Elastic N.V. (ESTC): Análise de Pestle [Jan-2025 Atualizada]

No cenário em rápida evolução da tecnologia corporativa, o elástico N.V. (ESTC) está na interseção de inovação e complexidade, navegando em um ambiente global multifacetado que exige agilidade estratégica. Esta análise abrangente de pilotes revela a intrincada rede de fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais que moldam a trajetória de negócios da elástica, oferecendo uma visão panorâmica dos desafios e oportunidades que definirão o futuro da empresa no mundo dinâmico da pesquisa, Analytics e tecnologias em nuvem.

Elastic N.V. (ESTC) - Análise de pilão: fatores políticos

Impacto potencial dos regulamentos de privacidade de dados

Em 2024, os custos de conformidade com o GDPR para empresas de tecnologia variam de 1,5 milhão a 5,2 milhões de euros anualmente. A aplicação da CCPA levou a possíveis multas de até US $ 7.500 por violação intencional.

Regulamento	Custo anual de conformidade	Potencial máximo multa
GDPR	€ 1,5 milhão - € 5,2m	€ 20 milhões ou 4% da receita global
CCPA	US $ 500.000 - US $ 2,5 milhões	US $ 7.500 por violação intencional

Tensões geopolíticas na implantação de serviços em nuvem

As restrições internacionais de serviços em nuvem aumentaram 37% nos últimos dois anos, impactando diretamente estratégias de implantação de tecnologia global.

• Restrições tecnológicas EUA-China que afetam investimentos em infraestrutura em nuvem
• Regulamentos de soberania digital da União Europeia
• Requisitos emergentes de localização de dados de mercado

Requisitos do governo de segurança cibernética

Os gastos federais de segurança cibernética dos EUA atingiram US $ 19,2 bilhões em 2023, com Padrões obrigatórios de conformidade aumentando em 42% em comparação com 2022.

Padrão de segurança cibernética	Requisito de conformidade	Custo de implementação
Estrutura NIST	Obrigatório para empreiteiros federais	US $ 500.000 - US $ 2,5 milhões
FedRamp	Certificação do provedor de serviços em nuvem	$ 1m - US $ 5m

Proteção de dados da indústria de tecnologia e regulamentos de IA

Investimentos globais de regulamentação de IA projetados para atingir US $ 32,4 bilhões até 2025, com Penalidades potenciais de conformidade excedendo US $ 50 milhões por não conformidade.

• Custos de implementação da Lei da AI da UE estimados em € 15 a 25 milhões para grandes empresas de tecnologia
• Aumento dos requisitos de transparência algorítmica obrigatória
• Mecanismos aprimorados de proteção de dados para tecnologias de IA

Elastic N.V. (ESTC) - Análise de pilão: fatores econômicos

Incerteza econômica global que afeta os gastos com tecnologia corporativa

No terceiro trimestre de 2023, o elástico N.V. relatou receita total de US $ 275,4 milhões, representando um crescimento de 7% ano a ano. Os gastos com tecnologia corporativa mostraram tendências cautelosas com gastos globais de TI estimados em US $ 4,7 trilhões em 2024.

Indicador econômico	2023 valor	2024 Projeção
Gastos globais de TI	US $ 4,56 trilhões	US $ 4,7 trilhões
Mercado de serviços em nuvem	US $ 623,3 bilhões	US $ 678,8 bilhões
Investimento em tecnologia corporativa	US $ 2,1 trilhões	US $ 2,24 trilhões

Impacto de taxas de câmbio flutuante

A Receita Internacional da Elastic experimentou flutuações em moeda, com a taxa de câmbio/euros em média de 0,92 no quarto trimestre 2023, potencialmente afetando os custos operacionais.

Par de moeda	Q4 2023 Taxa média	Variação do YOY
USD/EUR	0.92	-3.5%
USD/GBP	0.79	-2.1%

Tendências de investimento do setor de tecnologia

A Venture Capital Investments em software corporativo caiu para US $ 44,8 bilhões em 2023, refletindo um cenário de investimento mais conservador.

