Yahoo Finance Elastic (NYSE:ESTC) Q1 Earnings: Leading The Data Infrastructure Pack
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Elastic (NYSE:ESTC) and the rest of the data infrastructure stocks fared in Q1.
Generating insights from system level data is an increasing priority for most businesses, but to do so requires connecting and analyzing piles of data stored and siloed in separate databases. This is the demand driver for cloud based data infrastructure software providers, who can more readily integrate, distribute and process information vs. legacy on-premise software providers.
The 4 data infrastructure stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 1.7%. while next quarter's revenue guidance was in line with consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and data infrastructure stocks have held roughly steady amidst all this, with share prices up 2.6% on average since the previous earnings results.
Best Q1: Elastic (NYSE:ESTC)
Started by Shay Banon as a search engine for his wife's growing list of recipes at Le Cordon Bleu cooking school in Paris, Elastic (NYSE:ESTC) helps companies integrate search into their products and monitor their cloud infrastructure.
Elastic reported revenues of $335 million, up 19.7% year on year, exceeding analysts' expectations by 1.6%. Overall, it was a solid quarter for the company with an impressive beat of analysts' billings estimates and accelerating customer growth.
“Elastic delivered another strong quarter and a great finish to the fiscal year,” said Ash Kulkarni, CEO, Elastic.
Elastic delivered the weakest full-year guidance update of the whole group. The company added 60 enterprise customers paying more than $100,000 annually to reach a total of 1,330. The stock is up 23% since reporting and currently trades at $114.67.
Is now the time to buy Elastic? Access our full analysis of the earnings results here, it's free.
C3.ai (NYSE:AI)
Founded in 2009 by enterprise software veteran Tom Seibel, C3.ai (NYSE:AI) provides software that makes it easy for organizations to add artificial intelligence technology to their applications.
C3.ai reported revenues of $86.59 million, up 19.6% year on year, outperforming analysts' expectations by 2.6%. It performed better than its peers, but it was unfortunately an ok quarter for the company with management forecasting accelerating growth but a miss of analysts' billings estimates.
C3.ai achieved the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 13.3% since reporting. It currently trades at $27.11.
Is now the time to buy C3.ai? Access our full analysis of the earnings results here, it's free.
Weakest Q1: Teradata (NYSE:TDC)
Part of point-of-sale and ATM company NCR from 1991 to 2007, Teradata (NYSE:TDC) offers a software-as-service platform that helps organizations manage their data across multiple storages and analyze it.
Teradata reported revenues of $465 million, down 2.3% year on year, in line with analysts' expectations. It was a weak quarter for the company with a miss of analysts' billings estimates and a miss of analysts' ARR (annual recurring revenue) estimates.
Teradata had the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 16.4% since the results and currently trades at $31.71.
Read our full analysis of Teradata's results here.
Confluent (NASDAQ:CFLT)
Started in 2014 by the team of engineers at LinkedIn who originally built it as an internal tool, Confluent (NASDAQ:CFLT) provides infrastructure software for organizations that makes it easy and fast to collect and move large amounts of data between different systems.
Confluent reported revenues of $217.2 million, up 24.6% year on year, surpassing analysts' expectations by 2.5%. Revenue aside, it was a mixed quarter for the company with full-year revenue guidance topping analysts' expectations but decelerating growth in large customers.
Confluent delivered the fastest revenue growth among its peers. The company added 31 enterprise customers paying more than $100,000 annually to reach a total of 1,260. The stock is down 9.5% since reporting and currently trades at $25.20.
Read our full, actionable report on Confluent here, it's free.
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