estc-10q_20190731.htm

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 31, 2019, the registrant had 76,555,686 ordinary shares, €0.01 par value per share, outstanding.

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risk and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations, and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing

environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. We cannot assure you that the results, events, and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.

The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which such statements are made. We undertake no obligation to update any forward-looking statements after the date of this Quarterly Report on Form 10-Q or to conform such statements to actual results or revised expectations, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make.

	July 31, 2019			April 30, 2019
Assets
Current assets:
Cash and cash equivalents	$	315,152		$	298,000
Restricted cash		2,261			2,280
Accounts receivable, net of allowance for doubtful accounts of $1,372 and $1,411 as of July 31, 2019 and April 30, 2019, respectively		57,372			81,274
Deferred contract acquisition costs		14,717			17,215
Prepaid expenses and other current assets		27,932			30,872
Total current assets		417,434			429,641
Property and equipment, net		6,424			5,448
Goodwill		19,770			19,846
Operating lease right-of-use assets		32,110			-
Intangible assets, net		6,061			6,723
Deferred contract acquisition costs, non-current		10,057			8,935
Deferred tax assets		1,716			1,748
Other assets		12,164			13,397
Total assets	$	505,736		$	485,738

Liabilities, Redeemable Convertible Preferred Shares and Shareholders’ Equity
Current liabilities:
Accounts payable	$	6,799		$	4,450
Accrued expenses and other liabilities		15,066			18,740
Accrued compensation and benefits		20,954			22,147
Operating lease liabilities		6,451			-
Deferred revenue		153,257			158,243
Total current liabilities		202,527			203,580
Deferred revenue, non-current		16,511			12,423
Operating lease liabilities, non-current		26,868			-
Other liabilities, non-current		4,780			6,723
Total liabilities		250,686			222,726
Commitments and contingencies (Note 7)
Shareholders’ equity:
Convertible preference shares, €0.01 par value; 165,000,000 shares authorized, 0 shares issued and outstanding as of July 31, 2019 and April 30, 2019		-			-
Ordinary shares, par value €0.01 per share: 165,000,000 shares authorized; 76,259,361 and 73,675,083 shares issued and outstanding as of July 31, 2019 and April 30, 2019, respectively		782			754
Treasury stock, 35,937 shares (repurchased at an average price of $10.30 per share)		(369	)		(369	)
Additional paid-in capital		614,532			581,135
Accumulated other comprehensive loss		(1,049	)		(1,431	)
Accumulated deficit		(358,846	)		(317,077	)
Total shareholders’ equity		255,050			263,012
Total liabilities, redeemable convertible preference shares and shareholders’ equity	$	505,736		$	485,738

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

	Three Months Ended July 31,
	2019			2018

Revenue
License - self-managed	$	9,907		$	7,240
Subscription - self-managed and SaaS		72,483			44,369
Total subscription revenue		82,390			51,609
Professional services		7,320			5,035
Total revenue		89,710			56,644
Cost of revenue
Cost of license - self-managed		97			97
Cost of subscription - self-managed and SaaS		17,895			10,201
Total cost of revenue - subscription		17,992			10,298
Cost of professional services		8,259			5,259
Total cost of revenue		26,251			15,557
Gross profit		63,459			41,087
Operating expenses
Research and development		35,182			18,981
Sales and marketing		52,011			30,422
General and administrative		18,568			10,099
Total operating expenses		105,761			59,502
Operating loss		(42,302	)		(18,415	)
Other income, net		931			596
Loss before income taxes		(41,371	)		(17,819	)
Provision for income taxes		398			759
Net loss	$	(41,769	)	$	(18,578	)
Net loss per share attributable to ordinary shareholders, basic and diluted	$	(0.56	)	$	(0.56	)
Weighted-average shares used to compute net loss per share attributable to ordinary shareholders, basic and diluted		74,643,782			32,978,163

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

															Accumulated
	Redeemable Convertible									Treasury			Additional		Other						Total
	Preference Shares				Ordinary Shares					Shares			Paid-in		Comprehensive			Accumulated			Shareholders'
	Shares		Amount		Shares			Amount		Amount			Capital		Loss			Deficit			Equity
Balances at April 30, 2019		-	$	-		73,675,083		$	754	$	(369	)	$	581,135	$	(1,431	)	$	(317,077	)	$	263,012
Issuance of ordinary shares upon exercise of stock options		-		-		2,533,891			27		-			20,085		-			-			20,112
Issuance of ordinary shares upon release of restricted stock units		-		-		50,387			1		-			-		-			-			1
Vesting of ordinary shares subject to repurchase		-		-		-			-		-			1,612		-			-			1,612
Stock-based compensation		-		-		-			-		-			11,700		-			-			11,700
Net loss		-		-		-			-		-			-		-			(41,769	)		(41,769	)
Foreign currency translation		-		-		-			-		-			-		382			-			382
Balances at July 31, 2019		-	$	-		76,259,361		$	782	$	(369	)	$	614,532	$	(1,049	)	$	(358,846	)	$	255,050




