Elastic (ESTC) reports first-quarter earnings tomorrow

Search software company Elastic (NYSE:ESTC) will release an earnings report tomorrow after the bell. Here’s what to look for.

Elastic beat analyst revenue expectations by 2.2% in the most recent quarter, reporting revenue of $328 million, up 19.4% year-over-year. It was a mixed quarter for the company, with an impressive increase in analyst estimates for billings but a slowdown in customer growth. Added 50 enterprise customers paying over $100,000 per year, bringing the total to 1,270 customers.

Does buying or selling Elastic affect earnings? Read our full analysis here, it’s free.

Analysts expect Elastic’s revenue to grow 17.8% year-over-year to $329.8 million this quarter, matching the 17% growth seen in the same quarter last year. Adjusted earnings per share are expected to be $0.20.

Most analysts covering the company have reaffirmed their estimates over the last 30 days, suggesting they expect the company to remain on track towards earnings. Elastic has a history of exceeding Wall Street expectations, beating revenue estimates over the past two years by an average of 1.8% each time.

Looking at Elastic’s competitors in the data and analytics software segment, some of them have already reported first-quarter results, which gives us a hint of what to expect. Confluent delivered year-over-year revenue growth of 24.6%, beating analyst expectations by 2.5%, and Teradata saw revenue decline 2.3%, in line with the consensus. After the results, Confluent’s shares increased by 12.7%, while Teradata fell by 13.8%.

Read our full analysis of Confluent’s results here and Teradata’s results here.

Investors in the data and analytics software space have been investing nonstop for earnings, with share prices up an average of 1.3% over the past month. Meanwhile, Elastic is down 1.9% and heading toward earnings, with an average analyst price target of $132 (versus the current share price of $100.31).

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