Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Elastic, the search AI company, has reported strong results for Q4 and FY 2024, signalling its growth trajectory and strategic focus for the coming years.</li><li>Its top-line earnings for the quarter exceeded analysts' estimates, demonstrating its solid execution strategy and validating its land, expand and consolidate growth model.</li><li>The firm's revenue grew by 20% in Q4 to reach $335 million, boosted by a 32% increase in cloud revenue and the steady progression of its self-managed annual cloud subscriptions.</li></ul>

Elastic, the search AI company, has reported strong results for Q4 and FY 2024, signalling its growth trajectory and strategic focus for the coming years.Its top-line earnings for the quarter exceeded analysts' estimates, demonstrating its solid execution strategy and validating its land, expand and consolidate growth model.The firm's revenue grew by 20% in Q4 to reach $335 million, boosted by a 32% increase in cloud revenue and the steady progression of its self-managed annual cloud subscriptions.

Elastic N.V.: Increasing adoption of GenAI

<ul><li>Elastic's Q3 fiscal figures demonstrated a robust financial performance, with a revenue growth of 19% YoY and Elastic Cloud growing 29% YoY, a testament to the continued traction in the cloud and consolidation under the Elasticsearch platform.</li><li>Strong sales were driven by customer interest in Generative AI, with the platform being leveraged to develop Generative AI applications, providing an appreciable advantage relative to pure-play vector database vendors.</li><li>Another key factor was platform consolidation, with customers choosing Elasticsearch to displace incumbent solutions for multiple use cases, underscoring the platform's import within the IT infrastructure context.</li></ul>

Elastic's Q3 fiscal figures demonstrated a robust financial performance, with a revenue growth of 19% YoY and Elastic Cloud growing 29% YoY, a testament to the continued traction in the cloud and consolidation under the Elasticsearch platform.Strong sales were driven by customer interest in Generative AI, with the platform being leveraged to develop Generative AI applications, providing an appreciable advantage relative to pure-play vector database vendors.Another key factor was platform consolidation, with customers choosing Elasticsearch to displace incumbent solutions for multiple use cases, underscoring the platform's import within the IT infrastructure context.

Elastic N.V.: Will The Growing Demand For Hybrid Search Last? - Key Drivers

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

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<li>
<a href="https://www.smartkarma.com/entities/elastic-nv" target="_blank" data-smartkarma-citation="entities:27526:1" rel="noopener">Elastic NV (ESTC US)</a> reported a solid 4QFY23, reflecting a stronger-than-expected non-GAAP operating margin of ~9% and GAAP subscription gross margin of ~79%. </li>
<li>Elastic cloud revenue grew 28% y/y, representing 40% of total revenue. Elastic cloud is scaling well, and margins improved faster-than-anticipated. </li>
<li>We are concerned about slowing H1 FY24 y/y growth in total revenue and failure to achieve the $2B revenue mark in FY25. Price target to $112.</li>
</ul>



Elastic NV (ESTC US) reported a solid 4QFY23, reflecting a stronger-than-expected non-GAAP operating margin of ~9% and GAAP subscription gross margin of ~79%. 
Elastic cloud revenue grew 28% y/y, representing 40% of total revenue. Elastic cloud is scaling well, and margins improved faster-than-anticipated. 
We are concerned about slowing H1 FY24 y/y growth in total revenue and failure to achieve the $2B revenue mark in FY25. Price target to $112.


Focus On Profitability Expansion And Durable Growth: PT Reduced To $112 From $133

<ul><li>This is our first report on Elastic NV, a major technology solutions provider catering to multi-cloud environments.</li><li>All over the year, customers continued to adopt Elastic Cloud, expanding over use cases and increasing consumption as there was a growth in the enterprise data.</li><li>Elastic continues expanding its land-and-expand approach because customers wish to adopt over one Elastic solution to support their business initiatives.</li></ul>

This is our first report on Elastic NV, a major technology solutions provider catering to multi-cloud environments.All over the year, customers continued to adopt Elastic Cloud, expanding over use cases and increasing consumption as there was a growth in the enterprise data.Elastic continues expanding its land-and-expand approach because customers wish to adopt over one Elastic solution to support their business initiatives.

Elastic NV: Initiation of Coverage – Enhancements To The Elastic Observatory Solution & Other Drivers

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

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<li>Elastic just dramatically raised its revenue guidance for FY2025...implying a massive acceleration in revenue growth that the 18% move in the stock underplayed.</li>
<li>Dynatrace is a wildly profitable software company trading at a significant discount to its Rule of 40 metrics.</li>
<li>The overall observability space is red hot, unimpacted by macro factors and being overlooked by software investors.</li>
</ul>


Elastic just dramatically raised its revenue guidance for FY2025...implying a massive acceleration in revenue growth that the 18% move in the stock underplayed.
Dynatrace is a wildly profitable software company trading at a significant discount to its Rule of 40 metrics.
The overall observability space is red hot, unimpacted by macro factors and being overlooked by software investors.


Observability Is Not Just Datadog: Why Elastic and Dynatrace Are Great Longs

United States

Elastic N.V. provides information technology and data analysis services. The Company offers monitoring, security analysis, enterprise search, cloud computing, and open source application performance monitoring solutions. Elastic serves customers in the United States.

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Elastic NV (ESTC US)

Elastic N.V.: Increasing adoption of GenAI

Elastic, the search AI company, has reported strong results for Q4 and FY 2024, signalling its growth trajectory and strategic focus for the...

Baptista Research

Elastic N.V.: Will The Growing Demand For Hybrid Search Last? - Key Drivers

Elastic's Q3 fiscal figures demonstrated a robust financial performance, with a revenue growth of 19% YoY and Elastic Cloud growing 29% YoY, a...

Baptista Research

Focus On Profitability Expansion And Durable Growth: PT Reduced To $112 From $133

Elastic remains my top pick in the observability and search space, and I see the potential for revenue growth re-acceleration in 2024.

Andrei Zakharov

Elastic NV: Initiation of Coverage – Enhancements To The Elastic Observatory Solution & Other Drivers

This is our first report on Elastic NV, a major technology solutions provider catering to multi-cloud environments. All over the year, customers...

Baptista Research

Observability Is Not Just Datadog: Why Elastic and Dynatrace Are Great Longs

Observability software stocks are being overlooked in the recent valuation downdraft. Elastic is our top pick...it had a massive revenue guidance...

Aaron Gabin

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