Key TakeawaysAtlassian shares jumped 20% in extended trading Thursday after the software company issued an upbeat revenue outlook amid robust demand for its AI-powered cloud offerings.The price sits poised to stage a breakout above a pennant in Friday’s trading session, signaling a continuation of the stock's strong uptrend.Investors should watch key overhead areas on Atlassian's chart around $335, $400, and $460, while also eyeing an important support level near $288. Atlassian (TEAM) shares surged in exte ...

Core Insights - Atlassian reported $1.29 billion in revenue for the quarter ended December 2024, marking a year-over-year increase of 21.4% [1] - The earnings per share (EPS) for the same period was $0.96, compared to $0.73 a year ago, reflecting a significant increase [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.24 billion by 4.12%, while the EPS surprise was 31.51% over the consensus estimate of $0.73 [1] Financial Performance Metrics - The company has 300,000 customers, slightly below the two-analyst average estimate of 302,104 [4] - Subscription revenues reached $1.21 billion, surpassing the eight-analyst average estimate of $1.17 billion, with a year-over-year change of 30.2% [4] - Other revenues amounted to $73.22 million, exceeding the average estimate of $63.66 million, representing a year-over-year increase of 24.5% [4] - Cloud revenues were reported at $846.96 million, above the seven-analyst average estimate of $818.55 million, with a year-over-year change of 29.7% [4] - Data Center revenues reached $362.28 million, surpassing the six-analyst average estimate of $349.76 million, reflecting a year-over-year increase of 31.9% [4] - Marketplace and other revenues were $77.22 million, exceeding the average estimate of $67.16 million, with a year-over-year change of 22.6% [4] Stock Performance - Atlassian shares have returned +11.5% over the past month, significantly outperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Group 1 - Atlassian reported quarterly earnings of $0.96 per share, exceeding the Zacks Consensus Estimate of $0.73 per share, and showing an increase from $0.73 per share a year ago, resulting in an earnings surprise of 31.51% [1] - The company achieved revenues of $1.29 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.12%, compared to $1.06 billion in the same quarter last year [2] - Atlassian has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Group 2 - The stock has gained approximately 11.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 2.7% [3] - The future performance of Atlassian's stock will largely depend on management's commentary during the earnings call and the subsequent revisions of earnings estimates [3][4] - Current consensus EPS estimate for the upcoming quarter is $0.84 on revenues of $1.32 billion, and for the current fiscal year, it is $3.19 on revenues of $5.09 billion [7] Group 3 - The Internet - Software industry, to which Atlassian belongs, is currently ranked in the top 19% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Total revenue for Q2 FY 2025 was $1,286 million, representing a 21% increase year-over-year[1] - Subscription revenue reached $1,213 million, up 30% year-over-year[1] - Operating income for Q2 FY 2025 was $335.1 million, compared to $250.6 million in Q2 FY 2024[3] - Total revenues for the three months ended December 31, 2024, were $1,286,463, representing a 21.3% increase from $1,060,110 in the same period of 2023[23] - Subscription revenues for the six months ended December 31, 2024, reached $2,345,196, up 31.5% from $1,784,163 in the prior year[23] - Cloud revenue for the three months ended December 31, 2024, was $846,962 thousand, up 29.7% from $653,210 thousand in the prior year[29] - GAAP net loss for the three months ended December 31, 2024, was $(38,208) thousand, compared to a net loss of $(84,469) thousand for the same period in 2023, representing a 54.8% improvement[32] - Non-GAAP net income for the three months ended December 31, 2024, was $255,627 thousand, an increase of 35% from $189,506 thousand in the same period of 2023[32] Cash Flow and Margins - Cash flow from operations was $352 million, with free cash flow of $343 million[1] - Free cash flow for the three months ended December 31, 2024, was $342,569 thousand, compared to $284,261 thousand for the same period in 2023, reflecting a 20.5% increase[32] - The company reported a net cash provided by operating activities of $351,905 thousand for the three months ended December 31, 2024, compared to $289,594 thousand in the same period of 2023, a 21.5% increase[32] - Cash and cash equivalents as of December 31, 2024, were $2,217,604, an increase from $2,176,930 as of June 30, 2024[25] - Cash, cash equivalents, and restricted cash at the end of the period totaled $2,218,639 thousand, up from $1,461,763 thousand at the end of the same period in 2023[27] Customer Growth - Atlassian ended Q2 FY 2025 with 49,449 customers generating over $10,000 in Cloud annualized recurring revenue, a 15% increase year-over-year[4] - The number of customers with Cloud ARR greater than $10,000 is defined as organizations with unique domains having an active Cloud subscription for two or more seats[19] Future Projections - The company expects total revenue for Q3 FY 2025 to be in the range of $1,345 million to $1,353 million[11] - Cloud revenue growth year-over-year is projected to be approximately 23.5% for Q3 FY 2025[11] - Fiscal Year Ending June 30, 2025, GAAP gross margin is projected to be between 81.5% and 82.0%[35] - Fiscal Year Ending June 30, 2025, Non-GAAP gross margin is projected to be between 84.0% and 84.5%[35] - GAAP operating margin for the fiscal year is projected to be (4.0%) [35] - Non-GAAP operating margin for the fiscal year is expected to remain at 23.5%[35] Strategic Initiatives - Atlassian announced a strategic partnership with Amazon Web Services to enhance cloud services and AI capabilities[4] - The company was recognized as a leader in multiple industry reports, including The Forrester Wave and Gartner Magic Quadrant[4] Operational Metrics - GAAP operating margin was (4%) while non-GAAP operating margin was 26%[3] - Gross profit for the three months ended December 31, 2024, was $1,063,336, compared to $865,574 for the same period in 2023, indicating a gross margin improvement[23] - Non-GAAP gross margin improved to 85% for the three months ended December 31, 2024, compared to 84% in the same period of 2023[32] - GAAP gross margin for the three months ending March 31, 2025, is 82.0%[35] - Non-GAAP gross margin for the same period is 84.5%[35] Losses and Expenses - Operating loss for the three months ended December 31, 2024, was $(57,479), slightly higher than $(49,062) in the same period of 2023[23] - Net loss for the six months ended December 31, 2024, was $(161,977), compared to $(116,352) for the same period in 2023, reflecting increased operational costs[23] - Stock-based compensation for the three months ending March 31, 2025, is 1.5 million[35] - Amortization of acquired intangible assets for the same period is 1.0 million[35]

