Elastic N.V. Reports Strong Third Quarter Fiscal 2019 Financial Results

Total Revenue of $70.8 million, Growing 70% year-over-year

Calculated Billings of $79.8 million, Growing 68% year-over-year

MOUNTAIN VIEW, Calif. & AMSTERDAM–(BUSINESS WIRE)–Elastic N.V. (NYSE: ESTC) (“Elastic”), the company behind Elasticsearch
and the Elastic Stack, today announced strong results for its fiscal
third quarter ended January 31, 2019.

Third Quarter Fiscal 2019 Financial Highlights

  • Total revenue was $70.8 million, growing 70% year-over-year.
  • Calculated billings was $79.8 million, growing 68% year-over-year.
  • Deferred revenue was $137.8 million, growing 73% year-over-year.
  • GAAP operating loss was $23.8 million; GAAP operating margin was
    -33.6%.
  • Non-GAAP operating loss was $11.7 million; Non-GAAP operating margin
    was -16.6%.
  • GAAP net loss per share was $0.30; Non-GAAP net loss per share was
    $0.16.
  • Operating cash flow was -$8.7 million with free cash flow of -$9.9
    million.
  • Cash and cash equivalents were $305.8 million as of January 31, 2019.

“We’re very pleased with our strong revenue growth of 70% year-over-year
in Q3,” said Shay Banon, founder and chief executive officer at Elastic.
“Our users and customers continue to embrace our search products that
address an expanding set of use cases. Given the incredible customer and
user demand that we are seeing, we are further accelerating investments
across all parts of the business.”

Third Quarter Fiscal 2019 Key Metrics and Recent Business Highlights

  • Total subscription customer count was over 7,200.
  • Total customer count with ACV greater than $100,000 was over 380.
  • Subscription revenue represented 91% of total revenue.
  • Net Expansion Rate remained over 130% for the ninth consecutive
    quarter.
  • Released version 6.6 of the Elastic Stack with better storage
    efficiency and performance improvements. New features include frozen
    indices and index lifecycle management for more efficient data
    retention; Bkd-backed geoshapes for significantly faster geoshape data
    analysis; and new Elasticsearch SQL functionality to easily build time
    series charts in Canvas.
  • Made Elastic APM generally available in Elastic’s Elasticsearch
    Service and on Elastic Cloud Enterprise. Distributed tracing is also
    available in Elastic APM.
  • Released version 2.1 of Elastic Cloud Enterprise (ECE) making it
    easier to centralize APM, logs, and metrics data and furthering our
    hybrid cloud capabilities with cross-cluster search.
  • Introduced the Auditbeat System Module to make it easier to detect
    unusual events in audit data, especially security-related anomalies.
  • Joined the Cloud Native Computing Foundation (CNCF), to support and
    promote the use of open technologies and standards, like Kubernetes,
    open tracing and metrics. Elastic APM is now compatible with
    OpenTracing standards.
  • The Elastic Stack was named in InfoWorld’s 2019 Technology of the Year
    Awards.
  • Held seven successful Elastic{ON} Tour events to engage with our
    community of users, customers, and partners in Anaheim, Atlanta,
    Dallas, Madrid, New York City, Paris, and Seoul, with waitlists driven
    by strong demand.
  • Launched the inaugural Elastic Search Awards Program. An evolution
    from the Elastic Cause Awards, this new program recognizes and
    celebrates community members and organizations that are using Elastic
    technology to improve lives.
  • Commemorated the new, expanded Elastic Amsterdam office with community
    members, customers, and partners, along with Prince Constantijn van
    Oranje, who is Special Envoy of Startup Delta, a Dutch startup
    accelerator.

Financial Outlook

The Company is providing the following guidance:

For its fourth quarter of fiscal 2019 (ending April 30, 2019):

  • Total revenue is expected to be between $74 million and $76 million.
  • Non-GAAP operating margin is expected to be between -26% and -24%.
  • Non-GAAP net loss per share is expected to be between $0.30 and $0.28,
    assuming approximately 74 million weighted average ordinary shares
    outstanding.

