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Elastic posted third-quarter earnings that topped analysts’ estimates as demand for artificial intelligence products continued to grow.
Elastic gave a strong outlook for the current quarter and full year.
Shares of Elastic surged Friday and have added about 15% since the start of the year.
Elastic (ESTC) shares jumped Friday after the data analytics software provider reported better-than-expected earnings on strong demand for products related to artificial intelligence.
The company posted adjusted earnings per share (EPS) of 63 cents for the fiscal third quarter, above analysts’ estimates compiled by Visible Alpha. Revenue was up about 17% year-over-year to $382.1 million, also ahead of expectations.
Elastic said the gains came as its total subscription customers grew about 3% to approximately 21,300. Customers with an annual contract value greater than $100,000 rose 15% to 1,460.
“Continued interest from customers building Generative AI applications and consolidating onto a single platform helped drive our outperformance during the quarter,” CEO Ash Kulkarni said in a release.
The company projected current-quarter EPS of 36 cents to 37 cents and revenue of $379 million to $381 million, above the analyst consensus. Its full-year outlook of $1.91 to $1.96 in EPS, and revenue of $1.474 billion to $1.476 billion also exceeded expectations.
Shares of Elastic surged close to 13% in intraday trading Friday and have added about 15% since the start of the year.
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