Elastic N.V. (ESTC) experienced a significant 9.93% decline in after-hours trading on Thursday.
The stock's sharp drop appears to be driven by investor disappointment with the company's first-quarter earnings outlook, which fell short of Wall Street estimates. Elastic projected adjusted earnings per share between 57 cents and 59 cents for Q1 FY27, below the analyst consensus of 63 cents.
Additionally, the company's fourth-quarter fiscal 2026 results showed a widening GAAP operating loss of $16 million, despite reporting revenue growth of 16% year-over-year to $451 million and beating adjusted EPS estimates. While Elastic reported positive metrics including a 20% increase in current remaining performance obligations and over 1,720 customers with annual contract value above $100,000, the market focused on the profitability concerns highlighted by the expanded operating loss and weaker-than-expected guidance.