1 million.
- Cash and cash equivalents were $400.8 million as of April 30,
2021.
Full Fiscal 2021 Financial Highlights
- Total revenue was $608.5 million, an increase of 42%
year-over-year, or 40% on a constant currency basis.
- SaaS revenue was $166.3 million, an increase of 80%
year-over-year, or 78% on a constant currency basis.
- GAAP operating loss was $129.5 million; GAAP operating margin
was -21%.
- Non-GAAP operating loss was $7.3 million; Non-GAAP operating
margin was -1%.
- GAAP net loss per share was $1.48; Non-GAAP net loss per share
was $0.09.
- Operating cash flow was $22.5 million with free cash flow of
$18.3 million, or 3% free cash flow margin.
“We had a strong fourth quarter capping off an exceptional year,
due in large part to the continued adoption of Elastic Cloud and
broad-based demand for our enterprise search, observability, and
security solutions,” said Shay Banon, Elastic founder, and chief
executive officer. “Data volumes keep increasing as companies
become more digital and move to the cloud, and our customers are
seeing that the ability to search, observe, and protect this
ever-increasing amount of data is critical to their success. We
believe this continued demand puts us on the path to becoming a $1
billion plus revenue company in fiscal year 2023.”
Fourth Quarter Fiscal 2021 Key Metrics and Recent Business
Highlights
Key Customer Metrics
- Total subscription customer count was over 15,000, compared to
over 13,800 in Q3 FY21, and over 11,300 in Q4 FY20.
- Total customer count with Annual Contract Value (ACV) greater
than $100,000 was over 730, compared to over 670 in Q3 FY21, and
over 610 in Q4 FY20.
- Subscription revenue represented 93% of total revenue.
- Net Expansion Rate was consistent with Q3 FY21 and slightly
below 130%.
Product Releases and Other Business Highlights
Elastic released new innovations with versions 7.12 and 7.13
across its enterprise search, observability, and security solutions
that help customers simplify their workflows and derive value from
their data efficiently and at scale.
Foundational features in 7.12 and 7.13 that can be leveraged
across all three solutions include the general availability of the
frozen data tier, powered by searchable snapshots, which helps
customers store and search more data while maintaining control over
cost and performance. Additional features include the general
availability of schema on read, which allows customers to discover
new data and new workflows by creating a schema on the fly, and the
general availability of our supervised machine learning which
provides customers with a single place to store, transform, build,
test, and deploy supervised machine learning models.
Expanded capabilities include:
Elastic Enterprise Search
- Updated data architecture to deliver greater storage
efficiency, search performance, and more relevant results,
including a new Elastic App Search precision tuning API.
- Added performance and stability improvements to the Elastic App
Search web crawler and support for web crawling standards.
- Introduced a new Dropbox Paper connector and enhanced custom
source APIs in Elastic Workplace Search, enabling users to search
across more content in less time.
Elastic Observability
- Launched the beta of Elastic APM correlations to instantly
surface the root cause of poor application performance and reduce
the mean time to resolution.
- Added support for Microsoft Azure monitoring use cases with
native Microsoft Azure console integration.
- Enabled additional scalability and flexibility of data ingest
architectures with the beta release of Fleet Server.
Elastic Security
- Accelerated threat hunting and investigation workflows with the
general availability of analyst-driven correlation powered by Event
Query Language (EQL).
- Added a new layer of ransomware prevention with behavioral
analysis in the Elastic Agent.
- Launched beta support for central management of osquery to help
organizations harness the visibility of osquery and the analytical
power of Elastic.
Elastic Cloud
- Launched support for the frozen data tier, powered by
searchable snapshots, to enable customers to cost-effectively
retain more data and unlock new use cases.
- Expanded support for autoscaling on Elastic Cloud to automate
data lifecycle management and help customers easily scale
deployments as resource needs grow.
- Launched two new Microsoft Azure cloud regions: Azure South
Central US (Texas), and Azure East US (Virginia).
Other Business Highlights
- Announced expanded strategic integration with Microsoft
enabling customers to find, deploy, and manage Elasticsearch from
directly within the Microsoft Azure portal, accelerating time to
value of our solutions on Elastic Cloud.
