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Atlassian (TEAM) Q4 Earnings Beat Estimates, Revenues Match
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Atlassian (TEAM - Free Report) reported fourth-quarter fiscal 2024 results, wherein earnings beat the Zacks Consensus Estimate and revenues matched the same. Its non-GAAP earnings per share of 66 cents beat the Zacks Consensus Estimate of 59 cents. The figure jumped 15.8% from the year-ago quarter’s non-GAAP earnings of 57 cents per share, mainly driven by strong top-line growth.
TEAM’s fiscal fourth-quarter revenues climbed 20.5% year over year to $1.13 billion and came in line with the Zacks Consensus Estimate. The top line was primarily driven by strong migrations, robust growth across Cloud and Data Center, as well as rising enterprise sales execution.
Quarterly Details
Segment-wise, Subscription revenues soared 33.7% year over year to $1.07 billion, driven by the ongoing shift toward cloud. Our estimate for Subscription revenues was pegged at $1.07 billion.
The Maintenance business registered no revenues due to the closure of its operations.
Atlassian Corporation PLC Price, Consensus and EPS Surprise
Atlassian’s Other revenues (including perpetual license revenues) jumped 17.3% year over year to $62.7 million. Our estimate for Other revenues was pegged at $53.8 million.
During the fiscal fourth quarter, Cloud revenues were $738 million, representing 31% year-over-year growth. Meanwhile, revenues from the Data Center soared 40.7% to $326.7 million. Marketplace and Services revenues were $67 million, which climbed 16.4% year over year. The Server segment registered no revenues due to the closure of operations.
Our revenue estimates for the Cloud, Data Center and Marketplace and Services, were pegged at $743.5 million, $326.4 million and 57.5 million, respectively.
The company’s non-GAAP gross profit climbed 19.1% year over year to $0.94 billion. The non-GAAP gross margin declined 100 basis points to 83% during the quarter.
TEAM’s non-GAAP operating income increased 9.5% year over year to $222 million, while its non-GAAP operating margin declined to 20% from 22% reported in the year-ago quarter. The operating income is benefiting from strong migrations to the cloud and high growth in Data Center, as well as Marketplace and Services revenues.
Balance Sheet
The company ended the fourth quarter of fiscal 2024 with cash and cash equivalents and short-term investments of $2.34 billion, up from $2.11 billion reported at the end of the previous quarter.
In the fiscal fourth quarter, TEAM generated operating and free cash flows of $426.2 million and $413.2 million, respectively.
First-Quarter and Fiscal 2025 Guidance
For the first quarter of fiscal 2025, the company anticipates revenues between $1.149 billion and $1.157 billion. The Zacks Consensus Estimate is pegged at $1.16 billion.
The non-GAAP gross margin is estimated to be 83.5%. The non-GAAP operating margin is projected to be 19%.
For fiscal 2025, Atlassian anticipates the non-GAAP gross margin and the operating margin to be 83.5% and 21.5%, respectively.
Zacks Rank & Stocks to Consider
Atlassian currently carries a Zacks Rank #3 (Hold). Shares of TEAM have plunged 27.2% year to date (YTD).
The consensus mark for Twilio’s 2024 earnings has been revised upward by 2 cents to $3.12 per share over the past 30 days, indicating a 27.4% increase from 2023. It has a long-term earnings growth expectation of 33%. The stock has lost 25.6% YTD.
The Zacks Consensus Estimate for DELL’s fiscal 2025 earnings has been revised upward by 3 cents to $7.82 per share in the past 60 days, suggesting year-over-year growth of 9.7%. The long-term estimated earnings growth rate for the stock is 11.8%. The stock has gained 41.8% YTD.
The Zacks Consensus Estimate for AppFolio’s 2024 earnings has been revised downward by 2 cents to $3.98 per share in the past 60 days, indicating an increase of 132.8% on a year-over-year basis. Shares of APPF have jumped 48.1% YTD.
