Atlassian stock popped on June-quarter earnings that met views while revenue handily beat Wall Street targets amid its transition to a cloud-based business model. Revenue guidance for TEAM stock came in well above expectations.
After the market close, the enterprise software maker said it earned 27 cents a share, in line with estimates. Atlassian reported fiscal fourth quarter earnings after the market close on Thursday.
"Management continues to expect 50% growth in Cloud in fiscal 2023 and 2024, which we think was in line with buyside expectations," said Cowen analyst Derrick Wood in a report. "It also continues to expect mid-teens operating margins for 2023. It was impressive to see TEAM face minimal macro pressures considering its high small- and medium-sized business exposure, which we think speaks to the health of the developer market."
Atlassian said its fiscal fourth-quarter revenue rose 36% to $760 million, topping views for $723 million.
"We capped off fiscal year 2022 with strong Q4 results, growing Cloud revenue 55% year over year," Co-Chief Executive Mike Cannon-Brookes said in the Atlassian earnings release.
TEAM stock popped 10.2 to near 254 in early trading on the stock market today.
Also, Atlassian stock had retreated 40% in 2022 amid a broad pullback in the software sector.
TEAM Stock: Shift To Cloud Business Model
For the September quarter, Atlassian said it expects total revenue in a range of $795 million to $810 million versus estimates of $773 million. Atlassian forecast profit of 37 cents to 38 cents a share versus estimates of 36 cents.
Founded in Sydney, Australia, in 2002, Atlassian sells project management and collaborative software for software developers and information technology engineering teams.
The software maker is transitioning to a cloud-computing business model. Atlassian is phasing out sales of on-premise software used in the data centers of corporate customers.
Meanwhile, TEAM stock holds a Relative Strength Rating of 20 out of a best-possible 99, according to IBD Stock Checkup.
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