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.
Atlassian expects fiscal second-quarter revenues between $1.01 billion and $1.03 billion ($1.02 billion at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $1.02 billion, suggesting growth of 16.8% from the year-ago reported figure.
For fiscal second-quarter earnings, the Zacks Consensus Estimate is pegged at 62 cents per share, implying a 37.8% increase from 45 cents reported in the year-ago period.
Atlassian’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 41%.
Let’s see how things have shaped up before this announcement.
The rising adoption of TEAM’s cloud-based solutions and the strong digitalization trend in organizations, along with the growing hybrid working trend, are likely to have favored the company’s fiscal second-quarter performance. The growing demand for Atlassian’s Premium and Enterprise editions of cloud offerings from new and existing clients using on-premises products might have acted as a tailwind.
Our estimate for revenues from Cloud deployment is pegged at $643.6 million, indicating a 25.6% increase from the year-ago quarter. Revenues from Data Center deployment are anticipated to grow 33% year over year to $258.3 million.
The increasing adoption of core products like Jira Software and Confluence Cloud and the traction in new products like Jira Service Management may have boosted the company’s top line. An improvement in product quality and performance, multiple product launches and increased pricing are also likely to have positively impacted the firm’s performance.
Atlassian’s focus on adding artificial intelligence (AI) features to some of its collaboration software, including Confluence, Jira Software, Jira Work Management, Trello, Atlas, and Bitbucket, is likely to have driven the fiscal second-quarter top line. The company collaborated with OpenAI in April 2023 to enhance the capabilities of its Confluence, Jira Service Management and other programs with generative AI features. These factors, coupled with TEAM’s efforts to expand its portfolio through the acquisition of Loom and AirTrack, are expected to have contributed to the company’s revenues.
Resilience in subscription revenues, aided by the solid uptake of the company’s subscription-based offerings, is likely to be reflected in the to-be-reported quarter’s results. Our estimate of $919.6 million for the Subscription segment’s revenues indicates massive 29.3% year-over-year growth.
A number of customers are opting for cloud offerings amid the ongoing cloud migration. Such new additions and increased pricing on certain products might have boosted Atlassian’s quarterly revenues. Our estimate suggests that TEAM is likely to have ended the fiscal second quarter with 267,606 customers, indicating a significant improvement of 5.7% year over year and 1% sequentially.
Additionally, the company’s sustained focus on cost savings is likely to have boosted the fiscal second-quarter bottom line. Atlassian announced restructuring actions in March 2023, which include a cut-back of lease-related expenses and the total workforce by 5% or 500 employees.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Atlassian this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
The company has an Earnings ESP of 0.00% and currently carries a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, monday.com (MNDY - Free Report) , Meta (META - Free Report) and Twilio (TWLO - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
MNDY has an Earnings ESP of +18.36% and sports a Zacks Rank #1 at present. The company is scheduled to report fourth-quarter fiscal 2023 results on Feb 12. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 200.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MNDY’s fourth-quarter earnings is pegged at 30 cents per share, indicating a year-over-year decline of 31.8%. The consensus mark for revenues is pegged at $198.3 million, suggesting a year-over-year rise of 32.3%.
META has an Earnings ESP of +0.51% and carries a Zacks Rank #2 at present. The company is scheduled to report fourth-quarter 2023 results on Feb 1. Its earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, with the average surprise being 27.5%.
The Zacks Consensus Estimate for META’s fourth-quarter earnings is pinned at $4.84 per share, indicating a year-over-year improvement of 61.33%. It is estimated to report revenues of $38.93 billion, which suggests an increase of approximately 21.02% from the year-ago quarter.
TWLO has an Earnings ESP of +31.37% and a Zacks Rank #2 at present. Twilio is slated to report fourth-quarter fiscal 2023 results on Feb 14. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 157.84%.
The Zacks Consensus Estimate for TWLO’s fourth-quarter earnings is pegged at 57 cents per share, suggesting an increase of 159% from the year-ago quarter’s earnings. Twilio’s quarterly revenues are estimated to increase 1.53% year over year to $1.04 billion.
Image: Bigstock
Atlassian (TEAM) to Report Q2 Earnings: What's in Store?
Atlassian (TEAM - Free Report) is scheduled to report second-quarter fiscal 2024 results on Feb 1.