- Recognized as a Visionary in the 2021 Gartner Magic Quadrant
for Application Performance Monitoring, and as a Challenger in the
2021 Gartner Magic Quadrant for Insight Engines.
- Expanded open ecosystem of partners with the announcement of
strategic integrations and partnerships with Grafana Labs,
Confluent, and Swimlane.
- Delivered nine regional virtual ElasticON events, sponsored and
exhibited at KubeCon Europe, RSA, Microsoft Build, and the Google
Cloud Data Summit.
- Raised more than $1.3 million through the Elastic Cares
initiative, an employee-match giving program, and employees
volunteered more than 4,000 hours as part of the Elastic volunteer
time off program in fiscal year 2021.
Financial Outlook
The Company is providing the following guidance:
For its first quarter of fiscal 2022 (ending July 31, 2021):
- Total revenue is expected to be between $171 million and $173
million.
- Non-GAAP operating margin is expected to be between -5.0% and
-4.0%.
- Non-GAAP net loss per share is expected to be between $0.13 and
$0.10, assuming between 91 million and 92 million weighted average
ordinary shares outstanding.
For its fiscal year 2022 (ending April 30, 2022):
- Total revenue is expected to be between $782 million and $788
million.
- Non-GAAP operating margin is expected to be between -5.5% and
-4.5%.
- Non-GAAP net loss per share is expected to be between $0.60 and
$0.51, assuming between 92.5 million and 94.5 million weighted
average ordinary shares outstanding.
See the section titled “Forward-Looking Statements” below for
information on the factors that could cause our actual results to
differ materially. A reconciliation of non-GAAP guidance measures
to corresponding GAAP measures is not available on a
forward-looking basis without unreasonable effort due to the
uncertainty regarding, and the potential variability of, many of
the costs and expenses that may be incurred in the future. These
items necessary to reconcile such non-GAAP measures could be
material and have a significant impact on the Company’s results
computed in accordance with GAAP.
Conference Call and Webcast
Elastic’s executive management team will host a conference call
today at 2:00 p.m. PT/ 5:00 p.m. ET to discuss the Company’s
financial results and business outlook. A live audio webcast of the
conference call will be available through Elastic’s Investor
Relations website at ir.elastic.co. Slides will accompany the
webcast. The replay of the webcast and slides will be available for
two months.
About Elastic
Elastic is a search company built on a free and open heritage.
Anyone can use Elastic products and solutions to get started
quickly and frictionlessly. Elastic offers three solutions for
enterprise search, observability, and security, built on one
technology stack that can be deployed anywhere. From finding
documents to monitoring infrastructure to hunting for threats,
Elastic makes data usable in real time and at scale. Founded in
2012, Elastic is a distributed company with Elasticians around the
globe. Learn more at elastic.co.
Elastic and associated marks are trademarks or registered
trademarks of Elastic N.V. and its subsidiaries. All other company
and product names may be trademarks of their respective owners.
Use of Non-GAAP Financial Measures
Reconciliations of non-GAAP financial measures to Elastic’s
financial results as determined in accordance with U.S. GAAP are
included at the end of this press release following the
accompanying financial data. For a description of these non-GAAP
financial measures, including the reasons management uses each
measure, please see the section of this press release titled “About
Non-GAAP Financial Measures.”
