Atlassian (TEAM)

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Atlassian (TEAM) Tops Q3 Earnings and Revenue Estimates
ZACKS· 2025-05-01 22:40
Atlassian (TEAM) came out with quarterly earnings of $0.97 per share, beating the Zacks Consensus Estimate of $0.90 per share. This compares to earnings of $0.89 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.78%. A quarter ago, it was expected that this company would post earnings of $0.73 per share when it actually produced earnings of $0.96, delivering a surprise of 31.51%.Over the last four quarters, the company has sur ...
TEAM: Strong Results, Weak Guidance
The Motley Fool· 2025-05-01 21:31
Core Insights - Atlassian reported a revenue increase of 14% year-over-year, reaching $1.19 billion, and earnings per share rose by 9% to $0.89, exceeding expectations [2][3] - The company experienced a significant 25% growth in cloud revenue, indicating a successful transition to a cloud-based suite [3] - Despite strong quarterly results, the outlook for the upcoming quarter is cautious, with expected revenue between $1.349 billion and $1.359 billion, which is below Wall Street's consensus estimate of $1.36 billion [4] Financial Metrics - Revenue for Q3 2024 was $1.19 billion, while Q3 2025 is projected at $1.36 billion, reflecting a 14% increase [2] - Earnings per share increased from $0.89 to $0.97, a 9% rise [2] - The number of cloud customers generating over $10,000 annually grew by 14% to 50,715 [2][5] - Services revenue rose from $703.0 million to $880.4 million, marking a 25% increase [2] Market Reaction - Following the earnings report, Atlassian's shares fell by 15% in after-market trading, indicating investor concern over the cautious outlook [6] - Investors are particularly focused on the company's future growth prospects and management's insights during the upcoming conference call [7] Long-term Outlook - The transition to cloud services is expected to take years to fully materialize, suggesting potential volatility in the short term [8] - Despite current challenges, there remains optimism for long-term growth in the cloud sector [8]
Atlassian (TEAM) - 2025 Q3 - Earnings Call Transcript
2025-05-01 21:00
Financial Data and Key Metrics Changes - Total revenue for Q3 2025 reached $1.4 billion, with cloud revenue growing 25% year over year and a free cash flow margin of 47% [6][10]. - Gross margins improved to 86%, exceeding prior guidance, driven by price increases and engineering investments [40][41]. Business Line Data and Key Metrics Changes - Cloud revenue growth was primarily driven by increased adoption of premium enterprise editions, which rose over 40% year on year [14]. - Data center growth was mainly attributed to pricing, offset by strong migrations to cloud and fewer multiyear agreements [24][25]. Market Data and Key Metrics Changes - The company achieved FedRAMP Moderate Authorization for U.S. Federal Government customers, expanding its cloud platform offerings [9]. - Over 300,000 customers, including major enterprises like Mercedes and SAP, utilize Atlassian's solutions [9]. Company Strategy and Development Direction - Atlassian is focusing on integrating AI capabilities into its core products, with Robo being central to this strategy [7][10]. - The company aims to scale to $10 billion in revenue and beyond, leveraging its strategic priorities in enterprise solutions and AI advancements [10]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 20% compound annual growth rate (CAGR) through FY 2027, despite macroeconomic uncertainties [18][19]. - The company is adapting to longer deal cycles due to the complexity of enterprise deals, which is seen as a natural evolution rather than a macroeconomic issue [28]. Other Important Information - The introduction of the Teamwork Collection is expected to simplify purchasing for customers and drive long-term revenue growth [69][70]. - The isolated cloud offering is designed to meet the needs of large and complex organizations, providing dedicated resources [76]. Q&A Session Summary Question: Impact of embedding Robo on near-term revenue growth - Management noted that embedding Robo is expected to enhance user adoption and long-term growth potential, despite potential short-term revenue trade-offs [14][15]. Question: Cloud revenue growth and deal timing - Management acknowledged that enterprise deals were back-end loaded, impacting Q3 cloud revenue growth, but expected recognition in Q4 [23]. Question: Transition to annualized data center agreements - Management indicated that the change in agreement duration would lead to better cloud revenue growth contributions in FY 2026 and FY 2027 [36]. Question: Gross margin and efficiency gains - Management highlighted that gross margins of 86% were driven by price increases and efficient cloud infrastructure management, with expectations for continued improvements [40][41]. Question: Effect of tariffs on customer businesses - Management reported no significant macro impact from tariffs, emphasizing a strong pipeline and customer demand for cloud upgrades [54][55]. Question: CRO transition and go-to-market strategy - Management confirmed that the new CRO is adapting well, and the go-to-market strategy continues to evolve to meet customer needs [86][87].
