Elastic N.V. reported its financial results for the three months ended July 31, 2024, showing significant growth in revenue and a slight improvement in operating loss compared to the same period in the previous year. Total revenue reached $347.4 million, an increase of 18% from $293.8 million in the prior year. Subscription revenue, which constitutes 93% of total revenue, rose to $323.8 million, up 20% from $270.2 million, driven by a 30% growth in Elastic Cloud adoption, which accounted for 45% of total revenue.

The company’s gross profit for the quarter was $255.7 million, reflecting an 18% increase from $216.3 million in the same period last year. However, the operating loss narrowed slightly to $33.8 million from $36.2 million, while the net loss increased marginally to $49.2 million from $48.5 million. The net loss per share improved to $(0.48) from $(0.50) year-over-year.

Elastic's total assets decreased to $2.15 billion as of July 31, 2024, down from $2.24 billion at the end of April 2024. Current assets also fell to $1.47 billion, while cash and cash equivalents increased to $594.9 million from $540.4 million. Total liabilities decreased to $768.2 million, contributing to an increase in total shareholders’ equity to $759.4 million from $738.2 million.

The company’s operational expenses rose, with research and development expenses increasing by 11% to $86.5 million, sales and marketing expenses up 18% to $158.5 million, and general and administrative expenses rising by 12% to $43.5 million. The increase in expenses was attributed to higher personnel costs and investments in marketing and cloud infrastructure.

Elastic also made strategic moves, including the acquisition of Opster Ltd. for $23 million, which is expected to enhance the efficiency of its Elastic Stack. The company continues to focus on increasing the adoption of Elastic Cloud, which is seen as a significant growth opportunity amid challenging economic conditions affecting customer spending.

As of July 31, 2024, Elastic had approximately 21,200 customers, an increase from 20,500 a year earlier, with over 1,370 customers having an annual contract value exceeding $100,000. The company reported a net expansion rate of approximately 112%, indicating growth in customer spending.