Workflow
Atlassian (TEAM)
icon
Search documents
Why Atlassian Stock Soared Today
The Motley Fool· 2024-11-01 16:42
After experiencing a recent slowdown, the company's growth is heating back up.Shares of enterprise software company Atlassian (TEAM 19.64%) soared on Friday after the Australian outfit reported financial results for its fiscal first quarter of 2025. As of 10:30 a.m. ET, Atlassian stock was up about 15%, but it had been up as much as 22% earlier in the day.Atlassian's growth is heating upAtlassian's software remains popular, as evidence by ongoing customer acquisition and spending growth. In its Q1, the comp ...
Atlassian Stock Jumps After Its Results, Outlook Impress
Investopedia· 2024-11-01 16:00
Key TakeawaysAtlassian beat profit and sales estimates and raised its outlook as its artificial intelligence offerings helped drive subscriptions.The software and services provider for developers and project managers reported a 33% jump in subscription revenue.Atlassian now expects full year revenue growth of as much as 17%, up slightly from earlier projections. Atlassian (TEAM) shares surged Friday after the business-software company posted better-than-expected quarterly results and raised its guidance as ...
Atlassian Q1 Earnings Beat: Will Upbeat Sales View Lift the Stock?
ZACKS· 2024-11-01 13:46
Atlassian (TEAM) reported first-quarter fiscal 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Its non-GAAP earnings per share of 77 cents beat the Zacks Consensus Estimate of 63 cents. The figure jumped 18.5% from the year-ago quarter's non-GAAP earnings of 65 cents per share, driven by strong top-line growth and disciplined cost management. Find the latest EPS estimates and surprises on Zacks Earnings Calendar. TEAM's fiscal first-quarter revenues climbed 21.5% year over yea ...
Atlassian (TEAM) - 2025 Q1 - Earnings Call Transcript
2024-10-31 23:27
Financial Data and Key Metrics - Cloud revenue increased by 31% YoY, exceeding expectations of 27% growth [38] - Paid seat expansion and migrations were key drivers of cloud revenue outperformance [38][39] - Atlassian Intelligence usage increased more than 10 times since the start of the year [19] Business Line Data and Key Metrics - Jira Service Management (JSM) has over 55,000 customers, with strong growth in both DevOps and employee service management [66][68] - New AI-powered products like Rovo and Atlassian Intelligence are driving customer adoption and premium edition upgrades [12][19] - Jira Product Discovery Premium, Compass Premium, and Guard Premium were introduced, adding advanced capabilities to cloud offerings [13] Market Data and Key Metrics - Enterprise trends were healthy, with solid results on annual and multi-year deals, migrations, and upsell to premium enterprise editions [24] - SMB customer segment showed signs of stabilization, with stable paid seat expansion rates and healthy top-of-funnel metrics [24] Company Strategy and Industry Competition - Atlassian is focusing on serving the enterprise, delivering AI innovation, and empowering teams through its system of work [14] - The company is leveraging its cloud platform and AI capabilities to break down silos between software, IT, and business teams [10][11] - Atlassian is well-positioned in the AI era with its R&D engine and over 20 years of data on team workflows [11][12] Management Commentary on Operating Environment and Future Outlook - The macro environment remains stable, with continued stabilization in the SMB segment and healthy enterprise trends [24][25] - AI is seen as a tool to enhance human creativity and business efficiency, with no signs of seat cannibalization [20][21] - The company is confident in its ability to drive results despite a challenging macro environment [28] Other Important Information - Atlassian introduced Atlassian Focus, a new product in its enterprise strategy and planning solution [13] - The company is integrating Loom into its platform faster than any previous acquisition [61] Q&A Session Summary Question: AI