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Elastic's IPO: What You Need To Know

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Elastic's IPO: What You Need To Know
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Data service provider Elastic is set to begin trading on the New York Stock Exchange Friday under the ticker symbol "ESTC."

The Details

Elastic has experienced strong momentum and has more than 5,000 customers across 80 countries and several industries, according to its S-1 filing.

The company updated its IPO price a couple of times this week before settling Friday on pricing 7 million shares at $36 per share.
Around 11:38 a.m. ET, shares opened for trade at $70.

Management reported revenue of $159.9 million in fiscal 2018, which translated to 81-percent year-over-year growth. Subscriptions accounted for 93 percent of total revenue in the fiscal year, and 39 percent of the company's revenue came from outside the U.S.

Elastic posted a net loss of $52.7 million in fiscal 2018 and operating cash flow of $20.8 million.

Some of Elastic’s main underwriters are Goldman Sachs, J.P. Morgan, Barclays and RBC Capital Markets.

The Service

Elastic is a search company that equips companies such as Walgreens Boots Alliance, Inc. (NASDAQ: WBA), Uber, Adobe Systems Inc. (NASDAQ: ADBE) and Sprint Corp. (NYSE: S).

The company considers search to be foundational to a wide variety of experiences that are facilitated by the company's ability to instantly discover relevant information from large amounts of data.

“When you hail a ride home from work with Uber, Elastic helps power the systems that locate nearby riders and drivers. When you shop online at Walgreens, Elastic helps power finding the right products to add to your cart. When you look for a partner on Tinder, Elastic helps power the algorithms that guide you to a match," the company said in its S-1 filing.

Elastic is reported to be in competition with public cloud companies like Amazon.com, Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOGL)’s Google and Splunk Inc. (NASDAQ: SPLK).

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