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Elastic Surges: AI Search Fuels 15% Revenue Growth
28 Aug
Summary
- First-quarter fiscal 2027 revenue reached $478 million, a 15% year-over-year increase.
- Subscription revenue grew 18% to $399 million, exceeding guided metrics.
- Over 1,800 customers now have annual contracts worth at least $100,000.
Elastic has commenced fiscal year 2027 with robust performance, reporting $478 million in first-quarter revenue, a 15% increase compared to the prior year. This growth was propelled by strong sales execution and escalating demand for its search and AI, security, and observability offerings.
Sales-led subscription revenue experienced an 18% surge, amounting to $399 million, contributing to a non-GAAP operating margin of 16.2%. The company's CEO highlighted that all guided metrics were surpassed, with accelerating growth in both total revenue and subscription revenue.
The company also saw significant expansion in its large-customer segment. Elastic now serves over 1,800 customers with an annual contract value of at least $100,000. The past quarter marked the largest increase to date in this cohort, with more than 80 net new customers added. This group now accounts for 90% of sales-led subscription revenue, up from 87% in the previous year.