Forward-Looking Statements
This press release contains forward-looking statements that
involve substantial risk and uncertainties, which include, but are
not limited to, our expected financial results for the fiscal
quarter ending July 31, 2021 and the fiscal year ending April 30,
2022, our expectations regarding demand for our products and
solutions and our future revenue, our assessments of the strength
of our solutions and products, the expected performance or benefits
of our offerings, and our expectations regarding the benefits of
our investments. These forward-looking statements are subject to
the safe harbor provisions under the Private Securities Litigation
Reform Act of 1995. Our expectations and beliefs in light of
currently available information regarding these matters may not
materialize. Actual outcomes and results may differ materially from
those contemplated by these forward-looking statements due to
uncertainties, risks, and changes in circumstances, including but
not limited to those related to: our future financial performance,
including our expectations regarding our revenue, cost of revenue,
gross profit or gross margin, operating expenses (which include
changes in sales and marketing, research and development and
general and administrative expenses), and our ability to achieve
and maintain future profitability; our ability to continue to
deliver and improve our offerings and develop new offerings,
including security-related product and SaaS offerings; customer
acceptance and purchase of our existing offerings and new
offerings, including the expansion and adoption of our SaaS
offerings; our inability to realize value from investments in the
business, including R&D investments; our ability to maintain
and expand our user and customer base; the impact of the COVID-19
pandemic on the macroeconomic environment, on our business,
operations, hiring and financial results, and on businesses of our
customers and partners, including their spending priorities, the
effect of lockdowns, restrictions and new regulations; the impact
of our licensing model on the use and adoption of our software; the
impact of foreign currency exchange rate and interest rate
fluctuations on our results; our international expansion strategy;
our operating results and cash flows; our beliefs and objectives
for future operations; the sufficiency of our capital resources;
our ability to successfully execute our go-to-market strategy,
including by expanding our relationships with our partners, and
expand in our existing markets and into new markets, and our
ability to forecast customer retention and expansion; and general
market, political, economic and business conditions.
Any additional or unforeseen effect from the COVID-19 pandemic
may exacerbate these risks. Additional risks and uncertainties that
could cause actual outcomes and results to differ materially are
included in our filings with the Securities and Exchange Commission
(the “SEC”), including our Annual Report on Form 10-K for the
fiscal year ended April 30, 2020 and any subsequent reports filed
with the SEC. SEC filings are available on the Investor Relations
section of Elastic’s website at ir.elastic.co and the SEC’s website
at www.sec.gov. Elastic assumes no obligation to, and does not
currently intend to, update any such forward-looking statements,
except as required by law.
Contact Information
Anthony Luscri Elastic Investor Relations ir@elastic.co
(650) 695-1055
Lisa Boughner Elastic Corporate Communications
lisa.boughner@elastic.co
Elastic N.V.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(amounts in thousands, except
share and per share amounts)
(Unaudited)
Three Months Ended April
30,
Year Ended April 30,
2021
2020
2021
2020
Revenue
License - self-managed
$
22,321
$
16,862
$
67,994
$
53,536
Subscription - self-managed and SaaS
142,218
97,041
499,345
338,634
Total subscription revenue
164,539
113,903
567,339
392,170
Professional services
13,071
9,720
41,150
35,450
Total revenue
177,610
123,623
608,489
427,620
Cost of revenue
Cost of license - self-managed
347
346
1,386
948
Cost of subscription - self-managed and
SaaS
34,663
23,987
121,127
84,819
Total cost of revenue - subscription
35,010
24,333
122,513
85,767
Cost of professional services
10,797
9,940
38,541
36,923
Total cost of revenue
45,807
34,273
161,054
122,690
Gross profit
131,803
89,350
447,435
304,930
Operating expenses
Research and development
55,437
45,591
199,203
165,370
Sales and marketing
82,165
58,180
273,877
219,040
General and administrative
31,278
20,153
103,833
91,625
Total operating expenses
168,880
123,924
576,913
476,035
Operating loss
(37,077
)
(34,574
)
(129,478
)
(171,105
)
Other income (expense), net (1)
(660
)
687
7,764
1,963
Loss before income taxes
(37,737
)
(33,887
)
(121,714
)
(169,142
)
Provision for (benefit from) income
taxes
5,564
(2,736
)
7,720
(1,968
)
Net loss
$
(43,301
)
$
(31,151
)
$
(129,434
)
$
(167,174
)
Net loss per share attributable to
ordinary shareholders, basic and diluted
$
(0.48
)
$
(0.38
)
$
(1.48
)
$
(2.12
)
Weighted-average shares used to compute
net loss per share attributable to ordinary shareholders, basic and
diluted
90,028,822
82,123,381
87,207,094
78,799,732
(1) Includes a foreign currency transaction loss of $0.6 million
and a foreign currency transaction gain of $7.7 million for the
three and twelve months ended April 30, 2021, respectively, arising
primarily from foreign exchange remeasurement and settlement of
intercompany balances. Intercompany balances are eliminated on
consolidation.