															Accumulated
	Redeemable Convertible									Treasury			Additional		Other						Total
	Preference Shares				Ordinary Shares					Shares			Paid-in		Comprehensive			Accumulated			Shareholders'
	Shares		Amount		Shares			Amount		Amount			Capital		Loss			Deficit			Deficit
Balances at April 30, 2018		28,939,466	$	200,921		33,232,955		$	33	$	(369	)	$	62,542	$	(961	)	$	(214,774	)	$	(153,529	)
Issuance of ordinary shares upon exercise of stock options		-		-		229,464			-		-			649		-			-			649
Ordinary shares issued in connection with the acquisition of Lambda Lab		-		-		134,474			-		-			-		-			-			-
Vesting of ordinary shares subject to repurchase		-		-		-			-		-			449		-			-			449
Repurchase of early exercised stock options						(43,630	)		-		-			-		-			-			-
Stock-based compensation		-		-		-			-		-			5,428		-			-			5,428
Net loss		-		-		-			-		-			-		-			(18,578	)		(18,578	)
Foreign currency translation		-		-		-			-		-			-		(738	)		-			(738	)
Balances at July 31, 2018		28,939,466	$	200,921		33,553,263		$	33	$	(369	)	$	69,068	$	(1,699	)	$	(233,352	)	$	(166,319	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

	Three Months Ended July 31,
	2019			2018
Cash flows from operating activities
Net loss	$	(41,769	)	$	(18,578	)
Adjustments to reconcile net loss to cash (used in) provided by operating activities:
Depreciation and amortization		1,288			1,542
Amortization of deferred contract acquisition costs		6,723			4,019
Non-cash operating lease cost		1,347			-
Stock-based compensation expense		12,771			5,665
Deferred income taxes		19			868
Changes in operating assets and liabilities, net of impact of business acquisitions:
Accounts receivable, net		23,528			9,148
Deferred contract acquisition costs		(5,515	)		(4,519	)
Prepaid expenses and other current assets		2,570			1,043
Other assets		1,055			665
Accounts payable		2,288			3,182
Accrued expenses and other liabilities		(2,866	)		2,877
Accrued compensation and benefits		(1,817	)		(3,154	)
Operating lease liabilities		(1,283	)		-
Deferred revenue		(33	)		2,368
Net cash (used in) provided by operating activities		(1,694	)		5,126
Cash flows from investing activities
Purchases of property and equipment		(1,585	)		(336	)
Business acquisitions, net of cash acquired		-			(1,986	)
Net cash used in investing activities		(1,585	)		(2,322	)
Cash flows from financing activities
Proceeds from issuance of ordinary shares upon exercise of stock options		20,113			649
Repurchase of early exercised options		-			(500	)
Repayment of notes payable		(30	)		(20	)
Net cash provided by financing activities		20,083			129
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		329			(1,179	)
Net increase in cash, cash equivalents, and restricted cash		17,133			1,754
Cash, cash equivalents, and restricted cash, beginning of period		300,280			51,609
Cash, cash equivalents, and restricted cash, end of period	$	317,413		$	53,363
Supplemental disclosures of cash flow information
Cash paid for income taxes	$	625		$	397
Cash paid for operating lease liabilities	$	1,579		$	-
Cash paid for interest	$	1		$	2
Supplemental disclosures of non-cash investing and financing information
Purchases of property and equipment included in accounts payable	$	107		$	62
Operating lease right-of-use assets exchanged for lease obligations	$	5,335		$	-
Vesting of shares subject to repurchase	$	1,612		$	449
Deferred offering costs accrued, unpaid	$	-		$	1,893

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Elastic N.V. (“Elastic” or the “Company”) was founded in 2012 and has its corporate seat in Amsterdam, the Netherlands. Elastic is a search company. It created the Elastic Stack, a powerful set of software products that ingest and store data from any source and in any format, and perform search, analysis, and visualization in milliseconds or less. Developers build on top of the Elastic Stack to apply the power of search to their data and solve business problems. The Company also offers software solutions built on the Elastic Stack that address a wide variety of use cases including app search, site search, enterprise search, logging, metrics, uptime, application performance monitoring (“APM”), business analytics, security analytics, and maps. The Elastic Stack and the Company’s solutions are designed to run on premises, in public or private clouds, or in hybrid environments.

