Needham analyst Mike Cikos initiated coverage on Elastic N.V. (ESTC) with a Hold rating. Cikos views the consensus estimate for cloud revenue growth as too aggressive, especially for H2 FY25. He expects a reduction in the anticipated growth of cloud business, which could negatively impact the share price. However, a slower shift toward cloud revenue could benefit ESTC's gross margin due to its narrower margin relative to self-managed deployments.