Atlassian (NASDAQ:TEAM) shares jumped as much as 24% in extended trading on Thursday after the collaboration software maker announced stronger-than-expected fiscal fourth-quarter results and promised wider margins in the future.
Earnings proved to be 57 cents per share, adjusted, vs. 45 cents per share as expected by analysts, according to Refinitiv. Revenue: $939.1 million, vs. $914.6 million as expected by analysts.
Atlassian’s revenue grew 24% year over year in the quarter, which ended on June 30, according to a statement. The company’s net loss of $59 million or 23 cents per share, narrowed from $90.6 million, or 36 cents per share, in the year-ago quarter.
At the end of the quarter, Atlassian counted 262,337 customers, according to a letter to shareholders. That’s below the 264,780 consensus among analysts surveyed by StreetAccount.
But the company’s quarterly revenue guidance surpassed expectations. Executives see revenue between $950 million and $970 million, implying about 19% growth in the middle of the range. Analysts polled by Refinitiv had been looking for $954.6 million in revenue.
Management called for a -8% operating margin for the 2024 fiscal year, compared with -10% for the 2023 and 3% in 2022. And co-CEOs Scott Farquhar and Mike Cannon-Brookes said in a letter to shareholders that there’s more improvement ahead.
The company also said that Cameron Deatsch, who has worked as chief revenue officer for the past three and a half years, will leave in December.
TEAM shares gained $32.36, or 19%, to $202.01.
