Collaboration software company Atlassian (NASDAQ: TEAM) will be reporting earnings this Thursday afternoon. Here’s what investors should know.
Atlassian beat analysts’ revenue expectations last quarter, reporting revenues of $1.59 billion, up 23.3% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and revenue guidance for next quarter topping analysts’ expectations.
Is Atlassian a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Atlassian’s revenue to grow 25% year on year, improving from the 14.1% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Atlassian has a history of exceeding Wall Street’s expectations.
Looking at Atlassian’s peers in the productivity software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. ServiceNow delivered year-on-year revenue growth of 22.1%, beating analysts’ expectations by 0.6%, and Pegasystems reported a revenue decline of 9.6%, falling short of estimates by 7.3%. ServiceNow traded down 17.7% following the results while Pegasystems was also down 4.6%.
Read our full analysis of ServiceNow’s results here and Pegasystems’s results here.
There has been positive sentiment among investors in the productivity software segment, with share prices up 7% on average over the last month. Atlassian is up 5.3% during the same time and is heading into earnings with an average analyst price target of $144.57 (compared to the current share price of $70).
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