Atlassian Q2 Earnings: Revenue Beat, EPS Beat, Strong Guidance, 'Infusing' AI And More

Atlassian Corp TEAM reported financial results for the fiscal second quarter after the market close on Thursday. Here’s a look at the key details from the print.

Q2 Earnings: Atlassian reported second-quarter revenue of $1.29 billion, beating analyst estimates of $1.24 billion, according to Benzinga Pro. The company reported second-quarter adjusted earnings of 96 cents per share, beating analyst estimates of 76 cents per share.

Total revenue was up 21% year-over-year, while subscription revenue grew 30% year-over-year. Cash flow from operations came in at $352 million and free cash flow totaled $343 million in the second quarter.

Atlassian ended the quarter with $2.5 billion in cash, cash equivalents and marketable securities.

“The Atlassian System of Work is resonating with enterprises all over the globe, as business leaders increasingly turn to the Atlassian platform to help teams across their organization collaborate on the opportunities and challenges they face,” said Mike Cannon-Brookes, co-founder and CEO of Atlassian.

“By infusing AI throughout our world-class cloud platform, we’re empowering all teams to accelerate collaboration and unlock organizational knowledge, further enabling them to unleash their full potential.”

Guidance: Atlassian expects third-quarter revenue to be in the range of $1.345 billion to $1.353 billion. Cloud revenue is expected to grow 23.5% in the third quarter, data center revenue is expected to grow 7% and marketplace and other revenue is expected to be approximately flat.

The company also raised its fiscal year 2025 revenue growth expectations to a range of 18.5% to 19%, up from a range of 16.5% to 17% at the end of the company’s fiscal first quarter.

Management will further discuss the quarter on a conference call with analysts and investors at 5 p.m. ET.

TEAM Price Action: Atlassian shares were up 16.13% after hours, trading at $310 at the time of publication Thursday, according to Benzinga Pro.

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