Elastic N.V. shares tumbled 27.3% in premarket trading Friday after the search and analytics software company provided disappointing revenue guidance, overshadowing better-than-expected first quarter results.

The company reported Q1 adjusted earnings per share of $0.35, beating analyst estimates of $0.25. Revenue grew 18% YoY to $347 million, slightly above the $344.66 million consensus.

However, Elastic's outlook fell short of expectations. For Q2, the company forecast revenue of $353-355 million, below the $360.8 million analyst consensus. Full-year fiscal 2025 revenue guidance of $1.436-1.444 billion also missed the $1.478 billion Street estimate.

"We delivered solid first quarter results, outperforming the high end of our guidance for both revenue and profitability," said CEO Ash Kulkarni. "However, we had a slower start to the year with the volume of customer commitments impacted by segmentation changes that we made at the beginning of the year, which are taking longer than expected to settle."

Elastic Cloud revenue rose 30% YoY to $157 million in Q1, representing 45% of total revenue. The company ended the quarter with over 1,370 customers with annual contract value above $100,000.

Despite the revenue guidance miss, Elastic raised its full-year adjusted EPS outlook to $1.52-$1.56, above the prior $1.42 consensus.