On September 11, Elastic (NYSE:ESTC) rolled out Elasticsearch Vector Database, a new serverless offering the company says lets developers ship large-scale vector search and AI applications without stitching together the usual pile of infrastructure themselves. The launch landed less than three weeks after Elastic posted first-quarter fiscal 2027 results on August 27, for the period ended July 31, giving investors a fresh product story to weigh against a quarter that already showed accelerating growth.
The new database automates what used to require manual **** embly: chunking documents, hosting embedding and reranking models, configuring indexes, and wiring query-time retrieval. Elastic built in expert-tuned defaults, a single field type that handles indexing, embeddings, and chunking together, and hybrid search that combines full-text and vector retrieval in one query. The system scales to hundreds of billions of vectors using Elastic's Better Binary Quantization, which the company says shrinks vector memory by up to 32 times while keeping recall high, and pricing is based on data and search capacity rather than the opaque compute units the company says define most pure-play vector database pricing.
That product push follows a quarter that was already running hot. Total revenue reached $478 million in the first quarter of fiscal 2027, up 15% year over year, while current remaining performance obligations grew 21% and remaining performance obligations grew 27%. Sales-led subscription revenue, which strips out Monthly Elastic Cloud, grew 18% year over year to $399 million, outpacing the company's overall subscription growth.
Elastic added more customers with annual contract value above $100,000 than in any prior quarter, pushing that cohort past 1,800 from over 1,720 in the fourth quarter of fiscal 2026 and over 1,550 a year earlier. Net expansion rate held around 111%, and the company generated $143 million in adjusted free cash flow during the quarter. Guidance for the second quarter of fiscal 2027, ending October 31, calls for revenue of $486 million to $487 million and a swing to positive GAAP operating margin, with full fiscal 2027 non-GAAP operating margin guided to roughly 19.4%, up from 16.2% in the quarter just reported.
Growth came with a reminder that Elastic has not fully crossed into GAAP profitability. The company posted a GAAP operating loss of $24 million in the first quarter of fiscal 2027, a -5% operating margin, and a GAAP net loss per share of $0.16. Non-GAAP figures told a healthier story, with $77 million in non-GAAP operating income and $0.70 in non-GAAP diluted earnings per share, but the gap between the two measures shows how much of Elastic's reported profitability still depends on excluding real costs like stock-based compensation.

#elastic #vector #company

On September 11, Elastic (NYSE:ESTC) rolled out Elasticsearch Vector Database, a new serverless offering the company says lets developers ship large-scale vector search and AI applications without stitching together the usual pile of infrastructure themselves. The launch landed less than three weeks after Elastic posted first-quarter fiscal 2027 results on August 27, for the period ended July 31, giving investors a fresh product story to weigh against a quarter that already showed accelerating growth.
The new database automates what used to require manual ***** embly: chunking documents, hosting embedding and reranking models, configuring indexes, and wiring query-time retrieval. Elastic built in expert-tuned defaults, a single field type that handles indexing, embeddings, and chunking together, and hybrid search that combines full-text and vector retrieval in one query. The system scales to hundreds of billions of vectors using Elastic's Better Binary Quantization, which the company says shrinks vector memory by up to 32 times while keeping recall high, and pricing is based on data and search capacity rather than the opaque compute units the company says define most pure-play vector database pricing.
That product push follows a quarter that was already running hot. Total revenue reached $478 million in the first quarter of fiscal 2027, up 15% year over year, while current remaining performance obligations grew 21% and remaining performance obligations grew 27%. Sales-led subscription revenue, which strips out Monthly Elastic Cloud, grew 18% year over year to $399 million, outpacing the company's overall subscription growth.
Elastic added more customers with annual contract value above $100,000 than in any prior quarter, pushing that cohort past 1,800 from over 1,720 in the fourth quarter of fiscal 2026 and over 1,550 a year earlier. Net expansion rate held around 111%, and the company generated $143 million in adjusted free cash flow during the quarter. Guidance for the second quarter of fiscal 2027, ending October 31, calls for revenue of $486 million to $487 million and a swing to positive GAAP operating margin, with full fiscal 2027 non-GAAP operating margin guided to roughly 19.4%, up from 16.2% in the quarter just reported.
Growth came with a reminder that Elastic has not fully crossed into GAAP profitability. The company posted a GAAP operating loss of $24 million in the first quarter of fiscal 2027, a -5% operating margin, and a GAAP net loss per share of $0.16. Non-GAAP figures told a healthier story, with $77 million in non-GAAP operating income and $0.70 in non-GAAP diluted earnings per share, but the gap between the two measures shows how much of Elastic's reported profitability still depends on excluding real costs like stock-based compensation.

#quarter #fiscal #year #operating

Our ***** ysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here.
Total revenue growth accelerated to 30%, the highest rate since fiscal 2024, driven by broad-based strength across both Atlas and Enterprise Advanced (EA).
Management attributes the 36% growth in EA to the strategic launch of search and vector search capabilities, allowing regulated industries to build AI agents within governed, self-managed environments.
The 'run-anywhere' strategy is serving as a key differentiator, with customers increasingly adopting hybrid deployments across multiple clouds and on-premises to satisfy regulatory and operational resilience requirements.
Atlas momentum is being fueled by large enterprise customers and 'AI natives' who migrate to MongoDB after hitting scaling limits with legacy relational databases like Postgres.

#search

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MongoDB's fiscal Q2 2027 revenue rose 30% to $772 million, driven by accelerating Atlas cloud database and Enterprise Advanced demand. The company added a record 2,900 customers, reaching 70,600 total customers, while its non-GAAP operating margin expanded to 24%.
AI adoption is gaining momentum through Atlas Vector Search, Voyage AI models and the company's managed Model Context Protocol server. Management said the strongest demand is coming from production-scale, customer-facing applications, although AI remains a relatively small contributor today.
MongoDB raised its fiscal 2027 outlook to $2.99 billion–$3.03 billion in revenue and increased its Atlas growth and operating-margin expectations. Enterprise Advanced revenue grew 36% year over year and is becoming a more durable growth driver alongside Atlas.
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#mongodb #advanced #customers

College students spend four years planning for what to do once they leave campus, and spend the next 40 years trying to figure how to get back. It's a truism that college administrators and broadcasters would do well to remember as they continue to separate college football from college campuses.
On Saturday, North Carolina will kick off its season against TCU in Dublin, the fifth straight year that Ireland has hosted a Week 0 game. A few weeks later, Arizona State will face Kansas in London's Wembley Stadium.
If you're wondering what the Tarheels and Horned Frogs have to do with the Emerald Isle, or why the Sun Devils will travel halfway around the planet to play football, well, you're asking the right questions. As with everything else in college football right now, there are multiple vectors at play here, and absolutely none of them point in the direction of the average fan.
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American universities have played football in international stadiums for as long as the game has existed, sometimes for bowl games, sometimes as part of barnstorming or goodwill tours. (Bo Jackson's final snaps as a college player technically came in a **** anese all-star game in 1986.)

#years

A couple of weeks ago during "Market on Close," I fielded a question about refining stocks like Valero (VLO), Marathon (MPC), and Phillips 66 (PSX). I basically said the price action represented a pause, because the market had mispriced the risk in the refined product market.
It's a supply-and-demand story I've also detailed in this ***** e with regard to the VanEck Vectors Oil Refiners ETF (CRAK), which is now up about 10% since I made those comments on the livestream, and spiking to new highs today.
As 30-Year Yields Spike to 5.31%, Our Top Chart Strategist Warns There's a Risk to Stocks: 'In a Word, Yes'
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#market #stocks #marathon