Atlassian expects fiscal second-quarter revenues between $1.01 billion and $1.03 billion ($1.02 billion at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $1.02 billion, suggesting growth of 16.8% from the year-ago reported figure.
For fiscal second-quarter earnings, the Zacks Consensus Estimate is pegged at 62 cents per share, implying a 37.8% increase from 45 cents reported in the year-ago period.
Atlassian’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 41%.
Let’s see how things have shaped up before this announcement.
Atlassian Corporation PLC Price and EPS Surprise
Atlassian Corporation PLC price-eps-surprise | Atlassian Corporation PLC Quote
Factors to Consider
The rising adoption of TEAM’s cloud-based solutions and the strong digitalization trend in organizations, along with the growing hybrid working trend, are likely to have favored the company’s fiscal second-quarter performance. The growing demand for Atlassian’s Premium and Enterprise editions of cloud offerings from new and existing clients using on-premises products might have acted as a tailwind.
Our estimate for revenues from Cloud deployment is pegged at $643.6 million, indicating a 25.6% increase from the year-ago quarter. Revenues from Data Center deployment are anticipated to grow 33% year over year to $258.3 million.
The increasing adoption of core products like Jira Software and Confluence Cloud and the traction in new products like Jira Service Management may have boosted the company’s top line. An improvement in product quality and performance, multiple product launches and increased pricing are also likely to have positively impacted the firm’s performance.
Atlassian’s focus on adding artificial intelligence (AI) features to some of its collaboration software, including Confluence, Jira Software, Jira Work Management, Trello, Atlas, and Bitbucket, is likely to have driven the fiscal second-quarter top line. The company collaborated with OpenAI in April 2023 to enhance the capabilities of its Confluence, Jira Service Management and other programs with generative AI features. These factors, coupled with TEAM’s efforts to expand its portfolio through the acquisition of Loom and AirTrack, are expected to have contributed to the company’s revenues.
Resilience in subscription revenues, aided by the solid uptake of the company’s subscription-based offerings, is likely to be reflected in the to-be-reported quarter’s results. Our estimate of $919.6 million for the Subscription segment’s revenues indicates massive 29.3% year-over-year growth.
A number of customers are opting for cloud offerings amid the ongoing cloud migration. Such new additions and increased pricing on certain products might have boosted Atlassian’s quarterly revenues. Our estimate suggests that TEAM is likely to have ended the fiscal second quarter with 267,606 customers, indicating a significant improvement of 5.7% year over year and 1% sequentially.
Additionally, the company’s sustained focus on cost savings is likely to have boosted the fiscal second-quarter bottom line. Atlassian announced restructuring actions in March 2023, which include a cut-back of lease-related expenses and the total workforce by 5% or 500 employees.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Atlassian this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
The company has an Earnings ESP of 0.00% and currently carries a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, monday.com (MNDY - Free Report) , Meta (META - Free Report) and Twilio (TWLO - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
MNDY has an Earnings ESP of +18.36% and sports a Zacks Rank #1 at present. The company is scheduled to report fourth-quarter fiscal 2023 results on Feb 12. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 200.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MNDY’s fourth-quarter earnings is pegged at 30 cents per share, indicating a year-over-year decline of 31.8%. The consensus mark for revenues is pegged at $198.3 million, suggesting a year-over-year rise of 32.3%.
META has an Earnings ESP of +0.51% and carries a Zacks Rank #2 at present. The company is scheduled to report fourth-quarter 2023 results on Feb 1. Its earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, with the average surprise being 27.5%.
The Zacks Consensus Estimate for META’s fourth-quarter earnings is pinned at $4.84 per share, indicating a year-over-year improvement of 61.33%. It is estimated to report revenues of $38.93 billion, which suggests an increase of approximately 21.02% from the year-ago quarter.
TWLO has an Earnings ESP of +31.37% and a Zacks Rank #2 at present. Twilio is slated to report fourth-quarter fiscal 2023 results on Feb 14. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 157.84%.
The Zacks Consensus Estimate for TWLO’s fourth-quarter earnings is pegged at 57 cents per share, suggesting an increase of 159% from the year-ago quarter’s earnings. Twilio’s quarterly revenues are estimated to increase 1.53% year over year to $1.04 billion.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.