Elastic NV (NYSE:ESTC) shares surged 22% to $75.22 in afternoon trading on Friday after the Netherlands-based data analytics company saw its first quarter fiscal 2024 revenue rise 17% year over year to $293.75 million, surpassing the analyst consensus forecast of $284.44 million.
Its adjusted earnings per share (EPS) for period, meanwhile, came in at $0.25, more than doubling expectations of $0.11.
"We had a strong start to the fiscal year and delivered better than expected results as customers continued to consolidate vendors and adopt Elastic as their AI-powered data analytics platform of choice for addressing multiple real-time search use cases," Elastic CEO Ash Kulkarni said in a statement.
"In Q1, we saw growing use of Elasticsearch as a vector database and significant activity around generative AI."
Elastic ended the quarter with cash, cash equivalents, and marketable securities of $957 million as of July 31, 2023.
Looking ahead to 2Q, the company boosted its revenue guidance to between $303 million and $305 million, from $301.87 million, and upped its adjusted EPS forecast to $0.23 to $0.25 from $0.20 previously.
Elastic’s financial results and guidance led Stifel analysts to raise their target price on the stock from $70 to $83 per share.
Shares of Elastic have gained 50% year to date.
Contact Sean at sean@proactiveinvestors.com