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Atlassian hits 52-week high after reporting better-than-expected earnings, revenue outlook
Mike Cannon-Brookes, co-founder of software company Atlassian Corp., in Sydney, Australia, Dec. 6, 2023.
Lisa Maree Williams | Bloomberg | Getty Images
Atlassian shares popped 19% after the software company blew past Wall Street’s fiscal second-quarter earnings and guidance expectations.
The stock traded near a fresh 52-week high and was on pace for their best day since July 30, 2021.
Adjusted earnings came in at 96 cents per share, ahead of the 76 cents per share projected by analysts polled by LSEG. Atlassian reported revenues of $1.29 billion, versus the $1.24 billion estimate.
For the third quarter, Atlassian said it anticipates $1.35 billion in revenue, above the $1.31 billion LSEG estimate and previous guidance.
Atlassian benefited from robust cloud and data center growth during the period as more customers turned to artificial intelligence solutions. That contributed to 30% subscription revenue growth over the prior year. Atlassian also said it now expects 26.5% cloud growth and 21.5% data center growth for the fiscal year.
“The momentum we’re seeing across the business reinforces our conviction around investments we are making in our key strategic priorities of serving enterprise customers, AI, and the System of Work to deliver durable, long-term growth,” finance chief Joe Binz said in an earnings release.
Shares have gained nearly 10% since the start of the year.
Atlassian, the Australian software company known for its collaboration tools like Jira and Confluence, hit a 52-week high after reporting better-than-expected earnings and revenue outlook.
The company announced that its revenue for the quarter ended September 30 was $559.5 million, up 26% year-over-year. Atlassian also reported earnings per share of $0.48, beating analysts’ expectations of $0.33.
Atlassian’s strong performance was driven by increased demand for its cloud-based products as more companies transition to remote work. The company also benefited from a shift towards digital transformation and automation in the workplace.
Looking ahead, Atlassian raised its revenue guidance for the full fiscal year, now expecting revenue to be in the range of $2.21 billion to $2.22 billion, up from its previous guidance of $2.19 billion to $2.20 billion.
Investors reacted positively to the news, sending Atlassian’s stock price soaring to a 52-week high. The company’s shares closed up 8% on the day of the earnings release.
Overall, Atlassian’s strong earnings and revenue outlook demonstrate its continued growth and success in the competitive software industry. Investors are optimistic about the company’s future prospects and its ability to capitalize on the increasing demand for collaboration and productivity tools in the digital age.
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