Atlassian co-founders Mike Cannon-Brooks and Scott Farquhar
Atlas Shares rose 12% after the collaboration software maker reported higher-than-expected quarterly earnings while matching earnings consensus.
Here’s how the company did it:
- Income: 27 cents per share, adjusted against According to Refinitiv, 27 cents per share, as expected by analysts.
- Income: $760 million vs. $724 million, according to Refinitiv, as expected by analysts.
Revenue rose 36% year-on-year for the quarter ended June 30. statement. The company posted a net loss of $105.5 million compared to a loss of $213.1 million in the year-ago quarter. BUT 14 day break operating expenses increased in April, the company said.
Atlassian said it had 242,623 customers at the end of the quarter, exceeding the consensus forecast of 242,300 by analysts polled by StreetAccount.
Scott Farquhar and Mike Cannon-Brooks, Atlassian’s two CEOs, were optimistic about the company’s outlook in the current economic climate in a letter to investors.
“Over the years, we have observed that developers tend to be the last roles companies turn down,” they wrote. “We believe this will continue to be true, especially for the vast majority of organizations undergoing digital transformation. Second, while our products outperform their weight in terms of cost, Atlassian is a relatively small item in overall IT budgets and probably not where customers are looking to cut costs.”
They said customers won’t save money by switching because Atlassian products already cost less than products offered by competitors. The CEOs reaffirmed their previous forecast for 50% cloud revenue growth in fiscal 2023 and 2024.
Atlassian’s quarterly forecast calls for more revenue than analysts predicted. Management called for adjusted net income of 37 to 38 cents per share on revenue of $795 million to $810 million in the first fiscal quarter. Analysts polled by Refinitiv had expected adjusted earnings per share of 37 cents and revenue of $773.5 million.
The company said it has engaged Joe Beanz, a former corporate vice president at Microsoftto become its new financial head. Farquhar served as acting chief financial officer following the departure of James Beer, who stepped down in June after serving four years in the post.
Atlassian benefited from hiring people during the recession in 2008 and 2009 and is now taking a similar approach, Cannon Brooks said on a conference call with analysts. “We believe there are huge opportunities ahead of us in all three of our markets,” he said. The statement said that Atlassian will “continue to attack” talent in fiscal 2023.
Despite moving after hours, Atlassian shares are down about 40% this year, trailing the U.S. S&P 500 stock index, which is down 13% over the same period.