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Atlassian projects fiscal fourth-quarter revenues between $1.12 billion and $1.135 billion. The Zacks Consensus Estimate for revenues is pegged at $1.13 billion, suggesting growth of 20% from the year-ago reported figure.
For fiscal fourth-quarter earnings, the consensus mark is pegged at 59 cents per share, implying a 3.5% increase from 57 cents reported in the year-ago period.
TEAM surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 29.7%.
Let’s see how things have shaped up before this announcement.
The growing adoption of Atlassian’s cloud-based offerings and the upward trend of digitalization among organizations, along with the rising popularity of hybrid working trends, are likely to have favored the company’s fiscal fourth-quarter performance. The increasing traction for TEAM’s cloud solutions from new and existing customers using on-premises products might have acted as a tailwind.
Our estimate for revenues from Cloud deployment is pegged at $743.5 million, indicating a 32% increase from the year-ago quarter. Revenues from Data Center deployment are anticipated to grow 40.5% year over year to $326.4 million.
The growing demand for core products like Jira Software and Confluence Cloud and the rising adoption of new solutions, including Jira Service Management, are likely to have acted as key catalysts. Improvement in product quality and performance, multiple product launches and increased pricing are likely to have boosted the firm’s performance.
Atlassian’s latest focus on adding AI features to some of its collaboration software is likely to have driven the fourth-quarter top line. In April 2023, the company collaborated with OpenAI to enhance the capabilities of its Confluence, Jira Service Management and other programs with generative AI features.
Strong growth in subscription revenues, driven by the robust uptake of TEAM’s subscription-based offerings, is likely to be reflected in the to-be-reported quarter’s results. Our estimate of $1.07 billion for the Subscription segment’s revenues indicates 34.2% year-over-year growth.
Several customers are opting for cloud offerings amid the ongoing cloud migration. Such new additions and increased pricing on certain products are expected to have contributed to the company’s quarterly revenues. Our estimate suggests that TEAM is likely to have ended the fiscal fourth quarter with 302,474 customers, indicating a significant improvement of 15.3% year over year.
However, softened IT spending amid the ongoing macroeconomic uncertainties might have negatively impacted Atlassian’s sales growth in the to-be-reported quarter.
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.
Though TEAM currently carries a Zacks Rank of 3, it has an Earnings ESP of -1.86%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Arista Networks’ shares have gained 33.4% year to date. ANET is set to report its second-quarter 2024 results on Jul 30.
The Zacks Consensus Estimate for ANET’s second-quarter 2024 earnings has been revised upward by a penny to $1.94 per share over the past seven days and indicates an improvement of 22.8% from the year-ago quarter’s earnings of $1.58. The consensus mark for revenues is pegged at $1.64 billion, indicating a 12.4% increase from the year-ago quarter.
Apple (AAPL - Free Report) has an Earnings ESP of +3.05% and carries a Zacks Rank #2 at present. Shares of AAPL have gained 13% year to date. The company is set to report third-quarter fiscal 2024 results on Aug 1.
The Zacks Consensus Estimate for AAPL’s third-quarter 2024 earnings has been revised upward by a penny to $1.33 over the past 60 days and indicates an improvement of 5.6% from the year-ago quarter. The consensus mark for revenues is pegged at $83.8 billion, indicating a 2.4% increase from the year-ago quarter.
GoDaddy (GDDY - Free Report) has an Earnings ESP of +13.08% and a Zacks Rank #3 at present. GoDaddy’s shares have gained 35% year to date. GDDY is set to report second-quarter 2024 results on Aug 1.
The Zacks Consensus Estimate for GDDY’s second-quarter 2024 earnings has remained unchanged at $1.07 over the past 60 days, indicating an improvement of 69.8% from the year-ago quarter. The consensus mark for revenues is pegged at $1.11 billion, indicating a 6.3% increase from the year-ago quarter.
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Atlassian (TEAM) to Report Q4 Earnings: What's in the Cards?
