We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Atlassian Corporation PLC (TEAM) Up 2.5% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Atlassian Corporation PLC (TEAM - Free Report) . Shares have added about 2.5% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Atlassian Corporation PLC due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Atlassian Q4 Earnings & Revenues Top Estimates, Up Y/Y
Atlassian reported stellar fourth-quarter fiscal 2020 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate as well as marked significant year-over-year improvements. The company’s non-IFRS earnings per share of 25 cents beat the consensus mark by 25% and jumped 25% year on year. Robust revenue growth and better cost management chiefly boosted Atlassian’s quarterly earnings.
Quarter in Detail
The company reported fiscal fourth-quarter revenues of $430.5 million, which surpassed the Zacks Consensus Estimate of $409 million. Moreover, quarterly revenues climbed 29% year on year, mainly on new client additions and increased pricing on certain products. During the reported quarter, Atlassian added 3,046 net new-clients, bringing the total customer count to 174,097.
Segment wise, Subscription revenues jumped 42% year over year to $257.5 million. Sales from the Maintenance business increased 16% to $122.8 million, while Perpetual License business revenues declined 11% to $20.4 million. Other revenues climbed 19% year over year to $29.8 million.
The company’s non-IFRS gross profit increased 29% year over year to $370.7 million. Non-IFRS gross margin expanded 20 basis points (bps) to 86.1% in the fiscal fourth quarter.
Atlassian’s non-IFRS operating income climbed 47.5% year over year to $82.5 million, while margin advanced 200 bps to 19%.
During the reported quarter, the company generated operating and free cash flow of $123.3 million and $95.7 million, respectively.
Fiscal 2020 Highlights
Atlassian’s fiscal 2020 total revenues increased 33% year over year to $1.61 billion and surpassed the Zacks Consensus Estimate of $1.59 billion. The company’s non-IFRS earnings per share of $1.15 beat the consensus mark by 5.5% and jumped 33.7% year over year.
The company ended the fiscal year with cash and cash equivalents, and short-term investments of $2.16 billion. During the fiscal, the company generated operating and free cash flow of $574.2 million and $500.4 million, respectively.
Outlook
For first-quarter fiscal 2021, the company anticipates revenues between $430 million $445 million (mid-point $437.5 million), suggesting year-over-year growth of 18-22%.
Non-IFRS gross margin is anticipated to be approximately 86%. Non-IFRS operating margin is projected to be around 21%. The company expects to report non-IFRS earnings per share in the 26-27 cents band.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted 5.56% due to these changes.
VGM Scores
Currently, Atlassian Corporation PLC has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions has been net zero. It's no surprise Atlassian Corporation PLC has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Atlassian Corporation PLC (TEAM) Up 2.5% Since Last Earnings Report?
It has been about a month since the last earnings report for Atlassian Corporation PLC (TEAM - Free Report) . Shares have added about 2.5% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Atlassian Corporation PLC due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Atlassian Q4 Earnings & Revenues Top Estimates, Up Y/Y
Atlassian reported stellar fourth-quarter fiscal 2020 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate as well as marked significant year-over-year improvements. The company’s non-IFRS earnings per share of 25 cents beat the consensus mark by 25% and jumped 25% year on year. Robust revenue growth and better cost management chiefly boosted Atlassian’s quarterly earnings.
Quarter in Detail
The company reported fiscal fourth-quarter revenues of $430.5 million, which surpassed the Zacks Consensus Estimate of $409 million. Moreover, quarterly revenues climbed 29% year on year, mainly on new client additions and increased pricing on certain products. During the reported quarter, Atlassian added 3,046 net new-clients, bringing the total customer count to 174,097.
Segment wise, Subscription revenues jumped 42% year over year to $257.5 million. Sales from the Maintenance business increased 16% to $122.8 million, while Perpetual License business revenues declined 11% to $20.4 million. Other revenues climbed 19% year over year to $29.8 million.
The company’s non-IFRS gross profit increased 29% year over year to $370.7 million. Non-IFRS gross margin expanded 20 basis points (bps) to 86.1% in the fiscal fourth quarter.
Atlassian’s non-IFRS operating income climbed 47.5% year over year to $82.5 million, while margin advanced 200 bps to 19%.
During the reported quarter, the company generated operating and free cash flow of $123.3 million and $95.7 million, respectively.
Fiscal 2020 Highlights
Atlassian’s fiscal 2020 total revenues increased 33% year over year to $1.61 billion and surpassed the Zacks Consensus Estimate of $1.59 billion. The company’s non-IFRS earnings per share of $1.15 beat the consensus mark by 5.5% and jumped 33.7% year over year.
The company ended the fiscal year with cash and cash equivalents, and short-term investments of $2.16 billion. During the fiscal, the company generated operating and free cash flow of $574.2 million and $500.4 million, respectively.
Outlook
For first-quarter fiscal 2021, the company anticipates revenues between $430 million $445 million (mid-point $437.5 million), suggesting year-over-year growth of 18-22%.
Non-IFRS gross margin is anticipated to be approximately 86%. Non-IFRS operating margin is projected to be around 21%. The company expects to report non-IFRS earnings per share in the 26-27 cents band.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted 5.56% due to these changes.
VGM Scores
Currently, Atlassian Corporation PLC has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions has been net zero. It's no surprise Atlassian Corporation PLC has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.