Elastic, a software developer that helps companies embed search functions in their apps, said Wednesday that it has filed for an IPO to raise as much as US$100mln.
Elastic, which has almost 1,000 employees, was founded in Amsterdam in 2012, but is headquartered in Mountain View, California.
It said in its prospectus that it plans to debut on the New York Stock Exchange under the ticker symbol “ESTC.”
Elastic is a search company which delivers technology that enables users to search through massive amounts of structured and unstructured data for a wide range of consumer and enterprise applications. Its primary offering is 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.
It generates revenue through subscriptions to a commercialized version of the Elasticsearch open-source software which addresses a wide variety of use cases, including app search, site search, enterprise search, logging, metrics, APM, business analytics, and security analytics.
Elastic booked US$185mln in revenue for the 12 months ended July 30, 2018. In the latest quarter, sales jumped 79% to US$56.6mln, but the company reported a net loss of US$18.6mln because of high R&D and marketing costs.
Elastic’s free and paid products have been downloaded over 350 million times since January 2013.
Elastic sees competition from public cloud providers like Amazon, Google and as well as analytics company Splunk.
"Amazon competes with us for potential customers, and while Amazon cannot provide our proprietary software, the pricing of Amazon's offerings may limit our ability to adjust the price of our products," Elastic said in the filing.
In 2015, Amazon's cloud launched an Elasticsearch service, but Elastic said in the filing that it doesn't have a partnership with Amazon, nor does it provide support for Amazon's tool. Elastic does offer its own cloud service that's available through Amazon's cloud.
Elastic said it has partnerships with Google and Alibaba that have enabled Elasticsearch services on their clouds, as well as relationships with Microsoft and IBM that have brought "templates" to simplify the deployment of Elasticsearch.
Contact Uttara Choudhury at [email protected]