09:45 AM EDT, 08/30/2024 (MT Newswires) -- Elastic (ESTC) reported disappointing fiscal Q1 results behind a "poorly managed sales segmentation change" that led to fewer contracted commitments, Oppenheimer analysts said in a note to clients Friday.

"The results raise questions regarding the decision to roll out the segmentation changes globally simultaneously," Oppenheimer said, "and why the initial [fiscal year 2025] outlook didn't appropriately account for these risks."

Oppenheimer also noted that Elastic's fiscal Q2 revenue guidance missed estimates, while the company lowered its fiscal year 2025 revenue guidance.

The firm said it will take a "wait and see" approach as it looks for "noticeable improvement" before reconsidering its rating.

Oppenheimer cut its price target on Elastic's stock to $125 to $150 and maintained its outperform rating.

Shares of Elastic tumbled nearly 27% in early trading.

Price: 75.81, Change: -27.83, Percent Change: -26.85