Elastic NV ESTC shares are trading higher by over 17% after it reported better-than-expected Q1 FY24 results, provided an above-consensus Q2 outlook, and raised FY24 adjusted EPS guidance. 

Revenue rose 17% Y/Y to $293.75 million, beating the consensus of $284.44 million. 

Elastic Cloud revenue increased 24% Y/Y to $121 million in the quarter.

Adjusted operating income stood at $29 million, with a margin of 10% in the quarter. 

The total subscription customer count stood at around 20,500, and the customer count with an Annual Contract Value (ACV) greater than $100,000 came in at over 1,190, with a net expansion rate of about 113%.

Adjusted EPS of $0.25 exceeded the consensus of $0.11.

Operating cash flow stood at $38 million, with adjusted free cash flow of $49 million in the quarter.

As of July 31, 2023, cash, cash equivalents, and marketable securities were $957 million.

"We had a strong start to the fiscal year, and delivered better than expected results as customers continued to consolidate vendors and adopt Elastic as their AI-powered data analytics platform of choice for addressing multiple real-time search use cases. In Q1, we saw growing use of Elasticsearch as a vector database and significant activity around generative AI. We are very excited about the long-term opportunity generative AI represents for Elastic," said Ash Kulkarni, CEO.

Outlook: Elastic expects Q2 revenue of $303 million-$305 million (vs. $301.87 million estimate) and adjusted EPS of $0.23-$0.25 (vs. $0.20 estimate).

For FY24, the company raised the lower end of revenue outlook, revising the range to $1.242 billion-$1.250 billion from $1.238 billion-$1.250 billion, vs. street view of $1.24 billion. 

ESTC boosted FY24 adjusted EPS outlook to $1.01-$1.11 from $0.94-$1.06 vs. consensus of $0.99. 

Also Read: Elastic Stretches Global Cloud Adoption, Joins Hand With AWS

Price Action: ESTC shares are trading up by 17% at $72.40 premarket on the last check Friday.