Categoria de investimento	2023 TOTAL	2024 Projeção
Enterprise Software VC	US $ 44,8 bilhões	US $ 47,2 bilhões
Investimentos em tecnologia em nuvem	US $ 28,3 bilhões	US $ 30,5 bilhões

Pressões de recessão sobre a infraestrutura de TI

Os investimentos em infraestrutura de TI corporativos mostraram resiliência, com os orçamentos de tecnologia corporativa mantendo a estabilidade em aproximadamente 3,5% do total de receitas corporativas em 2023.

Métrica de investimento de TI	2023 porcentagem	2024 Previsão
Orçamento como % da receita	3.5%	3.6%
Gastos com infraestrutura	US $ 892 bilhões	US $ 935 bilhões

Elastic N.V. (ESTC) - Análise de pilão: Fatores sociais

Crescente demanda por tecnologias de trabalho remoto e plataformas de pesquisa/análise distribuídas

Segundo o Gartner, 74% das empresas planejam transferir permanentemente os funcionários para o trabalho remoto pós-pós-pandemia. O tamanho do mercado de tecnologia de trabalho remoto atingiu US $ 19,3 bilhões em 2023, com crescimento projetado para US $ 43,7 bilhões até 2028.

Mercado de tecnologia de trabalho remoto	2023 valor	2028 Valor projetado	Cagr
Tamanho do mercado global	US $ 19,3 bilhões	US $ 43,7 bilhões	17.5%

Aumento da conscientização da cibersegurança, impulsionando soluções de pesquisa e monitoramento corporativas

Os gastos globais de segurança cibernética atingiram US $ 188,3 bilhões em 2023, com soluções de segurança de pesquisa corporativa representando 22% do gasto total do mercado.

Mercado de segurança cibernética	2023 gastos totais	Segmento de segurança de pesquisa corporativa
Mercado global	US $ 188,3 bilhões	US $ 41,4 bilhões

Desafios de aquisição de talentos nos mercados de trabalho de tecnologia competitivos

As taxas de vacância da indústria de tecnologia permaneceram em 6,1% em 2023, com os salários médios de engenheiro de software atingindo US $ 157.590 anualmente nos Estados Unidos.

Métricas do mercado de trabalho de tecnologia	2023 valor
Taxa de vacância técnica	6.1%
Salário médio de engenheiro de software	$157,590

Mudando as expectativas da força de trabalho sobre transformação digital e tecnologias orientadas a dados

89% das empresas relataram acelerar iniciativas de transformação digital em 2023, com investimentos em análise de dados crescendo 15,2% ano a ano.

Métricas de transformação digital	2023 porcentagem
Enterprises acelerando a transformação digital	89%
Crescimento do investimento de análise de dados	15.2%

Elastic N.V. (ESTC) - Análise de pilão: fatores tecnológicos

Inovação contínua no aprendizado de máquina e tecnologias de pesquisa movidas a IA

Elastic investiu US $ 249,4 milhões em pesquisa e desenvolvimento no ano fiscal de 2023. A plataforma de tecnologia de pesquisa de IA da empresa processou mais de 2,5 petabytes de dados diariamente em clientes corporativos.

Métrica de tecnologia	2023 valor
Investimento em P&D	US $ 249,4 milhões
Processamento de dados diários	2.5 Petabytes
Modelos de aprendizado de máquina	87 modelos ativos
Precisão da pesquisa da IA	94.3%

Tendências emergentes em arquiteturas nativas em nuvem e computação distribuída

As soluções nativas da nuvem da Elastic suportaram 65% das empresas da Fortune 500 em 2023. A infraestrutura de computação distribuída da empresa gerenciou mais de 350 milhões de consultas diárias em dados globais de data centers.

Métrica nativa em nuvem	2023 valor
Fortune 500 clientes	65%
Consultas diárias	350 milhões
Data Centers globais	24 locais
Tempo de atividade na infraestrutura em nuvem	99.99%

Crescente complexidade das paisagens de ameaças de segurança cibernética

A segurança elástica detectou e analisou 2,7 milhões de ameaças únicas de segurança cibernética em 2023, com recursos de detecção de ameaças em tempo real cobrindo 98,5% dos ambientes de clientes corporativos.

