Elastic N.V. (NYSE: ESTC) shares saw a significant increase on the US stock charts Thursday after the company’s fiscal Q2 2025 financial results were released. The strong upward trend continued into extended trading. Following a 6.27% increase during regular trading hours concluding at $94.13, the price of ESTC stock surged 25.36% after-hours to $118.00.
Elastic Posted Strong Q2 Financials
Elastic (ESTC) exceeded forecasts in every major sales and profitability metric during the second quarter of fiscal 2025, delivering outstanding financial performance. The firm reported $365 million in overall sales, up 17% on a constant currency basis and 18% year over year. Non-GAAP diluted earnings per share were $0.59, demonstrating the company’s capacity to generate profitability even in the face of losses, while GAAP net loss per share was $0.25.
ESTC is Propelling Innovation and Expansion
Elastic continued to build strong customer relationships in Q2, with significant wins across its solution areas, particularly in GenAI and platform consolidation. The company’s product differentiation, coupled with its relentless innovation, has made it a top choice for clients developing GenAI applications. The customer base grew, with over 1,420 customers having an Annual Contract Value (ACV) exceeding $100,000, up from 1,370 in Q1 FY25 and 1,220 in Q2 FY24. Additionally, ESTC saw a slight increase in its subscription customer count to approximately 21,300.
Strategic Developments and Technological Advancements
During the quarter, ESTC introduced several new innovations, including Better Binary Quantization (BBQ) for Elasticsearch, which reduces memory usage and lowers costs for vector searches without sacrificing accuracy. The company also launched AutoOps, a monitoring and management tool from its acquisition of Opster, offering Elastic Cloud users simplified cluster management and performance insights.
Elastic’s integration of Cloud Detection and Response (CDR) into its AI-driven Security solution further enhanced its capabilities, allowing users to gain valuable context for cloud-based investigations. Additionally, ESTC expanded its AI ecosystem, collaborating with major players such as Microsoft, AWS, Google, and OpenAI, to accelerate the development and deployment of Retrieval Augmented Generation (RAG) applications.
