What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2021-06-25 compared with 2020-06-26 · 185 added, 146 removed, 404 unchanged (45% of the section changed)

29 unchanged sentences

Our offerings include both free and paid products and solutions.

Our business model is based on a combination of open source and proprietary software.

Our business model is based on a combination of free and paid proprietary software.

For self-managed users who download our products, we make some of the proprietary features of our software available for free.

11 unchanged sentences

Our business has experienced rapid growth around the world.

As of April 30, 2020, we had over 11,300 customers compared to over 8,100 customers and over 5,000 customers as of April 30, 2019 and 2018, respectively.

Our revenue was $427.6 million in the year ended April 30, 2020 (“fiscal 2020”), $271.7 million in the year ended April 30, 2019 (“fiscal 2019”), and $159.9 million in the year ended April 30, 2018 (“fiscal 2018”), representing year-over-year growth of 57% and 70% for the years ended April 30, 2020 and 2019, respectively.

Subscriptions accounted for 92%, 91% and 93% of our total

revenue in the years ended April 30, 2020, 2019 and 2018, respectively.

As of April 30, 2021, we had over 15,000 customers compared to over 11,300 customers and over 8,100 customers as of April 30, 2020 and April 30, 2019, respectively.

Our revenue was $608.5 million in the year ended April 30, 2021, $427.6 million in the year ended April 30, 2020, and $271.7 million in the year ended April 30, 2019, representing year-over-year growth of 42% and 57% for the years ended April 30, 2021 and 2020, respectively.

Subscriptions accounted for 93%, 92% and 91% of our total revenue in the years ended

April 30, 2021, 2020 and 2019, respectively.

Revenue from outside the United States accounted for 45%, 43% and 43% of our total revenue in the years ended April 30, 2021, 2020 and 2019, respectively.

In the years ended April 30, 2020, 2019 and 2018, we incurred net losses of $167.2 million, $102.3 million and $52.7 million, respectively, and our net cash used in operating activities was $30.6 million, $23.9 million and $20.8 million, respectively.

In the years ended April 30, 2021, 2020 and 2019, we incurred net losses of $129.4 million, $167.2 million and $102.3 million, respectively.

For the year ended April 30, 2021, our cash provided by operating activities was $22.5 million, and for the years ended April 30, 2020 and 2019, our cash used in operating activities was $30.6 million and $23.9 million, respectively.

We expect we will continue to incur net losses for the foreseeable future.

1 unchanged sentence

Our products enable our users and customers to instantly find relevant information and insights in large amounts of data.

We offer the Elastic Stack, a powerful set of software products that ingest and store data from any source, and in any format, and perform search, analysis, and visualization in milliseconds or less.

The Elastic Stack is designed for direct use by developers to power a variety of use cases.

We also offer software solutions built on the Elastic Stack that address a wide variety of use cases.

We offer the Elastic Stack, a powerful set of software products that ingest and store data from any source, in any format, and perform search, analysis, and visualization, usually in milliseconds.

The Elastic Stack can be used by developers to power a variety of use cases.

We also offer software solutions built in the Elastic Stack that address a wide variety of use cases.

The Elastic Stack and our solutions are designed to run in public or private clouds, in hybrid environments, or in traditional on-premises environments.

The Elastic Stack

The Elastic Stack is composed of four primary products:

The Elastic Stack is primarily composed of the following products:

• Elasticsearch.

4 unchanged sentences

It is also the management and configuration interface for all parts of the Elastic Stack.

The Elastic Stack also supports data ingest with a number of supporting products:

Logstash is the dynamic data processing pipeline for ingesting data into Elasticsearch or other storage systems from a multitude of sources simultaneously.

Beats is the family of lightweight, single-purpose data shippers for sending data from edge machines to Elasticsearch or Logstash.

Some features of the Elastic Stack are open source, while others are proprietary.

Some proprietary features are licensed to users at no cost, while others require paid subscriptions.

Paid proprietary features enable capabilities such as automating anomaly detection on time series data at scale, facilitating compliance with data security and privacy regulations, and allowing real-time notifications and alerts.

The source code of all free and paid features in the Elastic Stack is visible to the public in the form of “open code.”

• Elastic Agent.

Elastic Agent, currently in beta, is a single, unified way to add monitoring for logs, metrics, and other types of data to each host.

Elastic Agent includes integrated host protection and central management.

