ESTC
Elastic N.V
TMT
06/24/2021
Presented
| Date | 06/17/2021 |
| Price | $142.71 |
| Market Cap | $12.92B |
| Ent Value | $10.48B |
| P/E Ratio | N/A |
| Book Value | $4.98 |
| Div Yield | 0% |
| Shares O/S | 90.53M |
| Ave Daily Vol | 1,048,771 |
| Short Int | 11.19% |
Current
| Price | $82.18 |
| Market Cap | $8.44B |
| Elastic NV engages in the provision of open source search and analytics engine services. It offers Elastic Stack, a set of software products that ingest and store data from various sources and formats, as well as perform search, analysis, and visualization. The firms Elastic Stack product comprises Elasticsearch, a distributed, real-time search and analytics engine, and data store for various types of data, including textual, numerical, geospatial, structured, and unstructured; Kibana, a user interface, management, and configuration interface for the Elastic Stack; Beats, a single-purpose data shippers for sending data from edge machines to Elasticsearch or Logstash; and Logstash, a data processing pipeline for ingesting data into Elasticsearch or other storage systems. It also provides software solutions on the Elastic Stack that address cases, including app search, site search, enterprise search, logging, metrics, application performance management, business analytics, and security analytics. Its products are used by individual developers and organizations of a range of industries. The company was founded by Shay Banon, Uri Boness, Steven Schuurman, and Simon Willnauer on February 9, 2012 and is headquartered in Mountain View, CA. |
Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), Datadog Inc (DDOG), Dynatrace Inc (DT), Elastic NV (ESTC), MongoDB Inc (MDB), New Relic Inc (NEWR), Splunk Inc (SPLK)
Highlights
The presenter is long shares of Elastic NV (ESTC), which is best known as the default for enterprise websites and applications to build search capabilities. However, ESTC has expanded its suite beyond Search, which now only represents ~33% of the business. In addition to Search, ~20% of the business is now Security, and the remainder can be attributed to Observability. The competitive landscape is crowded, as DDOG, DT, NEWR, SPLK, and MDB are all involved, but the presenter highlights that ESTC trades at 12x next year’s revenue, which is roughly half of DDOG’s and MDB’s valuations. As ESTC continues its recent strong performance over the next two quarters, he expects the valuation discrepancy to narrow and the stock to double over a 4–5 year horizon.
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