The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst
: Congrats on the quarter, and congrats to Janesh as well.
Ash, I'm curious to get your take on the transition to the cloud. As you move to the cloud, what are the new use cases and new kinds
of opportunities that are available to Elastic that were previously not available with the self-managed on-premises approach?
And also if you could talk about the specificity of the cloud architecture that will permit you to do things in the future for your
customers that is just simply not available. I guess both these aspects are somewhat interrelated, but I just want to understand what
the cloud structurally does for Elastic that on-prem just couldn't do it from any perspective that you'd like to describe.
Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst
: Congrats on the results, too. Ash, you're clearly all-in on the cloud, and the AWS news 2 weeks ago was great to see. Can you talk
about how big of a deal that enhanced collaboration is with them? And maybe how customers -- or what the go-to-market initiatives
are? And maybe can customers use AWS cloud credits to purchase Elastic Cloud?
Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst
: No, that's really good to hear. We've covered the stock for a long time, and it just feels like it removes one of the overhangs on the
stock historically. It's really great to hear, Ash.
And then, Janesh, maybe just a quick one for you. There's a lot of good things to talk about from the results. But I think the biggest
news, from my perspective, too, is the $2 billion guide -- revenue guide for fiscal '25.
When we think about the bridge to that, your fiscal '23 guide calls for about $220 million of net new revenue. But to get to the
midpoint of, from '23 to $2 billion in fiscal '25, implies about $920 million of net new revenue between fiscal '24 and fiscal '25 or
really an acceleration of growth. Can you help us maybe think about the bridge of how we get from your midpoint of your fiscal '23
guide to $2 billion?
Question: Yitchuin Wong - Citigroup Inc., Research Division - Analyst
: This Yitchuin taking a question for Tyler here. Congrats, Janesh, on the new COO title as well. Nice close to the year here.
Ash, you mentioned some company that has better usage, especially the Fortune 50 company that's doubling usage in the quarter
here. But I'm curious if you see any weaker usage or how has some of your highest growth customer in the past year trended in the
quarter here given some of the commentary among some of your peers that saw slower momentum.
Question: Yitchuin Wong - Citigroup Inc., Research Division - Analyst
: Got it. Janesh, I'll just touch on some of your total customer count, seems slightly slower than before. It's actually slowing for a few
quarters here. Just wondering, have you seen some of your smaller customers like change to the open-source version? Or just how
your total customer expectation are trending?
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