Atlassian stock soared on Thursday after the software maker reported fiscal fourth-quarter earnings that topped estimates and forecast higher-than-expected subscription revenue in fiscal 2022. The results come as the company is in the midst of transitioning to a cloud-computing business model.
After the market close, Atlassian (TEAM) reported adjusted profit of 24 cents a share, down a penny from a year earlier but topping estimates of 18-cent profit. Atlassian said June quarter revenue rose 30% to $560 million, ahead of views for $525 million.
For the September quarter, Atlassian said it expects total revenue in a range of $575 million to $590 million versus estimates of $537.4 million.
Atlassian’s outlook for subscription revenue growth in full-year fiscal 2022 also topped views.
In a letter to shareholders, Atlassian said: “We expect subscription revenue growth year over year to be in the low-to-mid 40s percent range for fiscal 2022. Subscription revenue will continue to be the primary driver of revenue growth.”
Analysts had projected subscription revenue growth of 34%.
Atlassian Stock: Cloud Transition Picks Up Momentum
Atlassian stock surged 12.8% to near 301 in extended trading on the stock market today. The software stock had been consolidating for several weeks after clearing a prior base in mid-June. Investors could buy TEAM stock as a breakout or earnings gap up from a shelf-like pattern.
Atlassian is phasing out sales of on-premise software used in the data centers of corporate customers.
Founded in Sydney, Australia, in 2002, Atlassian sells project management and collaborative software for software developers and information technology engineering teams. Atlassian has been shifting to cloud computing-based services.
With cloud services, Atlassian aims to grow subscription revenue and rely less on licensing fees. The company’s project management and bug-tracking tools make it easier for software developers to build, test and release software faster.
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