Atlassian on Thursday reported fiscal second-quarter earnings and revenue that topped estimates while March quarter revenue guidance came in above views. TEAM stock popped on the news.
The enterprise software maker reported December-quarter earnings after the market close on Thursday. The company said it earned 50 cents a share, up 35% from a year earlier. Analysts had projected Atlassian earnings of 39 cents per share.
Atlassian said revenue rose 37% to $688.5 million, topping views for $641 million in sales.
TEAM stock popped 8.5% to 315.46 in extended trading on the stock market today. Heading into the Atlassian earnings report, TEAM stock had retreated 20% in 2022 amid volatility in the Nasdaq.
TEAM Stock: Shift To Cloud Business Model
For the March quarter, Atlassian said it expects total revenue in a range of $690 million to $705 million versus estimates of $663 million.
The software maker is transitioning to a cloud-computing business model. Atlassian is phasing out sales of on-premise software used in the data centers of corporate customers.
"We also saw (second-quarter) subscription revenue grow 64% year-over-year, which reflects our continued investment in our cloud platform and the strong focus and effort we have put in to helping our customers seamlessly move to cloud," Atlassian Chief Executive Scott Farquhar said in a press release.
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 developers to build, test and release software faster.
Founded in Sydney in 2002, Atlassian sells project management and collaborative software for software developers and information technology engineering teams.
TEAM stock holds a Relative Strength Rating of 76 out of a best possible 99, according to IBD Stock Check-up.
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