Elastic N.V. (ESTC) Acquisition Improves Strategic Position, PT To $100 - FBN

FBN Securities Shebly Seyrafi Outperform Elastic NV. (NYSE: ESTC) price target of $100.00 (from $95.00) after the company reported FQ4 results above consensus. FQ4 revenue of $80.6M grew by 63% Y/Y and beat consensus by 7% on total subscription growth of 59% Y/Y. Billings growth of 57% Y/Y beat expectations while RPO growth of 66% Y/Y and NG operating margin of -21.7% were in line.

The analyst stated "We believe that the stock exhibited weakness after the report due to the company’s announced intention to acquire endpoint security company Endgame for $234M in stock, but we believe that Endgame will improve the company’s position in security (adding EPP+EDR to its existing SIEM business). We are impressed by continued strong customer growth (up ~900 Q/Q to 8,100, up 62% Y/Y), with 440 customers (up 60% Y/Y and vs. 380 such customers in FQ3) with ACV over $100K. International growth was strong as 43% of revenue from international implies ~68% Y/Y growth on a reported basis".

For an analyst ratings summary and ratings history on Elastic NV. click here. For more ratings news on Elastic NV. click here.

Shares of Elastic NV. closed at $81.39 yesterday.

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