Some features of the Elastic Stack are free and open, available to users at no cost, while others require paid subscriptions.

Paid proprietary features enable capabilities such as automating anomaly detection on time series data at scale through machine learning, facilitating compliance with data security and privacy regulations, supporting search across low cost cold and frozen data tiers, and allowing real-time notifications and alerts.

The source code of both free and paid features in the Elastic Stack is visible to the public in the form of “open code.”

Our Solutions

We have built a number of solutions on top of the Elastic Stack to make it easier for organizations to use our software for certain common use cases.

Like the Elastic Stack, our solutions comprise a combination of open source features, free proprietary features, and paid proprietary features.

The solutions we offer include:

We have built a number of solutions on top of the Elastic Stack to make it easier for organizations to use our software for common use cases.

Like the Elastic Stack, our solutions comprise a combination of free and open features, and paid proprietary features.

Our solutions include:

• Enterprise Search.

14 unchanged sentences

Security includes:

SIEM, with integrations to network, host, user, and cloud data sources, as well as workflow and operations, shareable analytics, incident management, and investigations;

SIEM, with integrations to network, host, user, and cloud data sources, as well as workflow and

operations, shareable analytics, incident management, and investigations;

and Endpoint Security, for prevention, detection and response in a single, stack-integrated agent.

3 unchanged sentences

Today, most users manage their own deployments of the Elastic Stack and our solutions.

To help with more complex deployment scenarios, we offer Elastic Cloud Enterprise (ECE), a paid proprietary product, to deliver centralized provisioning, management, and monitoring across multiple deployments.

To help with more complex deployment scenarios, we offer Elastic Cloud Enterprise and Elastic Cloud on Kubernetes, paid proprietary products, to deliver centralized provisioning, management, and monitoring across multiple deployments.

Many customers are becoming increasingly interested in SaaS deployment alternatives that reduce the burden of administration.

For these customers we have developed a family of SaaS products called Elastic Cloud, which includes Elasticsearch Service, Site Search Service and App Search Service.

For these customers we have developed a family of SaaS products called Elastic Cloud, which includes Elasticsearch Service and Site Search Service.

We host and manage our Elastic Cloud products on infrastructure from multiple public cloud providers.

2 unchanged sentences

We believe our business model creates significant value for our users, our customers, and our company.

Our business model is based on a combination of open source and proprietary software.

Our business model is based on a combination of free and paid proprietary software.

We market and distribute the Elastic Stack and our solutions using a free and open distribution strategy.

6 unchanged sentences

The rate at which our customers purchase additional subscriptions and expand the value of existing subscriptions depends on a number of factors, including customers’ level of satisfaction with our products, the nature and size of the deployments, the desire to address additional use cases, and the perceived need for additional proprietary features.

The source code of all Elastic Stack features, whether they are open source or proprietary, is visible to the public in the form of “open code.”

The source code of all Elastic Stack features is visible to the public in the form of “open code.”

Our distribution model facilitates rapid and efficient adoption, particularly by empowering individual developers and other users to download and use our software without payment, registration, or the friction of a formal sales interaction.

1 unchanged sentence

Further, this approach enables community review of our code and products, which allows us to improve the reliability and security of our software.

We believe that the number of times our products have been downloaded and the size of our developer community are indicative of the benefits of our open source strategy and the growth in adoption of our products.

We believe that the number of times our products have been downloaded and the size of our developer community are indicative of the benefits of our free and open strategy and the growth in adoption of our products.

However, we generally do not have visibility into, and cannot accurately determine how often, our downloaded products are being actively used.

3 unchanged sentences

While community members may suggest changes to our products, only Elastic employees are able to commit changes to the codebase.

Also, many of our free features have been historically distributed under a proprietary license.

In February 2021, with the release of version 7.11 of the Elastic Stack, we changed the source code of Elasticsearch and Kibana that had previously been licensed under an open source license to be licensed under a proprietary license.

Further, unlike some open source companies, we do not build a separate enterprise edition of an original open source project.

14 unchanged sentences

A developer running hundreds of nodes has the same user experience as a developer running a single node on a laptop.

• Relevance .

Elasticsearch uses multiple analytical techniques to determine the similarity between stored data and queries, generating highly relevant results reflecting a deep understanding of text and context.

11 unchanged sentences

Developers can use the Elastic Stack as a foundation for addressing a wide variety of use cases.

Our open source approach to building the Elastic Stack empowers developers to innovate and utilize it to fit their specific needs.

