Atlassian (TEAM)

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Atlassian (TEAM) Q2 Earnings and Revenues Top Estimates
ZACKS· 2025-01-30 23:25
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]
Atlassian (TEAM) - 2025 Q2 - Quarterly Results
2025-01-30 21:10
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]
Atlassian to Report Q2 Earnings: What's in Store for the Stock?
ZACKS· 2025-01-28 17:01
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].
FRED'S TEAM RAISES OVER $8.5 MILLION FOR CANCER RESEARCH IN RECORD-BREAKING YEAR
GlobeNewswire News Room· 2025-01-16 17:05
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]
Why Atlassian Stock Popped on Wednesday
The Motley Fool· 2025-01-15 17:56
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]
Atlassian Stock Rises 24% in 3 Months: What Should Investors Do?
ZACKS· 2025-01-14 16:01
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]
Atlassian: The High Growth Continues
Seeking Alpha· 2024-12-16 20:17
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]
HIGHLY EXPERIENCED MINING EXECUTIVE JOINS LUCA TEAM
Prnewswire· 2024-12-12 22:00
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].
Atlassian to Accelerate Cloud Migration With Amazon Web Services
ZACKS· 2024-12-05 14:56
Core Insights - Atlassian's shares have increased by 81.9% over the past six months, significantly outperforming the Zacks Internet-Software industry, Zacks Computer and Technology sector, and the S&P 500 index, which grew by 21%, 9.2%, and 12.7% respectively, indicating strong investor confidence in the company's product portfolio and financials [1]. Group 1: Strategic Collaborations and Offerings - Atlassian has partnered with Amazon Web Services (AWS) to accelerate cloud transformation initiatives and provide advanced AI and security solutions to enterprises, facilitating the transition from Atlassian's Data Center to Atlassian Cloud [2]. - The Atlassian Cloud will feature services related to AI, automation, analytics, and unified search, aimed at enhancing enterprise productivity while ensuring security and compliance [3]. - The collaboration will also support enterprises in developing applications on Atlassian's Forge platform using AWS technologies, including generative AI tools like Amazon Bedrock [4]. Group 2: Market Growth and Financial Projections - Atlassian is capitalizing on the digitalization of work and the rapid adoption of cloud services, with the global enterprise collaboration market projected to grow from $54.5 billion in 2023 to approximately $90.6 billion by 2028, reflecting a CAGR of 10.7% [5]. - The integration of AI across Atlassian's cloud platform is expected to drive cloud migration, with new offerings like Jira Product Discovery Premium, Compass Premium, and Guard Premium enhancing this momentum [6]. - The Zacks Consensus Estimate for Atlassian's fiscal 2025 revenues is $5.08 billion, indicating a year-over-year growth of 16.64%, while earnings are estimated at $3.18, suggesting a year-over-year growth of 8.5% [7]. Group 3: Competitive Landscape and Challenges - Atlassian faces challenges from softening IT spending as enterprises delay large IT investments due to a weakening global economy, which may negatively impact the company's near-term prospects [11]. - The collaboration and workflow software market is highly competitive, with major players like Broadcom, Microsoft, Alphabet, Salesforce, and IBM posing significant competition to Atlassian's offerings [12]. - Rising competition in the cloud sector has led Atlassian to adopt competitive pricing strategies, while its R&D expenses have increased by 23.7% year-over-year, driven by investments in AI to enhance product capabilities [13].
Why Atlassian Surged Today
The Motley Fool· 2024-12-04 20:46
Core Insights - Atlassian's shares increased by 6.6% following positive earnings in the enterprise productivity software sector and a significant collaboration with Amazon Web Services [1] Group 1: Strategic Collaboration - Atlassian and AWS announced a strategic collaboration agreement aimed at accelerating the migration of large enterprise workloads to Atlassian Cloud, which operates on AWS [2] - The collaboration addresses barriers to cloud migration, such as security, timing, and cost concerns, by leveraging Atlassian Cloud's advanced capabilities like AI, automation, and analytics [3] - A joint Cloud Center for Excellence will be established to facilitate the migration of complex workloads for large enterprises, allowing them to utilize cutting-edge cloud tools [4] Group 2: Market Position and Valuation - The partnership with AWS is seen as a strong endorsement of Atlassian's capabilities from a leading cloud provider, enhancing its competitive position in the market [5] - Atlassian's current valuation stands at 16.3 times sales, indicating a high market expectation, especially after a recent positive earnings report [6]