What To Expect From Atlassian’s (TEAM) Q1 Earnings

Jabin Bastian /
2022/04/27 8:20 am EDT

IT project management software company, Atlassian (NASDAQ:TEAM) will be reporting earnings tomorrow after market hours. Here's what to expect.

Last quarter Atlassian reported revenues of $688.5 million, up 37.3% year on year, beating analyst revenue expectations by 7.16%. It was an impressive quarter for the company, with accelerating customer growth and a very optimistic guidance for the next quarter. The company added 10,021 customers to a total of 226,521.

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 23.8% year on year to $704.2 million, slowing down from the 38.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.32 per share.

Atlassian Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing four upward and two downward revisions over the last thirty days. 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 5.49%.

With Atlassian being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for productivity software stocks, but the technology segment has been facing declining investor sentiment following the fears around raising interest rates, with the stocks down on average 12.2% over the last month. Atlassian is down 14.1% during the same time, and is heading into the earnings with analyst price target of $400.8, compared to share price of $244.01.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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