Atlassian (TEAM) - 2025 Q3 - Earnings Call Transcript
2025-05-01 21:00
Financial Data and Key Metrics Changes - The company reported total revenue of $1.4 billion for Q3, with cloud revenue growing by 25% year over year and a free cash flow margin of 47% for the quarter [8][20][41] - Gross margins reached 86%, exceeding prior guidance, driven by price increases and engineering investments [41][43] Business Line Data and Key Metrics Changes - Cloud revenue growth was impacted by enterprise deals landing later than expected, affecting the growth rate recognized in Q3 [25][48] - Data center growth was primarily driven by pricing, offset by strong migrations to cloud and fewer multiyear agreements [26][27] Market Data and Key Metrics Changes - The company achieved FedRAMP Moderate Authorization for U.S. Federal Government customers, expanding its cloud platform offerings [10] - Over 300,000 customers, including major enterprises like Mercedes and SAP, utilize Atlassian's solutions [10] Company Strategy and Development Direction - The company is focusing on embedding AI capabilities into core products, aiming for user expansion and maximizing adoption [15][16] - The strategic goal is to scale to $10 billion in revenue and beyond, leveraging advancements in AI and enterprise solutions [11][20] Management's Comments on Operating Environment and Future Outlook - Management remains confident in achieving a 20% compound annual growth rate (CAGR) through FY '27, despite macroeconomic uncertainties [21][67] - The company is adapting its go-to-market strategy to better serve enterprise customers, reflecting a shift in customer mix and needs [86][88] Other Important Information - The introduction of the Teamwork Collection is seen as a long-term growth driver, simplifying purchasing behavior for customers [68][70] - The company is committed to maintaining structural efficiency gains and optimizing cloud costs while expanding its AI capabilities [42][81] Q&A Session Summary Question: Impact of AI adoption on revenue growth - Management noted that AI adoption is still in early stages, with many enterprises experimenting and cautious about deployment [91][92] Question: Changes in go-to-market strategy with new CRO - The company is continuously evolving its go-to-market strategy to adapt to customer needs and market dynamics, with the new CRO bringing valuable experience [86][89] Question: Effect of tariffs on customer businesses - Management indicated that the business remains healthy and customers are eager to upgrade to the cloud, with no significant macro impacts observed [54][55]
Atlassian (TEAM) - 2025 Q3 - Quarterly Results
2025-05-01 20:10
Atlassian Announces Third Quarter Fiscal Year 2025 Results Revenue of $1,357 million, up 14% year-over-year Subscription revenue of $1,273 million, up 19% year-over-year GAAP operating margin of (1)% and non-GAAP operating margin of 26% Cash flow from operations of $653 million and free cash flow of $638 million Team Anywhere/San Francisco (May 1, 2025) — Atlassian Corporation (NASDAQ: TEAM), a leading provider of team collaboration and productivity software, today announced financial results for its third ...
ATLASSIAN WILLIAMS RACING ANNOUNCES PARTNERSHIP WITH AI LEADER AIRIA
GlobeNewswire News Room· 2025-05-01 13:11
Miami, Florida, USA, May 01, 2025 (GLOBE NEWSWIRE) -- Ahead of this weekend’s 2025 FIA Formula 1 Miami Grand Prix, Atlassian Williams Racing is pleased to announce a new multi-year partnership with Airia, an innovative enterprise platform that enables organisations to orchestrate, deploy and manage AI solutions securely and at scale. Atlanta-headquartered Airia will become Official AI Orchestration Partner to Atlassian Williams Racing, the iconic British-based F1 team with nine Constructors’ World Champions ...
