Shares in Elastic N.V. plunged more than 12% in late trading today after the enterprise search software company fell short of expectations with its full-year outlook amid slowing growth, despite otherwise solid results in its fiscal 2025 fourth quarter.

For the quarter ended April 30, Elastic reported adjusted earnings per share of 47 cents, up from 21 cents per share in the same quarter of the previous fiscal year, on revenue of $388 million, up 16% year-over-year. Both figures were ahead of the 37 cents per share and revenue of $380.53 million expected by analysts.

The company saw its cloud revenue grow 23% year-over-year to $182 million and total customers with an annual contract value of $100,000 or more grew to 1,510 as of the end of the quarter, up from 1,460 in the previous quarter and 1,330 as of the end of April last year. Total subscription customer count was approximately 21,500, up from 21,350 in the previous quarter and 21,000 in the fourth quarter of fiscal year 2024.

Business highlights in the quarter included Elastic’s focus on enhancing security measures across its platform, notably the removal of SMS-based multifactor authentication by the end of April 2025. The strong security move was focused on pushing customers toward more secure MFA options, in line with broader industry trends. Additionally, Elastic addressed several bugs, including issues with index block settings and single sign-on behavior with Okta.

In March, Elastic upgraded key components of its Beats suite, including Metricbeat and Filebeat, to version 8.17.2, with the update said by the company to significantly improve data collection and monitoring capabilities.

April saw the expansion of AutoOps to new Amazon Web Services Inc. regions, providing automated operational insights and optimizations to a wider customer base. Elastic also introduced improved error handling and validation for role mapping configurations, enhancing user experience and security.

For its full fiscal year 2025, Elastic reported adjusted earnings per share of $2.04, up from $1.19 per share in the previous year, on revenue of $1.483 billion, up 17% year-over-year.

“Elastic achieved a strong quarter, culminating in a solid finish to the fiscal year,” Chief Executive Ash Kulkarni said in the company’s earnings release. “We delivered strong growth, fueled by our sales execution and the persistent demand for our solutions, with our innovation velocity thriving.”

For its fiscal year 2026 first quarter, Elastic expects adjusted earnings per share of 41 to 43 cents on revenue of $107.5 million to $108.5 million. For the full year, the company expects adjusted earnings of $2.24 to $2.32 and revenue of $1.655 billion to $1.67 billion.

The full-year outlook was ahead of the $2.08 per share expected by analysts, while the revenue outlook fell short of an expected $1.69 billion.

Alyssa Fitzpatrick, global vice president of partner sales at Elastic, spoke with theCUBE, SiliconANGLE Media’s livestream studio, in April, when she discussed how Elastic and Google LLC plan to reinvent the artificial intelligence partnership playbook:

Photo: Elastic