Atlassian (NASDAQ:TEAM) reported better-than-expected fiscal second-quarter earnings and revenue.
Earnings per share (EPS) in Q2 came in at $0.73, topping the consensus estimates of $0.63. Revenue came in at $1.06 billion, while analysts were looking for $1.02 billion.
The company generated $932 million in subscription revenue, up 31% year-over-year. Non-GAAP operating margin stood at 24%, while cash flow from operations and free cash flow came in at $290 million and $284 million, respectively.
TEAM fell 7.8% in after-hours trading.
Looking ahead, Atlassian anticipates its Q3 2024 revenue to fall between $1.09 and $1.11 billion, surpassing the consensus estimate of $1.07 billion.
It forecasts year-over-year growth in cloud revenue to be between 30.0% and 32.0%, with Data Center revenue growth projected at around 35.0%. Moreover, Atlassian estimates its gross margin to be about 83.5%.
“Q2 was full of incredible milestones as we recorded our first-ever $1 billion revenue quarter, Jira Software crossed $1 billion in Cloud ARR, and we surpassed 300,000 customers,” said Scott Farquhar, Atlassian’s co-founder and co-CEO.
“We continued to execute well with quarterly revenue up 21% year-over-year, driven by subscription revenue growth of 31% year-over-year.”