Shares in Elastic N.V. rose nearly 8% in late trading after the enterprise-grade search software company today reported better-than-expected results in its fiscal 2024 fourth quarter.

For the quarter that ended on April 30, Elastic reported adjusted earnings per share of 21 cents on revenue of $335 million, the latter up 20% year-over-year. Both were beats, as analysts had expected adjusted earnings of two cents per share on revenue of $329.2 million.

Elastic’s better-than-expected headline figures were driven by growth in the Elastic Cloud, which saw revenue of $148 million in the quarter, up 32% year-over-year. As of the end of the quarter, Elastic had about 21,000 subscription customers and those customers are sticking around, with the company reporting a net expansion rate of 110%.

Business highlights in the quarter included the company announcing Elastic Search AI Lake, a new service that enables highly scalable vector search for generative artificial intelligence apps on May 15. The service is designed to enhance data accessibility and support various AI workloads, particularly generative AI services, security and observability.

Additionally, the compamy launched the technical preview of Elastic Cloud Serverless for search, including retrieval augmented generation, observability and security workloads. It also announced Attack Discovery, an AI-driven security analytics solution for security operation centers that combines search and retrieval augmented generation to prioritize attacks, not alerts.

For its full fiscal year 2024, it reported adjusted earnings per share of $1.19 on revenue of 1.267 billion, the latter up 19% year-over-year.

“Elastic delivered another strong quarter and a great finish to the fiscal year,” Chief Executive Ash Kulkarni said in the company’s earnings release. “The strong and sustained adoption we are seeing for our Generative AI capabilities and our continued ability to differentiate and win in search, security and observability with our Search AI Platform reinforces our confidence in the enduring strength of our business.”

For its fiscal 2025 first quarter, Elastic expects adjusted earnings per share of 24 to 26 cents on revenue of $343 million to $345 million. For the full fiscal year, the company expects adjusted earnings per share of $1.35 to $1.47 on revenue of $1.468 billion to $1.48 billion.

Kathleen Walker, senior director of product marketing at Elastic, spoke with theCUBE, SiliconANGLE Media Inc.’s livestreaming studio on April 10, whenn she discussed Elastic’s progression to search-powered AI:

Photo: Elastic