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When consumers think about research, they think mostly about Google, but under the hood of companies and other organizations, there are hundreds of other types of challenges that require research technology. Today, one of the largest companies providing search functionality, Elastic, has seen how valuable this activity can be, with its very strong start as a public company. Elastic opened today at US $ 70, or 94 percent of its IPO at US $ 36 on Thursday night. After an active trading day, US $ 70 was also closed.
Founded in Amsterdam, the Netherlands, but also having an office at Mountain View, Elastic raised $ 252 million for a market capitalization of about $ 2.5 billion during this IPO. , before starting business under the name ESTC on the New York Stock Exchange.
Its stock has reached $ 74.20 today, more than 100% more than its listing price. The lowest price reached $ 66.17 / share, evidence of the strong demand for shares of the company.
Although Google has long dominated the consumer search queries market, Elastic has adopted the approach of providing businesses with a powerful set of search tools that help them manage their own internal data archives, as well as designing products for their customers. use.
It's not a small deal: the world of technology is built on Big Data, and it is absolutely possible to create it, which contributes to the smooth running of services, but it only has value if it can be operated, controlled and adapted to your needs. , and that's where Elastic comes into play, whether it covers customer needs or internal needs.
"When you get home after working with Uber, Elastic helps fuel the systems that locate runners and drivers nearby. When you shop online at Walgreens, Elastic helps you find the right products to add to your cart. When you search for a partner on Tinder, Elastic allows you to activate the algorithms that guide you to a match. When you search through millions of Adobe assets, Elastic helps you find the right photo, font, or color scheme to complete your project, "says the company in its IPO prospectus. .
"While Sprint operates its national network of mobile subscribers, Elastic helps power the logging of billions of events every day in order to track and manage website performance issues and network outages. While SoftBank monitors the use of thousands of servers throughout its computing environment, Elastic allows the processing of terabytes of daily data in real time. When the University of Indiana welcomes a new class of students, Elastic helps boost cybersecurity operations by protecting thousands of devices and critical data at collaborating universities in the center. BigTen Security Operations Center. All this is a search.
The company said its portfolio of research products – based on open source and existing under the Elastic Stack brand (which includes Elasticsearch, Kibana, Beats and Logstash) – had been downloaded more than 350 million times since the launch of the company in 2013 – a mix of paid and free products.
The strength of Elastic's message / mission and customer base has been sufficient to attract investors despite the fact that the company is not profitable.
The company has 5,500 customers in more than 80 countries and in a wide range of industries. Its sales reached $ 159.9 million in fiscal year 2018, compared with $ 88.2 million the previous year, with growth of 81%. It is also a loss. Elastic recorded net losses of $ 52.7 million in fiscal 2018, a net loss of $ 52.0 million the previous year, while cash flow from Operating were negative $ 20.8 million during the 2018 fiscal year.
Dutch startups have seen strong growth in the market over the last two months. Adyen, the payment company, jumped 67% in its debut in June. For clarification, Elastic had hoped to reap 100 million dollars at the first filing of its IPO in September. Overall, for the technology-driven IPO market, this is a significant rebound after the poor performance of Funding Circle last week.
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