And so we see that kind of stabilization in the consumption optimization that people have been doing. At the same time, as we’ve talked about with you in the last several quarters, we have been leaning in this current environment to really drive consolidation onto our platform, really showcase all the things that customers can do on our platform and that’s reflecting – that’s resulting in customers bringing newer workloads consolidating multiple things. And those new workloads are also now starting to ramp up. So both those factors are playing in and that sets us up quite nicely as we look ahead.
Bo Yin: Thank you.
Operator: Thank you. And our next question today comes from Rob Owens with Piper Sandler. Please go ahead.
Ethan Weeks: Hi, thanks for taking my question. This is Ethan on for Rob. I just wanted to ask around how important the channel is, when it comes to selling these – selling ESRE and gen AI functionality? Especially if you think about you going into these really large organizations and when the fees we get evolve? Thank you.
Ashutosh Kulkarni: Yes, so the channel tends to be important, but keep in mind that for newer areas like this, the reality is that these are areas where we tend to have direct conversations with these customers and the channel can often help us broker some of those conversations. But it’s we tend to be the experts, so we tend to have a lot of these conversations. Where the relationships – the partner relationships really become wonderfully important and are helping us, is the relationships we have with the cloud hyperscalers. As you saw from some of the accolades that we won that we talked about in this earnings call. We have – our relationship with Google, with Microsoft, with AWS, they are strong and they’re continuing to grow stronger.
And that just means that when customers are talking to them, it allows us to go and jointly with these partners and have these kinds of conversations, where customers are looking to do things there are on the leading edge. And those are the relationships that we believe are really critical at this phase, and that’s where we have a lot of strength. So I’m excited about that.
Ethan Weeks: Thank you.
Operator: Thank you. And our next question comes from Kingsley Crane at Canaccord. Please go ahead.
Kingsley Crane: Hi, thanks for taking my question. I wanted to talk through consolidation wins. Are these picking up for you? And then how often is the case that logging is leading in consolidation motion? And then, how often would you see a customer potentially adopt APM during this process?
Ashutosh Kulkarni: The consolidation trend has definitely been strong in the last couple of quarters, like we’ve talked about. And a lot of it, in my opinion, has to do with the fact that as people have – as CIOs and companies have become more thoughtful about their spend envelopes. They are looking to see where they can save and we have a value proposition that allows them to do that, while at the same time doing even more and getting the kinds of innovative technology that we’ve been bringing out in market. So it’s working very nicely in our favor. Now what we typically tend to lead with, like we’ve talked about in the past, tends to be Log Analytics, tends to be Security Analytics, and tends to be Search. And then we progress from there, right?
So we have lots and lots of customers now that are using us. Thousands of customers that are using us for APM. And that’s all – many of those customers started with us with logs, to begin with, and then they moved from logs and realized that they could get a much better picture of their overall observability landscape by not just bringing logs into Elastic but also bringing APM traces and then they eventually will bring on metrics and other things deal user metrics and so on. And that’s the pattern that we see over and over again. So the consolidation pattern tends to be one where we might start with Log Analytics and Security Analytics and Search, but then will invariably, go onto other elements of observability and other elements of security and so on.
Kingsley Crane: Great. Thank you, Ash. And then one brief follow up for Janesh, if I may. It makes sense to be prudent on the guidance, but could you walk us through how consumption has trended month-by-month-in Q1 and then how does that fare so far in August?
Janesh Moorjani: Hi, Kingsley, as I’ve mentioned a little bit earlier, I think it can vary from month to month. There is always going to be a little bit of noise in the monthly data. And so what we generally saw was consistency through the course of the quarter. And, overall, I think the themes just played out as we described over the course of Q1 and then specifically for August, as I mentioned, we aren’t done with August yet, so hard for me to talk about that, but. I will share that the general tone of customer conversations was similar to where it was in Q1.
Kingsley Crane: Okay. Thank you.
Operator: Thank you. And today’s last question comes from Shrenik Kothari with Baird. Please go ahead.
Shrenik Kothari: Hi, thanks for taking my question. Great quarter. Congrats. So since you touched upon the annual cloud subscription motion performing quite well, Ash, and highlighted some of the prominent organizations, the Fortune 100 and the leading share service, leveraging our capabilities. So it appears that your sea-level engagement strategy and to your earlier point on the hyperscaler partnerships working quite well. But then, I think Janesh also mentioned that the net adds to the [100,000] was a bit lighter. So just if you guys can kind of help reconcile and help perhaps unpack like how much of the businesses is currently being driven by this top down or enterprise-focused motion that you guys are strategically kind of moving towards that you highlighted few quarters back and then I have a quick follow-up?
Janesh Moorjani: Yes, I’ll just touch on that real quick in the interest of time. We’ve continued to see strong contractual commitments to Elastic and we saw that here in Q1. It continued to trend. We’ve seen for a few quarters now. So overall, I’d say, our investments in the enterprise selling motion and everything we bring to that including the partnerships and so forth that you touched on – I think that’s actually working quite nicely. Keep in mind that in our land and expand motion, the initial lands tend to be very small and then we tend to expand with customers over time. And so within that pool of over 100,000 customers that you mentioned, although the number of additions was a bit lower, we did see a very strong expansion in the larger accounts and it reflects those commitments.
So we felt very good about how this all played out. And I do expect that we will have consistent growth in our customer metrics over time. It’s been good – a good driver for us in the past and I do expect that trend will continue over time.
Shrenik Kothari: Got it. Thanks a lot, Janesh. And just very quickly, I mean, I know there was earlier question around consolidation correlation with multiple use cases, including gen AI. I was just wondering like, are you also seeing kind of direct correlation with this kind of enterprise focus top down motion and consolidation as well? And are you guys kind of going about in a strategical fashion, not just like as I said, targeting industries or verticals, but just kind of in terms of kind of larger commitments and trying to target accordingly?
Ashutosh Kulkarni: Yes. I mean, so – like we’ve talked about, right in prior calls as well, our focus on enterprise selling has been strong and we’ve talked about the fact that we’ve been very strategically focusing on customers that have a greater propensity to grow with us. And that includes customers in the Enterprise segment, that includes customers in the Commercial segment. And one of the levers that we have been really focused on is our ability to deliver highly differentiated value at an incredible price for our customers because of the strength of our platform and its ability to deliver on multiple real-time search use cases, whether it be for search observability or security incredibly well. And so we’ve been leaning into that as a motion, irrespective of vertical and geography.
So we’ve been driving that motion with our sales organization and it’s paying off. It’s paying off in larger commitments. It’s paying off in more workloads coming onto our platform and that’s taking share and it’s reflecting now in some of the benefits that we’re seeing in revenue.
Operator: Thank you. And ladies and gentlemen, this concludes our question-and-answer session. I’d like to turn the conference back over to Ash Kulkarni for any closing remarks.
Ashutosh Kulkarni: All right. Thank you all very much for joining our call today. We had a strong start to our fiscal year and I’m really excited about the opportunity and our position in the market as the leading AI-powered data analytics platform for multiple real-time search use cases. We will be hosting our Elastic on AI Conference in San Francisco in a few weeks, and I am looking forward to seeing our customers there as we talk about all the exciting things we are doing in this space. Have a great rest of the evening. Thank you.
Operator: Thank you. This concludes today’s conference call. We thank you all for attending today’s presentation. You may now disconnect your lines and have a wonderful day.
