Atlassian Stock Is Ripping Higher: What's Going On?

Atlassian Corp TEAM shares are trading higher in Thursday’s after-hours session after the company reported better-than-expected quarterly results.

• Q4 Revenue: $939.1 million beat estimates of $911.23 million
• Q4 EPS: 57 cents beat estimates of 43 cents

Atlassian said it ended the quarter with over 260,000 total customers. 

“And importantly, our three biggest bets are paying off, further strengthening our conviction in our strategy,” the company said in a letter to shareholders.

Atlassian said it’s delivering more platform innovations for its cloud business. Enterprise is being driven by a robust network of partners. Enterprise customers increased more than 50% year-over-year. The company is also seeing increased demand for its IT and service management products with customers up 80% year-over-year. 

“We also took advantage of mind-blowing developments in AI to bring generative capabilities into our products and unleash even more of our customers’ potential,” the company said. 

“You can’t spell Atlassian without ‘AI.’ Whilst AI is great, AI plus data is where the real value lies,” Atlassian added.

Atlassian expects fiscal 2024 first-quarter revenue to be between $950 million and $970 million. Cloud revenue is expected to grow between 25% and 27% year-over-year. Gross margin is expected to come in at 81%. 

See Also: Amazon Delivers Q2 Earnings Gains To Investors: Revenue Climbs 11%, AI In The Spotlight and More

TEAM Price Action: Atlassian shares were up 22.0% after hours at $207.00 at the time of publication, according to Benzinga Pro.

Photo: Bethany Drouin from Pixabay.