You may think we are referring to the rubbery material that stretches when you pull it but instead, we are referring to one of the year’s top performing first-day IPO in US history. It is the recently listed Dutch-based company, Elastic B.V. [NYSE: ESTC].
Elastic makes the power of search – the ability to find relevant information and insights from a large amount of data – available for a diverse set of applications and use cases. Much like other search engines such as Google, Yahoo, Bing!, etc. Elastic is determined to answer all your questions thoroughly. The truth is, you have been using Elastic without even realising.
On October 5th 2018, the first day of trading, the stock skyrocketed to a whopping 94% increase after listing at US $36.00 to close at $70.00. Before listing, the company had adjusted its IPO price a few times before deciding on 7 million shares at $36 per unit.
Furthermore, the company raised $252 million and ended the day with a market capitalisation of almost $4.9 billion. The proceeds will be geared towards the acquisition of or investment in technologies and solutions, research and development, working capital, sales and marketing activities.
Elastic is the latest tech company to go public contributing to what is referring to as the best year for tech IPOs since 2014. As a data service provider, Elastic equips other companies with relevant information after sifting through massive amounts of data.
According to its prospectus, the company will help in your everyday life, here’s how:
Have you ever wondered who detects those nearby drivers and riders when using Uber or Uber Eats? Elastic.
How is Tinder so efficient in finding those matches for you? Elastic powers those algorithms used to guide you to the perfect match.
Have you ever noticed how simple it is to shop online with Walgreens? Elastic helps you to find the right products to add to your cart.
With over 5,500 customers in 80 countries and industries, the company is helping individual developers and organisations. Reporting a growth of 81% year-over-year and revenue of $159.9 million in fiscal 2018 an increase from $88.2 million in 2017.
If the 6-year-old Elastic continues on a high, its biggest shareholder, co-founder and former CEO Steven Schuurman, who has almost 19 per cent could well be on their way to becoming a billionaire. Under the brand Elastic Stack, its portfolio of search products includes Elasticsearch, Kibana, Beats and Logstash with over 350 million downloads.
Considering this impressive start, Elastic tweeted “Today was a grand day. Thank you to everyone for joining us on this journey. We look forward to what happens next.”
Indeed, we will be looking on as well wondering if Elastic can stretch to the levels of some of its giant competitors like public cloud companies Alphabet Inc. (NASDAQ: GOOGL) and Amazon.com Inc (NASDAQ: AMZN).
If you liked this article and want to read other great stories, try our Archives. Also if you are new to investing you can try our Investment Basics Blog.
If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.
Follow us on Facebook, LinkedIn and Twitter please leave us a review.