Risk Factors Update Summary

• New stringent climate-related reporting requirements could incur substantial costs and expose the company to fines.
• We incurred a net loss of $236.2 million for the year ended April 30, 2024, compared to $203.8 million in 2023. This trend may continue, impacting financial stability.
• Share ownership concentration with insiders may limit shareholder influence on corporate matters, including director elections.
• The loss of substantial partners could harm performance, impacting cash flows and revenue significantly.
• Elastic Cloud contributed 43% of total revenue in fiscal 2024, up from 40% in 2023. This growth indicates increasing reliance on cloud offerings.
• The company may issue ordinary shares up to 20% of issued share capital, risking shareholder dilution.
• The dual licensing of Elasticsearch and Kibana under Elastic License 2.0 may hinder adoption.
• Unfavorable conditions in the global economy, including inflation and geopolitical conflicts, could adversely affect our business and results of operations.
• Increased scrutiny on ESG practices may impact the company's reputation and ability to attract investors.
• The proposed Minimum Tax Rate Act 2024 could impose a corporate tax rate of at least 15%.
• Our ability to monitor third-party vendors' data security is limited, increasing the risk of unauthorized access to sensitive information.
• Failure to comply with evolving ESG expectations could adversely affect employee retention and business attractiveness.
• Compliance with evolving privacy laws may incur substantial costs and liabilities, affecting operational expenses.
• We may incur substantial costs in integrating AI technologies into our offerings, impacting our financial results and operational expenses.
• The market price of shares may fluctuate significantly due to macroeconomic conditions and investor sentiment.