Core Insights - Atlassian (TEAM) reported strong fiscal Q4 2025 results, with non-GAAP earnings per share of 98 cents, exceeding the Zacks Consensus Estimate by 18.1% and reflecting a 48.5% increase from the previous year [1][2] Financial Performance - Fiscal Q4 revenues increased by 22% year over year to $1.38 billion, surpassing the Zacks Consensus Estimate by 2.3%, driven by growth in Atlassian Government Cloud and AI adoption [2][4] - Subscription revenues rose 22.8% year over year to $1.31 billion, while Other revenues increased by 14.5% to $71.8 million [3] - Cloud revenues reached $927.7 million, up 25.7% year over year, and Data Center revenues rose 16.6% to $380.8 million [4] - Non-GAAP gross profit increased by 25.1% year over year to $1.18 billion, with a gross margin of 85.3%, up 190 basis points from the prior year [5] Operating Metrics - Non-GAAP operating income grew by 51% year over year to $335.9 million, with an operating margin improvement of 460 basis points to 24.3% [5] - The company generated $375.3 million in operating cash flow and $360.3 million in free cash flow during the quarter [6] Future Guidance - For Q1 fiscal 2026, Atlassian projects revenues between $1.395 billion and $1.403 billion, with a non-GAAP gross margin of 84.5% and an operating margin of 20.5% [7] - For fiscal 2026, the company expects revenue growth of 18% year over year, with a projected gross margin of 85.5% and an operating margin of 24% [8]

Core Insights - Guidewire Software, Inc (GWRE) reported non-GAAP earnings per share of 88 cents for Q3 fiscal 2025, representing a 238.5% increase year over year and exceeding the Zacks Consensus Estimate by 91.3% [1] - The company achieved revenues of $293.5 million, a 22% year-over-year increase, surpassing the Zacks Consensus Estimate by 2.7% and exceeding its own guidance of $283-$289 million [1][2] - Annual recurring revenues (ARR) reached $960 million, up 15.9% year over year, with an updated fiscal 2025 ARR forecast of $1.012 billion to $1.022 billion [2] Revenue Performance - GWRE expects total revenues for fiscal 2025 to be between $1.178 billion and $1.186 billion, an increase from the previous guidance of $1.164 billion to $1.174 billion [3] - Subscription revenues are projected at $660 million, while subscription and support revenues are expected to be $724 million, with services revenues anticipated at approximately $215 million [3] Operating Income and Cash Flow - Non-GAAP operating income is estimated to be between $187 million and $195 million, up from the previous expectation of $175-$185 million [4] - Cash flow from operations is anticipated to be in the range of $255-$275 million, an increase from the earlier range of $230-$260 million [4] Market Reaction and Stock Performance - Following the earnings results, GWRE shares rose by 11.4% in pre-market trading, with a 71.1% increase over the past year compared to the Internet Software industry's growth of 35.6% [5] Segment Performance - The subscription and support segment, which constitutes 62% of total revenues, saw a 32% increase year over year to $181.8 million [5] - License revenues, accounting for 19.5% of total revenues, increased by 2% year over year to $57.2 million, while services revenues, making up 18.5%, jumped 17% year over year to $54.5 million [8] Gross Margin Analysis - Non-GAAP gross margin expanded to 65.5% from 62.6% year over year, with the subscription and support segment's gross margin increasing to 70.6% from 65.6% [9] - Services' non-GAAP gross margin improved to 12.9% from negative 10.3% in the previous year [9] Financial Position - As of April 30, 2025, cash and cash equivalents and short-term investments totaled $1,243.7 million, down from $1,412.4 million as of January 31, 2025 [11] - The company generated $32.4 million in cash from operations during the quarter, with free cash flow nearly reaching $27.8 million [11] Q4 Outlook - For Q4 fiscal 2025, GWRE expects revenues in the range of $332-$340 million, with non-GAAP operating income estimated between $52 million and $60 million [12]

Core Insights - Atlassian (TEAM) reported strong third-quarter fiscal 2025 results, with earnings and revenues exceeding Zacks Consensus Estimates, showcasing robust growth in cloud services and AI adoption [1][2]. Financial Performance - Non-GAAP earnings per share reached 97 cents, surpassing estimates by 7.8% and reflecting a 9% increase from the previous year's 89 cents [1]. - Revenues for the quarter climbed 21.4% year over year to $1.36 billion, beating estimates by 0.72% [2]. - Subscription revenues rose 18.8% year over year to $1.27 billion, aligning with estimates, while Other revenues declined 28.8% to $83.8 million [3]. - Cloud revenues increased 25.2% to $880.4 million, Data Center revenues grew 6.7% to $388.5 million, and Marketplace and Services revenues fell 4.8% to $87.8 million [4]. - Non-GAAP gross profit increased 16.1% to $1.17 billion, with a gross margin of 86%, up 100 basis points from the prior year [5]. - Non-GAAP operating income rose 10% year over year to $348.3 million, driven by cloud growth and cost control [5]. Balance Sheet and Cash Flow - At the end of Q3 fiscal 2025, the company held $3 billion in cash and short-term investments, up from $2.5 billion in the previous quarter [6]. - Operating cash flow was $652.7 million, and free cash flow was $638.3 million during the quarter [6]. Guidance - For Q4 fiscal 2025, Atlassian projects revenues between $1.349 billion and $1.359 billion, with a non-GAAP gross margin of 84.5% and an operating margin of 22.0% [7]. - For the full fiscal 2025, the company expects revenue growth of 19% year over year, an increase from the previously announced range of 18.5-19% [8].