For its fiscal year 2019 (ending April 30, 2019):

  • Total revenue is expected to be between $265 million and $267 million.
  • Non-GAAP operating margin is expected to be between -22% and -21%.
  • Non-GAAP net loss per share is expected to be between $1.13 and $1.11,
    assuming approximately 56 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 these costs and expenses that may be
incurred in the future.

Conference Call and Webcast

Elastic’s executive management team will host a conference call today
beginning at 2:00 p.m. PT/ 5:00 p.m. ET/ 11 p.m. CET 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.

Lock-Up Release Date and Extension

Pursuant to the lock-up agreements executed in connection with the
Company’s initial public offering, provided the closing price of
Elastic’s ordinary shares on March 4, 2019 is at least 33% greater than
the IPO price of Elastic’s ordinary shares, 25% of the shares subject to
the lock-up agreements will be released from lock-up, and such shares
will become eligible for immediate sale in the public market, at the
open of trading on March 6, 2019, subject to trading limitations on
shares held by affiliates of Elastic and applicable securities laws,
restrictions under Elastic’s insider trading policy and continued
vesting of any unvested equity awards as of such date.

The lock-up restrictions with respect to all remaining shares are
scheduled to expire after the close of the market on April 2, 2019.
However, since the Company will be in its standard quarterly trading
blackout period on that date, insiders will be restricted from selling
shares until the start of the third trading day following the end of
this blackout period. The Company expects to announce its earnings
results for its fiscal year ending April 30, 2019 in early June 2019.

About Elastic

Elastic is a search company. As the creators of the Elastic Stack
(Elasticsearch, Kibana, Beats, and Logstash), Elastic builds
self-managed and SaaS offerings that make data usable in real time and
at scale for search, logging, security, and analytics use cases. Elastic
is a distributed company with Elasticians working in countries around
the world. 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 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 which include,
but are not limited to, expected financial results for the fiscal
quarter and the fiscal year ending April 30, 2019. These forward-looking
statements are subject to the safe harbor provisions under the Private
Securities Litigation Reform Act of 1995. Our expectations and beliefs
regarding these matters may not materialize. Actual outcomes and results
may differ materially from those contemplated by these forward-looking
statements as a result of uncertainties, risks, and changes in
circumstances, including but not limited to risks and uncertainties
related to: our ability to continue to deliver and improve our offerings
and successfully develop new offerings; customer acceptance and purchase
of our existing offerings and new offerings; our ability to maintain and
expand our customer base; the market for our products not continuing to
develop; competition from other products; the impact of foreign currency
exchange rate and interest rate fluctuations on our results; our
business strategy and our plan to build our business; our ability to
effectively manage our growth; the pace of change and innovation in the
markets in which we participate and the competitive nature of those
markets; our international expansion strategy; our service performance
and security, including the resources and costs required to prevent,
detect and remediate potential security breaches; our operating results
and cash flows; our strategy of acquiring complementary businesses and
our ability to successfully integrate acquired businesses and
technologies; our relationships with third parties, including partners;
our ability to protect our intellectual property rights; our ability to
develop our brands; our ability to attract and retain qualified
employees and key personnel; the impact of expensing stock options and
other equity awards; the sufficiency of our capital resources; and
general market, political, economic and business conditions. Additional
risks and uncertainties that could cause actual outcomes and results to
differ materially from those contemplated by the forward-looking
statements are included under the caption “Risk Factors” and elsewhere
in our most recent filings with the Securities and Exchange Commission
(the “SEC”), including our prospectus filed with the SEC pursuant to
Rule 424(b)(4) dated October 4, 2018 and our Quarterly Report on Form
10-Q for the fiscal quarter ended October 31, 2018. 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 after the date of this
release, except as required by law.

