Elastic N.V 10-Q for FY2022 Q1

Elastic N.V. (ESTC)

10-Q 2021-09-01 For: 2021-07-31

Added on April 10, 2026

About this 10-Q

Elastic N.V filed this 10-Q on September 1, 2021, covering the quarter ended July 31, 2021 (FY2022 Q1).

Headline figures

Quarter ended July 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $193.1M; up 49.8% from $128.87M a year earlier
Net loss: $34.49M; compared with a net loss of $19M a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


		Page
	Note Regarding Forward-Looking Statements	3
PART I.	FINANCIAL INFORMATION	5

Item 1.	Financial Statements (Unaudited)	5
	Condensed Consolidated Balance Sheets	5
	Condensed Consolidated Statements of Operations	6
	Condensed Consolidated Statements of Comprehensive Loss	7
	Condensed Consolidated Statements of Shareholders’ Equity	8
	Condensed Consolidated Statements of Cash Flows	9
	Notes to Condensed Consolidated Financial Statements (Unaudited)	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	35

PART II.	OTHER INFORMATION	37

Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	68
Item 3.	Defaults Upon Senior Securities	68
Item 4.	Mine Safety Disclosures	68
Item 5.	Other Information	68
Item 6.	Exhibits	69
Signatures		70


	As of July 31, 2021		As of April 30, 2021
Assets
Current assets:
Cash and cash equivalents	$	991,342	$	400,814
Restricted cash	2,339		2,894
Accounts receivable, net of allowance for credit losses of $2,574 and $2,344 as of July 31, 2021 and April 30, 2021, respectively	110,805		160,415
Deferred contract acquisition costs	34,433		36,089
Prepaid expenses and other current assets	41,068		37,002
Total current assets	1,179,987		637,214
Property and equipment, net	8,310		8,881
Goodwill	198,526		198,851
Operating lease right-of-use assets	24,993		25,464
Intangible assets, net	32,845		36,286
Deferred contract acquisition costs, non-current	52,185		50,263
Deferred tax assets	3,664		3,697
Other assets	19,375		12,516
Total assets	$	1,519,885	$	973,172
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	17,591	$	7,248
Accrued expenses and other liabilities	28,906		28,909
Accrued compensation and benefits	50,580		52,525
Operating lease liabilities	9,324		8,528
Deferred revenue	328,286		352,805
Total current liabilities	434,687		450,015
Deferred revenue, non-current	36,074		44,895
Long-term debt, net	565,842		—
Operating lease liabilities, non-current	18,281		19,649
Other liabilities, non-current	9,338		7,782
Total liabilities	1,064,222		522,341
Commitments and contingencies (Note 7 and 8)
Shareholders’ equity:
Convertible preference shares, €0.01 par value; 165,000,000 shares authorized, 0 shares issued and outstanding as of July 31, 2021 and April 30, 2021	—		—
Ordinary shares, par value €0.01 per share: 165,000,000 shares authorized; 91,770,228 and 90,533,985 shares issued and outstanding as of July 31, 2021 and April 30, 2021, respectively	963		948
Treasury stock	(369)		(369)
Additional paid-in capital	1,112,845		1,071,675
Accumulated other comprehensive loss	(9,969)		(8,105)
Accumulated deficit	(647,807)		(613,318)
Total shareholders’ equity	455,663		450,831
Total liabilities and shareholders’ equity	$	1,519,885	$	973,172


	Three Months Ended July 31,
	2021		2020
Revenue
License - self-managed	$	16,221	$	14,879
Subscription - self-managed and SaaS	160,964		106,463
Total subscription revenue	177,185		121,342
Professional services	15,910		7,528
Total revenue	193,095		128,870
Cost of revenue
Cost of license - self-managed	346		346
Cost of subscription - self-managed and SaaS	37,174		25,890
Total cost of revenue - subscription	37,520		26,236
Cost of professional services	12,142		8,595
Total cost of revenue	49,662		34,831
Gross profit	143,433		94,039
Operating expenses
Research and development	59,382		45,678
Sales and marketing	88,033		56,151
General and administrative	27,052		21,729
Total operating expenses	174,467		123,558
Operating loss	(31,034)		(29,519)
Other income (expense), net
Interest expense	(1,820)		(9)
Other income, net	1,018		10,894
Loss before income taxes	(31,836)		(18,634)
Provision for income taxes	2,653		367
Net loss	$	(34,489)	$	(19,001)
Net loss per share attributable to ordinary shareholders, basic and diluted	$	(0.38)	$	(0.23)
Weighted-average shares used to compute net loss per share attributable to ordinary shareholders, basic and diluted	91,201,372		84,175,287


	Three Months Ended July 31,
	2021		2020
Net loss	$	(34,489)	$	(19,001)
Other comprehensive loss:
Foreign currency translation adjustments	(1,864)		(10,058)
Other comprehensive loss	(1,864)		(10,058)
Total comprehensive loss	$	(36,353)	$	(29,059)


