Elastic Stock Drops After Q1 Results, Q2 Revenue Guidance Below Estimates
Portfolio Pulse from Erica Kollmann
Elastic N.V. (NYSE:ESTC) reported better-than-expected Q1 earnings but provided Q2 revenue guidance below estimates, leading to a significant drop in its stock price.
August 29, 2024 | 9:23 pm
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Elastic reported Q1 earnings that exceeded expectations, but its Q2 revenue guidance fell short of estimates, leading to a 23.49% drop in its stock price. The company cited slower customer commitments due to segmentation changes as a reason for the guidance miss.
Elastic's Q1 earnings exceeded expectations, but the Q2 revenue guidance was below estimates, which is a negative signal for investors. The company's explanation of slower customer commitments due to segmentation changes adds uncertainty, contributing to the sharp decline in stock price.
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