Contact Information

Anthony Luscri
Elastic Investor Relations
[email protected]
(650)
695-1055

Deborah Wiltshire
Elastic Corporate Communications
[email protected]

   

Elastic N.V.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except share and per share amounts)

(Unaudited)

 
Three Months Ended January 31, Nine Months Ended January 31,
2019   2018 2019   2018
Revenue
License – self-managed $ 9,406 $ 5,815 $ 26,850 $ 16,920
Subscription – self-managed and SaaS   55,180   33,218   147,781   86,286
Total subscription revenue 64,586 39,033 174,631 103,206
Professional services   6,249   2,648   16,423   7,157
Total revenue   70,835   41,681   191,054   110,363
Cost of revenue
Cost of license – self-managed 96 96 290 290

Cost of subscription – self-managed and SaaS

  13,941   7,382   37,012   18,618
Total cost of revenue – subscription 14,037 7,478 37,302 18,908
Cost of professional services   6,387   3,288   17,266   8,232
Total cost of revenue   20,424   10,766   54,568   27,140
Gross profit   50,411   30,915   136,486   83,223
Operating expenses
Research and development 25,850 15,092 70,163 38,098
Sales and marketing 37,196 20,727 102,252 54,679
General and administrative   11,151   7,555   33,342   19,205
Total operating expenses   74,197   43,374   205,757   111,982
Operating loss (23,786 ) (12,459 ) (69,271 ) (28,759 )
Other income (expense), net   1,877   (175 )   2,737   (813 )
Loss before income taxes (21,909 ) (12,634 ) (66,534 ) (29,572 )
Provision for (benefit from) income taxes   (558 )   696   934   1,752
Net loss $ (21,351 ) $ (13,330 ) $ (67,468 ) $ (31,324 )

Net loss per share attributable to ordinary shareholders, basic
and diluted

$ (0.30 ) $ (0.41 ) $ (1.37 ) $ (0.98 )

Weighted-average shares used to compute net loss per share
attributable to ordinary shareholders, basic and diluted

  70,725,336   32,392,894   49,261,240   31,838,690
 
   

Elastic N.V.

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except share and per share amounts)

(Unaudited)

 

January 31,

2019

April 30,

2018

Assets
Current assets:
Cash and cash equivalents $ 305,826 $ 50,941
Restricted cash 2,664 668

Accounts receivable, net of allowance for doubtful accounts of
$2,122 and $776 as of January 31, 2019 and April 30, 2018,
respectively

54,518 53,233
Deferred contract acquisition costs 15,795 12,125
Prepaid expenses and other current assets   22,881   15,261
Total current assets 401,684 132,228
Property and equipment, net 4,663 4,536
Goodwill 19,970 19,182
Intangible assets, net 7,417 8,297
Deferred contract acquisition costs, non-current 7,657 5,954
Deferred offering costs 242
Deferred tax assets 3,058 3,946
Other assets   6,549   8,628
Total assets $ 450,998 $ 183,013

Liabilities, Redeemable Convertible Preferred Shares and
Shareholders’ Equity (Deficit)

Current liabilities:
Accounts payable $ 1,772 $ 2,176
Accrued expenses and other liabilities 16,716 11,816
Accrued compensation and benefits 16,992 15,191
Deferred revenue   126,171   95,929
Total current liabilities 161,651 125,112
Deferred revenue, non-current 11,632 6,632
Other liabilities, non-current   5,616   3,877
Total liabilities   178,899   135,621
Commitments and contingencies

Redeemable convertible preference shares, par value €0.001 per
share; No shares authorized, issued, or outstanding as of January
31, 2019; 29,026,193 shares authorized; 28,939,466 shares issued
and outstanding as of April 30, 2018

    200,921
Shareholders’ (deficit) equity:

Convertible preference shares, €0.01 par value; 165,000,000 shares
authorized, 0 shares issued and outstanding as of January 31,
2019; 0 shares authorized, issued and outstanding as of April 30,
2018