Product Releases and Proof Points [16] - Atlassian has a two-pronged AI strategy: Atlassian Intelligence threaded throughout the platform and Rovo as a separate AI product [18] - Customers have seen significant time savings and increased ROI from AI products, driving premium and enterprise edition upgrades [19][20] Question: Cloud Platform Upsell and Cross-Sell Effectiveness [23] - Cloud platform outperformance was driven by stable macro environment, good sales execution, and fundamental business health [24][25] - Consolidation onto the Atlassian cloud platform and AI capabilities are driving growth [26][27] Question: AI Strategy and Pricing [30] - Atlassian Intelligence is embedded in existing products, while Rovo is a standalone AI product built for the AI era [31][32] - Rovo revenue will be included in cloud results, with modest revenue expected in FY25 [36] Question: Cloud Revenue Outperformance and Sales Go-to-Market [37] - Cloud revenue beat was driven by better-than-expected paid seat expansion and migrations [38] - New CRO Brian Duffy is expected to help mature the sales go-to-market function [41][42] Question: AI Differentiation and User Base Addressability [44] - Atlassian is differentiated in AI with its cloud platform, Teamwork Graph, and enterprise search engine [45][46] - Rovo is built on years of investment and delivers significant value to customers [47][48] Question: Consumption Pricing Strategy [51] - Atlassian has a defensive consumption-based pricing strategy, with AI and virtual service agents driving new opportunities [52][53] - Consumption pricing is modestly included in guidance, with a conservative approach to scaling [55] Question: R&D and Product Innovation [57] - Atlassian's R&D focus on developer productivity and platform maturity has led to a flurry of product innovation [58][59] - The cloud platform enables faster and more mature product development [60][61] Question: Jira Service Management Competitive Dynamics [64] - JSM continues to grow strongly, with AI enhancing its capabilities in DevOps and employee service management [66][68] - Atlassian is outperforming competitors in AI-driven virtual service agents and automation [69][70] Question: Data Center to Cloud Migration Timing [74] - Larger data center customers are moving to the cloud, with some adopting hybrid deployments before full migration [75][76] - Migration projects are multi-year journeys, with macro factors potentially affecting timing [77][78] Question: Macro Environment and Guidance [82] - Atlassian's guidance remains conservative due to macro uncertainty and execution risks in enterprise go-to-market evolution [83][84] - The company is taking a long-term view while navigating short-term challenges [85] Question: Cloud Deal Timing and Pricing Increases [87] - Deal timing was not a factor in Q1, with healthy deal flow throughout the quarter [88] - Atlassian takes a disciplined approach to pricing and concessions, focusing on long-term value [89][90]
Atlassian (TEAM) Reports Q1 Earnings: What Key Metrics Have to Say
ZACKS· 2024-10-31 23:01
For the quarter ended September 2024, Atlassian (TEAM) reported revenue of $1.19 billion, up 21.5% over the same period last year. EPS came in at $0.77, compared to $0.65 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $1.15 billion, representing a surprise of +3.08%. The company delivered an EPS surprise of +22.22%, with the consensus EPS estimate being $0.63. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ho ...
Atlassian (TEAM) Surpasses Q1 Earnings and Revenue Estimates
ZACKS· 2024-10-31 22:20
Atlassian (TEAM) came out with quarterly earnings of $0.77 per share, beating the Zacks Consensus Estimate of $0.63 per share. This compares to earnings of $0.65 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 22.22%. A quarter ago, it was expected that this company would post earnings of $0.59 per share when it actually produced earnings of $0.66, delivering a surprise of 11.86%.Over the last four quarters, the company has su ...
