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Atlassian Q2 Earnings Report, Record Profits Send Shares Up 9%

Shares in the Australian enterprise software company jumped last night after a solid beat on both revenue and earnings for the last quarter.

Atlassian (NASDAQ: TEAM) investors will be pleased this morning after the company posted better-than-expected results in its second-quarter earnings report last night. 

A year-over-year increase of 37% on top-line growth, not to mention record profitability, pushed shares in the owners of popular tools like Trello and Jira up as much as 12% in after-hours trading.

Here’s an overview of the key metrics:

Atlassian Q2 Earnings Report Highlights:

Company Q2 PerformanceAnalysts’ ExpectationsYear-Over-Year Increase
Revenue: $408.7 millionRevenue: $388.93 million37%
EPS: $0.49 EPS: $0.27172%
Customer Count: 164,790Customer Count: N/A19.4%

What does this mean for Atlassian investors? 

In October 2018, Atlassian raised the prices on some of its core products like Confluence and Jira, stoking fears amongst some analysts that this would see some pushback from users. However, a year and a bit later, we can see that the company is still growing its total customer base (albeit at a slightly slower pace) and, perhaps more importantly, its bottom line. 

Indeed, Atlassian could be used as a perfect example of the importance of subscriber revenue for a modern SaaS business. The company saw subscription revenue growth of 50% in the period, with subscription fees now making up more than 55% of the overall revenue mix for the company — a powerful indication of future growth.  

Our Amazon investment has grown over 300%

Going forward, Atlassian expects revenue in the range of $395 – $399 million for the current quarter, in-line with analysts estimates, while a net income forecast of $0.20 per share on an adjusted basis comes in slightly behind estimates. 

Read more about Atlassian


MyWallSt operates a full disclosure policy. MyWallSt staff currently hold long positions in Atlassian. Read our full disclosure policy here.

James Dunne
James Dunne
James is the head of content and publishing at MyWallSt. James’ favorite stock is Teladoc because he believes that they are at the forefront of revolutionizing the healthcare industry.