Atlassian co-founders Mike Cannon-Brookes and Scott Farquhar
Shares of Atlassian rose as much as 12% after the collaboration software maker reported more quarterly revenue than analysts expected, beating consensus earnings.
Here’s how the company did it:
- Profits: 27 cents per share, adjusted, versus 27 cents per share as expected by analysts, according to Refinitiv.
- Income: $760 million, versus $724 million as expected by analysts, according to Refinitiv.
Revenue rose 36% year over year in the quarter ended June 30, according to statement. The company reported a net loss of $105.5 million, down from a loss of $213.1 million in the previous quarter. ONE 14 day break in April it raised operating expenses, the company said.
Atlassian said it had 242,623 customers at the end of the quarter, more than the 242,300 consensus of analysts polled by StreetAccount.
Scott Farquhar and Mike Cannon-Brookes, Atlassian’s dual CEOs, were upbeat about the company’s prospects in the current economy in a letter to investors.
“We’ve noticed over the years that developers tend to be the last roles companies relegate to,” they wrote. “We believe this will continue to be true, especially for the vast number of organizations undergoing digital transformation. Second, while our products punch above their weight in terms of value, Atlassian is a relatively small line item in overall IT budgets and likely not customers are trying to cut costs.”
They said customers wouldn’t save money by switching because Atlassian’s products already cost less than what competitors offer. The CEOs reiterated their previous guidance for cloud revenue growth of 50% for fiscal years 2023 and 2024.
Atlassian’s quarterly forecast calls for more revenue than analysts had predicted. Management called for adjusted net earnings of 37 cents to 38 cents a share on revenue of $795 million to $810 million in the fiscal first quarter. Analysts polled by Refinitiv had expected 37 cents in adjusted earnings per share and $773.5 million in revenue.
The company said it has tapped Joe Binz, a former Microsoft corporate vice president, as its new chief financial officer. Farquhar served as interim finance director following the departure of James Beer, who retired in June after holding the position for four years.
Despite the after-hours move, Atlassian shares are down about 40% so far this year, trailing the U.S. S&P 500, which has fallen 13% over the same period.
Executives will discuss the results on a conference call beginning at 5 p.m. ET.
This story is developing. Check back for updates.
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