Elastic N.V. (ESTC) experienced a significant stock drop of 28% despite reporting earnings that exceeded estimates. The company's Q1 earnings per share (EPS) were $0.35, surpassing the estimated $0.25, and revenue was $347 million, slightly above the expected $344.66 million. However, the company's fiscal year 2025 sales guidance disappointed investors, leading to a downgrade by BofA Securities from Buy to Neutral and a price target reduction to $94 from $140. The downgrade was attributed to elevated risks from disruptions in the sales organization and a weaker bookings execution, which resulted in a reduction of the fiscal year revenue growth guidance from 17% to 14%. Additionally, billings growth of 6% fell short of the anticipated 17%, although cloud revenue slightly exceeded expectations by $1.1 million, growing 30% compared to 32% in the previous quarter.