Ordinary shares, par value €0.01 per share: 165,000,000 shares
authorized; 71,334,105 shares issued and outstanding as of January
31, 2019

727

Ordinary shares, par value of €0.001 per share; 72,000,000 shares
authorized; 0 and 33,232,955 shares issued and outstanding as of
January 31, 2019 and April 30, 2018, respectively

33

Treasury stock; 35,937 shares (repurchased at an average price of
$10.30 per share)

(369 ) (369 )
Additional paid-in capital 556,143 62,542
Accumulated other comprehensive loss (2,160 ) (961 )
Accumulated deficit   (282,242 )   (214,774 )
Total shareholders’ (deficit) equity   272,099   (153,529 )

Total liabilities, redeemable convertible preference shares and
shareholders’ equity (deficit)

$ 450,998 $ 183,013
 
   

Elastic N.V.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in thousands)

(Unaudited)

 
Three Months Ended

January 31,

Nine Months Ended

January 31,

2019   2018 2019   2018
Cash flows from operating activities
Net loss $ (21,351 ) $ (13,330 ) $ (67,468 ) $ (31,324 )

Adjustments to reconcile net loss to cash (used in) provided by
operating activities:

Depreciation and amortization 1,378 1,470 4,386 3,565
Amortization of deferred contract acquisition costs 5,870 3,200 14,718 8,798
Stock-based compensation expense 11,111 3,554 28,015 8,578
Other 51 66 2

Changes in operating assets and liabilities, net of impact of
business acquisition:

Accounts receivable, net 396 (1,088 ) (2,228 ) (3,180 )
Deferred contract acquisition costs (6,278 ) (3,856 ) (20,414 ) (11,109 )
Prepaid expenses and other current assets (4,741 ) (2,192 ) (9,598 ) (4,109 )
Other assets 988 (695 ) 2,631 (2,522 )
Accounts payable (5,233 ) 4,728 (366 ) 5,126
Accrued expenses and other liabilities (925 ) 935 6,730 5,721
Accrued compensation and benefits 404 (525 ) 2,070 1,856
Deferred revenue   9,633   5,951   37,311   21,686
Net cash (used in) provided by operating activities   (8,697 )   (1,848 )   (4,147 )   3,088
Cash flows from investing activities
Purchases of property and equipment (1,187 ) (945 ) (2,359 ) (1,841 )
Maturities of short-term investments 15,000
Business acquisitions, net of cash acquired       (1,986 )   (3,702 )
Net cash (used in) provided by investing activities   (1,187 )   (945 )   (4,345 )   9,457
Cash flows from financing activities

Net proceeds from issuance of common stock in initial public
offering

269,514

Proceeds from issuance of ordinary shares upon exercise of stock
options

755 414 3,537 1,742

Proceeds from the issuance of ordinary shares related to early
exercise of stock options

500 500
Repurchase of ordinary shares (344 )
Repurchase of early exercised options (500 )
Repayment of notes payable (53 ) (31 ) (73 ) (90 )
Payments of deferred offering costs   (3,371 )     (5,673 )  
Net cash (used in) provided by financing activities   (2,669 )   883   266,805   1,808

Effect of exchange rate changes on cash, cash equivalents, and
restricted cash

  196   1,853   (1,432 )   1,269

Net (decrease) increase in cash, cash equivalents, and restricted
cash

  (12,357 )   (57 )   256,881   15,622

Cash, cash equivalents, and restricted cash, beginning of period

  320,847   75,569   51,609   59,890

Cash, cash equivalents, and restricted cash, end of period

$ 308,490 $ 75,512 $ 308,490 $ 75,512
 
   

Elastic N.V.

