Why Elastic N.V. Surged Double Digits Today

Shares of Elastic N.V. (NYSE: ESTC) were up 15% on Thursday as of noon ET. The enterprise software company, which allows companies to search their vast IT ecosystems for relevant data quickly, handily beat expectations on last night's earnings report, while also delivering solid guidance for the upcoming fiscal year.

Elastic's share price had been rocked along with many others in the SaaS sector this year, as inflation and rising interest rates have taken down valuations for virtually all growth stocks. However, Elastic, along with other highly relevant software names, were priced highly for a reason, as their results have generally been better than expected this earnings season.

In its fourth fiscal quarter ending April 30, Elastic delivered 35% revenue growth (37% on a constant currency basis), beating expectations, and an adjusted (non-GAAP) loss per share of $0.16, which was also better than expected by $0.05.

Source Fool.com