Elastic N.V.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(amounts in thousands, except
share and per share amounts)
(Unaudited)
April 30,
Assets
2021
2020
Current assets:
Cash and cash equivalents
$
400,814
$
297,081
Restricted cash
2,894
2,308
Accounts receivable, net of allowance for
credit losses of $2,344 and $1,247 as of April 30, 2021 and April
30, 2020, respectively
160,415
128,690
Deferred contract acquisition costs
36,089
19,537
Prepaid expenses and other current
assets
37,002
32,623
Total current assets
637,214
480,239
Property and equipment, net
8,881
7,760
Goodwill
198,851
197,877
Operating lease right-of-use assets
25,464
32,783
Intangible assets, net
36,286
50,455
Deferred contract acquisition costs,
non-current
50,263
24,012
Deferred tax assets
3,697
3,164
Other assets
12,516
7,621
Total assets
$
973,172
$
803,911
Liabilities and Shareholders’
Equity
Current liabilities:
Accounts payable
$
7,248
$
11,485
Accrued expenses and other liabilities
28,909
22,210
Accrued compensation and benefits
52,525
48,409
Operating lease liabilities
8,528
7,639
Deferred revenue
352,805
243,324
Total current liabilities
450,015
333,067
Deferred revenue, non-current
44,895
16,378
Operating lease liabilities,
non-current
19,649
27,827
Other liabilities, non-current
7,782
12,992
Total liabilities
522,341
390,264
Commitments and contingencies
Shareholders’ equity:
Convertible preference shares, €0.01 par
value; 165,000,000 shares authorized, 0 shares issued and
outstanding as of April 30, 2021 and April 30, 2020
—
—
Ordinary shares, par value €0.01 per
share: 165,000,000 shares authorized; 90,533,985 shares issued and
outstanding as of April 30, 2021 and 82,856,978 shares issued and
outstanding as of April 30, 2020
948
856
Treasury stock
(369
)
(369
)
Additional paid-in capital
1,071,675
898,788
Accumulated other comprehensive loss
(8,105
)
(1,377
)
Accumulated deficit
(613,318
)
(484,251
)
Total shareholders’ equity
450,831
413,647
Total liabilities and shareholders’
equity
$
973,172
$
803,911
Elastic N.V.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(amounts in thousands)
(Unaudited)
Three Months Ended April
30,
Year Ended April 30,
2021
2020
2021
2020
Cash flows from operating
activities
Net loss (1)
$
(43,301
)
$
(31,151
)
$
(129,434
)
$
(167,174
)
Adjustments to reconcile net loss to cash
provided by (used in) operating activities:
Depreciation and amortization
4,381
4,286
17,237
12,859
Amortization of deferred contract
acquisition costs
12,536
7,733
40,991
28,314
Non-cash operating lease cost
2,671
2,252
7,927
7,422
Stock-based compensation expense
28,375
17,232
93,680
60,007
Non-cash acquisition expense settled with
shares
—
—
—
8,834
Deferred income taxes
321
(918
)
33
(1,539
)
Foreign currency transaction (gains) loss
(2)
(44
)
—
(9,507
)
—
Other
(153
)
(9
)
(142
)
1,123
Changes in operating assets and
liabilities:
Accounts receivable, net
(39,283
)
(57,626
)
(24,037
)
(46,753
)
Deferred contract acquisition costs
(26,525
)
(19,776
)
(81,137
)
(46,217
)
Prepaid expenses and other current
assets
(9,009
)
1,395
(4,192
)
(2,950
)
Other assets
(9,344
)
1,823
(4,107
)
5,603
Accounts payable
1,546
(1,136
)
(4,775
)
5,968
Accrued expenses and other liabilities
6,422
3,700
8,118
5,220
Accrued compensation and benefits
9,726
16,333
3,867
19,710
Operating lease liabilities
(2,512
)
(2,075
)
(7,914
)
(6,661
)
Deferred revenue
62,628
52,004
115,937
85,670
Net cash provided by (used in) operating
activities (3)
(1,565
)
(5,933
)
22,545
(30,564
)
Cash flows from investing
activities
Purchases of property and equipment
(1,180
)
(826
)
(3,912
)
(5,063
)
Business acquisition, net of cash