REVENUE BY TYPE

(amounts in thousands, except percentages)

(Unaudited)

 
Three Months Ended January 31, Nine Months Ended January 31,
2019   2018 2019   2018
    % of     % of     % of     % of
Total Total Total Total
Amount Revenue Amount Revenue Amount Revenue Amount Revenue
Self-managed subscription $ 52,846   74 % $ 32,024   77 % $ 142,564   74 % $ 85,855   78 %
License 9,406 13 % 5,815 14 % 26,850 14 % 16,920 15 %
Subscription 43,440 61 % 26,209 63 % 115,714 60 % 68,935 63 %
SaaS   11,740   17 %   7,009   17 %   32,067   17 %   17,351   16 %
Total subscription revenue 64,586 91 % 39,033 94 % 174,631 91 % 103,206 94 %
Professional services   6,249   9 %   2,648   6 %   16,423   9 %   7,157   6 %
Total revenue $ 70,835   100 % $ 41,681   100 % $ 191,054   100 % $ 110,363   100 %
 
   

Elastic N.V.

RECONCILIATION OF GAAP TO NON-GAAP DATA

CALCULATED BILLINGS

(amounts in thousands)

(Unaudited)

 
Three Months Ended January 31, Nine Months Ended January 31,
2019   2018 2019   2018
Total revenue $ 70,835 $ 41,681 $ 191,054 $ 110,363
Add: Increase in total deferred revenue 9,633 5,951 37,311 21,686

Less: (Increase) decrease in unbilled accounts receivable

  (639 )   (151 )   (794 )   357
Calculated billings $ 79,829 $ 47,481 $ 227,571 $ 132,406
 
   

Elastic N.V.

RECONCILIATION OF GAAP TO NON-GAAP DATA

FREE CASH FLOW

(amounts in thousands, except percentages)

(Unaudited)

 
Three Months Ended January 31, Nine Months Ended January 31,
2019   2018 2019   2018
Net cash (used in) provided by operating activities $ (8,697 ) $ (1,848 ) $ (4,147 ) $ 3,088
Less: Purchases of property and equipment   (1,187 )   (945 )   (2,359 )   (1,841 )
Free cash flow $ (9,884 ) $ (2,793 ) $ (6,506 ) $ 1,247
Net cash (used in) provided by investing activities $ (1,187 ) $ (945 ) $ (4,345 ) $ 9,457
Net cash (used in) provided by financing activities $ (2,669 ) $ 883 $ 266,805 $ 1,808

Net cash (used in) provided by operating activities (as a
percentage of total revenue)

(12 )% (5 )% (2 )% 3 %

Less: Purchases of property and equipment (as a percentage of
total revenue)

  (2 )%   (2 )%   (1 )%   (2 )%
Free cash flow margin   (14 )%   (7 )%   (3 )%   1 %
 
           

Elastic N.V.

RECONCILIATION OF GAAP TO NON-GAAP DATA

For the three months ended January 31, 2019

(amounts in thousands, except percentages, share and per share
amounts)

(Unaudited)

 
GAAP Stock-Based

Compensation

Expense

Amortization

of Acquired

Intangibles

Acquisition

Related

Expenses

Tax

Adjustment (1)

Non-GAAP (2)
Cost of revenue
Cost of license – self-managed $ 96 $ $ (96 ) $ $ $

Cost of subscription – self-managed and SaaS

$ 13,941 $ (1,095 ) $ (638 ) $ $ $ 12,208
Total cost of revenue – subscription $ 14,037 $ (1,095 ) $ (734 ) $ $ $ 12,208

Cost of professional services

$ 6,387 $ (364 ) $ $ $ $ 6,023
Total cost of revenue $ 20,424 $ (1,459 ) $ (734 ) $ $ $ 18,231
Gross profit $ 50,411 $ 1,459 $ 734 $ $ $ 52,604
Gross margin (2) 71.2 % 2.1 % 1.0 % 0.0 % 74.3 %
Operating expenses
Research and development $ 25,850 $ (4,604 ) $ $ (173 ) $ $ 21,073
Sales and marketing $ 37,196 $ (3,471 ) $ (38 ) $ $ $ 33,687
General and administrative $ 11,151 $ (1,577 ) $ $ $ $ 9,574
Total operating expenses $ 74,197 $ (9,652 ) $ (38 ) $ (173 ) $ $ 64,334
Operating loss $ (23,786 ) $ 11,111 $ 772 $ 173 $ $ (11,730 )
Operating margin (2) (33.6 )% 15.7 % 1.1 % 0.2 % (16.6 )%
Other income, net $ 1,877 $ $ $ $ $ 1,877
Loss before income taxes $ (21,909 ) $ 11,111 $ 772 $ 173 $ $ (9,853 )

