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Atlassian (TEAM) Q4 Earnings & Revenues Top Estimates, Up Y/Y
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Atlassian (TEAM - Free Report) reported stellar fourth-quarter fiscal 2020 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate as well as marked significant year-over-year improvements. The company’s non-IFRS earnings per share of 25 cents beat the consensus mark by 25% and jumped 25% year on year. Robust revenue growth and better cost management chiefly boosted Atlassian’s quarterly earnings.
Quarter in Detail
The company reported fiscal fourth-quarter revenues of $430.5 million, which surpassed the Zacks Consensus Estimate of $409 million. Moreover, quarterly revenues climbed 29% year on year, mainly on new client additions and increased pricing on certain products. During the reported quarter, Atlassian added 3,046 net new-clients, bringing the total customer count to 174,097.
Segment wise, Subscription revenues jumped 42% year over year to $257.5 million. Sales from the Maintenance business increased 16% to $122.8 million, while Perpetual License business revenues declined 11% to $20.4 million. Other revenues climbed 19% year over year to $29.8 million.
The company’s non-IFRS gross profit increased 29% year over year to $370.7 million. Non-IFRS gross margin expanded 20 basis points (bps) to 86.1% in the fiscal fourth quarter.
Atlassian Corporation PLC Price, Consensus and EPS Surprise
Atlassian’s non-IFRS operating income climbed 47.5% year over year to $82.5 million, while margin advanced 200 bps to 19%.
During the reported quarter, the company generated operating and free cash flow of $123.3 million and $95.7 million, respectively.
Fiscal 2020 Highlights
Atlassian’s fiscal 2020 total revenues increased 33% year over year to $1.61 billion and surpassed the Zacks Consensus Estimate of $1.59 billion. The company’s non-IFRS earnings per share of $1.15 beat the consensus mark by 5.5% and jumped 33.7% year over year.
The company ended the fiscal year with cash and cash equivalents, and short-term investments of $2.16 billion. During the fiscal, the company generated operating and free cash flow of $574.2 million and $500.4 million, respectively.
Outlook
For first-quarter fiscal 2021, the company anticipates revenues between $430 million $445 million (mid-point $437.5 million), suggesting year-over-year growth of 18-22%. Atlassian’s fiscal first-quarter revenue guidance at the mid-point is also ahead of the Zacks Consensus Estimate of $435.8 million.
Non-IFRS gross margin is anticipated to be approximately 86%. Non-IFRS operating margin is projected to be around 21%. The company expects to report non-IFRS earnings per share in the 26-27 cents band. The Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at 27 cents.
Zacks Rank and Key Picks
Currently, Atlassian carries a Zacks Rank #4 (Sell).
The long-term earnings growth rate for Dropbox, Zoom and Analog Devices is currently pegged at 32.5%, 25%, and 13.3%, respectively.
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Atlassian (TEAM) Q4 Earnings & Revenues Top Estimates, Up Y/Y
Atlassian (TEAM - Free Report) reported stellar fourth-quarter fiscal 2020 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate as well as marked significant year-over-year improvements. The company’s non-IFRS earnings per share of 25 cents beat the consensus mark by 25% and jumped 25% year on year. Robust revenue growth and better cost management chiefly boosted Atlassian’s quarterly earnings.
Quarter in Detail
The company reported fiscal fourth-quarter revenues of $430.5 million, which surpassed the Zacks Consensus Estimate of $409 million. Moreover, quarterly revenues climbed 29% year on year, mainly on new client additions and increased pricing on certain products. During the reported quarter, Atlassian added 3,046 net new-clients, bringing the total customer count to 174,097.
Segment wise, Subscription revenues jumped 42% year over year to $257.5 million. Sales from the Maintenance business increased 16% to $122.8 million, while Perpetual License business revenues declined 11% to $20.4 million. Other revenues climbed 19% year over year to $29.8 million.
The company’s non-IFRS gross profit increased 29% year over year to $370.7 million. Non-IFRS gross margin expanded 20 basis points (bps) to 86.1% in the fiscal fourth quarter.
Atlassian Corporation PLC Price, Consensus and EPS Surprise
Atlassian Corporation PLC price-consensus-eps-surprise-chart | Atlassian Corporation PLC Quote
Atlassian’s non-IFRS operating income climbed 47.5% year over year to $82.5 million, while margin advanced 200 bps to 19%.
During the reported quarter, the company generated operating and free cash flow of $123.3 million and $95.7 million, respectively.
Fiscal 2020 Highlights
Atlassian’s fiscal 2020 total revenues increased 33% year over year to $1.61 billion and surpassed the Zacks Consensus Estimate of $1.59 billion. The company’s non-IFRS earnings per share of $1.15 beat the consensus mark by 5.5% and jumped 33.7% year over year.
The company ended the fiscal year with cash and cash equivalents, and short-term investments of $2.16 billion. During the fiscal, the company generated operating and free cash flow of $574.2 million and $500.4 million, respectively.
Outlook
For first-quarter fiscal 2021, the company anticipates revenues between $430 million $445 million (mid-point $437.5 million), suggesting year-over-year growth of 18-22%. Atlassian’s fiscal first-quarter revenue guidance at the mid-point is also ahead of the Zacks Consensus Estimate of $435.8 million.
Non-IFRS gross margin is anticipated to be approximately 86%. Non-IFRS operating margin is projected to be around 21%. The company expects to report non-IFRS earnings per share in the 26-27 cents band. The Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at 27 cents.
Zacks Rank and Key Picks
Currently, Atlassian carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector include Dropbox (DBX - Free Report) , Zoom Video Communications (ZM - Free Report) and Analog Devices (ADI - Free Report) . While Dropbox and Zoom sport a Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Dropbox, Zoom and Analog Devices is currently pegged at 32.5%, 25%, and 13.3%, respectively.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>