Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Market Information for Ordinary Shares
Our ordinary shares began trading on the NYSE under the symbol “ESTC” on October 5, 2018. Prior to that date, there was no public trading market for our ordinary shares.
Holders of Record
As of June 22, 2020 there were 107 shareholders of record of our ordinary shares. Because many of our ordinary shares are held by brokers and other institutions on behalf of shareholders, we are unable to estimate the total number of shareholders represented by these record holders.
Dividend Policy
We have never declared or paid any dividends on our ordinary shares, and we do not anticipate declaring or paying dividends in the foreseeable future.
Recent Sales of Unregistered Securities
None.
Issuer Purchases of Equity Securities
None.
Stock Performance Graph
This performance graph shall not be deemed “filed” with the SEC for purposes of Section 18 of the Exchange Act or incorporated by reference into any of our filings under the Securities Act.
The graph below compares the cumulative total shareholder return on our ordinary shares with the cumulative total return on the S&P 500 Index and the S&P 500 Information Technology Index. The graph assumes $100 was invested at the market close on October 5, 2018, which was our initial trading day, in our ordinary shares. Data for the S&P 500 Index and the S&P 500 Information Technology Index assume reinvestment of dividends. Our offering price of our ordinary shares in our IPO, which had a closing stock price of $70.00 on October 5, 2018, was $36.00 per share.
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The comparisons in the graph below are based upon historical data and are not indicative of, nor intended to forecast, future performance of our ordinary shares.
This performance graph shall not be deemed "soliciting material" or to be "filed" with the SEC for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into ant filing of Elastic N.V. under the Securities Act or the Exchange Act.
Purchases of Equity Securities by the Issuer and Affiliated Purchasers
None.
Item 6. Selected Financial Data.
The following selected consolidated financial data should be read in conjunction with Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and related notes included in Part II, Item 8, Financial Statements, of this Annual Report on Form 10-K. The selected consolidated statements of operations data presented below for the years ended April 30, 2020, 2019 and 2018 and the consolidated balance sheet data as of April 30, 2020 and 2019 are derived from our audited consolidated financial statements that are included elsewhere in this Annual Report on Form 10-K. The consolidated balance sheet data as of April 30, 2018 is derived from our audited consolidated financial statements not included in this Annual Report on Form 10-K. The selected consolidated financial data in this section are not intended to replace our consolidated financial statements and the related notes, and are qualified in their entirety by the consolidated financial statements and related notes included elsewhere in Annual Report on Form 10-K. Our historical results are not necessarily indicative of our future results.
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Consolidated Statements of Operations:
Year Ended April 30,
2020 2019 2018
(in thousands)
Revenue
License - self-managed $ 53,536 $ 39,474 $ 25,759
Subscription - self-managed and SaaS 338,634 208,780 123,623
Total subscription revenue 392,170 248,254 149,382
Professional services 35,450 23,399 10,553
Total revenue 427,620 271,653 159,935
Cost of revenue (1)(2)(3)
Cost of license - self-managed 948 387 387
Cost of subscription - self-managed and SaaS 84,819 53,560 27,920
Total cost of revenue - subscription 85,767 53,947 28,307
Cost of professional services 36,923 24,063 12,433
Total cost of revenue 122,690 78,010 40,740
Gross profit 304,930 193,643 119,195
Operating expenses (1)(2)(3)(4)
Research and development 165,370 101,167 55,641
Sales and marketing 219,040 147,296 82,606
General and administrative 91,625 46,536 28,942
Total operating expenses 476,035 294,999 167,189
Operating loss (1)(2)(3)(4)
(171,105) (101,356) (47,994)
Other income (expense), net 1,963 3,441 (1,357)
Loss before income taxes (169,142) (97,915) (49,351)
Provision for (benefit from) income taxes (1,968) 4,388 3,376
Net loss $ (167,174) $ (102,303) $ (52,727)
Net loss per share attributable to ordinary shareholders, basic and diluted
$ (2.12) $ (1.86) $ (1.65)
Weighted-average shares used to compute net loss per share attributable to ordinary shareholders, basic and diluted
78,799,732 54,893,365 32,033,792
(1) Includes stock-based compensation expense as follows:
Year Ended April 30,
2020 2019 2018
(in thousands)
Cost of Revenue
Cost of subscription - self managed and SaaS $ 4,147 $ 3,383 $ 699
Cost of professional services 2,980 1,208 329
Research and development 23,621 16,100 5,045
Sales and marketing 19,334 11,996 3,560
General and administrative 9,925 7,255 3,109
Total stock-based compensation expense $ 60,007 $ 39,942 $ 12,742
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(2) Includes employer payroll taxes on employee stock transactions as follows (information for fiscal year 2018 is not meaningful):
Year Ended April 30,
2020 2019 2018
(in thousands)
Cost of Revenue
Cost of subscription - self managed and SaaS $ 349 $ 28 $ —
Cost of professional services 178 10 —
Research and development 2,179 939 —
Sales and marketing 3,237 747 —
General and administrative 1,550 90 —
Total stock-based compensation expense $ 7,493 $ 1,814 $ —
(3) Includes amortization of acquired intangibles as follows:
Year Ended April 30,
2020 2019 2018
(in thousands)
Cost of Revenue
Cost of license - self-managed $ 948 $ 387 $ 387
Cost of subscription - self-managed and SaaS 5,820 2,421 1,521
Sales and marketing 3,300 148 119
Total amortization of acquired intangibles $ 10,068 $ 2,956 $ 2,027
(4) Includes acquisition-related expenses as follows:
Year Ended April 30,
2020 2019 2018
(in thousands)
Research and development $ 34 $ 689 $ 655
Sales and marketing 522 — —
General and administrative 17,418 259 608
Total acquisition-related expenses $ 17,974 $ 948 $ 1,263
Consolidated Balance Sheet Data:
As of April 30,
2020 2019 2018
(in thousands)
Cash and cash equivalents $ 297,081 $ 298,000 $ 50,941
Working capital $ 158,815 $ 226,061 $ 7,116
Total assets $ 803,911 $ 485,738 $ 183,013
Deferred revenue, current and non-current $ 259,702 $ 170,666 $ 102,561
Redeemable convertible preference shares $ — $ — $ 200,921
Accumulated deficit $ (484,251) $ (317,077) $ (214,774)
Total shareholders' equity (deficit) $ 413,647 $ 263,012 $ (153,529)
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