Elastic N.V.
For the period ended Jul 31, 2025. Filed Aug 29, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jul 31, 2025 · Filed Aug 29, 2025
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Fair Value Measurements
- Fair Value Measurements
Financial Assets
The Company measures financial assets and liabilities that are measured at fair value on a recurring basis at each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company considers all highly liquid investments, including money market funds with an original maturity of three months or less at the date of purchase, to be cash equivalents.
The Company’s marketable securities are classified as available for sale and considered to be available for use in current operations and, therefore, the Company classifies them within current assets on the condensed consolidated balance sheets.
The Company uses quoted prices in active markets for identical assets to determine the fair value of its Level 1 investments. For Level 2 investments, the Company uses inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security which may not be actively traded.
The following table summarizes assets that are measured at fair value on a recurring basis as of July 31, 2025 (in thousands):
| Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|
| Financial Assets: | ||||
| Cash equivalents: | ||||
| Money market funds | $326,372 | $— | $— | $326,372 |
| U.S. treasury securities | 21,986 | — | — | 21,986 |
| U.S. agency securities | — | 46,528 | — | 46,528 |
| Commercial paper | — | 7,958 | — | 7,958 |
| Total included in cash equivalents | 348,358 | 54,486 | — | 402,844 |
| Marketable securities: | ||||
| U.S. treasury securities | 158,836 | — | — | 158,836 |
| Corporate debt securities | — | 453,028 | — | 453,028 |
| Certificates of deposit | — | 103,384 | — | 103,384 |
| International treasuries | — | 44,881 | — | 44,881 |
| Municipal securities | — | 36,669 | — | 36,669 |
| Commercial paper | — | 25,125 | — | 25,125 |
| U.S. agency securities | — | 10,077 | — | 10,077 |
| Total marketable securities | 158,836 | 673,164 | — | 832,000 |
| Mutual fund investments (1) | 3,434 | — | — | 3,434 |
| Total financial assets | $510,628 | $727,650 | $— | $1,238,278 |
(1)Mutual fund investments are held in an irrevocable rabbi trust for payment obligations to non-qualified deferred compensation plan participants. The investments are recorded as part of other assets in the Company’s condensed consolidated balance sheets.
The following table summarizes assets that are measured at fair value on a recurring basis as of April 30, 2025 (in thousands):
| Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|
| Financial Assets: | ||||
| Cash equivalents: | ||||
| Money market funds | $197,710 | $— | $— | $197,710 |
| U.S. treasury securities | 90,642 | — | — | 90,642 |
| U.S. agency securities | — | 20,001 | — | 20,001 |
| Commercial paper | — | 9,462 | — | 9,462 |
| Certificates of deposit | — | 6,020 | — | 6,020 |
| Corporate debt securities | — | 3,128 | — | 3,128 |
| Total included in cash equivalents | 288,352 | 38,611 | — | 326,963 |
| Marketable securities: | ||||
| U.S. treasury securities | 113,440 | — | — | 113,440 |
| Corporate debt securities | — | 390,077 | — | 390,077 |
| Certificates of deposit | — | 63,377 | — | 63,377 |
| International treasuries | — | 40,135 | — | 40,135 |
| Municipal securities | — | 34,966 | — | 34,966 |
| Commercial paper | — | 17,739 | — | 17,739 |
| U.S. agency securities | — | 9,983 | — | 9,983 |
| Total marketable securities | 113,440 | 556,277 | — | 669,717 |
| Mutual fund investments (1) | 2,646 | — | — | 2,646 |
| Total financial assets | $404,438 | $594,888 | $— | $999,326 |
(1)Mutual fund investments are held in an irrevocable rabbi trust for payment obligations to non-qualified deferred compensation plan participants. The investments are recorded as part of other assets in the Company’s condensed consolidated balance sheets.
Interest income from the Company’s cash, cash equivalents, and marketable securities was $15.1 million and $11.4 million for the three months ended July 31, 2025 and 2024, respectively, and is included in other income, net in the condensed consolidated statements of operations.
As of July 31, 2025 and April 30, 2025, gross unrealized gains and losses on the marketable securities were insignificant. The fluctuations in market interest rates impacted the unrealized losses or gains on these securities.
The fair value of available-for-sale securities, by remaining contractual maturity, are as follows (in thousands):
| As ofJuly 31, 2025 | As ofApril 30, 2025 | |
|---|---|---|
| Due within 1 year | $481,008 | $368,374 |
| Due between 1 year and 3 years | 350,992 | 299,522 |
| Due between 3 years and 5 years | — | 1,821 |
| Total marketable securities | $832,000 | $669,717 |
Financial Liabilities
In July 2021, the Company issued $575.0 million aggregate principal amount of 4.125% Senior Notes due July 15, 2029 (the “Senior Notes”) in a private placement. Based on the trading prices of the Senior Notes, the fair value of the Senior Notes as of July 31, 2025 was approximately $547.4 million. While the Senior Notes are recorded at cost, the fair value of the Senior Notes was determined based on quoted prices in markets that are not active; accordingly, the Senior Notes are categorized as Level 2 for purposes of the fair value measurement hierarchy.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.