Atlassian (TEAM - Free Report) is scheduled to report fourth-quarter fiscal 2024 results on Aug 1.
Atlassian projects fiscal fourth-quarter revenues between $1.12 billion and $1.135 billion. The Zacks Consensus Estimate for revenues is pegged at $1.13 billion, suggesting growth of 20% from the year-ago reported figure.
For fiscal fourth-quarter earnings, the consensus mark is pegged at 59 cents per share, implying a 3.5% increase from 57 cents reported in the year-ago period.
TEAM surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 29.7%.
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 growing adoption of Atlassian’s cloud-based offerings and the upward trend of digitalization among organizations, along with the rising popularity of hybrid working trends, are likely to have favored the company’s fiscal fourth-quarter performance. The increasing traction for TEAM’s cloud solutions from new and existing customers using on-premises products might have acted as a tailwind.
Our estimate for revenues from Cloud deployment is pegged at $743.5 million, indicating a 32% increase from the year-ago quarter. Revenues from Data Center deployment are anticipated to grow 40.5% year over year to $326.4 million.
The growing demand for core products like Jira Software and Confluence Cloud and the rising adoption of new solutions, including Jira Service Management, are likely to have acted as key catalysts. Improvement in product quality and performance, multiple product launches and increased pricing are likely to have boosted the firm’s performance.
Atlassian’s latest focus on adding AI features to some of its collaboration software is likely to have driven the fourth-quarter top line. In April 2023, the company collaborated with OpenAI to enhance the capabilities of its Confluence, Jira Service Management and other programs with generative AI features.
Strong growth in subscription revenues, driven by the robust uptake of TEAM’s subscription-based offerings, is likely to be reflected in the to-be-reported quarter’s results. Our estimate of $1.07 billion for the Subscription segment’s revenues indicates 34.2% year-over-year growth.
Several customers are opting for cloud offerings amid the ongoing cloud migration. Such new additions and increased pricing on certain products are expected to have contributed to the company’s quarterly revenues. Our estimate suggests that TEAM is likely to have ended the fiscal fourth quarter with 302,474 customers, indicating a significant improvement of 15.3% year over year.
However, softened IT spending amid the ongoing macroeconomic uncertainties might have negatively impacted Atlassian’s sales growth in the to-be-reported quarter.
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.
Though TEAM currently carries a Zacks Rank of 3, it has an Earnings ESP of -1.86%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Arista Networks (ANET - Free Report) has an Earnings ESP of +1.72% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks’ shares have gained 33.4% year to date. ANET is set to report its second-quarter 2024 results on Jul 30.
The Zacks Consensus Estimate for ANET’s second-quarter 2024 earnings has been revised upward by a penny to $1.94 per share over the past seven days and indicates an improvement of 22.8% from the year-ago quarter’s earnings of $1.58. The consensus mark for revenues is pegged at $1.64 billion, indicating a 12.4% increase from the year-ago quarter.
Apple (AAPL - Free Report) has an Earnings ESP of +3.05% and carries a Zacks Rank #2 at present. Shares of AAPL have gained 13% year to date. The company is set to report third-quarter fiscal 2024 results on Aug 1.
The Zacks Consensus Estimate for AAPL’s third-quarter 2024 earnings has been revised upward by a penny to $1.33 over the past 60 days and indicates an improvement of 5.6% from the year-ago quarter. The consensus mark for revenues is pegged at $83.8 billion, indicating a 2.4% increase from the year-ago quarter.
GoDaddy (GDDY - Free Report) has an Earnings ESP of +13.08% and a Zacks Rank #3 at present. GoDaddy’s shares have gained 35% year to date. GDDY is set to report second-quarter 2024 results on Aug 1.
The Zacks Consensus Estimate for GDDY’s second-quarter 2024 earnings has remained unchanged at $1.07 over the past 60 days, indicating an improvement of 69.8% from the year-ago quarter. The consensus mark for revenues is pegged at $1.11 billion, indicating a 6.3% increase from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.