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Atlassian (TEAM) Posts Revenue Beat, Stock Slumps on Sluggish Earnings Guidance

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Atlassian Corporation (TEAM - Free Report) just released its latest quarterly financial results, posting adjusted earnings of $0.10 per share and revenues of $223.7 million.

Currently, TEAM is a Zacks Rank #3 (Hold), but that could change based on today’s results. Shares of TEAM had soared about 95% in the year prior to this report date. The stock closed relatively flat on the day.

The stock is currently down 8.1% to $57.25 per share in after-hours trading shortly after its earnings report was released.

Atlassian:

Beat earnings estimates. The company posted adjusted earnings of 10 cents per share, surpassing the Zacks Consensus Estimate of $0.08. Investors should note that this consensus projection has remained stagnant throughout the quarter.

Beat revenue estimates. The company saw revenue figures of $223.7 million, topping our consensus estimate of $218.2 million. Total revenue was up 40% year over year.

Atlassian added 6,587 new customers during the quarter, finishing the period with 119,158 customers on active subscriptions or maintenance agreements. Quarterly free cash flow reached $86.4 million and free cash flow margin was 39%.

“Atlassian had a strong quarter, adding more than 6,000 net new customers for the first time, and engaging with almost 3,000 users and partners around the world as part of our Team Tour,” said CEO Mike Cannon-Brookes.

Atlassian said it expects fourth quarter fiscal 2018 revenue to be in the range of $232 million to $234 million. Adjusted earnings are expected to be around $0.12 per share. Heading into the report, our Zacks Consensus Estimates were calling for revenue of $230.9 million and earnings of $0.14 per share. This net income guidance is on the sluggish end compared to our previous estimates.

Here’s a graph that looks at Atlassian’s recent earnings performance:

Atlassian Corporation PLC Price, Consensus and EPS Surprise

Atlassian Corporation PLC Price, Consensus and EPS Surprise | Atlassian Corporation PLC Quote

Atlassian Corporation Plc is engaged in designing, developing, licensing and maintaining of software and the provisioning of software hosting services. The Company's products include JIRA for team planning and project management; Confluence for team content creation and sharing; HipChat for team messaging and communications; Bitbucket for team code sharing and management and JIRA Service Desk for team services and support applications. It offers tools for software developers consists of FishEye, Bamboo and SourceTree.

Check back later for our full analysis on Atlassian’s earnings report!

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