Elastic N.V.

Good afternoon, and welcome to the ELASTIC Fourth Quarter Fiscal 2026 Earnings Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Eric Pringle, Global Vice President of Finance. Please go ahead.

Good afternoon, and thank you for joining us on today's conference call to discuss Elastic's fourth quarter fiscal 2026 financial results. On the call, we have Ashkel Carney, Chief Executive Officer, and Navam Willihinda, Chief Financial Officer. Following their prepared remarks, we will take questions. Our press release was issued today after the close of market and is posted on our website. Slides, which are supplemental to the call, can also be found on the Elastic Investor Relations website at ir.elastic.co. Our discussion will include forward-looking statements, which may include predictions, estimates, our expectations regarding the demand for our products and solutions, and our future revenue and other information. These forward-looking statements are based on factors currently known to us, speak only as of the date of this call, and are subject to risks and uncertainties that could cause actual results to differ materially. We disclaim any obligation to update or revise these forward-looking statements unless required by law. Please refer to the risks and uncertainties included in the press release that we issued earlier today. Included in the slides posted on the Investor Relations website and those more fully described in our filings with the Securities and Exchange Commission. We will also discuss certain non-GAAP financial measures. Disclosures regarding non-GAAP measures, including reconciliations with the most comparable GAAP measures, can be found in the press release and slides. Unless specifically noted otherwise, all results and comparisons are on a fiscal year-over-year basis. The webcast replay of this call will be available on our company website under the investor relations link. Our first quarter fiscal 2027 quiet period begins at the close of business on Friday, July 17th, 2026. We will be participating in the Bank of America Global Technology Conference on June 4th and the Rosenblatt Technology Summit on June 10th. With that, I'll turn it over to Ash.