BlackLine (BL) Expected to Beat Earnings Estimates: What to Know Ahead of Q1 Release
ZACKS· 2025-04-29 15:08
BlackLine (BL) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on May 6, 2025, might help the stock move higher if these key numbers are better than expectation ...
Ahead of Atlassian (TEAM) Q3 Earnings: Get Ready With Wall Street Estimates for Key Metrics
ZACKS· 2025-04-28 14:21
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight. Analysts on Wall Street project that Atlassian (TEAM) will announce quarterly earnings of $0.90 per share in its forthcoming report, representing an increase of 1.1% year over year. Revenues are projected to reach $1.35 billion, increasing 13.3% from the same quarter las ...
Cloud software vendors Atlassian, Snowflake and Workday are betting on security startup Veza
CNBC· 2025-04-28 13:00
Core Insights - Tech companies are increasingly investing in cloud software vendors, showcasing a trend of collaboration among them [1] - Veza has successfully raised $108 million in a financing round, with a valuation exceeding $800 million [2] - Snowflake has utilized Veza's software for access management, highlighting the importance of controlling data access to mitigate security risks [3] Group 1: Investment Trends - Major tech firms like Google, Amazon, Microsoft, and Nvidia are making significant investments in AI startups, while cloud software vendors are also becoming aggressive in corporate investing [1] - The collaboration among software vendors, as seen in Veza's funding round, indicates a strategic shift towards collective investment efforts [1] Group 2: Veza's Business Model - Veza's software assists companies in managing employee access to various internal technologies, which is crucial for maintaining security [2][3] - The company has integrated with over 250 technologies, enhancing its value proposition in the market [4] Group 3: Security and Access Management - Snowflake's use of Veza emphasizes the need for effective access management to prevent over-provisioning, which can lead to increased security risks [3] - The ability to manage permissions for new hires and departures is a key feature of Veza's software, allowing for better control over corporate data access [3]
纳斯达克100指数涨超2%,成分股微芯科技涨9.6%,安森美半导体涨7.5%,迈威尔科技、ADI、德州仪器、TEAM、拉姆研究、恩智浦、AppLovin、铿腾电子、Arm控股等至多涨6.96%,百事可乐仍然跌2.8%,康卡斯特跌4.7%,Fiserv跌14.8%。标普500指数目前涨1.4%,纳指涨1.98%,费城半导体指数涨4.6%,银行指数涨1.3%,罗素2000指数涨0.8%。特斯拉涨2%,苹果涨0.8%。
news flash· 2025-04-24 15:20
Market Performance - Nasdaq 100 index increased by over 2%, with Microchip Technology rising by 9.6% and ON Semiconductor by 7.5% [1] - Other notable gainers include Marvell Technology, Analog Devices, Texas Instruments, Atlassian, Lam Research, NXP Semiconductors, AppLovin, Arm Holdings, and others, with increases up to 6.96% [1] - S&P 500 index rose by 1.4%, Nasdaq by 1.98%, and Philadelphia Semiconductor index by 4.6% [1] Individual Stock Performance - Microchip Technology Inc price at $45.96, up by $4.03 [2] - ON Semiconductor Corp price at $39.36, up by $2.73 [2] - Marvell Technology Inc price at $57.51, up by $3.74 [2] - Analog Devices Inc price at $195.61, up by $12.49 [2] - Texas Instruments Inc price at $162.24, up by $10.09 [2] - Atlassian Corp price at $221.16, up by $12.89 [2] - Lam Research Corp price at $70.82, up by $4.09 [2] - NXP Semiconductors NV price at $191.20, up by $10.33 [2] - AppLovin Corp price at $266.10, up by $13.75 [2] - Arm Holdings PLC price at $110.55, up by $5.39 [2] - Other companies like MongoDB, Broadcom, CrowdStrike, and Zscaler also showed significant gains [2]