Why Elastic Stock was destroyed today
Actions of Elastic (NYSE: ESTC) were down 12% as of 2:30 p.m. EST today after the company announced its tax results for the third quarter. The results exceeded expectations, but technological actions are witnessing a massive sell-off, as rising interest rates lead to an abandonment of riskier asset classes.
Revenue for the fiscal third quarter, which ended Jan. 31, was $ 157.1 million, significantly exceeding the consensus estimate of $ 146.75 million in sales. This resulted in an adjusted net loss per share of $ 0.04, also better than the $ 0.15 per share adjusted loss Wall Street expected. The enterprise search specialist now has more than 13,800 subscribed clients, and the number of clients with an annual contract value greater than $ 100,000 now stands at approximately 670.
“We had a great third quarter and once again showed strong execution,” CEO Shay Banon said in a statement. “We believe continued innovation in our three solutions is essential for global businesses looking to build resilience and adapt to the distributed environment of 2021.”
In terms of forecast, fiscal fourth quarter revenue is expected to be in the $ 158 million to $ 159 million range, ahead of the $ 151.7 million in sales analysts are modeling. The adjusted operating margin is expected to be -7.5% to -8.5%, with an adjusted net loss forecast per share of $ 0.15 to $ 0.18. The market expects $ 0.22 per share in adjusted net losses.
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