Earnings To Watch: Atlassian (TEAM) Reports Q1 Results Tomorrow

Petr Huřťák /
2022/11/02 3:45 am EDT

IT project management software company, Atlassian (NASDAQ:TEAM) will be reporting earnings tomorrow afternoon. Here's what you need to know.

Last quarter Atlassian reported revenues of $759.8 million, up 35.7% year on year, beating analyst revenue expectations by 4.91%. It was a solid quarter for the company, with very optimistic guidance for the next quarter and exceptional revenue growth. The company added 8,048 customers to a total of 242,623.

Is Atlassian buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Atlassian's revenue to grow 31.3% year on year to $806.4 million, in line with the 33.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.38 per share.

Atlassian Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 5.69%.

Looking at Atlassian's peers in the productivity software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. ServiceNow delivered top-line growth of 21% year on year, missing analyst estimates by 1.11% and 8x8 reported revenues up 23.6% year on year, exceeding estimates by 0.45%. ServiceNow traded up 11.00% on the results, 8x8 was flat on the results. Read our full analysis of ServiceNow's results here and 8x8's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 2.98% over the last month. Atlassian is down 10.9% during the same time, and is heading into the earnings with analyst price target of $311.80, compared to share price of $192.40.

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The author has no position in any of the stocks mentioned.