acquired
—
—
—
(24,373
)
Capitalization of internal-use software
costs
(317
)
—
(317
)
—
Other
1,391
249
2,711
249
Net cash used in investing activities
(106
)
(577
)
(1,518
)
(29,187
)
Cash flows from financing
activities
Proceeds from issuance of ordinary shares
upon exercise of stock options
9,704
10,841
77,258
61,463
Payment of withholding taxes related to
acquisition expense settled in shares
—
—
—
(2,834
)
Repayment of notes payable
—
—
—
(90
)
Net cash provided by financing
activities
9,704
10,841
77,258
58,539
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
186
(1,309
)
6,034
321
Net increase (decrease) in cash, cash
equivalents, and restricted cash
8,219
3,022
104,319
(891
)
Cash, cash equivalents, and restricted
cash, beginning of period
395,489
296,367
299,389
300,280
Cash, cash equivalents, and restricted
cash, end of period
$
403,708
$
299,389
$
403,708
$
299,389
(1) Includes foreign currency transaction losses of less than
$0.1 million and gains of $9.5 million for the three and twelve
months ended April 30, 2021, respectively, arising primarily from
foreign exchange remeasurement of intercompany balances.
Intercompany balances are eliminated on consolidation.
(2) Removes the foreign currency transaction losses of less than
$0.1 million and gains of $9.5 million for the three and twelve
months ended April 30, 2021, respectively, included in net
loss.
(3) Unaffected by foreign currency transaction gains.
Elastic N.V.
REVENUE BY TYPE
(amounts in thousands, except
percentages)
(Unaudited)
Three Months Ended April
30,
Year Ended April 30,
2021
2020
2021
2020
Amount
% of Total Revenue
Amount
% of Total Revenue
Amount
% of Total Revenue
Amount
% of Total Revenue
Self-managed subscription
$
113,204
64
%
$
84,933
69
%
$
401,020
66
%
$
299,880
70
%
License
22,321
13
%
16,862
14
%
67,994
11
%
53,536
12
%
Subscription
90,883
51
%
68,071
55
%
333,026
55
%
246,344
58
%
SaaS
51,335
29
%
28,970
23
%
166,319
27
%
92,290
22
%
Total subscription revenue
164,539
93
%
113,903
92
%
567,339
93
%
392,170
92
%
Professional services
13,071
7
%
9,720
8
%
41,150
7
%
35,450
8
%
Total revenue
$
177,610
100
%
$
123,623
100
%
$
608,489
100
%
$
427,620
100
%
Elastic N.V.
RECONCILIATION OF GAAP TO
NON-GAAP DATA
CALCULATED BILLINGS
(amounts in thousands)
(Unaudited)
Three Months Ended April
30,
Year Ended April 30,
2021
2020
2021
2020
Total revenue
$
177,610
$
123,623
$
608,489
$
427,620
Add: Increase in deferred revenue
62,628
52,004
115,937
85,670
Less: Decrease (increase) in unbilled
accounts receivable
632
(528
)
(2,582
)
(592
)
Calculated billings
$
240,870
$
175,099
$
721,844
$
512,698
Elastic N.V.
RECONCILIATION OF GAAP TO
NON-GAAP DATA
FREE CASH FLOW
(amounts in thousands, except
percentages)
(Unaudited)
Three Months Ended April
30,
Year Ended April 30,
2021
2020
2021
2020
Net cash provided by (used in) operating
activities
$
(1,565
)
$
(5,933
)
$
22,545
$
(30,564
)
Less: Purchases of property and
equipment
(1,180
)
(826
)
(3,912
)
(5,063
)
Less: Capitalization of internal-use
software
(317
)
$
—
(317
)
$
—
Free cash flow
$
(3,062
)
$
(6,759
)
$
18,316
$
(35,627
)
Net cash used in investing activities
$
(106
)
$
(577
)
$
(1,518
)
$
(29,187
)
Net cash provided by financing
activities
$
9,704
$
10,841
$
77,258
$
58,539
Net cash provided by (used in) operating
activities (as a percentage of total revenue)
(1
)%
(5
)%
4
%
(7
)%
Less: Purchases of property and equipment
(as a percentage of total revenue)
(1
)%
—
%
(1
)%
(1
)%
Less: Capitalization of internal-use
software (as a percentage of total revenue)
—
%
—
%
—
%
—
%
Free cash flow margin
(2
)%
(5
)%
3
%
(8
)%
Elastic N.V.
