Elastic: High-Profile Search Company With Attractive Fundamentals

Equity Bottom-Up

214 Views, 18 Jan 2022 07:41

EXECUTIVE SUMMARY

Elastic NV (ESTC US) has grown its ARR from ~$207 million as of Jul-18 to ~$760 million today and may become a multi-billion dollar unicorn in the future.
We like the subscription-based freemium business model, strong net expansion rate, and acceleration in revenue growth of Elastic Cloud business, which currently represents ~33% of total revenue.
Elastic Search is one of the most popular search engines globally, and the company’s products have been downloaded more than 350 million times since 2013.

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