Atlassian’s (NASDAQ:TEAM) shares are poised to pop when trading opens today after the software as a service provider posted strong numbers in defiance of concerns over a slowdown.
The company reported Q1 fiscal 2022 earnings per share of $.46, ahead of estimates of $.4/share, and revenue of $614M, well ahead of estimates of $583.84M.
“Revenue from our Cloud products was up more than 50% year over year, driving revenue growth 34% year over year,” the company’s shareholder letter touted. The company’s subscription revenue grew 56.7%, while maintenance revenue was roughly flat, highlighting the focus on the shift to the cloud.
Atlassian’s guidance for Q2 FY 2022 (calendar year Q4 2021) is for $630-$645M in revenue, with gross margin of 82% and adjusted net income of $.35-.38/share. The revenue is well ahead of analyst expectations for the next quarter.
The company also announced that their CFO, James Beer, will be retiring from the role in June 2022, having been at Atlassian for just over four years by that point. Atlassian has begun an external search for a replacement.
Atlassian is known for its Jira, Trello, Confluence, and other workplace software solutions. With peers like Twilio (NYSE:TWLO) and ServiceNow (NYSE:NOW) posting earnings beats but having divergent reactions - Twilio sold off but ServiceNow rose - it remains to be seen what investors are looking for from the sector as the pace of earnings reports picks up over the coming weeks.
- by Daniel Shvartsman