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Atlassian's Q1 revenue beats estimates on cloud demand

By Reuters News


Overview

  • US collaboration software firm's fiscal Q1 revenue rose 24% yr/yr, beating analyst expectations

  • Adjusted EPS for fiscal Q1 increased yr/yr

  • Company cites cloud and subscription growth as key drivers for the quarter


Outlook

  • Atlassian sees Q2 revenue between $1.825 bln and $1.835 bln

  • Company expects FY27 total revenue growth of about 13.75% year-over-year

  • Atlassian expects FY27 cloud revenue growth of about 26% year-over-year


Result Drivers

  • CLOUD AND SUBSCRIPTION GROWTH - Co attributed Q1 revenue growth to increased cloud revenue and subscription ARR

  • SERVICE COLLECTION EXPANSION - Growth in Service Collection ARR and customer base driven by adoption across multiple enterprise functions

  • OPERATIONAL DISCIPLINE - Co said improved operating margin and free cash flow reflected focus on profitability


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Revenue

Beat

$1.77 bln

$1.71 bln (27 Analysts)

Q1 Net Income

$90.72 mln

Q1 Gross Profit

$1.51 bln

Q1 Operating Expenses

$1.32 bln

Q1 Operating Income

$188.79 mln

Q1 Pretax Profit

$170.20 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 29 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for Atlassian Corp is $225.00, about 18.5% above its November 4 closing price of $189.88

  • The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 17 three months ago


Reuters Recommended Reads

  • Nov 4 - HubSpot Q3 revenue beats estimates driven by subscription growth

  • Nov 4 - Klaviyo's Q3 revenue beats estimates; raises FY outlook

  • Nov 3 - Dynatrace Q2 revenue beats estimates, sets $1 bln additional buyback


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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