Our open approach to building the Elastic Stack empowers developers to innovate and utilize it to fit their specific needs.

Additionally, our developer community actively engages with us to improve and expand the Elastic Stack.

3 unchanged sentences

With our engineering efforts focused on the user experience, we will continue to develop software that makes our products easier to use and adopt for both developers and non-developers.

We will continue to engage with developers globally through a wide range of touch points such as community meetups, global community groups, hackathons, our global events, which we call Elastic{ON}, and engagement on our website, user forums, and code repositories, to grow our user community.

We will continue to engage with developers globally through a wide range of touch points such as community meetups, global community groups, hackathons, our global events, which we call ElasticON, and engagement on our website, user forums, and code repositories, to grow our user community.

• Expand our customer base by acquiring new customers.

15 unchanged sentences

We plan to expand Elastic Cloud geographically and through more public cloud providers.

We plan to offer more of our solution features as part of Elastic Cloud over time.

We plan to continue to invest resources in increasing the adoption of Elastic Cloud.

• Expand our strategic and regional partnerships.

Our partners assist us in driving awareness of Elastic and our products, building new solutions on top of the Elastic Stack to solve customer pain points, and extending our

reach in geographic areas and verticals where we do not have a formal sales presence.

Our partners assist us in driving awareness of Elastic and our products, building new solutions on top of the Elastic Stack to solve customer pain points, and extending our reach in geographic areas and verticals where we do not have a formal sales presence.

We have a diverse range of partners and we will continue to pursue partnerships to further the development of the Elastic Stack and our customer reach.

5 unchanged sentences

As of April 30, 2021, we had over 15,000 customers.

No customer represented more than 10% of our revenue in the year ended April 30, 2020.

No customer represented more than 10% of our total revenue in the year ended April 30, 2021.

Our engineering organization focuses on enhancing existing products and developing new products, both open source and proprietary, that are easy to use and can be run in any environment including in public or private clouds, in hybrid environments, or in traditional on-premises environments.

With a distributed engineering team spanning over 30 countries, we are able to recruit, hire, and retain high-quality, experienced developers, tech leads, and product managers, and operate at a rapid pace to drive product releases, fix bugs, and create new product offerings.

Our software development process is based on iterative releases across the Elastic Stack, our solutions, and the Elastic Cloud.

Our software development process is based on iterative releases across the Elastic Stack, our solutions, and Elastic Cloud.

We are organized in small functional teams with a high degree of autonomy and accountability.

Our distributed and highly modular team structure and well-defined software development processes also allow us to successfully incorporate technologies that we have acquired.

As of April 30, 2020, we had 635 employees in our research and development organization, comprising 33% of our total headcount.

We intend to continue to invest in our research and development capabilities to extend our products.

10 unchanged sentences

Second, we conduct high-touch virtual and field campaigns with qualified prospects and customers who have typically already deployed our software to drive further awareness, adoption, and expansion of our products and solutions.

Our sales teams are segmented primarily by geography and secondarily by employee count of our prospects and customers.

Our sales teams are segmented primarily by geography and secondarily by employee count in relation to our prospects and customers.

We rely on inside sales development representatives to qualify leads based on their likelihood to make a purchase.

2 unchanged sentences

We also engage with our customers on an ongoing basis through a customer success team, to ensure customer satisfaction and expand their usage of our technology.

As of April 30, 2020, we had 708 employees in our sales and marketing organization, including sales development, field sales, sales engineering, business development, customer success, and marketing personnel.

We maintain partner relationships that help us market and deliver our products to our customers and complement our community.

2 unchanged sentences

We work with many of the major cloud providers to increase awareness of our products and make it easy to access our software.

We partner with Google and Microsoft to offer our Elasticsearch Service (part of Elastic Cloud) on Google Cloud Platform (“GCP”), and Microsoft Azure, respectively.

We partner with Alibaba to provide the Alibaba Cloud Elasticsearch Service in China and the rest of the world.

We also have a relationship with IBM to offer Elastic Stack deployment templates on its cloud.

Through these partnerships, customers of these companies may access Elastic’s support engineers and may use our free and paid proprietary features.

In addition, we make our Elasticsearch Service available on Amazon Web Services (“AWS”), for direct purchase via our website.

We partner with Google and Microsoft to offer our Elasticsearch Service (part of Elastic Cloud) on Google Cloud Platform (“GCP”), and Microsoft Azure, respectively, including direct purchase from us and through their respective marketplaces.

