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: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst
: Okay. Sorry about that, double muted. So yes, I wanted to dig into vector search and AI. To us, it seems like a large opportunity for you guys to see
higher density models on the Elastic platform. Just kind of curious about what the early interest has been. Are you seeing any increased activity as
it relates to vector?
Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst
: Maybe just a quick follow-up to that. Do you think when you start to see more of a monetization effort, is that one of the things that could start to
inflect Elastic Cloud growth regardless of sort of broader macros? Like do you think that some of these trends are sort of stronger than sort of the
depressed macros and you could start to see a rebound in Elastic Cloud growth maybe even sooner?
Question: Pinjalim Bora - JPMorgan Chase & Co, Research Division - Analyst
: Shockingly, another question on generative AI, ESRE. Ash, maybe help us understand for -- obviously, Elasticsearch is known by developers. For
somebody who has been working using and deploying, implementing Elasticsearch, how difficult would that be for them to now shift and deploy
ESRE? Can that become kind of that familiarity with Elasticsearch, could that become an advantage for you guys as you kind of pivot towards this
generative AI opportunity?
Question: Pinjalim Bora - JPMorgan Chase & Co, Research Division - Analyst
: Got it. Very helpful. And one for Janesh. Janesh, the guide, when I'm looking at it, you talked about the sequential growth in Q4, the subscription
sequential growth is basically flat. You're guiding to about 16%. It sounds like it's more of a second half story. Help us understand the kind of the
confidence on that second half build from what you're saying, it sounds like there are some mechanics with the contracts that I guess we can't see.
But obviously, you have a strong RPO. But I'm just trying to understand what gives you confidence for that to kind of reach that guide in the second
half? And maybe help us understand the consumption trends so far in Q1 that you're seeing?
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