						Additional Paid-in Capital		Accumulated Other Comprehensive Loss				Total Shareholders' Equity
	Ordinary Shares			Treasury Shares						Accumulated Deficit
	Shares	Amount
Balances at April 30, 2021	90,533,985	$	948	$	(369)	$	1,071,675	$	(8,105)	$	(613,318)	$	450,831
Issuance of ordinary shares upon exercise of stock options	840,208	10		—		10,969		—		—		10,979
Issuance of ordinary shares upon release of restricted stock units	396,035	5		—		(5)		—		—		—
Stock-based compensation	—	—		—		30,206		—		—		30,206
Net loss	—	—		—		—		—		(34,489)		(34,489)
Foreign currency translation	—	—		—		—		(1,864)		—		(1,864)
Balances at July 31, 2021	91,770,228	$	963	$	(369)	$	1,112,845	$	(9,969)	$	(647,807)	$	455,663

						Additional Paid-in Capital		Accumulated Other Comprehensive Loss				Total Shareholders' Equity
	Ordinary Shares			Treasury Shares						Accumulated Deficit
	Shares	Amount
Balances at April 30, 2020	82,856,978	$	856	$	(369)	$	898,788	$	(1,377)	$	(484,251)	$	413,647
Cumulative-effect adjustment from adoption of ASU 2016-13	—	—		—		—		—		367		367
Issuance of ordinary shares upon exercise of stock options	2,655,292	31		—		29,221		—		—		29,252
Issuance of ordinary shares upon release of restricted stock units	225,375	3		—		(3)		—		—		—
Stock-based compensation	—	—		—		18,172		—		—		18,172
Net loss	—	—		—		—		—		(19,001)		(19,001)
Foreign currency translation	—	—		—		—		(10,058)		—		(10,058)
Balances at July 31, 2020	85,737,645	$	890	$	(369)	$	946,178	$	(11,435)	$	(502,885)	$	432,379


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Note		Page
1.	Organization and Description of Business	11
2.	Summary of Significant Accounting Policies	11
3.	Revenue and Performance Obligations	12
4.	Fair Value Measurements	12
5.	Balance Sheet Components	13
6.	Senior Notes	13
7.	Commitments and Contingencies	17
8.	Leases	18
9.	Ordinary Shares	19
10.	Equity Incentive Plans	19
11.	Net Loss Per Share Attributable to Ordinary Shareholders	21
12.	Income Taxes	21
13.	Employee Benefit Plans	21
14.	Segment Information	22
15.	Subsequent Events	22


July 31, 2021	Level 1		Level 2	Level 3	Total
Financial Assets:
Cash and cash equivalents:
Money market funds	$	742,822	—	—	$	742,822


April 30, 2021	Level 1		Level 2	Level 3	Total
Financial Assets:
Cash and cash equivalents:
Money market funds	$	175,007	—	—	$	175,007


	As of July 31, 2021		As of April 30, 2021
Prepaid value added taxes	$	12,931	$	9,408
Prepaid hosting costs	12,121		11,122
Prepaid software subscription costs	6,190		5,636
Deposits	2,373		2,410
Prepaid taxes	1,944		1,694
Other	5,509		6,732
Total prepaid expenses and other current assets	$	41,068	$	37,002


	Useful Life (in years)			As of July 31, 2021		As of April 30, 2021
Leasehold improvements	Lesser of estimated useful life or remaining lease term			$	10,501	$	10,342
Computer hardware and software		3		2,379		2,319
Furniture and fixtures	3	-	5	5,972		5,971
Assets under construction				495		707
Total property and equipment				19,347		19,339
Less: accumulated depreciation				(11,037)		(10,458)
Property and equipment, net				$	8,310	$	8,881


July 31, 2021	Gross Fair Value		Accumulated Amortization		Net Book Value		Weighted Average Remaining Useful Life (in years)
Developed technology	$	44,830	$	22,863	$	21,967	3.1
Customer relationships	19,598		9,673		9,925		2.2
Trade names	2,872		1,917		955		2.2
Total	$	67,300	$	34,453	32,847		2.9
Foreign currency translation adjustment					(2)
Total					$	32,845


Remainder of 2022	$	9,506
2023	11,890
2024	8,715
2025	2,734
2026	—
Total	$	32,845


	Carrying Amount
Balance as of April 30, 2021	$	198,851
Foreign currency translation adjustment	(325)
Balance as of July 31, 2021	$	198,526


	Three Months Ended July 31,
	2021		2020
Beginning balance	$	86,352	$	43,549
Capitalization of contract acquisition costs	14,144		17,904
Amortization of deferred contract acquisition costs	(13,878)		(9,013)
Ending balance	$	86,618	$	52,440


