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What To Expect From Atlassian’s (TEAM) Q4 Earnings


Adam Hejl /
2022/08/03 4:20 am EDT
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IT project management software company, Atlassian (NASDAQ:TEAM) will be reporting results tomorrow after market close. Here's what you need to know.

Last quarter Atlassian reported revenues of $740.4 million, up 30.2% year on year, beating analyst revenue expectations by 5.2%. It was a strong quarter for the company, with a very optimistic guidance for the next quarter and a solid beat of analyst estimates. The company added 8,054 customers to a total of 234,575.

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 29.4% year on year to $724.2 million, in line with the 29.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.26 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 5.65%.

Looking at Atlassian's peers in the productivity software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Five9 delivered top-line growth of 31.7% year on year, beating analyst estimates by 5.16% and ServiceNow reported revenues up 24.3% year on year, missing analyst estimates by 0.62%. Five9 traded up 8,25% on the results, and ServiceNow was down 6.41%. Read our full analysis of Five9's results here and ServiceNow's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks down on average 0.79% over the last month. Atlassian is up 3.66% during the same time, and is heading into the earnings with analyst price target of $322.4, compared to share price of $216.03.

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.