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Atlassian (TEAM) Q1 Earnings & Revenues Top Estimates, Up Y/Y
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Atlassian (TEAM - Free Report) reported stellar first-quarter fiscal 2021 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 30 cents beat the consensus mark by 11% and jumped 7% year on year. Robust revenue growth and better cost management chiefly boosted Atlassian’s quarterly earnings.
Quarter in Detail
The company reported fiscal first-quarter revenues of $459.5 million, which surpassed the Zacks Consensus Estimate of $439.4 million. Moreover, quarterly revenues climbed 26% year on year, mainly on new client additions and increased pricing on certain products. During the reported quarter, Atlassian added 8,620 net new-clients, bringing the total customer count to 182,717.
Segment wise, Subscription revenues jumped 38% year over year to $278 million. Sales from the Maintenance business increased 16% to $128 million, while Perpetual License business revenues declined 11% to $22 million. Other revenues climbed 15% year over year to $32 million.
Atlassian Corporation PLC Price, Consensus and EPS Surprise
The company’s non-IFRS gross profit increased 26% year over year to $396.5 million. However, non-IFRS gross margin contracted 20 basis points (bps) to 86.3% during the fiscal first quarter.
Atlassian’s non-IFRS operating income was up 24% year over year to $105.4 million, while margin remained flat at23%.
The company ended the fiscal first quarter with cash and cash equivalents, and short-term investments of $2.18 billion, up from the $2.16 billion recorded at the end of fourth-quarter fiscal 2020. During the reported quarter, the company generated operating and free cash flow of $79.5 million and $60.6 million, respectively.
Outlook
For second-quarter fiscal 2021, the company anticipates revenues between $460 million $475 million (mid-point $467.5 million), suggesting year-over-year growth of 12-16%. Atlassian’s fiscal second-quarter revenue guidance comes in below the Zacks Consensus Estimate of $478.4 million.
Non-IFRS gross margin is anticipated to be approximately 86%. Non-IFRS operating margin is projected to be around 24%. The company expects to report non-IFRS earnings per share in the 30-32 cents band. The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at 33 cents.
Zacks Rank and Stocks to Consider
Atlassian currently carries a Zacks Rank #3 (Hold).
The long-term earnings growth rate for Zoom, Viasat and CDW is currently pegged at 25%, 19%, and 13.1%, respectively.
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The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
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Atlassian (TEAM) Q1 Earnings & Revenues Top Estimates, Up Y/Y
Atlassian (TEAM - Free Report) reported stellar first-quarter fiscal 2021 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 30 cents beat the consensus mark by 11% and jumped 7% year on year. Robust revenue growth and better cost management chiefly boosted Atlassian’s quarterly earnings.
Quarter in Detail
The company reported fiscal first-quarter revenues of $459.5 million, which surpassed the Zacks Consensus Estimate of $439.4 million. Moreover, quarterly revenues climbed 26% year on year, mainly on new client additions and increased pricing on certain products. During the reported quarter, Atlassian added 8,620 net new-clients, bringing the total customer count to 182,717.
Segment wise, Subscription revenues jumped 38% year over year to $278 million. Sales from the Maintenance business increased 16% to $128 million, while Perpetual License business revenues declined 11% to $22 million. Other revenues climbed 15% year over year to $32 million.
Atlassian Corporation PLC Price, Consensus and EPS Surprise
Atlassian Corporation PLC price-consensus-eps-surprise-chart | Atlassian Corporation PLC Quote
The company’s non-IFRS gross profit increased 26% year over year to $396.5 million. However, non-IFRS gross margin contracted 20 basis points (bps) to 86.3% during the fiscal first quarter.
Atlassian’s non-IFRS operating income was up 24% year over year to $105.4 million, while margin remained flat at23%.
The company ended the fiscal first quarter with cash and cash equivalents, and short-term investments of $2.18 billion, up from the $2.16 billion recorded at the end of fourth-quarter fiscal 2020. During the reported quarter, the company generated operating and free cash flow of $79.5 million and $60.6 million, respectively.
Outlook
For second-quarter fiscal 2021, the company anticipates revenues between $460 million $475 million (mid-point $467.5 million), suggesting year-over-year growth of 12-16%. Atlassian’s fiscal second-quarter revenue guidance comes in below the Zacks Consensus Estimate of $478.4 million.
Non-IFRS gross margin is anticipated to be approximately 86%. Non-IFRS operating margin is projected to be around 24%. The company expects to report non-IFRS earnings per share in the 30-32 cents band. The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at 33 cents.
Zacks Rank and Stocks to Consider
Atlassian currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Zoom Video Communications (ZM - Free Report) , Viasat (VSAT - Free Report) and CDW Corporation (CDW - Free Report) , all sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Zoom, Viasat and CDW is currently pegged at 25%, 19%, and 13.1%, respectively.
Have You Seen Zacks’ 2020 Election Stock Report?
The upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
Check out Zacks’ 2020 Election Stock Report >>