Provision for (benefit from) income taxes

$ (558 ) $ $ $ $ 1,856 $ 1,298
Tax rate (2) 2.5 % (13.2 )%
Net loss $ (21,351 ) $ 11,111 $ 772 $ 173 $ (1,856 ) $ (11,151 )
 

Net loss per share attributable to ordinary

shareholders, basic and diluted (2)(3)

$ (0.30 ) $ 0.16 $ 0.01 $ 0.00 $ (0.03 ) $ (0.16 )
(1)   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, such as adjustments resulting from
the 2017 Tax Cut and Jobs Act. 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.
(2) Totals may not sum, due to rounding. Gross margin, operating margin,
tax rate and earnings per share are calculated based upon the
respective underlying, non-rounded data.
(3) Calculated based upon 70,725,336 weighted-average shares, basic and
diluted.
 
           

Elastic N.V.

RECONCILIATION OF GAAP TO NON-GAAP DATA

For the three months ended January 31, 2018

(amounts in thousands, except percentages, share and per share
amounts)

(Unaudited)

 
GAAP Stock-Based

Compensation

Expense

Amortization

of Acquired

Intangibles

Acquisition

Related

Expenses

Tax

Adjustment (1)

Non-GAAP (2)
Cost of revenue
Cost of license – self-managed $ 96 (96 ) $

Cost of subscription – self-managed and SaaS

$ 7,382 (191 ) (554 ) $ 6,637
Total cost of revenue – subscription $ 7,478 (191 ) (650 ) $ 6,637
Cost of professional services $ 3,288 (97 ) $ 3,191
Total cost of revenue $ 10,766 (288 ) (650 ) $ 9,828
Gross profit $ 30,915 288 650 $ 31,853
Gross margin (2) 74.2 % 0.7 % 1.6 % 0.0 % 76.4 %
Operating expenses
Research and development $ 15,092 (1,352 ) (174 ) $ 13,566
Sales and marketing $ 20,727 (960 ) (38 ) $ 19,729
General and administrative $ 7,555 (954 ) $ 6,601
Total operating expenses $ 43,374 (3,266 ) (38 ) (174 ) $ 39,896
Operating loss $ (12,459 ) 3,554 688 174 $ (8,043 )
Operating margin (2) (29.9 )% 8.5 % 1.7 % 0.4 % (19.3 )%
Other income, net $ (175 ) $ (175 )
Loss before income taxes $ (12,634 ) 3,554 688 174 $ (8,218 )
Provision for income taxes $ 696 (220 ) $ 476
Tax rate (2) (5.5 )% (5.8 )%
Net loss $ (13,330 ) 3,554 688 174 220 $ (8,694 )
 
Net loss per share attributable to ordinary

shareholders, basic and diluted (2)(3)

$ (0.41 ) $ 0.11 $ 0.02 $ 0.01 $ 0.01 $ (0.27 )
(1)   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, such as adjustments resulting from
the 2017 Tax Cut and Jobs Act. 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.
(2) Totals may not sum, due to rounding. Gross margin, operating margin,
tax rate and earnings per share are calculated based upon the
respective underlying, non-rounded data.
(3) Calculated based upon 32,392,894 weighted-average shares, basic and
diluted.
 

Contacts

Anthony Luscri
Elastic Investor Relations
[email protected]
(650)
695-1055

Deborah Wiltshire
Elastic Corporate Communications
[email protected]

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