ESTC ALERT: Kirby McInerney LLP Announces the Filing of a Securities Class Action on Behalf of Elastic N.V. Investors
February 12, 2025 8:00 PM EST | Source: Kirby McInerney LLP
New York, New York--(Newsfile Corp. - February 12, 2025) - The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired Elastic N.V. ("Elastic" or the "Company") (NYSE: ESTC) securities during the period from May 31, 2024, through August 29, 2024 ("the Class Period"). Investors have until April 14, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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On August 29, 2024, during after market hours, Elastic issued a press release announcing its financial results for the first quarter of its FY 2025. The release disclosed that the Company had slashed its FY 2025 revenue guidance to a range of $1.436 billion to $1.444 billion, representing 14% year-over-year growth at the midpoint - significantly down from their prior FY 2025 revenue guidance of $1.458 billion to $1.48 billion. Elastic cited a "slower start to the year with the volume of customer commitments impacted by segmentation changes that we made at the beginning of the year, which are taking longer than expected to settle." On a same-day conference call, Elastic disclosed that they had "created more focus on selling into our largest accounts by reducing the number of accounts per sales rep and created distinct greenfield territories to focus on landing new customers, both in enterprise and commercial segments"; that they had implemented these changes too suddenly; that these changes had impacted "all verticals" and "pretty much all of the Company's teams" in the Americas, apart from the U.S. public sector; that they had been aware of these changes when they issued their initial FY 2025 revenue guidance at the beginning of the Class Period; and that they had implemented these changes at the beginning of May 2024. On this news, the price of Elastic shares declined by $27.45 per share, from $103.64 per share on August 29, 2024, to close at $76.19 on August 30, 2024.
The complaint alleges that defendants, throughout the Class Period, made false and/or misleading statements and/or failed to disclose that: (1) Elastic had implemented significant changes to its sales operations, particularly with respect to its customer segments in the Americas; (2) the foregoing changes were likely to, and did, disrupt Elastic's sales operations during the first quarter of its FY 2025; (3) accordingly, defendants had overstated the stability of Elastic's sales operations; and (4) as a result of all the foregoing, Elastic was unlikely to meet its own previously issued revenue guidance for its FY 2025.
If you purchased or otherwise acquired Elastic securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the contact form below, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs' law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP's website.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
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