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Atlassian (TEAM) Q4 Earnings Beat Estimates, Revenues Match
Atlassian (TEAM - Free Report) reported fourth-quarter fiscal 2024 results, wherein earnings beat the Zacks Consensus Estimate and revenues matched the same. Its non-GAAP earnings per share of 66 cents beat the Zacks Consensus Estimate of 59 cents. The figure jumped 15.8% from the year-ago quarter’s non-GAAP earnings of 57 cents per share, mainly driven by strong top-line growth.
TEAM’s fiscal fourth-quarter revenues climbed 20.5% year over year to $1.13 billion and came in line with the Zacks Consensus Estimate. The top line was primarily driven by strong migrations, robust growth across Cloud and Data Center, as well as rising enterprise sales execution.
Quarterly Details
Segment-wise, Subscription revenues soared 33.7% year over year to $1.07 billion, driven by the ongoing shift toward cloud. Our estimate for Subscription revenues was pegged at $1.07 billion.
The Maintenance business registered no revenues due to the closure of its operations.
Atlassian Corporation PLC Price, Consensus and EPS Surprise
Atlassian Corporation PLC price-consensus-eps-surprise-chart | Atlassian Corporation PLC Quote
Atlassian’s Other revenues (including perpetual license revenues) jumped 17.3% year over year to $62.7 million. Our estimate for Other revenues was pegged at $53.8 million.
During the fiscal fourth quarter, Cloud revenues were $738 million, representing 31% year-over-year growth. Meanwhile, revenues from the Data Center soared 40.7% to $326.7 million. Marketplace and Services revenues were $67 million, which climbed 16.4% year over year. The Server segment registered no revenues due to the closure of operations.
Our revenue estimates for the Cloud, Data Center and Marketplace and Services, were pegged at $743.5 million, $326.4 million and 57.5 million, respectively.
The company’s non-GAAP gross profit climbed 19.1% year over year to $0.94 billion. The non-GAAP gross margin declined 100 basis points to 83% during the quarter.
TEAM’s non-GAAP operating income increased 9.5% year over year to $222 million, while its non-GAAP operating margin declined to 20% from 22% reported in the year-ago quarter. The operating income is benefiting from strong migrations to the cloud and high growth in Data Center, as well as Marketplace and Services revenues.
Balance Sheet
The company ended the fourth quarter of fiscal 2024 with cash and cash equivalents and short-term investments of $2.34 billion, up from $2.11 billion reported at the end of the previous quarter.
In the fiscal fourth quarter, TEAM generated operating and free cash flows of $426.2 million and $413.2 million, respectively.
First-Quarter and Fiscal 2025 Guidance
For the first quarter of fiscal 2025, the company anticipates revenues between $1.149 billion and $1.157 billion. The Zacks Consensus Estimate is pegged at $1.16 billion.
The non-GAAP gross margin is estimated to be 83.5%. The non-GAAP operating margin is projected to be 19%.
For fiscal 2025, Atlassian anticipates the non-GAAP gross margin and the operating margin to be 83.5% and 21.5%, respectively.
Zacks Rank & Stocks to Consider
Atlassian currently carries a Zacks Rank #3 (Hold). Shares of TEAM have plunged 27.2% year to date (YTD).
Some better-ranked stocks in the broader technology sector are Twilio (TWLO - Free Report) , Dell (DELL - Free Report) and AppFolio (APPF - Free Report) . Currently, Twilio sports a Zacks Rank #1 (Strong Buy), while DELL and AppFolio carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for Twilio’s 2024 earnings has been revised upward by 2 cents to $3.12 per share over the past 30 days, indicating a 27.4% increase from 2023. It has a long-term earnings growth expectation of 33%. The stock has lost 25.6% YTD.
The Zacks Consensus Estimate for DELL’s fiscal 2025 earnings has been revised upward by 3 cents to $7.82 per share in the past 60 days, suggesting year-over-year growth of 9.7%. The long-term estimated earnings growth rate for the stock is 11.8%. The stock has gained 41.8% YTD.
The Zacks Consensus Estimate for AppFolio’s 2024 earnings has been revised downward by 2 cents to $3.98 per share in the past 60 days, indicating an increase of 132.8% on a year-over-year basis. Shares of APPF have jumped 48.1% YTD.