RECONCILIATION OF GAAP TO
NON-GAAP DATA
(amounts in thousands, except
percentages, share and per share amounts)
(Unaudited)
Three Months Ended April
30,
Year Ended April 30,
2021
2020
2021
2020
Gross Profit Reconciliation:
GAAP gross profit
$
131,803
$
89,350
$
447,435
$
304,930
Stock-based compensation expense
3,577
2,180
11,929
7,127
Employer payroll taxes on employee stock
transactions
424
70
1,335
527
Amortization of acquired intangibles
2,109
2,109
8,437
6,768
Non-GAAP gross profit
$
137,913
$
93,709
$
469,136
$
319,352
Gross Margin Reconciliation(1):
GAAP gross margin
74.2
%
72.3
%
73.5
%
71.3
%
Stock-based compensation expense
2.0
%
1.8
%
2.0
%
1.7
%
Employer payroll taxes on employee stock
transactions
0.2
%
0.1
%
0.2
%
0.1
%
Amortization of acquired intangibles
1.2
%
1.7
%
1.4
%
1.6
%
Non-GAAP gross margin
77.6
%
75.8
%
77.1
%
74.7
%
Operating Loss Reconciliation:
GAAP operating loss
$
(37,077
)
$
(34,574
)
$
(129,478
)
$
(171,105
)
Stock-based compensation expense
28,375
17,232
93,680
60,007
Employer payroll taxes on employee stock
transactions
3,940
845
14,376
7,493
Amortization of acquired intangibles
3,537
3,550
14,167
10,068
Acquisition-related expenses
—
212
—
17,974
Non-GAAP operating loss
$
(1,225
)
$
(12,735
)
$
(7,255
)
$
(75,563
)
Operating Margin
Reconciliation(1):
GAAP operating margin
(20.9
)%
(28.0
)%
(21.3
)%
(40.0
)%
Stock-based compensation expense
16.0
%
13.9
%
15.4
%
14.0
%
Employer payroll taxes on employee stock
transactions
2.2
%
0.7
%
2.4
%
1.8
%
Amortization of acquired intangibles
2.0
%
2.9
%
2.3
%
2.4
%
Acquisition-related expenses
0.0
%
0.2
%
0.0
%
4.2
%
Non-GAAP operating margin
(0.7
)%
10.3
%
(1.2
)%
(17.7
)%
Net Loss Reconciliation:
GAAP net loss
$
(43,301
)
$
(31,151
)
$
(129,434
)
$
(167,174
)
Stock-based compensation expense
28,375
17,232
93,680
60,007
Employer payroll taxes on employee stock
transactions
3,940
845
14,376
7,493
Amortization of acquired intangibles
3,537
3,550
14,167
10,068
Acquisition-related expenses
—
212
—
17,974
Income tax(2)
(200
)
(458
)
(777
)
(1,623
)
Non-GAAP net loss
$
(7,649
)
$
(9,770
)
$
(7,988
)
$
(73,255
)
Non-GAAP net loss per share
attributable to ordinary shareholders, basic and diluted
$
(0.08
)
$
(0.12
)
$
(0.09
)
$
(0.93
)
Weighted-average shares used to compute
net loss per share attributable to ordinary shareholders, basic and
diluted
90,028,822
82,123,381
87,207,094
78,799,732
(1) Totals may not sum, due to rounding. Gross margin, operating
margin, and earnings per share are calculated based upon the
respective underlying, non-rounded data.
