In its most recent SEC report, Elastic N.V. (NYSE: ESTC), a data analytics company built on the power of search, disclosed the potential risks and rewards associated with Environmental, Social, and Governance (ESG) matters as the company continues to grow – both in terms of revenue and its customer base.
Elastic N.V., known for its Elasticsearch search and analytics engine, emphasized the importance of addressing ESG matters as regulators, investors, and stakeholders nationwide are increasingly focused on businesses’ environmental, social, and governance practices. The company’s progress is measured through its annual ESG Report, filings with the SEC, its website, and other channels.
Though Elastic N.V. has made substantial efforts to implement ESG initiatives and goals, the company acknowledges the evolving nature of ESG laws, regulations, and expectations. Compliance with these measures can be costly and time-consuming, and the potential failure to achieve or be perceived as failing to achieve these initiatives could negatively impact the company’s reputation.
However, Elastic N.V. remains committed to meeting ESG standards and improving its practices. By continually engaging with stakeholders and addressing their expectations, the company aims to maintain and enhance its attractiveness to investors and business partners.
Alongside ESG commitments, Elastic N.V. continues growth and revenue expansion
Alongside this focus on ESG commitments, Elastic N.V. continues to establish itself as a leading data analytics company. For the fiscal year ended April 30, 2023, the company reported year-over-year revenue growth of 24%, reaching a total of $1.1 billion. This growth has expanded the company’s customer base to approximately 20,200 customers, up from over 18,600 in the previous year.
According to the SEC report, Elastic N.V. attributes its success to its business model, which combines a paid, Elastic-managed hosted service offering and paid and free proprietary self-managed software. The majority of its new customers utilize Elastic Cloud, the company’s family of cloud-based offerings under which they offer their software as a hosted, managed service.
Elastic N.V.’s international presence and future prospects
Furthermore, Elastic N.V.’s international presence is expanding, with 41% of its total revenue coming from outside the United States for the fiscal year ended April 30, 2023. While the company acknowledges the ongoing macroeconomic challenges affecting the global economy, it remains optimistic about its future growth prospects.
As Elastic N.V. navigates these challenges and addresses ESG matters, it continues its mission to provide customers with a powerful search and analytics platform capable of driving real-time insights and artificial intelligence applications. By staying true to its commitment to stakeholders and maintaining a strong customer-focus, Elastic N.V. is well-positioned to tackle the ever-evolving business landscape.
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