Atlassian earnings for its fiscal first quarter topped views, but the collaboration software maker gave weak earnings guidance for the current quarter. TEAM stock fell in extended trading.
Founded in Australia, Atlassian (TEAM) sells project-management and collaborative software for software developers and tech department engineering teams.
Atlassian earnings rose 7% to 30 cents a share adjusted for the quarter ended Sept. 30. Revenue climbed 26% to $459.5 million. A year earlier, the company earned 28 cents a share on revenue of $363 million.
Analysts expected Atlassian earnings of 27 cents a share on revenue of $440.5 million for the period ended Sept. 30.
But for the current December-ending quarter, Atlassian expects adjusted profit of 30-32 cents a share and revenue from $460 million-$475 million. Analysts had projected adjusted Atlassian earnings of 34 cents a share and revenue of $479 million.
TEAM Stock Falls
TEAM stock fell 4.4% to 201.50 in extended trading on the stock market today, signaling a move down near a 199.60 buy point. Atlassian stock had risen 0.9% to 210.72 in Thursday’s session, just above the buy zone,
TEAM stock holds a Relative Strength Rating of 90 out of a possible 99.
Atlassian Earnings: Small Business Exposure A Worry
Amid the coronavirus pandemic, Atlassian has offered more free trials. But analysts say headwinds include exposure to small businesses as well as monthly cloud contracts that could be canceled.
Atlassian recently accelerated plans to phase out on-premise server licenses, a move aimed at migrating customers to cloud-based offerings.
“We added more than 8,600 net new customers during the quarter, and now serve over 182,000 customers, including more than 160,000 using our cloud products, as we take the next step in our journey to transform Atlassian into a cloud-first global software leader,” said Co-Chief Executive Scott Farquhar, in a release.
One issue is whether Atlassian will be able to push through price hikes in fiscal 2021 amid the coronavirus outbreak.
Also, Atlassian gets two-thirds of its revenue from Jira project-tracking tools and its Confluence document-collaboration software.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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