Elastic N.V. (ESTC) Bundle
Ever wondered how companies harness the power of search to unlock insights from vast oceans of data? Elastic N.V. (ESTC), a Dutch software company founded in 2012, stands at the forefront of this data revolution, offering self-managed and SaaS solutions for search, logging, cybersecurity, observability, analytics, and generative AI. With a robust fiscal year 2024 that saw total revenue reach $1.267 billion, a 19% year-over-year increase, and a customer base exceeding 1,330 with an annual contract value over $100,000, Elastic's story is one of innovation and growth.
But what exactly is Elastic N.V., and how did it become a key player for organizations like Netflix, Uber, and Microsoft? Join us as we delve into the history, ownership structure, mission, and business model of Elastic N.V. to uncover the secrets behind its success and understand how it continues to shape the future of data analytics.
Elastic N.V. (ESTC) History
[Company's] Founding Timeline
Year established
The company was established in 2012.
Original location
The company was originally located in Amsterdam, Netherlands.
Founding team members
The founding team members included:
- Shay Banon
- Uri Boness
- Steven Schuurman
- Simon Willnauer
Initial capital/funding
In 2012, the company secured $10 million in Series A funding from Index Ventures, followed by a $24 million Series B round in 2013 led by Neo Technology.
[Company's] Evolution Milestones
| Year | Key Event | Significance |
|---|---|---|
| 2010 | Shay Banon creates Compass | Laid the groundwork for Elasticsearch by developing a search solution for his wife's cooking website. |
| 2012 | Elasticsearch is Open Sourced | Elasticsearch was released as an open-source project. |
| 2013 | Logstash and Kibana Join | Logstash, a log management tool, and Kibana, a data visualization platform, were added to the Elastic Stack. |
| 2014 | Series C Funding | The company raised $70 million in Series C funding. |
| 2015 | Beats Framework Integrated | The Beats framework for single-purpose data shippers was integrated, enhancing data collection capabilities. |
| 2018 | Initial Public Offering (IPO) | Elastic N.V. went public on the New York Stock Exchange (NYSE) under the ticker symbol ESTC. The IPO price was $36 per share, raising $252 million. |
| 2019 | Acquisition of Endgame | Elastic acquired Endgame, an endpoint security company, for $234 million in cash and stock, marking a significant expansion into the security market. |
| 2020 | Expanded Cloud Offerings | Elastic expanded its cloud offerings, providing more comprehensive solutions for search, observability, and security. |
| 2021 | Continued Growth in Security Solutions | The company saw continued growth and adoption of its security solutions, driven by increasing demand for threat detection and prevention. |
| 2022 | Focus on Enterprise Search | Elastic placed a strong emphasis on enhancing its enterprise search capabilities to meet the evolving needs of businesses. |
| 2023 | AI and Machine Learning Integration | The company integrated advanced AI and machine learning features into its platform to improve data analysis and automation. |
| 2024 | Platform Enhancements | Further enhancements to the Elastic platform were made, focusing on scalability, performance, and user experience. |
[Company's] Transformative Moments
Several transformative decisions have shaped Elastic N.V.'s trajectory:
- Open Source Strategy: The decision to open source Elasticsearch in 2012 fostered a large community and drove rapid adoption.
- Building the Elastic Stack: Integrating Logstash and Kibana to form the Elastic Stack created a comprehensive solution for search, logging, and analytics.
- Strategic Acquisitions: Acquisitions like Endgame expanded Elastic's capabilities and market presence, particularly in the security sector.
- Focus on Cloud: Investing in and expanding cloud offerings allowed the company to meet the growing demand for cloud-based solutions.
- AI and Machine Learning: Integrating AI and machine learning technologies enhanced the platform's analytical capabilities and provided greater value to users.
For more insights into Elastic N.V., you might find this resource helpful: Exploring Elastic N.V. (ESTC) Investor Profile: Who’s Buying and Why?
Elastic N.V. (ESTC) Ownership Structure
Understanding the ownership structure of Elastic N.V. provides valuable insights into the company's control and governance. A mix of institutional, insider, and retail investors shapes Elastic's shareholder base.
Elastic N.V.'s Current Status
Elastic N.V. is a public company, trading on the New York Stock Exchange (NYSE) under the ticker symbol ESTC. This means that its shares are available for purchase by the general public, and the company is subject to the regulations and reporting requirements of the U.S. Securities and Exchange Commission (SEC).