Thank you, Eric, and good afternoon, everyone. Thank you for joining us today to discuss our fourth quarter and fiscal 2026 results. Elastic finished the year strong, beating our guidance across every key metric. This was our seventh consecutive quarter of disciplined field execution, and we saw very strong commitments, resulting in CRPO growth accelerating to 20%. Organizations are increasingly choosing Elastic for their long-term AI transformations and making larger multi-year commitments to standardize on our platform for the future. the acceleration in our Q4 RPO growth, which reached over 28%, validates the growing magnitude and momentum of our customer commitments and sets us up well for the future. In Q4, we achieved 16% total revenue growth and a non-GAAP operating margin of 14.8%, resulting in a full-year revenue growth of 17% and a non-GAAP operating margin of 16.4%. In Q4, our sales-led subscription revenue grew 19%, driven by continued demand for our platform for AI, search, observability, and security. Our highest value customers are leading the shift towards multi-year deals. It was a record Q4 for $1 million deals, and in FY26, we added more than 30 net new customers to our million-dollar-plus ACV cohort, bringing that total to more than 240. Within that group, Our count of customers spending over $5 million with us annually grew 30%. We ended the year with over 1,720 customers spending more than $100,000 in ACV. This is highlighted by several marquee wins in security as we continue displacing legacy vendors. In the public sector, our partnership with the Cybersecurity and Infrastructure Security Agency, or CISA, around the elastic SIM as a service is growing. with more civilian agencies switching away from competitive security offerings onto the service powered by Elastic Cloud. This led to our commitments mix in Q4 to shift more towards Elastic Cloud than in prior years, which impacted our in-quarter Q4 revenue. This shift to cloud will be a positive for the future as these agencies ramp their usage toward their commitment levels. The broader AI cycle is actively driving our growth, Customers rely on us not only as a context platform for AI, but to modernize their operations with our AI-driven SOC and SRE for security and observability, respectively. Our customers using our AI solutions continue to grow. We now have over 600 customers with an ACV of over 100,000 or greater using our AI capabilities. This includes more than 40 serverless customers who were previously not captured in this count. Cumulatively, AI use cases have now penetrated more than a third of our $100,000 ACV customer cohort. We see demand ranging from the largest global organizations to AI native companies. We believe the adoption of AI will be universal, spanning across organizations of every scale. This represents a fundamental market evolution that provides a consistent tailwind for our growth over the long term. The software stack is being rewritten. Large language models are emerging as the new operating system, and agentic automation is becoming the prerequisite for every mission-critical business process. We are capitalizing on this AI-driven disruption through four foundational strengths. First, data gravity. As AI scales, the LLM must come to the data, not the other way around. Moving petabytes of proprietary information is a non-starter for enterprises due to cost, security, and data gravity. we are ensuring that Elasticsearch remains one of the most efficient data stores for all unstructured data and more. Logs, metrics, vectors, text, audio, and video. By delivering massive compression and significant ingest speedups, we provide the price, scalability, and speed that make us the data store of choice. We recently introduced cross-project search, which brings cross-cluster search to serverless. In large enterprises, where data is scattered across teams and regions, we eliminate the need for costly centralization by allowing users to query disparate projects where they live. Second, context. An LLM is only as powerful as the context it is given. We have built and are constantly evolving one of the world's best context platforms for AI. We are reducing costs while improving the relevance of AI through hybrid search, first-party models like our GINA V5 Omni family for multimodal search, and our agent builder, now in general availability. This ensures that enterprise AI is grounded in real-time business reality. In a recent blog, we compared agent performance using Elastic as a context layer versus an LLM interacting with the data directly. We saw a 70% reduction on tokens used and the ability to answer questions more accurately than with naive RAG alone. We are widening our competitive moat with third-party data connectors that allow our search APIs to pull real-time context from systems like Slack and Google Drive without the need for indexing or crawling, enabling zero friction retrieval across the entire enterprise stack. Third, specialized agents. Traditional observability and security practices are evolving into the agentic SRE and the agentic SOC. We were one of the first to embed AI and agents into our observability and security products, and we have now automated the entire lifecycle, from detection to analysis and remediation. These security and observability agents and skills are designed to be embeddable in any AI tool, whether our customers use Anthropic, OpenAI, or Gemini, with Elastic serving as the data layer behind the automation. We also launched the industry's first MCP apps for security and observability, embedding interactive domain-specific workflows directly into tools like Cloud, VS Code, and GitHub Copilot, enabling users to investigate and triage threats wherever they work. Fourth, platform consolidation. As the market matures, organizations are consolidating onto platforms that can leverage AI across multiple domains at a lower total cost. We believe that platforms supporting both security and observability on a single data tier will win the consolidation race. We are accelerating the consolidation trend with a relaunch of our metrics offering. Prometheus is one of the most widely used systems for metrics monitoring, especially in cloud-native environments. We now offer native support for Prometheus time series data in Elasticsearch. This allows engineers to leverage their existing expertise and AI coding tools without learning a new query language. Most importantly, We are delivering this familiar experience with massive performance gains, providing storage efficiency and query speeds up to 30 times faster than Prometheus. Our customer wins in Q4 reinforce these strengths. Our data gravity advantage is winning consolidation deals in the most data-intensive environments. In a seven-figure new logo win, a global provider of financial business information is leveraging Elasticsearch for its massive repository of over 2 billion documents. We successfully displaced a legacy dual vendor setup by proving that Elastic's hybrid search delivers superior relevancy for their most demanding high volume workloads. Our recent acquisition of Jina AI proved essential during the evaluation, providing high quality multilingual support across 30 plus languages. By combining these models with this BBQ, to manage massive scale efficiently, the customer is reimagining the search experience for their millions of subscribers while preparing for the next wave of AI-native products. Our context engineering leadership is making us the essential retrieval layer for ISVs launching AI experiences for their customers. In a seven-figure expansion, a leading workplace AI software firm has established Elasticsearch as the foundational retrieval engine at the heart of its enterprise offerings. By serving as the essential context layer for their agentic pipeline, Elastic enables the delivery of grounded, permission-aware insights across massive, complex datasets. This partnership ensures that their AI services remain performant and secure, providing a scalable foundation for their next generation of AI-driven products. Our specialized agents are driving the largest platform consolidations we've ever seen, we secured a key eight-figure win this quarter, where we are redefining the modern SOC experience. A Fortune 50 global financial services firm is modernizing their security operations by consolidating their disparate cyber data silos into a unified AI-driven SIM. By migrating mission-critical workloads from an incumbent to Elastic, the firm is leveraging our platform to dramatically improve data retention and accessibility while optimizing their long-term infrastructure costs. Additionally, their cyber incident response teams will be deploying our AI-driven capabilities, including attack discovery and AI assistant, to proactively mitigate threats and realize significant productivity savings. By leaning into our four foundational strengths, we are setting ourselves up to be an enduring part of the infrastructure for the AI-driven future. As a company, we've always focused on building a strong and durable business while continuing to innovate for our customers. As AI transforms how work gets done across every function, we are evolving how we operate internally to accelerate innovation, increase capacity through automation, and move faster as a company. As we evolve the organization to better align our teams with working in an age of AI automation, we expect to simplify how we operate, reduce operational complexity, and scale even more effectively as our business grows. As such, we expect to expand our operating margin meaningfully in FY27. Navam will address this topic in more detail. Importantly, these changes do not slow down the growth in our sales capacity and our ability to capture the opportunity for growth acceleration ahead of us. While the structure of our organization will evolve, we will expect to grow our total headcount on a net basis this fiscal year. These organizational changes support our continued top-line growth momentum and ability to scale effectively as we grow, and we remain on track to deliver our mid-term growth targets. Strong sales performance throughout FY26 with accelerating CRPO has set us up to accelerate our quarterly revenue growth trajectory in FY27. The continuous innovation across Elastic and the increasing adoption of AI reinforce my confidence in our future. We enter the new fiscal year energized and are ready to drive our momentum forward. I want to thank our customers and partners for their trust, our shareholders for their partnership, and our employees for their dedication. With that, I will turn the call over to Navam to review our financial results in more detail.