We also partner with other cloud providers to provide our free and paid proprietary features to users on their cloud platforms.

In addition, we make our Elasticsearch Service available on Amazon Web Services (“AWS”), for direct purchase or through the AWS marketplace.

Elastic’s Elasticsearch Service is a different offering than Amazon Elasticsearch Service.

14 unchanged sentences

Customer Support

We endeavor to make it easy for developers to download, install, deploy and use the Elastic Stack and our solutions.

To this end, our user community functions as a source of support and enables developers to engage in self-help and collaboration.

We endeavor to make it easy for users to download, install, deploy and use the Elastic Stack and our solutions.

To this end, our user community functions as a source of support and enables users to engage in self-help and collaboration.

However, in many situations, such as those involving complex enterprise IT environments, large deployments and novel use cases, our users require our support.

1 unchanged sentence

Our global support organization consists of highly technical support engineers who provide support experiences including troubleshooting, technical audits, cluster tuning, and upgrade assistance.

Our support team is distributed across over 20 countries and provides coverage 24 hours per day, all 365 days per year, across multiple languages.

Our support team is distributed across over 20 countries and provides coverage 24 hours per day, 365 days per year, across multiple languages.

We believe that software companies should not have incentives to build low quality software.

57 unchanged sentences

Dozens of Kibana plugins have been shared by the community via Elastic documentation and code sharing platforms such as GitHub.

Beats and Logstash are data ingestion tools that enable users to collect and enrich any kind of data from any source for storage in Elasticsearch.

Beats, Elastic Agent, and Logstash are data ingestion tools that enable users to collect and enrich any kind of data from any source for storage in Elasticsearch.

Beats and Logstash have an extensible modular architecture.

Beats are lightweight agents purpose-built for collecting data on devices, servers, and inside containers.

Key features of Beats include the following:

Elastic Agent, currently in beta, is a single, unified way to add monitoring for logs, metrics, and other types of data to each host, and also includes integrated host protection.

Key features of Beats and Elastic Agent include the following:

• Data shippers.

Beats are lightweight agents built for the purposes of efficient data collection at the edge for specific types of data, such as Filebeat for the collection of logging data, Metricbeat for the collection of system or service metric data, Auditbeat for the collection of security data, Packetbeat for the collection of network data, and Heartbeat for the collection of availability data.

Dozens of community Beats enable the collection of data from specialized sources.

Elastic Agent introduces a new single agent architecture across hosts that simplifies management and deployment.

• Extensibility and community Beats.

1 unchanged sentence

Over 90 Beats have been shared by the community via Elastic documentation and many more are available through code sharing platforms such as GitHub.

• Host protection.

Specifically with Elastic Agent, we extend protection to hosts in addition to data transfer.

Elastic Agent stops malware and ransomware and enables environment-wide visibility and advanced threat detection.

Logstash enables centralized collection and extract, transformation, and load capabilities.

51 unchanged sentences

When deployed together, SIEM and Endpoint Security provide a strong security posture with broad visibility on potential threats.

Elastic Cloud and Elastic Cloud Enterprise

Elastic Cloud, Elastic Cloud Enterprise, and Elastic Cloud on Kubernetes

The Elastic Stack and our solutions can be deployed in public or private clouds, in hybrid environments, or in traditional on-premises environments.

1 unchanged sentence

self-managed, which refers to users deploying the Elastic Stack and solutions on infrastructure they manage themselves (such as their own data center or private or public cloud environments), and Elastic Cloud, which refers to our SaaS products that we host and manage.

To help self-managed users with more complex deployment scenarios, we offer Elastic Cloud Enterprise.

To help self-managed users with more complex deployment scenarios, we offer Elastic Cloud Enterprise and Elastic Cloud on Kubernetes.

• Elastic Cloud.

Elastic Cloud is our growing family of SaaS products and technologies that make it easy to deploy, operate, and scale Elastic products and solutions in the cloud.

Elastic Cloud products include Elasticsearch Service, Site Search Service, and App Search Service, and are offered by us on certain large cloud providers.

• Elastic Cloud Enterprise.

Elastic Cloud products include Elasticsearch Service and Site Search Service and are offered by us on certain large cloud providers.

• Elastic Cloud Enterprise and Elastic Cloud on Kubernetes.

