Here's What Key Metrics Tell Us About Atlassian (TEAM) Q3 Earnings

Core Insights - Atlassian reported revenue of $1.19 billion for the quarter ended March 2024, reflecting a year-over-year increase of 29.9% and surpassing the Zacks Consensus Estimate by 8.49% [1] - Earnings per share (EPS) for the quarter was $0.89, a significant increase from $0.54 in the same quarter last year, resulting in an EPS surprise of 45.90% compared to the consensus estimate of $0.61 [1] Revenue Breakdown - Total customers reached 300,000, slightly below the average estimate of 306,753 [2] - Subscription revenue was $1.07 billion, exceeding the average estimate of $1 billion, with a year-over-year growth of 40.8% [2] - Maintenance revenue was reported at $29.53 million, below the average estimate of $33.18 million, showing a significant decline of 68.7% year-over-year [2] - Other revenues amounted to $88.24 million, surpassing the average estimate of $62.65 million, with a year-over-year increase of 45.7% [2] - Cloud revenue reached $703.04 million, slightly above the estimated $694.84 million, reflecting a year-over-year growth of 31.4% [2] - Data Center revenue was $364.13 million, exceeding the average estimate of $296.55 million, with a year-over-year increase of 64.4% [2] - Server revenue was $29.72 million, below the average estimate of $30.78 million, indicating a year-over-year decline of 68.5% [2] - Marketplace and other revenues totaled $92.24 million, surpassing the average estimate of $66.54 million, with a year-over-year increase of 42.7% [2] Stock Performance - Atlassian shares have returned +3% over the past month, contrasting with the Zacks S&P 500 composite's -3% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]