(2) Non-GAAP financial information for the quarter is adjusted
for a tax rate equal to our annual estimated tax rate on non-GAAP
income. This rate is based on our estimated annual GAAP income tax
rate forecast, adjusted to account for items excluded from GAAP
income in calculating the non-GAAP financial measures presented
above as well as significant tax adjustments. Our estimated tax
rate on non-GAAP income is determined annually and may be adjusted
during the year to take into account events or trends that we
believe materially impact the estimated annual rate including, but
not limited to, significant changes resulting from tax legislation,
material changes in the geographic mix of revenue and expenses and
other significant events. Due to the differences in the tax
treatment of items excluded from non-GAAP earnings, as well as the
methodology applied to our estimated annual tax rates as described
above, our estimated tax rate on non-GAAP income may differ from
our GAAP tax rate and from our actual tax liabilities.
Elastic N.V.
RECONCILIATION OF GAAP TO
NON-GAAP DATA
(amounts in thousands)
(Unaudited)
Three Months Ended April
30,
Year Ended April 30,
2021
2020
2021
2020
Cost of revenue reconciliation:
GAAP cost of license - self-managed
$
347
$
346
$
1,386
$
948
Amortization of acquired intangibles
(347
)
(346
)
(1,386
)
(948
)
Non-GAAP cost of license - self
-managed
$
—
$
—
$
—
$
—
GAAP cost of subscription - self-managed
and SaaS
$
34,663
$
23,987
$
121,127
$
84,819
Stock-based compensation expense
(2,040
)
(1,278
)
(7,105
)
(4,147
)
Employer payroll taxes on employee stock
transactions
(187
)
(28
)
(674
)
(349
)
Amortization of acquired intangibles
(1,762
)
(1,763
)
(7,051
)
(5,820
)
Non-GAAP cost of subscription -
self-managed and SaaS
$
30,674
$
20,918
$
106,297
$
74,503
GAAP cost of professional services
$
10,797
$
9,940
$
38,541
$
36,923
Stock-based compensation expense
(1,537
)
(902
)
(4,824
)
(2,980
)
Employer payroll taxes on employee stock
transactions
(237
)
(42
)
(661
)
(178
)
Non-GAAP cost of professional services
$
9,023
$
8,996
$
33,056
$
33,765
Operating expenses
reconciliation:
GAAP research and development expense
$
55,437
$
45,591
$
199,203
$
165,370
Stock-based compensation expense
(10,958
)
(6,534
)
(35,267
)
(23,621
)
Employer payroll taxes on employee stock
transactions
(968
)
(293
)
(3,670
)
(2,179
)
Acquisition-related expenses
—
—
—
(34
)
Non-GAAP research and development
expense
$
43,511
$
38,764
$
160,266
$
139,536
GAAP sales and marketing expense
$
82,165
$
58,180
$
273,877
$
219,040
Stock-based compensation expense
(9,062
)
(5,828
)
(31,581
)
(19,334
)
Employer payroll taxes on employee stock
transactions
(1,905
)
(421
)
(5,399
)
(3,237
)
Amortization of acquired intangibles
(1,428
)
(1,441
)
(5,730
)
(3,300
)
Acquisition-related expenses
—
(14
)
—
(522
)
Non-GAAP sales and marketing expenses
$
69,770
$
50,476
$
231,167
$
192,647
GAAP general and administrative
expense
$
31,278
$
20,153
$
103,833
$
91,625
Stock-based compensation expense
(4,778
)
(2,690
)
(14,903
)
(9,925
)
Employer payroll taxes on employee stock
transactions
(643
)
(61
)
(3,972
)
(1,550
)
Acquisition-related expenses
—
(198
)
—
(17,418
)
Non-GAAP general and administrative
expense
$
25,857
$
17,204
$
84,958
$
62,732
About Non-GAAP Financial Measures
In addition to our results determined in accordance with U.S.