As part of building our Elastic Cloud offering, we built a comprehensive orchestration and administration infrastructure tool to easily provision, monitor, manage, secure, upgrade and backup the thousands of clusters that comprise our Elastic Cloud products.

We then packaged this infrastructure into a downloadable and easily installable proprietary product called Elastic Cloud Enterprise, which makes this tool available to customers to use with their own self-managed deployments.

Elastic Cloud Enterprise enables our customers to provision, monitor, manage, secure, upgrade and backup any number of clusters.

It also helps our customers improve their hardware utilization and operational efficiency by allowing them to leverage shared

hardware resources to manage multiple clusters, while still maintaining a strong level of isolation between those clusters.

Our Source Code

We define our culture by our “source code,” which expresses our core corporate values.

• Home, Dinner.

There is no such thing as work-life balance.

We are successful if we find balance in life.

Elastic empowers its employees with the flexibility to do so.

Be home for dinner, go for a run midday, care for a sick child, or visit a parent.

Finding balance means being more innovative and efficient at work.

Which makes for a better Elastic.

• Space, Time.

It’s easy to get stuck in a day-to-day work pattern.

Allowing for the space and time to dream requires conscious effort.

Embracing a high failure rate does, too.

Fulfillment comes from doing the obvious and dreaming up the un-obvious.

Both are foundations of Elastic.

• IT, Depends.

It’s pretty complicated to make some things simple, and even more complicated to make other things possible.

We embrace and value the knowledge required to do both.

When a question is asked, buckle up.

Sh*t is about to get real.

Your journey will likely start with “it depends.”

• Progress, SIMPLE Perfection.

Perfection is not a destination.

Color inside the lines or color outside the lines.

Just pick a color.

It’s as simple as 2048.

An Elastic that moves is an Elastic that survives, thrives, and stands the test of time.

• 01.02, /FORMAT.

Our products are distributed by design, our company is distributed by intention.

With many languages, perspectives, and cultures, it’s easy to lose something in translation.

Over email and chat, doubly so.

Until we get a perpetual empathy machine, don’t assume malice.

A distributed Elastic makes for a diverse Elastic, which makes for a better Elastic.

• As YOU, Are.

We all come in different shapes with different interests and skills.

We all have an accent.

Celebrate it.

Just come as you are.

No need to invest neurons trying to fit an arbitrary mold.

We’d rather you put them to work shaping Elastic.

• HUMBLE, Ambitious.

Ambition drives us to challenge ourselves and the people around us to do better.

It is not an excuse to be an *sshole.

Be ambitious.

At Elastic, we are both.

• Speed , SCALE, Relevance.

Elastic is a search company.

We focus on value to users by producing fast results that operate at scale and are relevant.

This is our DNA.

We believe search is an experience.

It is what defines us, binds us, and makes us unique.

Our Distributed Culture

The Elastic Stack is powerful because it is distributed, gaining speed and stability from each additional node.

Our company emulates the strengths of the distributed systems we build.

• Distributed systems, distributed teams.

Elastic was born a distributed company, with founders in Israel, Germany, and the Netherlands, and early employees from the United Kingdom, France, Spain, the Czech Republic, and the United States.

From our experience in open source projects, we know that great code and amazing ideas can come from anyone, anywhere.

• Strength in diversity.

Being a distributed company is about harnessing the inherent strengths of diversity.

Different people approach problems differently.

We need that.

When a consensus is reached between a wide variety of minds, the result is a solution that should stand the test of time.

• Supporting resiliency.

Distributed systems are only powerful if they’re resilient.

The same is true for our company.

We are constantly improving the Elastic Stack to handle the challenges of distribution just as we are constantly improving how we support our employees no matter where they are.

Organizational resiliency also requires recognizing that it’s not tools that make distribution work, it’s the people.

Successful collaboration takes more than video calls and shared calendars.

It takes a warm welcoming to let new hires know all cultures are accepted.

It means always assuming the best intention of our peers.

• Building camaraderie.

We hire intentionally.

We hire thoughtfully.

These are qualities we look for in every Elastician.

Our goal isn’t to build a company of people that simply work well together;

our goal is to build a company that creates well together, imagines well together, laughs well together,

dances well together.

We want to build a culture of camaraderie so that no matter where someone’s located, they always feel connected.

• Distributed us?

Distributed you?

Distributed we!

Elastic the company is just one piece of the Elastic community.

Direct contact between our internal team and Elastic users is fundamental to our success.

