Atlassian Q2 revenue up 23%, beats estimates

Overview

• Team collaboration software firm's Q2 revenue grew 23%, beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Company achieved first-ever $1 bln Cloud revenue quarter, up 26% yr/yr

Outlook

• Atlassian expects Q3 revenue between $1,689 mln and $1,697 mln

• Company anticipates Q3 Cloud revenue growth of approximately 23% year-over-year

• Atlassian forecasts fiscal year 2026 revenue growth of approximately 22% year-over-year

Result Drivers

• CLOUD REVENUE - Atlassian achieved its first-ever $1 bln Cloud revenue quarter, growing 26% yr/yr, driven by enterprise sales and partner execution

• ENTERPRISE SALES - Strong enterprise sales and partner execution drove total revenue up 23% yr/yr

• CUSTOMER COMMITMENTS - Remaining performance obligations rose 44% yr/yr, reflecting deeper customer commitments to Atlassian's platform

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 25 "strong buy" or "buy", 7 "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 $220.00, about 109.4% above its February 4 closing price of $105.04

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 34 three months ago

Press Release: ID:nBw6n4Ks7a

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