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Elastic: Q2'2020 Conference Call Summary

|About: Elastic N.V. (ESTC)

Q2'2020 Conference Call Summary
Analyst Question Answer Tone
Product
Matt Hedberg (RBC) What type of customer does Endgame target? The mission is to protect every single Endpoint. The goal is to fold Endpoint into Elasticsearch Positive
Mark Murphy (JP Morgan) Color on Elasticsearch vs Google Cloud? There is a positive integration with Google Positive
Tyler Radke (OTC:CITI) Color on go to market strategy for Endgame? Fold it into Elasticsearch Neutral
Parker Snook (Piper Jaffray) What product is driving the most traction? Logging is the most prevalent. Followed by enterprise search Neutral
Growth
Matt Hedberg (RBC) Color on deferred revenue and growth? Deferred revenue impacted by the acquisition of Endgame Neutral
Raimo Lenschow (Barclays) Color on some contracts in the quarter? Delays in the Fed vertical Negative
Kash Rangan (BofA) Color on billings deceleration and deferred revenue? Driven by slips in Fed transactions Negative
Tyler Radke (OTC:CITI) Color on monthly SaaS as a % of total business? Approaching half of total SaaS and 10% of total revenue. Driven by marketing investments Neutral
Dan Church (Goldman Sachs) Color on AWS/Elasticsearch customer win? Driven by endpoint security. Bought into the integration of logging and APM Neutral
Dan Church (Goldman Sachs) Color on incremental security functionality, M&A? Goal is to add more functionalities. M&A strategy emphasizes stack compatibility Positive
Brent Thill (Jeffries) Color on modelling monthly versus annual SaaS? Investments have been geared to accelerate monthly SaaS Positive
Brent Thill (Jeffries) Color on go-to-market evolution? Community based adoption. Largely unchanged Neutral
Analyst Question Answer Tone
Margins
No Question No Question No Question No Question
Macro
Raimo Lenschow (Barclays) Color on observability? Strongly positioned. Combination of logs, APM and metrics offered by Elastic Positive
Mark Murphy (JP Morgan) Color on softness in the Fed vertical? Procurement cycle is uncertain Negative
Richard Davis (Canaccord) Line between open source and what is not open source? Defined by Elastic license Neutral
Parker Snook (Piper Jaffray) Color on international revenue? EMEA drives international. US is the strongest Neutral
Competition
Kash Rangan (BofA) Color on competitive dynamics? The silo use case is still prevalent leading to huge competitive pressure Negative