It’s this culture of communication that enables us to maintain our commitment to open source.

Distributed isn’t always easy, and it isn’t for everyone, but we believe it’s the foundation of our success.

Elastic Cloud Enterprise enables our customers to provision, monitor, manage, secure, upgrade and backup any number of

It also helps our customers improve their hardware utilization and operational efficiency by allowing them to leverage shared hardware resources to manage multiple clusters, while still maintaining a strong level of isolation between those clusters.

More recently, we also launched Elastic Cloud on Kubernetes, extending our cloud orchestration capabilities to Kubernetes environments via the official Elasticsearch operator for Kubernetes.

Our team extends beyond our employee base.

4 unchanged sentences

Community is core to our identity, binding our products closely together with our users.

Community gives us an ability to get their candid feedback, creating a direct line of communication between our users and the builders of our products across all of our features—open source, free proprietary, and paid proprietary—enabling us to make our products simpler and better.

Community gives us an ability to get their candid feedback, creating a direct line of communication between our users and the builders of our products across all of our features—including both free and paid capabilities—enabling us to make our products simpler and better.

The Elastic community has a Code of Conduct.

9 unchanged sentences

software vendors with specific observability solutions to analyze logging data, metrics, APM data, or infrastructure uptime, such as Splunk, New Relic, Dynatrace, AppDynamics (owned by Cisco Systems) and Datadog.

• For S ecurity (SIEM and endpoint security):

security analytics solutions vendors such as Splunk and ArcSight SIEM (offered by Micro Focus) and endpoint security vendors such as CrowdStrike, Carbon Black (acquired by VMware), McAfee and Symantec (acquired by Broadcom).

• Certain cloud hosting providers, including Amazon Web Services, that offer SaaS products based on Elastic’s open source components.

• For Security (SIEM and endpoint security):

security analytics solutions vendors such as Splunk and Azure Sentinel (offered by Microsoft) and endpoint security vendors such as CrowdStrike, Carbon Black (acquired by VMware), McAfee and Symantec (acquired by Broadcom).

• Certain cloud hosting providers and managed service providers, including Amazon Web Services, that offer products based on older Elastic Stack releases.

These offerings are not supported by Elastic and come without any of Elastic’s proprietary features, whether free or paid.

30 unchanged sentences

In addition, as of April 30, 2021, we had 38 registered trademarks in the United States, 2 pending trademark applications in the United States, as well as 326 registered trademarks in various non-U.S.

jurisdictions and 9 pending trademark applications in various non-U.S.

jurisdictions and no pending trademark applications in various non-U.S.

jurisdictions.

6 unchanged sentences

As a result, open source development and licensing practices can limit the value of our software copyright assets.

As of April 30, 2020, we had 1,936 employees in over 35 countries.

None of our employees is represented by a labor union.

Human Capital Management

Our employees (whom we call “Elasticians”) and our culture are vital to Elastic’s long-term success.

Our human capital management efforts are focused on:

• Attracting, engaging and retaining talent

• Maintaining our strong company culture

• Enhancing our diversity, equity and inclusion (“DEI”)

• Continuing strong employee engagement

• Facilitating continuous employee learning and development

• Offering effective total rewards, including employee well-being

Our management regularly updates our board of directors and its committees on human capital trends and employee-focused activities and initiatives.

As of April 30, 2021, we had a total of 2,179 employees in over 35 countries globally, including 946 employees located outside of the United States.

In addition, approximately 30% of our workforce encompasses women and non-binary employees.

None of our employees are represented by a labor union.

In certain countries in which we operate, such as France and Spain, we are subject to, and comply with, local labor law requirements which may automatically make our employees subject to industry-wide collective bargaining agreements.

We have not experienced any work stoppages.

We describe our culture by the Elastic “source code,” the things that make Elastic, Elastic.

Our source code guides our culture, business, product development, people practices and brand.

The guiding ideas are:

• Home, Dinner.

There is no such thing as work-life balance.

We are successful if we find balance in life.

Elastic empowers its employees with the flexibility to do so.

Be home for dinner, go for a run midday, care for a sick child, or visit a parent.

Finding balance means being more innovative and efficient at work.

Which makes for a better Elastic.

• Space, Time.

It’s easy to get stuck in a day-to-day work pattern.

Allowing for the space and time to dream requires conscious effort.

Embracing a high failure rate does, too.