Elastic N.V.'s Ownership Breakdown
Elastic N.V.'s ownership is distributed among various types of shareholders. Here’s a breakdown of the ownership percentages, as of the latest available data:
| Shareholder Type | Ownership, % | Notes |
|---|---|---|
| Institutional Investors | 88.24% | Major holders include entities like The Vanguard Group, BlackRock Fund Advisors, and J.P. Morgan Investment Management. |
| Insider Ownership | 2.48% | Represents shares held by key executives and board members. |
| Retail Investors | 9.28% | Shares held by the general public. |
Elastic N.V.'s Leadership
Elastic N.V. is guided by a team of experienced leaders who play crucial roles in shaping the company's strategic direction and operational execution:
- CEO: Ashutosh Kulkarni
- CFO: Janesh Moorjani
For more information about Elastic N.V.'s mission, vision, and core values, you can visit: Mission Statement, Vision, & Core Values of Elastic N.V. (ESTC).
Elastic N.V. (ESTC) Mission and Values
Elastic N.V. aims to democratize data, making it accessible and actionable for everyone. The company values a culture of inclusivity, innovation, and customer success, striving to empower users to explore and understand their data in meaningful ways.
Elastic N.V.'s Core Purpose
Official mission statement
Elastic's mission statement is to 'Democratize data and make it accessible and actionable for everyone.'
- To make data usable in real-time and at scale.
- To solve the world's data problems with products customers love.
Vision statement
Elastic's vision is to empower individuals to explore and understand their data, regardless of size or complexity, enabling them to derive valuable insights and make informed decisions.
- To build the world's leading search and analytics platform.
- To empower every employee, customer, and community member to do amazing things with data.
Company slogan/tagline
Elastic's tagline is 'Search AI. Powering Observability, Security, and Search.'
- Reflects the company's focus on providing powerful search and analytics solutions.
- Highlights its capabilities in observability, security, and enterprise search.
For more in-depth insights into Elastic N.V. and its investors, check out: Exploring Elastic N.V. (ESTC) Investor Profile: Who’s Buying and Why?
Elastic N.V. (ESTC) How It Works
Elastic N.V., known as Elastic, operates as a search analytics company that provides software for various use cases like enterprise search, observability, and security. It offers a suite of products, including the Elastic Stack (Elasticsearch, Kibana, Beats, and Logstash), and a variety of solutions built on this stack.
Elastic's Product/Service Portfolio
| Product/Service | Target Market | Key Features |
|---|---|---|
| Elasticsearch | Organizations needing real-time search and analytics | Distributed, RESTful search and analytics engine capable of solving a growing number of use cases. |
| Kibana | Data visualization and exploration users | Enables users to visualize data with charts and dashboards, explore data, and build reports. |
| Elastic Observability | IT departments and DevOps teams | Provides unified monitoring and logging to help maintain system uptime and performance, troubleshoot issues, and optimize IT infrastructure. |
| Elastic Security | Security analysts and security operations centers (SOCs) | Offers SIEM (Security Information and Event Management) and endpoint security to detect, prevent, and respond to threats. |
| Elastic Enterprise Search | Businesses looking to enhance internal and customer-facing search experiences | Delivers powerful search capabilities for websites, applications, and workplaces, helping users find relevant information quickly. |
Elastic's Operational Framework
Elastic's operational framework revolves around:
- Open Source Core: Elastic leverages an open-source model for its core products, fostering community contributions and broad adoption.
- Subscription-Based Model: The company primarily generates revenue through subscriptions to its software and services, offering various tiers based on features, scale, and support levels.
- Cloud-First Approach: Elastic emphasizes its cloud offerings, providing managed services on major cloud platforms like AWS, Azure, and Google Cloud. This allows customers to easily deploy, manage, and scale their Elastic deployments.
- Customer Support and Training: Elastic provides extensive support, training, and consulting services to help customers maximize the value of its products.
- Ecosystem and Integrations: The platform integrates with a wide range of other tools and technologies, enhancing its versatility and applicability across diverse environments.
Elastic's Strategic Advantages
Elastic maintains several strategic advantages in the market:
- Versatile Platform: The Elastic Stack serves multiple use cases, including search, observability, and security, providing a broad appeal across different industries and functional areas.
- Scalability and Performance: Elasticsearch is designed to handle large volumes of data and complex queries with high performance, making it suitable for demanding enterprise environments.
- Strong Community and Ecosystem: The active open-source community contributes to continuous innovation and a rich ecosystem of plugins and integrations.
- Cloud-Native Architecture: Elastic's cloud-first strategy enables it to capitalize on the growing demand for cloud-based solutions, offering scalability, flexibility, and ease of management.
