Elastic's Ambitious Growth Plan

Name: Goodpods
Rating: 4.8 (3721 reviews)

01/04/23 • 34 min

At their Analyst Day in September, the leadership team set an ambitious growth target for $2B in revenue by FY2025. As we are halfway through Elastic's FY2023, this represents roughly a 2x increase in revenue within 2.5 years. When the leadership team presented the model for this target, they projected a revenue CAGR of 36% to reach it. That would represent an acceleration from the current growth rate in the low 30% range.

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MongoDB Q3 FY2023 Earnings Review

In Q3, MongoDB reversed a number of the trends that hampered their Q2 earnings report. They delivered a strong beat on revenue growth, a return to positive operating margin and a nice bump in customer activity. The market reacted as positively to the Q3 report as it did negatively for Q2, pushing the stock up 23% the following day. Since then, MDB stock has appreciated further and now hovers around $200 a share. This is still below the $241 close the day after the Q2 report, but is well above the 52 week low of $135 touched before Q3 earnings.

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