Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Elastic's Q3 fiscal figures demonstrated a robust financial performance, with a revenue growth of 19% YoY and Elastic Cloud growing 29% YoY, a testament to the continued traction in the cloud and consolidation under the Elasticsearch platform.</li><li>Strong sales were driven by customer interest in Generative AI, with the platform being leveraged to develop Generative AI applications, providing an appreciable advantage relative to pure-play vector database vendors.</li><li>Another key factor was platform consolidation, with customers choosing Elasticsearch to displace incumbent solutions for multiple use cases, underscoring the platform's import within the IT infrastructure context.</li></ul>

Elastic's Q3 fiscal figures demonstrated a robust financial performance, with a revenue growth of 19% YoY and Elastic Cloud growing 29% YoY, a testament to the continued traction in the cloud and consolidation under the Elasticsearch platform.Strong sales were driven by customer interest in Generative AI, with the platform being leveraged to develop Generative AI applications, providing an appreciable advantage relative to pure-play vector database vendors.Another key factor was platform consolidation, with customers choosing Elasticsearch to displace incumbent solutions for multiple use cases, underscoring the platform's import within the IT infrastructure context.

Elastic N.V.: Will The Growing Demand For Hybrid Search Last? - Key Drivers

<ul><li>Elastic NV delivered an all-around beat in the previous quarter.</li><li>The company had a 17% year-over-year growth in revenue, with Elastic Cloud seeing a remarkable 31% YoY growth, driven by advancements in cloud consumption and success in generative AI.</li><li>Additionally, Elastic continued to invest in AI Assistants for Observability and Security, enhancing its leadership in AI.</li></ul>

Elastic NV delivered an all-around beat in the previous quarter.The company had a 17% year-over-year growth in revenue, with Elastic Cloud seeing a remarkable 31% YoY growth, driven by advancements in cloud consumption and success in generative AI.Additionally, Elastic continued to invest in AI Assistants for Observability and Security, enhancing its leadership in AI.

Elastic NV: Leading the AI Wave with Advanced Query Language and Security Solutions! - Major Drivers

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>
<a href="https://www.smartkarma.com/entities/elastic-nv" target="_blank" data-smartkarma-citation="entities:27526:1" rel="noopener">Elastic NV (ESTC US)</a> reported a solid quarter, reflecting strong cloud revenue growth, ~13% non-GAAP operating margin and rapid adoption of ESRE.</li>
<li>
<a href="https://www.smartkarma.com/entities/elastic-nv" target="_blank" data-smartkarma-citation="entities:27526:1" rel="noopener">Elastic NV (ESTC US)</a> shares rallied 35%+ during regular trading session and closed up ~37% on Friday at $110.20. I raised PT to $121 from $112.</li>
<li>However, I downgrade <a href="https://www.smartkarma.com/entities/elastic-nv" target="_blank" data-smartkarma-citation="entities:27526:1" rel="noopener">Elastic NV (ESTC US)</a> to Equal-weight from Overweight on valuation and expect the stock to trade in-line with peers.</li>
</ul>



Elastic NV (ESTC US) reported a solid quarter, reflecting strong cloud revenue growth, ~13% non-GAAP operating margin and rapid adoption of ESRE.

Elastic NV (ESTC US) shares rallied 35%+ during regular trading session and closed up ~37% on Friday at $110.20. I raised PT to $121 from $112.
However, I downgrade Elastic NV (ESTC US) to Equal-weight from Overweight on valuation and expect the stock to trade in-line with peers.


Elastic: 2Q’FY24 Earnings Review - Elastic Cloud Is a Bright Spot, PT Raised To $121

<ul>
<li>Splunk shares outperformed in 2023 and rose ~69% as total ARR exceeded $4B, operating loss narrowed, and FCF margin improved. The company executed well to drive long-term durable growth.</li>
<li>Over the past 2 years, Splunk transformed itself into a cloud company. In 2022, WSJ reported that Cisco made a $20B+ takeover offer. However, no deal was on the table. </li>
<li>Following M&amp;A rumors, the company’s cloud transition, and strong fundamentals, Cisco offered a $157 per share to acquire Splunk in a $28B mega all-cash deal on September 21, 2023. </li>
</ul>


Splunk shares outperformed in 2023 and rose ~69% as total ARR exceeded $4B, operating loss narrowed, and FCF margin improved. The company executed well to drive long-term durable growth.
Over the past 2 years, Splunk transformed itself into a cloud company. In 2022, WSJ reported that Cisco made a $20B+ takeover offer. However, no deal was on the table. 
Following M&amp;A rumors, the company’s cloud transition, and strong fundamentals, Cisco offered a $157 per share to acquire Splunk in a $28B mega all-cash deal on September 21, 2023. 


Splunk and $28B Mega Deal: Will Cisco Overpay For San Francisco-Based Software Company?

<ul><li>Elastic NV delivered an all-around beat in the most recent quarterly result.</li><li>The company achieved a milestone with annual contract values exceeding $100,000, demonstrating Elastic's rising popularity as the preferred data analytics platform for real-time search use cases.</li><li>The second trend involved customers consolidating their operations onto the Elastic platform for multiple use cases, benefiting from Elastic's core strengths and unmatched value proposition in search, log analytics, and security analytics.</li></ul>

Elastic NV delivered an all-around beat in the most recent quarterly result.The company achieved a milestone with annual contract values exceeding $100,000, demonstrating Elastic's rising popularity as the preferred data analytics platform for real-time search use cases.The second trend involved customers consolidating their operations onto the Elastic platform for multiple use cases, benefiting from Elastic's core strengths and unmatched value proposition in search, log analytics, and security analytics.

Elastic N.V.: Riding the AI Wave - A Look at Their Market Dominance - Major Drivers

United States

Elastic N.V. provides information technology and data analysis services. The Company offers monitoring, security analysis, enterprise search, cloud computing, and open source application performance monitoring solutions. Elastic serves customers in the United States.

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Elastic NV (ESTC US)

Elastic N.V.: Will The Growing Demand For Hybrid Search Last? - Key Drivers

Elastic's Q3 fiscal figures demonstrated a robust financial performance, with a revenue growth of 19% YoY and Elastic Cloud growing 29% YoY, a...

Baptista Research

Elastic NV: Leading the AI Wave with Advanced Query Language and Security Solutions! - Major Drivers

Elastic NV delivered an all-around beat in the previous quarter. The company had a 17% year-over-year growth in revenue, with Elastic Cloud seeing...

Baptista Research

Elastic: 2Q’FY24 Earnings Review - Elastic Cloud Is a Bright Spot, PT Raised To $121

Elastic delivered a solid quarter, reflecting strong cloud revenue growth. Elastic shares rallied 35%+ during regular trading session and closed up...

Andrei Zakharov

Splunk and $28B Mega Deal: Will Cisco Overpay For San Francisco-Based Software Company?

Despite a transaction price of $157 per share offered by Cisco to acquire Splunk in a $28B mega deal, investors should take profits now.

Andrei Zakharov

Elastic N.V.: Riding the AI Wave - A Look at Their Market Dominance - Major Drivers

Elastic NV delivered an all-around beat in the most recent quarterly result. The company achieved a milestone with annual contract values...

Baptista Research

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