Core Viewpoint - Atlassian is expected to report strong fiscal second-quarter results driven by robust cloud adoption and digital transformation trends, despite challenges from a soft IT spending environment [4][8]. Revenue and Earnings Estimates - Atlassian projects fiscal second-quarter revenues between $1.233 billion and $1.241 billion, with a Zacks Consensus Estimate of $1.24 billion, indicating a year-over-year growth of 16.6% [2]. - The consensus estimate for earnings per share remains at 73 cents, consistent with the previous year’s non-GAAP earnings [2]. Performance History - Atlassian has consistently surpassed the Zacks Consensus Estimate in the last four quarters, with an average surprise of 24.4% [3]. Growth Drivers - The strong adoption of Atlassian's cloud-based offerings and the shift towards hybrid work models are expected to positively impact the company's performance [4]. - Revenue from Cloud deployment is estimated at $811.6 million, reflecting a 24.2% increase year-over-year, while Data Center deployment revenues are anticipated to grow by 26.2% to $346.6 million [5]. - Demand for key products like Jira Software and Confluence Cloud, along with advanced solutions such as Jira Product Discovery Premium, is expected to contribute to growth [6]. Technological Integration - Atlassian's focus on integrating AI features into its software is likely to enhance its revenue, supported by a partnership with Amazon Web Services aimed at accelerating cloud transformation [7]. Market Challenges - The company's performance may be impacted by a challenging IT spending environment, high interest rates, and inflation, leading to postponed IT investments by businesses [8]. Earnings Prediction Model - Current analysis indicates that Atlassian does not have a strong likelihood of beating earnings estimates, with an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell) [9][10].

Core Insights - Fred's Team achieved a record-breaking fundraising total of $8,529,723 in 2024, marking the fourth consecutive year of surpassing its single-season fundraising record, with all funds directed to Memorial Sloan Kettering Cancer Center (MSK) for cancer research [1] - The program has grown significantly since its inception in 1995, evolving from a local initiative to a global community dedicated to cancer research [6] - Fred's Team's involvement in major events like the TCS New York City Marathon and United Airlines NYC Half highlights its commitment to raising funds for cancer research while fostering community engagement [7] Fundraising and Community Engagement - The 2024 roster included over 1,000 runners, with nearly 100 being MSK medical professionals, showcasing the strong commitment of the MSK community to cancer research [3] - Fred's Team introduced the role of Mile 17 Cheer Captain at the TCS New York City Marathon, with the inaugural captain being a former MSK pediatric patient, emphasizing the personal connections within the community [4] - The program continues to see a rise in fundraising across various events, indicating sustained support for cancer research initiatives [7] Research Impact - Funding from Fred's Team supports critical research into cancer signaling pathways, particularly in breast cancer, led by oncologists at MSK [2] - The financial contributions are directly linked to advancements in cancer treatment, as highlighted by the ongoing research efforts at MSK [3][10]

