Introduction:
Elastic N.V., a software company providing various search and analytic solutions, recently published its SEC report, showing promising statistics, particularly in its Cloud revenue. In this article, we will dive into the key aspects of the report and analyze the information provided.
Table of Contents
Growth in Elastic Cloud Revenue:
During the fiscal year 2023, Elastic N.V.’s Elastic Cloud revenue experienced significant growth, totaling $424,053 million. This represents a 40% increase from the previous year, with Cloud revenue for the fiscal year 2022 deemed $298,615 million (35%).
Total Revenue:
The total revenue reported for the fiscal year 2023 amounts to $1,068,989 million, showcasing significant growth compared to the previous years. The total revenue for the fiscal year 2022 was $862,374 million, while in 2021, it summed to $608,489 million.
Subscription Revenue:
Within its total revenue, Elastic N.V. reported a substantial portion of its earnings derived from subscription revenue. For the fiscal years 2023, 2022, and 2021, subscription revenue constituted 92% of total earnings. In numerical figures, subscription revenue accounted for $984,762 million, $798,770 million, and $567,339 million in 2023, 2022, and 2021, respectively.
Other Revenue:
Services revenue, which comprises the remaining part of the total revenue aside from subscriptions, saw an increase over the years as well. For the fiscal years 2023, 2022, and 2021, the service revenue amounted to $84,227 million (8%), $63,604 million (7%), and $41,150 million (7%), respectively.
Promising Indicators for Future Performance:
Elastic N.V.’s remaining performance obligations indicate potential growth in the coming years. As of April 30, 2023, the company has $1.103 billion worth of remaining performance obligations. It expects to recognize approximately 88% of its remaining performance obligations as revenue over the next 24 months and the remainder thereafter.
Acquisitions:
In the fiscal year 2022, Elastic N.V. acquired several companies, including cmdWatch Security Inc., Build Security Ltd., and Optimyze.cloud Inc., for combined total purchase considerations of $135.2 million. The acquisitions aim to enhance the company’s current security solutions and add value to its acquired workforce.
International Expansion and Tax Accounting:
As Elastic N.V. expands globally, it must navigate complexities in international tax accounting. The company records provisions for potential tax consequences associated with its reported results of operations using the asset and liability method. The calculation of tax obligations involves dealing with uncertainties in the application of complex tax laws and regulations in numerous foreign jurisdictions.
Conclusion:
Elastic N.V.’s SEC report reveals impressive growth in its Cloud revenue, as well as total revenue and subscription revenue across the past three fiscal years. The company’s remaining performance obligations hint at potential growth in the near future. As Elastic N.V. continues to acquire businesses and expand internationally, it will face complexities in tax accounting. However, its positive performance indicators suggest a promising outlook for the software company in the coming years.
Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!