	Three Months Ended July 31,
	2021		2020
Beginning balance	$	397,700	$	259,702
Increases due to invoices issued, excluding amounts recognized as revenue during the period	102,688		98,632
Amounts transferred to deferred revenue from accrued expenses and other liabilities upon entering into contracts with customers, net of revenue recognized during the period	—		5,424
Revenue recognized that was included in deferred revenue balance at beginning of period	(136,028)		(86,247)
Ending balance	$	364,360	$	277,511


	As of July 31, 2021
Principal	$	575,000
Unamortized debt issuance costs	(9,158)
Net carrying amount	$	565,842


Years Ending April 30,
2022 (remaining nine months)	$	7,259
2023	8,482
2024	6,427
2025	5,092
2026	2,803
Thereafter	—
Total minimum lease payments	30,063
Less imputed interest	(2,458)
Present value of future minimum lease payments	27,605
Less current lease liabilities	(9,324)
Operating lease liabilities, non-current	$	18,281


	As of July 31, 2021		As of April 30, 2021
Accrued expenses	$	15,025	$	12,772
Value added taxes payable	3,970		8,493
Income taxes payable	2,147		1,596
Other	7,764		6,048
Total accrued expenses and other liabilities	$	28,906	$	28,909


	As of July 31, 2021		As of April 30, 2021
Accrued vacation	$	24,482	$	24,078
Accrued commissions	11,618		17,581
Accrued payroll taxes and withholding taxes	11,305		5,522
Other	3,175		5,344
Total accrued compensation and benefits	$	50,580	$	52,525


	As of July 31, 2021		As of April 30, 2021
Unbilled accounts receivable, included in accounts receivable, net	$	2,631	$	5,204
Deferred contract acquisition costs	$	86,618	$	86,352
Deferred revenue	$	364,360	$	397,700


Balance at April 30, 2021	$	2,344
Provision	524
Write-offs	(294)
Balance at July 31, 2021	$	2,574


	Three Months Ended July 31, 2021
Contractual interest expense	$	1,581
Amortization of debt issuance costs	77
Total interest expense related to the Senior Notes	$	1,658


	As of July 31, 2021
Weighted average remaining lease term (years)	3.55
Weighted average discount rate	4.77	%


	As of July 31, 2021	As of April 30, 2021
Stock options issued and outstanding	6,698,415	7,611,016
RSUs issued and outstanding	3,148,574	3,301,283
Remaining shares available for future issuance under the 2012 Plan	20,079,245	15,737,819
Total ordinary shares reserved	29,926,234	26,650,118


			Three Months Ended July 31, 2021
Available at beginning of period			15,737,819
Awards authorized			4,526,699
RSUs granted			(395,262)
Stock options cancelled			72,176
RSUs cancelled			137,813
Available at end of period			20,079,245


	Stock Options Outstanding
	Number of Stock Options Outstanding	Weighted- Average Exercise Price		Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Balance as of April 30, 2021	7,611,016	$	20.34	6.66	$	768,517
Stock options exercised	(840,208)	$	12.99
Stock options cancelled	(72,176)	$	14.94
Stock options assumed in acquisition cancelled	(217)	$	76.82
Balance as of July 31, 2021	6,698,415	$	21.32	6.52	$	849,506
Exercisable as of July 31, 2021	4,353,175	$	15.31	6.25	$	577,889


	Number of Awards	Weighted- Average Grant Date Fair Value
Outstanding and unvested at April 30, 2021	3,301,283	$	98.74
RSUs granted	395,262	$	133.82
RSUs released	(410,158)	$	85.26
RSUs cancelled	(137,813)	$	96.39
Outstanding and unvested at July 31, 2021	3,148,574	$	104.38


	As of July 31, 2021		As of April 30, 2021
United States	$	23,246	$	23,443
United Kingdom	6,616		7,151
The Netherlands	2,793		2,975
Rest of world	648		776
Total long-lived assets	$	33,303	$	34,345


	Three Months Ended July 31,				Change
	2021		2020		$		%

	(dollars in thousands)
Revenue
License - self-managed	$	16,221	$	14,879	$	1,342	9	%
Subscription - self-managed and SaaS	160,964		106,463		54,501		51	%
Total subscription revenue	177,185		121,342		55,843		46	%
Professional services	15,910		7,528		8,382		111	%
Total revenue	$	193,095	$	128,870	$	64,225	50	%


*			The certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Quarterly Report on Form 10-Q and will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference.


Date: September 1, 2021	By:		/s/ Shay Banon
		Name:	Shay Banon
		Title:	Chief Executive Officer and Chairman
			(Principal Executive Officer)


Date: September 1, 2021	By:		/s/ Janesh Moorjani
		Name:	Janesh Moorjani
		Title:	Chief Financial Officer
			(Principal Financial and Accounting Officer)