Atlassian (TEAM) - 2025 Q1 - Quarterly Results
2024-10-31 20:10
Revenue and Growth - Revenue of $1,188 million, up 21% year-over-year[1] - Subscription revenue of $1,132 million, up 33% year-over-year[1] - Total revenue expected to be $1,233 million to $1,241 million in Q2 FY2025[8] - Total revenue growth expected to be 16.5% to 17.0% year-over-year for FY2025[10] - Total revenues for Q3 2024 were $1,187,781 thousand, a 21.5% increase from $977,775 thousand in Q3 2023[20] - Cloud revenues for Q3 2024 were $792,306 thousand, a 31% increase from $604,647 thousand in Q3 2023[27] - Data Center revenues for Q3 2024 were $335,594 thousand, a 38.1% increase from $242,943 thousand in Q3 2023[27] Profitability and Margins - GAAP operating margin of (3)% and non-GAAP operating margin of 23%[1] - GAAP gross profit for Q3 2024 was $970.157 million, compared to $799.746 million in Q3 2023[29] - Non-GAAP gross margin remained stable at 84% for both Q3 2024 and Q3 2023[29] - GAAP operating loss increased to $(31.978) million in Q3 2024 from $(18.869) million in Q3 2023[29] - Non-GAAP operating income rose to $268.050 million in Q3 2024 from $224.943 million in Q3 2023[29] - Non-GAAP gross margin for Q4 2024 is expected to be 84%[30] - Non-GAAP operating margin for fiscal year 2025 is forecasted to be between 22.0% and 22.5%[31] Cash Flow and Financial Position - Cash flow from operations of $80 million and free cash flow of $74 million[1] - Cash and cash equivalents decreased to $2,055,597 thousand as of September 30, 2024, from $2,176,930 thousand as of June 30, 2024[23] - Free cash flow decreased to $74.341 million in Q3 2024 from $163.287 million in Q3 2023[29] Expenses - Total operating expenses for Q3 2024 were $1,002,135 thousand, a 22.4% increase from $818,615 thousand in Q3 2023[20] - Research and development expenses for Q3 2024 were $603,101 thousand, a 25.2% increase from $481,738 thousand in Q3 2023[20] - Marketing and sales expenses for Q3 2024 were $252,393 thousand, a 30.4% increase from $193,567 thousand in Q3 2023[20] - General and administrative expenses for Q3 2024 were $146,641 thousand, a 2.3% increase from $143,310 thousand in Q3 2023[20] Net Income and Loss - Net loss for Q3 2024 was $123,769 thousand, compared to a net loss of $31,883 thousand in Q3 2023[20] - GAAP net loss widened to $(123.769) million in Q3 2024 from $(31.883) million in Q3 2023[29] - Non-GAAP net income increased to $199.700 million in Q3 2024 from $168.980 million in Q3 2023[29] Cloud and Data Center Performance - 46,844 customers with >$10,000 in Cloud ARR, up 17% year-over-year[4] - Cloud revenue growth expected to be 25.5% year-over-year in Q2 FY2025[8] - Data Center revenue growth expected to be 27.5% year-over-year in Q2 FY2025[8] - Cloud ARR is defined as the annualized recurring revenue run-rate of Cloud subscription agreements, calculated by multiplying Cloud MRR by 12[18] Product Launches and Innovations - Launch of Rovo, an AI-powered product for organizational knowledge[4] Tax Rate Projections - Projected Non-GAAP tax rate for fiscal year 2025 is 26%[29]
Unveiling Atlassian (TEAM) Q1 Outlook: Wall Street Estimates for Key Metrics
ZACKS· 2024-10-28 14:21
Analysts on Wall Street project that Atlassian (TEAM) will announce quarterly earnings of $0.63 per share in its forthcoming report, representing a decline of 3.1% year over year. Revenues are projected to reach $1.15 billion, increasing 17.9% from the same quarter last year. Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe. Before a co ...
Analyst Upgrades on Atlassian Stock Underlining Its AI Integration
GuruFocus· 2024-10-04 21:22
Atlassian (TEAM, Financial)'s stock price has seen a general upward trend since August following positive financial results and positive sentiment from Goldman Sachs' analysts that upgraded Atlassian's rating from Neutral to Buy in August 2024. The increasing demand for collaboration software, driven by remote work trends and digital transformation initiatives, has benefited Atlassian. The company's products, such as Jira and Confluence, are well-positioned to capitalize on this growing market.Despite the i ...
2 Software Stocks Falling Despite Bull Notes
Schaeffers Investment Research· 2024-10-01 14:47
Shares of software companies Atlassian Corp (NASDAQ:TEAM) and Datadog Inc (NASDAQ:DDOG) are both lower today, falling alongside the broader market despite upgrades.Atlassian stock is 1.3% lower to at $156.71, brushing off an upgrade to "outperform" at Raymond James. The analyst hiked its rating on TEAM from "market perform" and set a $200 price target, noting it expects stronger cloud growth in 2025 . According to its bull note, Raymond James sees "a path to mid/high-20% cloud growth and total company growt ...