Here’s Why Elastic N.V. (ESTC) Declined in Q4 Despite Better-Than-Expected Results

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small/Mid Cap Growth Strategy” fourth-quarter investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy outperformed the Russell 2500 Growth Index and returned 6.03% (gross), and the index return was 4.72%. For the full year, the strategy return was -25.06% (gross) compared to a -26.21% return for the benchmark. The relative weakness in the Information Technology and Energy sectors in the quarter was offset by strength in the Financials, Consumer Discretionary, Health Care, and Industrials sectors. In addition, please check the fund’s top five holdings to know its best picks in 2022.

TimesSquare U.S. Small/Mid Cap Growth Strategy highlighted stocks like Elastic N.V. (NYSE:ESTC) in its Q4 2022 investor letter. Headquartered in Mountain View, California, Elastic N.V. (NYSE:ESTC) is a technology company. On March 22, 2023, Elastic N.V. (NYSE:ESTC) stock closed at $54.84 per share. One-month return of Elastic N.V. (NYSE:ESTC) was -9.33%, and its shares lost 40.74% of their value over the last 52 weeks. Elastic N.V. (NYSE:ESTC) has a market capitalization of $5.292 billion.

TimesSquare U.S. Small/Mid Cap Growth Strategy made the following comment about Elastic N.V. (NYSE:ESTC) in its Q4 2022 investor letter:

“Another weak software firm was Elastic N.V. (NYSE:ESTC), which develops enterprise-wide search and analytical services for a diverse set of uses. Although the company reported better-than-expected revenues and earnings, sales growth for its cloud-based offering was less than anticipated. While that led to a -28% punishment for Elastic’s shares, its projected growth remains substantial.”

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Elastic N.V. (NYSE:ESTC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held Elastic N.V. (NYSE:ESTC) at the end of the fourth quarter which was 53 in the previous quarter.

We discussed Elastic N.V. (NYSE:ESTC) in another article and shared Greenhaven Road Capital’s views on the company. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.