The accompanying interim condensed consolidated balance sheet as of July 31, 2019, the interim condensed consolidated statements of operations and of comprehensive loss, interim condensed consolidated statements of cash flows and interim condensed statements of redeemable convertible preference shares and shareholders’ equity (deficit) for the three months ended July 31, 2019 and 2018, are unaudited. These interim condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and, in the opinion of management, include all adjustments necessary to fairly state the Company’s financial position as of July 31, 2019 and the results of the Company’s operations, its statements of redeemable convertible preference shares and shareholders’ equity (deficit) and cash flows for the three months ended July 31, 2019 and 2018. The financial data and other financial information disclosure in the notes to these interim condensed consolidated financial statements related to the three month periods are also unaudited. The results for the three months ended July 31, 2019 are not necessarily indicative of the operating results expected for the fiscal year ending April 30, 2020, or any future period.

The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the financial statements of the Company and its wholly owned subsidiaries. All intercompany transactions and accounts have been eliminated in consolidation.

Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Therefore, these unaudited interim condensed consolidated financial statements and accompanying footnotes should be read in conjunction with the Company’s annual consolidated financial statements and related footnotes included in its Annual Report on Form 10-K for the fiscal year ended April 30, 2019 filed with the SEC on June 28, 2019.

The Company’s fiscal year ends on April 30. References to fiscal 2020, for example, refer to the fiscal year ending April 30, 2020.

The preparation of the interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Such estimates include, but are not limited to, allocation of revenue between recognized and deferred amounts, deferred contract acquisition costs, allowance for doubtful accounts, valuation of stock-based compensation, fair value of ordinary shares in periods prior to the Company’s initial public offering (“IPO”), fair value of acquired intangible assets and goodwill, useful lives of acquired intangible assets and property and equipment, whether an arrangement is or contains a lease, the discount rate used for operating leases and valuation allowance for deferred income taxes. The Company bases these estimates on historical and anticipated results, trends and various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. Actual results could differ from those estimates.

Certain prior period amounts in the statement of cash flows have been reclassified in order to conform to the current period presentation. These reclassifications had no effect on the previously reported net loss.

The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has irrevocably elected not to avail itself of this exemption from new or revised accounting standards and, therefore, the Company will be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies.

Other than described below, there have been no changes to the Company’s significant accounting policies described in its Annual Report on Form 10-K that have had a material impact on its consolidated financial statements and related notes.

Leases arise from contractual obligations that convey the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Company determines whether an arrangement is or contains a lease at inception, based on whether there is an identified asset and whether the Company controls the use of the identified asset throughout the period of use. At the lease commencement date, the Company determines the lease classification between finance and operating and recognizes a right-of-use asset and corresponding lease liability for each lease component. A right-of-use asset represents the Company’s right to use an underlying asset and a lease liability represents the Company’s obligation to make payments during the lease term. The operating lease right-of-use asset also includes any lease payments made and excludes lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company accounts for lease components and non-lease components as a single lease component.

The lease liability is initially measured as the present value of the remaining lease payments over the lease term. The discount rate used to determine the present value is the Company’s incremental borrowing rate unless the interest rate implicit in the lease is readily determinable. The Company estimates its incremental borrowing rate based on the information available at lease commencement date for borrowings with a similar term. The right-of-use asset is initially measured as the present value of the lease payments, adjusted for initial direct costs, prepaid lease payments to lessors and lease incentives.

Deferred contract acquisition costs represent costs that are incremental to the acquisition of customer contracts, which consist mainly of sales commissions and associated payroll taxes. The Company determines whether costs should be deferred based on sales compensation plans, if the commissions are in fact incremental and would not have occurred absent the customer contract.

During the three months ended July 31, 2019, the Company updated its sales commissions plan by incorporating different commission rates for initial subscription contract sales and subsequent subscription renewals. Subsequent to this change, sales commissions for renewal of a subscription contract are not considered commensurate with the commissions paid for the acquisition of the initial subscription contract given the substantive difference in commission rates in proportion to their respective contract values. Effective May 1, 2019, commissions paid upon the initial acquisition of a contract are amortized over an estimated period of benefit of five years while commissions paid for renewal contracts are amortized based on the pattern of the associated revenue recognition over the related contractual renewal period for the pool of renewal contracts. The Company determines the period of benefit for commissions paid for the acquisition of the initial subscription contract by taking into consideration its initial estimated customer life and the technological life of its software and related significant features. Deferred contract acquisition costs are expensed commensurate with the pattern of revenue recognition as performance obligations are satisfied. Commissions paid on professional services are typically amortized in accordance with the associated revenue as the commissions paid on new and renewal professional services are commensurate with each other. Amortization of deferred contract acquisition costs is recognized in sales and marketing expense in the consolidated statement of operations.

The Company periodically reviews the carrying amount of deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred costs.

Further disclosures with respect to the Company’s deferred contract acquisition costs are also included in Note 5, Balance Sheet Components.

