Will Elastic N.V. (ESTC) be Able to Sustain Recession?
Greenhaven Road Capital, an investment management company, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. The fund declined in the third quarter, bringing the year-to-date returns to approximately -59%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Greenhaven Road Capital highlighted stocks like Elastic N.V. (NYSE:ESTC) in its third-quarter investor letter. Headquartered in Mountain View, California, Elastic N.V. (NYSE:ESTC) is a technology company. On November 25, 2022, Elastic N.V. (NYSE:ESTC) stock closed at $58.88 per share. One-month return of Elastic N.V. (NYSE:ESTC) was -7.67%, and its shares lost 62.44% of their value over the last 52 weeks. Elastic N.V. (NYSE:ESTC) has a market capitalization of $5.598 billion.
Greenhaven Road Capital made the following comment about Elastic N.V. (NYSE:ESTC) in its Q3 2022 investor letter:
"Elastic N.V. (NYSE:ESTC) has not disclosed churn, but at their recent investor day, they disclosed that the software (which powers search for a wide range of customers, including Uber, and also provides observability and security solutions) has been downloaded over 3 billion times. While we cannot extrapolate cleanly to the number of active users because one user can do multiple downloads as versions are updated, the active users should dwarf the company’s 19,000 paying customers. One thing is clear – once a customer is “landed,” they tend to spend more in the subsequent years. Elastic’s net revenue retention has hovered around 130% for several years.
Elastic benefits from the secular tailwinds of ever-growing amounts of unstructured data and employs a usage-based pricing model: the more data used, the more they can charge. The fastest growing portion of their business is related to security products, and there does not appear to be a slowdown in cyber threats coming any time soon. There are also two tailwinds on the product front. The first is that they have succeeded in stopping AWS (Amazon Web Services) from selling a confusingly named competitive product (Elasticsearch). Secondly, the gap between the quality of their free offerings and paid offerings has only widened, nudging users towards paid…” (Click here to read the full text)
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Elastic N.V. (NYSE:ESTC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held Elastic N.V. (NYSE:ESTC) at the end of the third quarter, which was 57 in the previous quarter.
We discussed Elastic N.V. (NYSE:ESTC) in another article and shared stocks to buy according to Richard Scott Greeder’s Broad Bay Capital. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
