What happened

Shares of Elastic (ESTC 0.35%) were down by 12% as of 2:30 p.m. EST today after the company reported fiscal third-quarter earnings. The results beat expectations, but tech stocks are seeing a broad sell-off as rising interest rates cause a shift away from riskier asset classes.

So what

Revenue in the fiscal third quarter, which ended Jan. 31, was $157.1 million, easily beating the consensus estimate of $146.75 million in sales. That resulted in an adjusted net loss per share of $0.04, also better than the $0.15 per share in adjusted losses that Wall Street was expecting. The enterprise search specialist now has over 13,800 subscription customers, and the number of customers with annual contract value greater than $100,00 now stands at roughly 670.

Red stock chart going down

Image source: Getty Images.

"We had an excellent third quarter, and once again showed strong execution," CEO Shay Banon said in a statement. "We believe continued innovation across our three solutions is critical to global enterprises as they look to build resilience and adapt to the distributed environment of 2021."

Now what

In terms of guidance, revenue in the fiscal fourth quarter is expected to be in the range of $158 million to $159 million, ahead of the $151.7 million in sales that analysts are modeling for. Adjusted operating margin should be negative 7.5% to negative 8.5%, with an adjusted net loss per share forecast at $0.15 to $0.18. The market is expecting $0.22 per share in adjusted net losses.