Atlassian (TEAM) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

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]