Leases: In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2016-02, codified as Accounting Standards Codification 842 (“ASC 842”), which requires lessees to record the assets and

liabilities arising from all leases, with the exception of short-term leases, on the balance sheet. Under ASC 842, lessees recognize a liability for lease payments and a right-of-use asset. This guidance retains the distinction between finance leases and operating leases and the classification criteria for finance leases remains similar. For finance leases, a lessee recognizes the interest on a lease liability separate from amortization of the right-of-use asset. In addition, repayments of the principal amount are presented within financing activities, and interest payments are presented within operating activities in the statement of cash flows. For operating leases, a lessee recognizes a single lease cost on a straight-line basis and classifies all cash payments within operating activities in the statement of cash flows.

The Company adopted the new lease accounting standard effective May 1, 2019 using the additional transition method described in ASU No. 2018-11, Leases – Targeted Improvements, which was issued in July 2018. Under the additional transition method, the Company recognized the cumulative effect of initially applying the guidance as an adjustment to the operating lease right-of-use assets and operating lease liabilities on its condensed consolidated balance sheet on May 1, 2019 without retrospective application to comparative periods. Upon adoption, the Company elected the following:

The adoption of ASC 842 resulted in recognition of right-of-use assets of $28.1 million, which included the impact of existing deferred rents of $1.0 million, prepaid rent of $0.2 million and lease liabilities of $28.9 million as of May 1, 2019. See Note 8, Leases, for additional details.

The adoption of the new lease accounting standard had no impact on cash provided by or used in operating, investing or financing activities in the Company’s condensed consolidated statements of cash flows. The adoption of the new lease accounting standard did not impact the Company’s condensed consolidated statements of operations nor previously reported financial results.

Credit Losses: In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and has since issued various amendments including ASU No. 2018-19, ASU No. 2019-04, and ASU No. 2019-05. The standard and related amendments modify the accounting for credit losses for most financial assets and require the use of an expected loss model, replacing the currently used incurred loss method. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The new guidance becomes effective for the Company for the fiscal year ending April 30, 2021, though early adoption is permitted. The Company is currently evaluating the potential impact of this ASU on its consolidated financial statements.

Goodwill Impairment: In January 2017, the FASB issued ASU No. 2017-04, Intangibles— Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new standard will simplify the measurement of goodwill by eliminating step two of the two-step impairment test. Step two measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The new guidance requires an entity to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The new guidance becomes effective for the Company for the fiscal year ending April 30, 2021, though early adoption is permitted. The Company does not expect the adoption of the new accounting standard will have a material impact on its consolidated financial statements.

Fair Value Measurements: In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), which modifies, removes and adds certain disclosure requirements on fair value measurements based on the FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The new guidance becomes effective for the Company for the fiscal year ending April 30,

2021. Early adoption is permitted. The Company does not expect the adoption of the new accounting standard will have a material impact on its consolidated financial statements.

Intangible Assets: In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40), which align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this ASU. The new guidance becomes effective for the Company for the fiscal year ending April 30, 2021, though early adoption is permitted. The Company is currently evaluating the potential impact of this ASU on its consolidated financial statements.

As of July 31, 2019, the Company had $362.8 million of remaining performance obligations, which is comprised of product and services revenue not yet delivered. As of July 31, 2019, the Company expects to recognize approximately 88% of its remaining performance obligations as revenue over the next 24 months and the remainder thereafter.

The Company measures financial assets and liabilities that are measured at fair value on a recurring basis at each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The following table summarizes assets that are measured at fair value on a recurring basis as of July 31, 2019 and April 30, 2018 (in thousands):

The Netherlands	Not Applicable
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
800 West El Camino Real, Suite 350
Mountain View, California 94040
(Address of principal executive offices)
(650) 458-2620

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Ordinary shares, Par Value €0.01 Per Share		ESTC		New York Stock Exchange

		Page
	Note Regarding Forward-Looking Statements	3
PART I.	FINANCIAL INFORMATION	5

Item 1.	Financial Statements (Unaudited)	5
	Condensed Consolidated Balance Sheets	5
	Condensed Consolidated Statements of Operations	6
	Condensed Consolidated Statements of Comprehensive Loss	7
	Condensed Consolidated Statements of Convertible Redeemable Preference Shares and Shareholders’ Equity (Deficit)	8
	Condensed Consolidated Statements of Cash Flows	9
	Notes to Condensed Consolidated Financial Statements (Unaudited)	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	38
Item 4.	Controls and Procedures	38

PART II.	OTHER INFORMATION	40

Item 1.	Legal Proceedings	40
Item 1A.	Risk Factors	40
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	66
Item 3.	Defaults Upon Senior Securities	66
Item 4.	Mine Safety Disclosures	66
Item 5.	Other Information	66
Item 6.	Exhibits	67
Signatures		68

July 31, 2019	Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents:
Money market funds	$	261,864	$	-	$	-	$	261,864

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☒