GAAP, we believe the non-GAAP measures listed below are useful in
evaluating our operating performance. We use these non-GAAP
financial measures to evaluate our ongoing operations and for
internal planning and forecasting purposes. We believe that
non-GAAP financial information, when taken collectively, may be
helpful to investors because it provides consistency and
comparability with past financial performance. However, non-GAAP
financial information is presented for supplemental informational
purposes only, has limitations as an analytical tool and should not
be considered in isolation or as a substitute for financial
information presented in accordance with U.S. GAAP. In particular,
free cash flow is not a substitute for cash used in operating
activities. Additionally, the utility of free cash flow as a
measure of our liquidity is further limited as it does not
represent the total increase or decrease in our cash balance for a
given period. In addition, other companies, including companies in
our industry, may calculate similarly-titled non-GAAP measures
differently or may use other measures to evaluate their
performance, all of which could reduce the usefulness of our
non-GAAP financial measures as tools for comparison. A
reconciliation of our historical non-GAAP financial measures to
their most directly comparable financial measure stated in
accordance with U.S. GAAP has been provided in the financial
statement tables included in this press release. Investors are
cautioned that there are a number of limitations associated with
the use of non-GAAP financial measures and key metrics as
analytical tools. Investors are encouraged to review these
reconciliations, and not to rely on any single financial measure to
evaluate our business.
Non-GAAP Gross Profit and Non-GAAP Gross Margin
We define non-GAAP gross profit and non-GAAP gross margin as
GAAP gross profit and GAAP gross margin, respectively, excluding
stock-based compensation expense, employer payroll taxes on
employee stock transactions, and amortization of acquired
intangible assets. We believe non-GAAP gross profit and non-GAAP
gross margin provide our management and investors consistency and
comparability with our past financial performance and facilitate
period-to-period comparisons of operations, as these metrics
generally eliminate the effects of certain variables from period to
period for reasons unrelated to overall operating performance.
Non-GAAP Operating Loss and Non-GAAP Operating Margin
We define non-GAAP operating loss and non-GAAP operating margin
as GAAP operating loss and GAAP operating margin, respectively,
excluding stock-based compensation expense, employer payroll taxes
on employee stock transactions, amortization of acquired intangible
assets, and acquisition-related expenses. We believe non-GAAP
operating loss and non-GAAP operating margin provide our management
and investors consistency and comparability with our past financial
performance and facilitate period-to-period comparisons of
operations, as these metrics generally eliminate the effects of
certain variables from period to period for reasons unrelated to
overall operating performance.
Non-GAAP Net Loss Per Share
We define non-GAAP net loss per share as GAAP net loss per
share, excluding stock-based compensation expense, employer payroll
taxes on employee stock transactions, amortization of acquired
intangible assets, acquisition-related expenses and the tax effects
related to the foregoing. We believe non-GAAP net loss per share
provides our management and investors consistency and comparability
with our past financial performance and facilitates
period-to-period comparisons of operations, as this metric
generally eliminates the effects of certain variables from period
to period for reasons unrelated to overall operating
performance.
Free Cash Flow and Free Cash Flow Margin
Free cash flow is a non-GAAP financial measure that we define as
net cash (used in) provided by operating activities less purchases
of property and equipment and capitalized internal-use software
costs. Free cash flow margin is calculated as free cash flow
divided by total revenue. We believe that free cash flow and free
cash flow margin are useful indicators of liquidity that provide
information to management and investors about the amount of cash
generated from our core operations that, after the purchases of
property and equipment, can be used for strategic initiatives,
including investing in our business and selectively pursuing
acquisitions and strategic investments.
Calculated Billings
We define calculated billings as total revenue plus the increase
in total deferred revenue as presented on or derived from our
consolidated statements of cash flows less the (increase) decrease
in total unbilled accounts receivable in a given period. Calculated
billings exclude deferred revenue and unbilled accounts receivable
acquired through acquisitions in the period of acquisition. We
typically invoice our customers annually in advance, and to a
lesser extent multi-year in advance, quarterly in advance, monthly
in advance, monthly in arrears or upon delivery. Our management
uses calculated billings to understand and evaluate our near-term
cash flows and operating results.
Constant Currency
We compare the percent change in certain results from one period
to another period using constant currency information to provide a
framework for assessing how our business performed excluding the
effect of foreign currency rate fluctuations. In presenting this
information, current and comparative prior period results are
converted into United States dollars at the exchange rates in
effect on the last day of our prior fiscal year, rather than the
actual exchange rates in effect during the respective periods.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210602005884/en/
Anthony Luscri Elastic Investor Relations ir@elastic.co
(650) 695-1055
Lisa Boughner Elastic Corporate Communications
lisa.boughner@elastic.co
Elastic NV (NYSE:ESTC)
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