- Comprehensive Solutions: By offering integrated solutions for observability and security alongside its core search capabilities, Elastic provides added value and reduces the complexity of managing multiple tools.
To gain more insights into the values that drive Elastic, you might find this resource helpful: Mission Statement, Vision, & Core Values of Elastic N.V. (ESTC).
Elastic N.V. (ESTC) How It Makes Money
Elastic N.V. primarily generates revenue by providing a suite of search, security, and observability solutions. These solutions are offered through a subscription-based model, providing customers continuous access to its software and related services.
Elastic N.V.'s Revenue Breakdown
| Revenue Stream | % of Total | Growth Trend |
|---|---|---|
| Subscriptions | Approximately 93% | Increasing |
| Professional Services | Approximately 7% | Increasing |
Elastic N.V.'s Business Economics
The business economics of Elastic N.V. are centered around a subscription model that ensures recurring revenue. Key aspects include:
- Subscription-Based Model: Elastic's primary revenue driver is its subscription service, which offers tiered access to its platform's capabilities. This model provides predictable and recurring revenue streams.
- Gross Margins: Elastic boasts high gross margins, typically around 72% to 75%, reflecting the scalability of its software platform.
- Customer Acquisition Cost (CAC): Elastic focuses on efficient customer acquisition through a mix of direct sales and partnerships. Strategies to optimize CAC are crucial for maintaining profitability.
- Customer Lifetime Value (CLTV): Given the mission-critical nature of its solutions, Elastic aims for a high CLTV by fostering long-term customer relationships and expanding the use of its platform within existing accounts.
To delve deeper into the company's foundational principles, explore: Mission Statement, Vision, & Core Values of Elastic N.V. (ESTC).
Elastic N.V.'s Financial Performance
Elastic N.V.'s financial performance can be assessed through the following key metrics:
- Revenue Growth Rate: Elastic has demonstrated strong revenue growth, driven by increased adoption of its platform across various industries. In fiscal year 2024, Elastic's total revenue was $1.22 billion, representing a year-over-year growth of approximately 21%.
- Annual Recurring Revenue (ARR): ARR is a critical metric for subscription-based businesses, and Elastic has shown consistent growth. As of fiscal year 2024, Elastic's ARR reached $1.26 billion, an increase of approximately 18% year-over-year.
- Net Loss/Profit: While Elastic has been focused on growth, monitoring its path to profitability is essential. The company reported a net loss of $68.9 million for fiscal year 2024, an improvement compared to the net loss of $278.3 million in fiscal year 2023.
- Cash Flow: Elastic's cash flow from operations provides insights into its ability to generate cash from its core business. For fiscal year 2024, Elastic reported net cash provided by operating activities of $192.1 million, compared to $64.4 million in fiscal year 2023.
Elastic N.V. (ESTC) Market Position & Future Outlook
Elastic N.V. holds a significant position in the search, observability, and security markets, with a focus on providing AI-powered solutions. As of April 2025, the company is navigating a landscape ripe with opportunities in cloud adoption and digital transformation, while also facing challenges related to competition and macroeconomic uncertainties. For an in-depth look at Elastic N.V.'s financial performance, see: Breaking Down Elastic N.V. (ESTC) Financial Health: Key Insights for Investors
Competitive Landscape
| Company | Market Share, % | Key Advantage |
|---|---|---|
| Elastic N.V. | Approx. 3-4% (across search, observability, and security) | Unified platform, strong search capabilities, open-source heritage |
| Splunk | Approx. 4-5% (in Observability) | Established market presence, broad product suite |
| Datadog | Approx. 2-3% (in Observability) | Cloud-native focus, strong monitoring capabilities |
Opportunities & Challenges
| Opportunities | Risks |
|---|---|
| Growing demand for AI-powered search and analytics solutions. | Intense competition in the search, observability, and security markets. |
| Expansion of cloud-based offerings and adoption by enterprises. | Potential impact of macroeconomic factors on customer spending. |
| Strategic partnerships and integrations with other technology providers. | Challenges in managing and retaining talent in a competitive job market. |
Industry Position
Elastic N.V. is strategically positioned to capitalize on the convergence of search, observability, and security. Its ability to offer a unified platform differentiates it from competitors with more fragmented solutions.
- The company's focus on open-source technologies fosters a strong community and drives innovation.
- Elastic's cloud-native approach enables it to cater to the evolving needs of modern enterprises.
- Continued investment in AI and machine learning is expected to enhance its product offerings and drive further growth.
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