IT project management software company, Atlassian (NASDAQ:TEAM) will be announcing earnings results tomorrow after market close. Here's what to expect.
Last quarter Atlassian reported revenues of $939.1 million, up 23.6% year on year, beating analyst revenue expectations by 2.52%. Despite the topline beat, it was a slower quarter for the company, with decelerating customer growth. The company added 2,562 customers to a total of 262,337.
Is Atlassian buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Atlassian's revenue to grow 19.6% year on year to $965.3 million, slowing down from the 31.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.54 per share.
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 3.63%.
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 (NYSE:NOW) delivered top-line growth of 25% year on year, beating analyst estimates by 0.65% and Pegasystems (NASDAQ:PEGA) reported revenues up 23.6% year on year, exceeding estimates by 12.8%. ServiceNow traded up 5.9% on the results, Pegasystems was up 1.2%.
Read the full analysis of ServiceNow's and Pegasystems's results on StockStory.
Technology stocks have been hit hard by fears of higher interest rates, and while some of the productivity software stocks have fared somewhat better, they have not been spared, with share price declining 4.45% over the last month. Atlassian is down 5.89% during the same time, and is heading into the earnings with analyst price target of $225, compared to share price of $179.4.
The author has no position in any of the stocks mentioned.