Moritz Plassnig Profile picture
Oct 5, 2018 6 tweets 3 min read Twitter logo Read on Twitter
Wow. Amazing IPO from $ESTC earlier today 🚀Super motivating 😊Many more outstanding dev tools + OSS companies out there that will hopefully go public too one day #OSSFTW 1/6
Seeing so much demand, being able to raise the opening price from $26-$29 to $33-$35 and then doubling on the first day is great 📈No surprise though if you look at the underlying numbers 🤑2/6
Elastic grew fantastically over the last year. Nearly doubled. Solid gross margins (73%), mostly product revenue (91%). Losing money on PS but likely primarily using it to drive the outstanding product revenue growth. Gross Margins would be > 80% without PS👌 3/6
And the revenue growth is accelerating. Compare that to MongoDB/New Relic when they went public. Larger absolute revenue numbers and stronger growth = 😏🤘 4/6
All of that with fewer $ raised ($162M vs. $215M/New Relic and $311M/MongoDB), a better net income margin (-33% vs. -48%/New Relic and -70%/MongoDB), and a higher revenue/employee ($186K vs. MongoDB's/New Relic's ~$150K) 😍 5/6
Developers driving adoption combined with 140%+ net expansion rate = growing ACV while keeping S/M costs under control => solid business 🤓 Sounds simple, hard to execute and done by Elastic pretty much flawlessly so far #kudos

Great time to build developer tool companies 6/6

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