Elastic N.V. (ESTC): restructuring charge — Elastic Q2 revenue $264.4M (+28% YoY), beats guidance; workforce reduction of ~13%

Total revenue was $264.4 million, an increase of 28% year-over-year, or 34% on a constant currency basis • Elastic Cloud revenue was $103.2 million, an increase of 50% year-over-year, or 52% on a constant currency basis • GAAP operating loss was $49.0 million; GAAP operating margin was -18% • Non-GAAP operating income was $4.9 million; non-GAAP operating margin was 2% • GAAP net loss per share was $0.50; non-GAAP earnings per share was $0.00

On November 30, 2022, the Company committed to a plan to align its investments more closely with its strategic priorities by reducing the Company’s workforce by approximately 13% and implementing certain facilities-related cost optimization actions. Pursuant to this plan, Elastic intends to rebalance investments across all functions and to strategically reinvest some savings in key priority areas to drive growth. The Company expects to incur total pre-tax non-recurring charges of approximately $32 million to $36 million under the plan of which estimated charges in the range of $25 million to $28 million will consist of employee-related costs, including severance and other termination benefits, with the remaining costs related to the optimization of office space.