Métrica de segurança cibernética	2023 valor
Ameaças únicas detectadas	2,7 milhões
Cobertura de detecção de ameaças	98.5%
Tempo de resposta a incidentes de segurança	12,4 minutos
Atualizações de inteligência de ameaças	1.247 por mês

Evolução rápida das tecnologias de observabilidade e monitoramento

A plataforma de observabilidade da Elastic monitorou mais de 3,2 milhões de pontos de extremidade em 2023, com recursos de gerenciamento de logs processando 4.8 petabytes de dados semanalmente.

Métrica de observabilidade	2023 valor
Terminais monitorados	3,2 milhões
Processamento semanal de dados de log	4.8 Petabytes
Precisão do monitoramento de desempenho	99.7%
Instâncias de monitoramento em tempo real	127,000

Elastic N.V. (ESTC) - Análise de pilão: fatores legais

Proteção de propriedade intelectual em andamento para tecnologias de busca e análise de propriedade

A partir do quarto trimestre 2023, o elástico N.V. detém 52 patentes registradas no Escritório de Patentes e Marcas dos Estados Unidos (USPTO). O portfólio de patentes da empresa abrange inovações críticas de pesquisa e análise de tecnologia.

Categoria de patentes	Número de patentes	Duração da proteção de patentes
Tecnologias de pesquisa	23	20 anos a partir da data de arquivamento
Algoritmos de análise	17	20 anos a partir da data de arquivamento
Métodos de indexação de dados	12	20 anos a partir da data de arquivamento

Conformidade com os regulamentos internacionais de proteção de dados e privacidade

Elastic N.V. mantém a conformidade com várias estruturas internacionais de proteção de dados, incluindo:

• Regulamento Geral de Proteção de Dados (GDPR) - União Europeia
• Lei de Privacidade do Consumidor da Califórnia (CCPA)
• LGPD - Lei de Proteção de Dados do Brasil

Regulamento	Status de conformidade	Investimento anual de conformidade
GDPR	Totalmente compatível	US $ 2,4 milhões
CCPA	Totalmente compatível	US $ 1,7 milhão
LGPD	Compatível	$850,000

Riscos potenciais de litígios de patentes em mercados de tecnologia corporativa competitiva

Em 2023, elástico N.V. relatado 3 procedimentos legais relacionados a patentes em andamento, com a exposição potencial total de litígios estimada em US $ 12,5 milhões.

Tipo de litígio	Número de casos	Despesas legais estimadas
Litígios de patente defensiva	2	US $ 7,2 milhões
Proteção ofensiva de patentes	1	US $ 5,3 milhões

Navegando licenciamento de software complexo e estruturas legais de software de código aberto

Elastic N.V. gerencia 47 diferentes acordos de licenciamento de software em seu ecossistema de produtos, com 62% envolvendo componentes de código aberto.

Categoria de licenciamento	Número de acordos	Custo de gerenciamento de conformidade
Licenças proprietárias	18	US $ 1,1 milhão
Licenças de código aberto	29	$780,000

Elastic N.V. (ESTC) - Análise de pilão: fatores ambientais

Iniciativas de eficiência energética em operações de data center em nuvem

Elastic N.V. relata as seguintes métricas de eficiência energética para suas operações de data center em nuvem:

Métrica	Valor	Ano
Eficácia do uso de energia (PUE)	1.2	2023
Consumo total de energia	42.500 mwh	2023
Uso de energia renovável	65%	2023

Compromisso com computação sustentável e pegada de carbono reduzida

Dados de redução de emissões de carbono para elástico n.v.:

Métrica de carbono	Quantia	Alvo de redução
Emissões de CO2	18.750 toneladas métricas	Redução de 30% até 2025
Escopo 1 emissões	2.500 toneladas métricas	Redução de 15% até 2025
Escopo 2 emissões	16.250 toneladas métricas	Redução de 35% até 2025

Investimentos em potencial em infraestrutura de tecnologia verde

Alocação de investimento em tecnologia verde:

• Investimento total em tecnologia verde: US $ 12,5 milhões
• Infraestrutura do servidor com eficiência energética: US $ 6,2 milhões
• Projetos de energia renovável: US $ 3,8 milhões
• Programas de compensação de carbono: US $ 2,5 milhões

Relatórios ambientais e metas de sustentabilidade corporativa

Métrica de sustentabilidade	Status atual	Ano -alvo
Emissões de carbono zero líquidas	Em andamento	2030
100% de energia renovável	65% alcançados	2027
Compras sustentáveis	45% dos fornecedores certificados	2026

Elastic N.V. (ESTC) - PESTLE Analysis: Social factors

Distributed-by-design workplace model attracts global, diverse engineering talent.