Core Viewpoint - Atlassian's stock has seen a price increase due to significant price hikes announced for its products, indicating strong pricing power in the software market [1][2][3] Price Increases - Effective February 11, Atlassian will raise prices for its Jira Service Management, Jira Software, and Confluence products by 23%, 24%, and 29% respectively, according to Barclays and Citi [2] - These increases are notably higher than the 5% to 15% hikes implemented in 2024 [2] Analyst Opinions - Citi describes the price hikes as "aggressive," but interprets them as a sign of Atlassian's robust pricing power, suggesting that customers will not be deterred and that the hikes will enhance profitability [3] - Both Barclays and Citi maintain buy recommendations for Atlassian shares, with price targets of $275 and $255 respectively [4] Investment Considerations - Despite the positive outlook from analysts, Atlassian's stock is already priced above $250, implying limited upside potential of 10% from Barclays' target and only 2% from Citi's target [5] - The company generates strong free cash flow of $1.3 billion annually, but with a market cap of $64 billion, this results in a high price-to-free cash flow ratio of nearly 50, which may be considered excessive [5]

Group 1: Company Performance - Atlassian (TEAM) shares have increased by 23.7% over the past three months, outperforming the Zacks Computer Technology sector, Zacks Internet Software industry, and the S&P 500, which returned 3.9%, 5.3%, and 1.1% respectively [1] - The Zacks Consensus Estimate for Atlassian's fiscal 2025 revenues is projected at $5.08 billion, indicating a year-over-year growth of 16.64% [6] - The Zacks Consensus Estimate for TEAM's fiscal 2025 earnings is pegged at $3.18, suggesting a year-over-year growth of 8.5% [6] Group 2: Market Trends and Growth Drivers - Atlassian is benefiting from the ongoing digitalization of work and the rapid adoption of cloud services, with the global enterprise collaboration market expected to grow from approximately $66.79 billion in 2025 to about $111.02 billion by 2030, reflecting a CAGR of 10.7% [2] - The company is focusing on selling more subscription-based solutions, which have been its fastest-growing segment, witnessing a CAGR of over 43% between fiscal 2020 and 2024 [5] - Atlassian is integrating artificial intelligence (AI) across its cloud platform to enhance its offerings and drive cloud migration [4] Group 3: Competitive Landscape - Atlassian faces significant competition from industry leaders such as Broadcom, Microsoft, Alphabet, Salesforce, and IBM, which impacts its market position [9] - Increased competition has led Atlassian to raise its research and development (R&D) spending, with non-GAAP R&D expenses rising by 23.7% year over year, while revenue growth was 21.5% [10] Group 4: Challenges and Concerns - Near-term prospects for Atlassian may be negatively affected by softening IT spending as enterprises delay large IT investments due to a weakening global economy [8] - The company's customer growth rate has decelerated, with a CAGR of 14.7% between fiscal 2020 and 2024, significantly lower than the 30% CAGR from fiscal 2016 to 2020 [11]

Company Overview - Khaveen Investments is a Macroquantamental Hedge Fund managing a globally diversified portfolio across various asset classes, countries, sectors, and industries [1] - The company employs a multifaceted investment approach combining top-down and bottom-up methodologies, integrating global macro, fundamental, and quantitative strategies [1] - Khaveen Investments serves accredited investors globally, including HNW Individuals, Corporates, Associations, and Institutions [1] Investment Focus - The company specializes in cutting-edge technologies reshaping industries, with a strategic focus on Artificial Intelligence, Cloud Computing, 5G, Autonomous & Electric Vehicles, FinTech, Augmented & Virtual Reality, and the Internet of Things [1] Analyst Position - The analyst holds a beneficial long position in TEAM shares through stock ownership, options, or other derivatives [1]

Core Viewpoint - Luca Mining Corp. has appointed Mr. Ramon Mendoza Reyes as Chief Technical Officer to lead the company's technical and growth initiatives, marking a significant step in its growth phase [1][3]. Company Overview - Luca Mining Corp. is a diversified Canadian mining company with two 100%-owned producing mines in the Sierra Madre mineralized belt in Mexico, producing gold, copper, zinc, silver, and lead [6]. Appointment of CTO - Mr. Mendoza brings over 35 years of experience in the mining industry, specializing in mine development and process improvements, and has a successful track record in managing both underground and open-pit operations [4][5]. - His previous roles include significant contributions at First Majestic Silver Corp., where he was involved in strategic management and project implementation [5]. Growth Strategy - The company is entering a new growth phase, aiming to expand its resource base, increase production, and enhance cash flow and share price performance [3]. - The Campo Morado mine is currently undergoing an optimization program that is improving recoveries, grades, efficiencies, and cash flows [7]. - The Tahuehueto Gold, Silver Mine is expected to achieve commercial production by the end of the year as it commissions its mill [8].