Fulfillment comes from doing the obvious and dreaming up the un-obvious.

Both are foundations of Elastic.

• I T, Depends.

It’s pretty complicated to make some things simple, and even more complicated to make other things possible.

We embrace and value the knowledge required to do both.

When a question is asked, buckle up.

Sh*t is about to get real.

Your journey will likely start with “it depends.”

• Progress, SIMPLE Perfection.

Perfection is not a destination.

Color inside the lines or color outside the lines.

Just pick a color.

It’s as simple as 2048.

An Elastic that moves is an Elastic that survives, thrives, and stands the test of time.

• 01.02, /FORMAT.

Our products are distributed by design, our company is distributed by intention.

With many languages, perspectives, and cultures, it’s easy to lose something in translation.

Over email and chat, doubly so.

Until we get a perpetual empathy machine, don’t assume malice.

A distributed Elastic makes for a diverse Elastic, which makes for a better Elastic.

• As YOU, Are.

We all come in different shapes with different interests and skills.

We all have an accent.

Celebrate it.

Just come as you are.

No need to invest neurons trying to fit an arbitrary mold.

We’d rather you put them to work shaping Elastic.

• HUMBLE, Ambitious.

Ambition drives us to challenge ourselves and the people around us to do better.

It is not an excuse to be an *sshole.

Be ambitious.

At Elastic, we are both.

• Speed , SCALE, Relevance.

Elastic is a search company.

We focus on value to users by producing fast results that operate at scale and are relevant.

This is our DNA.

We believe search is an experience.

It is what defines us, binds us, and makes us unique.

Elastic was born a distributed company and continues to be distributed by design.

We have designed our processes, systems, and teams so that employees can generally perform their jobs without needing to be physically present in the same room or even in the same time zone.

Just as distributed systems are more resilient, we believe that being distributed helps build a strong company that can scale and adapt as new challenges arise.

Having a distributed workforce gives us a global candidate pool, which gives us the opportunity to cast a wider recruiting net, a critical aspect of helping open our pipelines to a broader set of diverse talent.

Diversity, Equity and Inclusion

Our focus on DEI is critical to how we develop, strengthen and sustain a sense of belonging and inclusion among all Elasticians.

Balanced Teams.

We strive to be an employer of choice for a diverse and inclusive workforce through our talent brand, talent attraction, development, and retention efforts.

Our recruiting approach is underpinned by the desire to create balanced teams at Elastic, which includes considering broad aspects of diversity from race and gender mix as well as diversity of thought, experience and tenure when recruiting new team members.

In fiscal year 2021, the created-by-women-for-women workplace review site, Fairygodboss, recognized Elastic as number one in the Best Technology Company for Women category, and as one of the best workplaces for women in two additional categories:

Best Company for Women, and Best Company Where CEOs Support Gender Diversity.

Elastician Resource Groups.

We strive to embed DEI deep within our culture through various initiatives, projects and programs, the centerpiece of which is the Elastician Resource Groups (“ERGs”), which are organizationally sponsored, self-organized, Elastician-run groups.

Aligned to specific shared identities, interests, affinity or allyship, such as Latinx, parent(s), disability or accessibility, Black, LGBTQ+ and others, each group identifies goals and objectives with executive sponsorship to ensure that they provide tangible benefits and result in all Elasticians feeling a sense of belonging.

Code of Conduct.

All of our employees must adhere to a Code of Business Conduct and Ethics (the “Code of Conduct”) that sets standards for appropriate behavior and are required to complete annual training on the Code of Conduct and training to help prevent, identify and report any type of discrimination and harassment.

Employee Engagement

We are committed to ensuring that Elasticians have a voice in how we can collectively make Elastic a better place to work.

New Employee Onboarding.

Our new employee onboarding experience is centered around attending “X-School”, our extensive new-hire orientation program, which enables new Elasticians to meet and collaborate with other new Elasticians from around the globe and to learn about our products and solutions.

Engagement Surveys.

We maintain a regular pulse on how our employees are feeling through two primary feedback mechanisms – an annual employee engagement survey and a mid-year pulse survey check-in.

The results of these surveys are reviewed at the company, functional, team and manager level, with action plans put in place annually.

Elasticians were highly engaged in providing feedback in fiscal year 2021, with very high participation rates for the mid-year and annual surveys as well as high engagement scores across a spectrum of questions.

Learning and Development

Our Learning & Organizational Development team’s mission to enable Elasticians to pursue their purpose, in work and life, makes for a better Elastic.