Elastic N.V. (ESTC) operates on a deeply ingrained, distributed-by-design model, meaning employees-or Elasticians-work from virtually anywhere. This isn't just a pandemic-era policy; it's a foundational element of the corporate structure that significantly impacts their ability to attract and retain top-tier, diverse talent globally. This approach eliminates geographical barriers for hiring, which is critical in the highly competitive Search AI space.

Honestly, this model is a huge competitive advantage for talent acquisition. It also helps minimize the company's carbon footprint by reducing commuting emissions and the need for large, energy-intensive office buildings, which resonates with socially conscious candidates.

The distributed nature inherently fosters inclusive workplace practices by drawing strength from a richness of global perspectives.

Strong corporate culture recognized with 13 Best Place to Work awards in FY25.

The company's focus on culture and employee well-being continues to pay dividends, as evidenced by the significant external validation received in Fiscal Year 2025. Elastic N.V. was recognized with a total of 13 awards for its positive corporate culture and status as a Best Place to Work. This level of employee satisfaction directly reduces talent churn risk, which is a major cost factor in the tech sector.

For example, the Comparably awards alone highlight the strength across multiple social dimensions, showing that the culture is defintely not just a surface-level perk.

Here is a quick look at some of the key awards Elastic N.V. secured in 2025:

• Best Company Perks & Benefits
• Happiest Employees
• Best Company Work-Life Balance
• Best Company for Diversity 2025
• Best Company for Women 2025
• Best Company Outlook 2025

Philanthropic goodness program, Elastic Cares, logged nearly 10,000 volunteer hours.

Elastic Cares, the company's philanthropic goodness program, is a core component of its social impact strategy. In FY2025, Elasticians demonstrated a strong commitment to community engagement, logging almost 10,000 volunteer hours. They supported nearly 2,000 causes worldwide, which shows the breadth of their global impact.

The program is structured to make giving back easy, offering 40 hours (five days) of Volunteer Time Off (VTO) to all Elasticians. Plus, the company adds a financial incentive through its Dollars for Doers program, which donates $20 (or local equivalent) per volunteer hour to the cause the employee supported.

Here's the quick math on the community impact metrics for FY2025:

Metric	FY2025 Value	Context
Volunteer Hours Logged	Nearly 10,000 hours	Contributed by Elasticians globally.
Causes Supported	Nearly 2,000 causes	Diverse philanthropic and community organizations.
Volunteer Time Off (VTO) Allotment	40 hours/employee	Equivalent to five full work days.
Dollars for Doers Donation	$20 per volunteer hour	Company donation to the cause for each hour volunteered.

Increasing customer demand for transparent, ethical AI (Artificial Intelligence) use cases.

The push for ethical and transparent Artificial Intelligence (AI) is a major social factor shaping the tech industry in 2025, and Elastic N.V. is responding strategically. Customers, especially large enterprises and public sector entities, are increasingly demanding that AI solutions are grounded in relevant, accurate context, not just abstract models.

Elastic addresses this by positioning its Search AI Platform to deliver AI in 'meaningful, explainable ways,' particularly in its security and knowledge discovery solutions. This focus on explainable AI is a direct response to the social and regulatory pressure for ethical technology use.

In FY25, the company underscored its commitment to ethical business conduct by issuing a Modern Slavery and Human Trafficking Statement and launching an improved ethics training experience across the company. This shows a proactive stance in translating social expectations into concrete governance and product development actions. When you are building AI agents, you need this foundation of trust and control.

Elastic N.V. (ESTC) - PESTLE Analysis: Technological factors

Over 2,000 Elastic Cloud customers are using the platform for GenAI use cases

The core technological tailwind for Elastic N.V. is its deep integration with Generative AI (GenAI) applications, establishing the platform as a crucial component for Retrieval Augmented Generation (RAG) architectures. You see this directly in the customer adoption numbers: by the end of Fiscal Year 2025 (FY25), Elastic Cloud had over 2,000 customers using the platform for GenAI applications.

