ESTC: 10-K Risk Factor Changes

As of April 30, 2025, we had customers located in over 125 countries as we pursue our strategy to continue to expand internationally. In addition, as of April 30, 2025, as a result of our strategy of leveraging a distributed workforce, we had employees located in over 40 countries. Our current international operations involve and future initiatives may involve a variety of risks, including: •political and economic instability related to international disputes, such as the evolving conflicts in the Middle East and Russia’s war with Ukraine and the related impact on macroeconomic conditions as a result of such conflicts, which may negatively impact our customers, partners, and vendors; •unexpected changes in regulatory requirements, taxes, trade laws, export quotas, custom duties or other trade restrictions; •different labor regulations, especially in the European Union, where labor laws are generally more advantageous to employees than in the United States, including hourly wage and overtime regulations in these locations; •compliance with requirements to hire local employees to perform particular functions, which may not align with the manner in which we would otherwise operate our business; •exposure to many stringent regulations relating to privacy, data protection, and information security, particularly in the European Union, and potentially inconsistent laws and regulations in these areas across countries; •changes in a country’s or region’s political or economic conditions; •changes in relations between the United States and the European Union, including individual member states, such as the Netherlands; •risks resulting from changes in currency exchange rates and inflationary pressures; •risks resulting from the migration of invoicing from local billing entities to centralized regional billing entities; •the impact of public health epidemics or pandemics on our employees, partners, and customers; •challenges inherent in efficiently managing an increased number of employees over large geographic distances, including the need to implement appropriate systems, policies, benefits, and compliance programs; •risks relating to enforcement of U.S. export control laws and regulations that include the Export Administration Regulations (“EAR”), trade and economic sanctions, including restrictions promulgated by the Office of Foreign Assets Control (“OFAC”), and other similar trade protection regulations and measures in the United States or in other jurisdictions; •risks relating to our third-party vendors and service providers’ storage and processing of some of our and our customers’ data, including any supply chain cybersecurity attacks; •reduced ability to timely collect amounts owed to us by our customers in countries where our recourse for delinquent payments may be more limited; 26 26 26 Table of Contents Table of Contents •limitations on our ability to reinvest earnings from operations derived from one country to fund the capital needs of our operations in other countries; •limited or unfavorable intellectual property protection; and •exposure to liabilities under anti-corruption and anti-money laundering laws, including the U.S. Foreign Corrupt Practices Act of 1977, as amended (“FCPA”), and similar applicable laws and regulations in other jurisdictions. If we are unable to address these difficulties and challenges or other problems encountered in connection with our international operations and expansion, we might incur unanticipated liabilities or we might otherwise suffer harm to our business generally.

As of April 30, 2024, we had customers located in over 125 countries, and our strategy is to continue to expand internationally. In addition, as of April 30, 2024, as a result of our strategy of leveraging a distributed workforce, we had employees located in over 35 countries. Our current international operations involve and future initiatives may involve a variety of risks, including: •political and economic instability related to international disputes, such as the evolving conflict in Israel and Gaza and Russia’s war with Ukraine and the related impact on macroeconomic conditions as a result of such conflicts, which may negatively impact our customers, partners, and vendors; •unexpected changes in regulatory requirements, taxes, trade laws, tariffs, export quotas, custom duties or other trade restrictions; •different labor regulations, especially in the European Union, where labor laws are generally more advantageous to employees than in the United States, including deemed hourly wage and overtime regulations in these locations; •exposure to many stringent regulations relating to privacy, data protection and information security, particularly in the European Union, and potentially inconsistent laws and regulations in these areas across countries; •changes in a specific country’s or region’s political or economic conditions; •the evolving relations between the United States and China; •changes in relations between the Netherlands and the United States; •risks resulting from changes in currency exchange rates and inflationary pressures; •risks resulting from the migration of invoicing from local billing entities to centralized regional billing entities; •the impact of public health epidemics or pandemics on our employees, partners, and customers; •challenges inherent in efficiently managing an increased number of employees over large geographic distances, including the need to implement appropriate systems, policies, benefits and compliance programs; •risks relating to enforcement of U.S. export control laws and regulations including the Export Administration Regulations (“EAR”), trade and economic sanctions, including restrictions promulgated by the Office of Foreign Assets Control (“OFAC”), and other similar trade protection regulations and measures in the United States or in other jurisdictions; •risks relating to our third-party vendors and service providers’ storage and processing of some of our and our customers’ data, including any supply chain cybersecurity attacks; •reduced ability to timely collect amounts owed to us by our customers in countries where our recourse may be more limited; •limitations on our ability to reinvest earnings from operations derived from one country to fund the capital needs of our operations in other countries; •political, economic and trade uncertainties or instability related to the United Kingdom's withdrawal from the European Union (Brexit); •limited or unfavorable intellectual property protection; and •exposure to liabilities under anti-corruption and anti-money laundering laws, including the U.S. Foreign Corrupt Practices Act of 1977, as amended (“FCPA”), and similar applicable laws and regulations in other jurisdictions. If we are unable to address these difficulties and challenges or other problems encountered in connection with our international operations and expansion, we might incur unanticipated liabilities or we might otherwise suffer harm to our business generally. 27 27 27 Table of Contents Table of Contents