To that end, we have a variety of ways in which we support the continuous learning and development of all Elasticians, including access to on-demand video based learning.

We also conduct specific programs to develop managers and leaders at Elastic, including our flagship Leadership Performance Program , an externally-led program focused on high-performing leaders who have the potential to have a significant strategic impact on the achievement of our long-term objectives.

Total Rewards

Compensation, Benefits and Well-being .

We provide market competitive compensation which typically includes cash compensation as well as equity awards.

Reflecting our interest in the whole person, we provide programs designed to enable Elasticians to meet their well-being goals, from starting a family to being at their physical and emotional best.

These programs include market competitive medical and dental programs, in addition to focus on mental health and holistic well-being.

We provide market competitive paid time off (“PTO”) programs, including offering 16 weeks of paid leave to all new parents.

In addition, we also provide retirement and income protection plans, which include a 401k plan with a dollar-for-dollar match by Elastic up to 6% of eligible earnings up to a plan-limit maximum for U.S.-based Elasticians as well as similar competitive plans outside of the United States.

We have fair and consistent compensation practices through our use of local third-party market data specific to each country, where available, so that we understand local compensation and cost of labor levels.

We retain external experts to review our compensation outcomes on an ongoing basis to ensure they are bias-free and fairly reward employee performance and contributions.

We take great pride in our focus on fair pay and the positive results we’ve established.

Our external review continues to validate that we have gender-based pay parity between male and female Elasticians globally.

Community Involvement.

Through Elastic Cares, employees can support the charitable organizations that matter the most to them on a local and global level.

Elastic Cares is a program consisting of donation matching, our nonprofit organization program which provides our technology for free to certain nonprofit organizations, and our volunteer time off (“VTO”) initiative.

Employees are encouraged to volunteer for these organizations throughout the year using our VTO program which provides our employees with 40 hours of volunteer time each year.

COVID-19 Response

During the COVID-19 pandemic, our primary focus was and continues to be on the safety and well-being of our employees and their families.

In the fourth quarter of fiscal 2020, we closed our offices globally and required our employees to

work remotely.

Additionally, due to concerns over risks related to travel and large gatherings, we have replaced our in-person events, including our internal global all-hands, annual flagship conference and other in-person marketing events, with web-based virtual events.

Given the significant personal and professional impact of the COVID-19 pandemic, we provided reimbursements for home office equipment and established specific learning opportunities for our employees that allowed teams to better connect to each other, including fun activities to help teams bond.

To allow employees to deal with and alleviate the physical, mental, and emotional effects of the pandemic on themselves and loved ones, we offered two weeks of COVID leave and implemented company-wide days off called “Shut it Down Days” twice per month.

Government Regulations

Our worldwide business activities are subject to various laws, rules, and regulations of the United States as well as of foreign governments.

Compliance with these laws, rules, and regulations has not had, and is not expected to have, a material effect upon our capital expenditures, results of operations, or competitive position.

Nevertheless, compliance with existing or future governmental regulations, including, but not limited to, those pertaining to global trade, business acquisitions, consumer and data protection, and taxes, could have a material impact on our business.

Refer to Item 1A, “Risk Factors—Risks Related to Regulatory Matters” of this Annual Report on Form 10-K” for a discussion of these potential impacts.

Corporate Information

We were incorporated in the Netherlands as a private company with limited liability ( besloten vennootschap met beperkte aansprakelijkheid ) on February 9, 2012 as SearchWorkings Global B.V.

On June 19, 2012, we changed our name to

Elasticsearch global B.V., on December 11, 2013, we changed our name to Elasticsearch Global B.V., and on May 29, 2018, we changed our name to Elastic B.V.

On June 19, 2012, we changed our name to elasticsearch global B.V., on December 11, 2013, we changed our name to Elasticsearch Global B.V., and on May 29, 2018, we changed our name to Elastic B.V.

Immediately prior to the completion of our initial public offering (“IPO”) on October 10, 2018, we converted into a public company with limited liability ( naamloze vennootschap ) under Dutch law and changed our name to Elastic N.V.

10 unchanged sentences

Available Information

Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) are filed with the SEC.

Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed pursuant to Sections 13(a) and 15(d) of the Exchange Act are filed with the SEC.

We are subject to the informational requirements of the Exchange Act and file or furnish reports, proxy statements and other information with the SEC.

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business