Shares of search company Elastic have peeled back ~20% ever since reporting Q2 results.
Most notably, investors hammered the company on its deceleration down to 45% y/y billings growth (on a constant currency basis), down eight points from the year-ago quarter.
The company attributed the billings slowdown to an elongation in deal cycles with the U.S. government, which may self-correct over future quarters.
Against FY21 revenues, Elastic now trades at a single-digit valuation multiple - a blessing for a company that has consistently traded at double-digit multiples since its IPO.
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