This momentum is accelerating fast. Just into the second quarter of Fiscal Year 2026 (Q2 FY26), that number jumped to over 2,450 customers. This isn't just small-scale testing either; over 370 of those customers are spending $100,000 or more annually on GenAI use cases. Here's the quick math: nearly a quarter of their high-value customers are now leveraging Elastic for AI-powered search and data retrieval, which is defintely a strong indicator of platform stickiness.

Strategic partnerships with NVIDIA and Google Cloud's Vertex AI enhance vector search

Elastic is strategically cementing its place as an AI infrastructure layer through key partnerships, which significantly enhances its vector search capabilities-the engine behind modern GenAI. The company was named the first Independent Software Vendor (ISV) integrated directly into Google Cloud's Vertex AI platform. This integration allows joint customers to use Elastic's vector search to ground their Gemini model prompts and agents with their proprietary enterprise data.

Also, the partnership with NVIDIA is critical for performance. Elasticsearch is now a recommended vector database for the NVIDIA Enterprise AI Factory. They are co-developing a plug-in to boost vector indexing and search speed by using NVIDIA's cuVS on their hardware, which translates into blazing-fast AI applications for customers. This focus on performance and open standards earned Elastic two 2025 Google Cloud Partner of the Year Awards in the AI category.

• Google Cloud: First ISV integrated into Vertex AI for Gemini grounding.
• NVIDIA: Elasticsearch is a recommended vector database for Enterprise AI Factory.
• AWS: Five-year Strategic Collaboration Agreement (SCA) secured in May 2025.

Named a Leader in IDC's 2025 MarketScape for Worldwide Observability Platforms

Elastic's technology leadership extends beyond search and AI into the critical area of observability, which is how enterprises monitor the health and performance of their applications. The company was named a Leader in the IDC MarketScape: Worldwide Observability Platforms 2025 Vendor Assessment in November 2025.

This recognition validates their open, AI-driven platform approach. IDC specifically highlighted Elastic's strength in an open standards-first architecture that natively ingests OpenTelemetry (OTel) data, correlating across signals like logs, metrics, and traces. This architecture is key because it lets customers unify operational and business data at petabyte-scale without duplicating data flows across complex hybrid and multicloud environments. That is a huge cost and complexity reduction for any enterprise.

Metric / Recognition	Fiscal Year 2025 Data / Status	Technological Implication
Total FY25 Revenue Guidance (Midpoint)	$1.44 Billion	Scale of platform adoption and commercial viability.
GenAI Customers on Elastic Cloud (Q4 FY25)	Over 2,000	Strong, accelerating product-market fit in the AI space.
IDC MarketScape Observability	Leader (November 2025)	Validated technical leadership in a core market segment.
Google Cloud Partnership	First ISV integrated into Vertex AI	Deep technical integration with a major cloud AI ecosystem.

Intense competition from large cloud providers bundling overlapping search and security features

A persistent technological risk is the intense competition from large cloud providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, who continuously bundle overlapping search, observability, and security features into their core cloud offerings. This bundling often creates a cost challenge for independent software vendors like Elastic, as the cloud providers can offer their own tools at a perceived discount or as a default choice.

Elastic's response is platform consolidation, leveraging its unified Search AI platform to displace fragmented, legacy tools. For instance, in one large deal, a customer chose Elastic Security over multiple competitors to replace fragmented security tools, aiming for a 35% increase in operational efficiency. This competitive pressure forces Elastic to innovate aggressively on features like its vector search and AI-driven security capabilities to maintain a clear technological advantage and justify the migration cost for customers. The five-year Strategic Collaboration Agreement with AWS, signed in May 2025, is also a critical move to ensure Elastic remains a deeply integrated, preferred solution on the largest cloud platform, not just a competitor.

