Following a notable 20% increase in quarterly revenue, shares of Elastic N.V. (NYSE: ESTC) are ascending on the US stock charts today. As of the latest pre-market session check, ESTC stock had surged 8.82% to $101.40.
Impressive Financial Performance
Elastic (ESTC) reported total revenue of $335 million, with Cloud revenue increasing by 32% to $148 million for Q4 FY24. The company concluded the fiscal year robustly, showcasing strong adoption of its Generative AI capabilities. Elastic’s ability to distinguish itself in the realms of search, security, and observability through its Search AI Platform underscores the business’s enduring resilience and growth potential.
Customer And Product Innovations
Elastic’s customer base includes over 1,330 clients with an Annual Contract Value (ACV) exceeding $100,000, and approximately 21,000 subscription customers. The company’s Net Expansion Rate stands at around 110%. During the quarter, Elastic launched the pioneering Search AI Lake, a cloud-native architecture designed to enhance low-latency search integrated with all of Elastic’s AI functionalities.
Additionally, the company introduced a technical preview of Elastic Cloud Serverless for search, encompassing retrieval-augmented generation, observability, and security workloads. Elastic also unveiled Attack Discovery, an AI-driven security analytics solution tailored for modern Security Operations Centers (SOC).
This solution combines search with retrieval-augmented generation to prioritize actual attacks over mere alerts. Further advancements include support for Cohere high-performance vector embeddings, the Rerank 3 model, and native support for the Elasticsearch vector database on Azure AI Studio.
Enhanced Integration And Developer Flexibility
Elastic announced that its open inference API for Elasticsearch now supports integration with the model catalog hosted on Microsoft Azure AI Studio. This integration includes native support for the Elasticsearch vector database, enabling the storage and utilization of embeddings from a wide array of models, including those developed by OpenAI and Mistral.
By offering developers more choices and flexibility with tools, solutions, and models, this deeper integration empowers those within the Azure ecosystem. With native access to Azure OpenAI Service and an extensive catalog of models in the Azure AI Studio, developers can leverage Elasticsearch’s capabilities, the world’s most downloaded vector database, to revolutionize their conversational search experiences.