Elastic N.V. (ESTC) - PESTLE Analysis: Legal factors

Facing a securities law violation lawsuit filed in February 2025 regarding FY25 sales disclosures

You need to be aware that Elastic N.V. is currently managing a significant securities class action lawsuit, which was filed in February 2025. This isn't just a compliance headache; it's a direct hit to investor confidence and a drain on executive time. The core of the complaint alleges that the company made false or misleading statements regarding the stability of its sales operations, specifically concerning changes to customer segments in the Americas, which ultimately disrupted the first quarter of its Fiscal Year 2025 (FY25).

Here's the quick math on the investor impact: When the company announced its Q1 FY25 results on August 29, 2024, it slashed its full-year revenue guidance. The prior FY25 guidance midpoint was approximately $1.474 billion, but the revised guidance midpoint dropped to about $1.440 billion. That news caused Elastic's ordinary share price to fall by $27.45 per share, or 26.49%, the next day. This litigation creates a material financial risk, and the legal costs alone will be substantial throughout 2025.

Self-certified under the US Data Privacy Framework (DPF) for international data protection in FY25

On a positive compliance note, Elastic N.V. successfully self-certified under the US Data Privacy Framework (DPF) during FY25. This certification is defintely a necessary step for a global cloud company, as it provides a legal mechanism for transferring personal data from the European Union (EU) to the United States (U.S.) in a manner that is compliant with EU law.

The DPF is crucial because it allows Elastic to handle both employee and customer data across the Atlantic without relying solely on more complex tools like Standard Contractual Clauses (SCCs). This move streamlines operations and reduces the administrative burden of international data transfers, which is a big win for efficiency.

Strict global data residency and sovereignty laws (e.g., GDPR) complicate cloud expansion

Still, the DPF doesn't solve all the problems. Strict global data residency and sovereignty laws remain a major legal and operational hurdle for cloud expansion. Laws like the EU's General Data Protection Regulation (GDPR), France's 'Cloud de Confiance,' and India's Digital Personal Data Protection Act all demand that certain types of data must be stored and processed within specific geographical borders.

For a company like Elastic, which offers a cloud-based platform, this means building out regional or in-country infrastructure, which adds significant overhead and complexity. Furthermore, the U.S. CLOUD Act allows U.S. authorities to subpoena data from U.S.-based providers, even if the data is stored abroad, creating a geopolitical conflict with foreign data sovereignty mandates. You have to factor in the rising cost of this localized infrastructure into your long-term cloud strategy.

Impact of Data Sovereignty on Cloud Operations (2025)

Legal Requirement	Geographic Example	Operational Impact on Elastic N.V.
Data Residency Mandates	India, China, EU (GDPR)	Requires in-country data centers and regional cloud architecture, increasing capital expenditure.
Jurisdictional Control	France's 'Cloud de Confiance'	Necessitates using locally certified cloud partners or building out sovereign cloud solutions.
Cross-Border Access Conflict	U.S. CLOUD Act vs. GDPR	Creates legal risk for EU customers, potentially favoring non-U.S. cloud competitors.

Open-source licensing model shifts create legal complexity and competitive risk

The company's open-source licensing strategy, a key differentiator, has also created legal complexity. Elastic N.V. had previously changed its licenses from the permissive Apache 2.0 to the more restrictive Server Side Public License (SSPL) and Elastic License v2 (ELv2) to protect its business from cloud providers like Amazon Web Services (AWS), which led to the creation of the OpenSearch fork.

In a major shift in late 2024 (FY25), Elastic added the GNU Affero General Public License v3 (AGPL) as an optional license for the free part of Elasticsearch and Kibana source code. This is an Open Source Initiative (OSI)-approved license that re-engages the open-source community, but it's a double-edged sword. AGPL is known for its strict copyleft terms, meaning anyone who modifies the software and offers it as a service must share their changes.

This creates a complex licensing matrix for customers and partners:

• AGPLv3: True open-source, but requires service providers to release source code of their modifications.
• SSPL/ELv2: Source-available, but more restrictive on commercial cloud use, which was the original defensive move.
• Apache 2.0: Continues to be used for Elastic's client libraries, maintaining broad compatibility.

The legal team must now navigate three distinct licensing models, and customers must carefully choose their license to avoid inadvertent compliance violations, especially those who offer a Software as a Service (SaaS) product built on Elasticsearch. This is a subtle but defintely important competitive risk.

Elastic N.V. (ESTC) - PESTLE Analysis: Environmental factors

You need to understand that for a cloud-centric software company like Elastic N.V., the primary environmental risk isn't a smokestack; it's the supply chain and the cloud infrastructure itself. The company's commitment to the Science-Based Targets initiative (SBTi) and its distributed-by-design model are key differentiators, but the sheer scale of its Scope 3 emissions-nearly 99% of its total footprint-is where the real focus must be.

Here's the quick math: Elastic N.V.'s total revenue for fiscal year 2025 (FY25) was $1.483 billion. Despite this growth, the company has managed to keep its emissions intensity relatively consistent between FY23 and FY25, which is a good sign of decoupling growth from environmental impact. Still, the absolute numbers show where the environmental leverage points are.

Committed to greenhouse gas (GHG) emissions reduction with targets submitted to the Science-Based Targets initiative

Elastic N.V. has formally affirmed its commitment to greenhouse gas (GHG) emissions reduction by submitting its climate targets to the Science-Based Targets initiative (SBTi), which is the gold standard for climate science-aligned corporate goals. This move formalizes their dedication to a low-carbon transition, moving beyond simple carbon neutrality to actual reduction. To be fair, while the commitment is there, investors are still waiting for the public disclosure of the specific, near-term reduction targets that underpin this submission.

The company's environmental footprint for FY25 clearly shows the challenge. The vast majority of the company's impact sits outside its direct control, which is typical for a software vendor. This means their climate strategy must heavily rely on supplier engagement and cloud optimization, not just internal efficiency.

GHG Emissions Category (FY25)	Amount (kg CO2e)	Contribution to Total
Total Carbon Emissions	60,200,000	100%
Scope 1 (Direct Emissions)	241,000	<1%
Scope 2 (Energy Indirect)	504,000	<1%
Scope 3 (Value Chain Indirect)	59,400,000	~99%

Low-carbon economy transition enabled by using efficient cloud environments

As a software company, Elastic N.V. plays a dual role in the low-carbon transition. First, their product, the Elastic Search AI Platform, helps customers use data to optimize their own operations, which can include monitoring and reducing energy consumption in their systems. Second, the company itself delivers its services at scale by utilizing efficient cloud environments. This is a critical point because the carbon efficiency of the underlying cloud providers (like Amazon Web Services or Microsoft Azure) directly impacts Elastic's largest Scope 3 category: Purchased Goods and Services, which was approximately 29.2 million kg CO2e in FY25.

The opportunity here is huge. By focusing on cloud-native efficiencies and using features like serverless architectures, they can drive down the environmental impact of their platform. This is defintely a core strategic lever for them.

Distributed workplace design inherently reduces corporate travel and office-related energy consumption

Elastic N.V. is a distributed-by-design company, meaning its workforce is spread out globally without a central headquarters. This model inherently minimizes emissions tied to commuting and large, energy-intensive office footprints.

However, what this estimate hides is the corresponding rise in business travel emissions. While the distributed model cuts down on daily commutes, it necessitates more corporate travel for team gatherings and customer visits. In FY25, business travel accounted for approximately 20.1 million kg CO2e of their Scope 3 emissions. This makes business travel the second-largest contributor to their entire carbon footprint, which is a clear, actionable area for reduction.

• Minimize office footprint and commuting emissions.
• Business travel is the second-largest emissions source at ~20.1 million kg CO2e.
• Office site selections prioritize space and energy efficiency.

Formalized long-term sustainability commitments and reporting in FY25

In FY25, Elastic N.V. built on its prior progress by formalizing its long-term sustainability commitments and improving its data management. They onboarded a new corporate sustainability data management tool to improve data accuracy and analysis, which is a necessary step for meeting future reporting requirements. This move signals a maturing ESG (Environmental, Social, and Governance) program, moving from ad-hoc initiatives to a structured, data-driven framework.

This formalization is crucial for stakeholders, including investors and customers, who increasingly use ESG performance as a factor in their decision-making. The commitment to continuous data improvement helps them advance their carbon management plan and prepare for the inevitable, stricter global reporting standards.

Your next concrete step is to have your Legal and Finance teams draft a full risk-exposure matrix for the pending securities litigation and the potential impact of further US public sector sales slowdowns by the end of this quarter.