Atlassian issues upbeat forecasts on strong demand, shares soar

Atlassian

30/01/2025 21:50

Jan 30 (Reuters) - Atlassian  TEAM.O  on Thursday projected third-quarter revenue above
estimates and raised its annual revenue forecast, signaling strong demand for the enterprise
software maker's artificial intelligence-enabled cloud services, sending its shares up 16% in
extended trading.  
    Atlassian is benefiting from the accelerated adoption of AI-enabled project management and
productivity software as companies seek to improve efficiency and reduce costs.
    "Strong enterprise sales execution drove better-than-expected revenue across both our cloud
and data center offerings, as we delivered 30% year-over-year growth in subscription revenue in
the second quarter," said Financial Chief Joe Binz.
    The company's collaboration tools, such as Jira for planning and project management and
Confluence for content creation, serve over 300,000 customers.
    Atlassian's latest offering, Rovo, which was released in October 2024, is an AI assistant
that allows users to do enhanced search, learning and automation across enterprise data.
    For the third quarter, Atlassian sees revenue in the range of $1.35 billion to $1.34
billion, while analysts expect $1.31 billion, according to data compiled by LSEG. 
    It now expects fiscal year 2025 revenue growth to be between 18.5% to 19%, up from its prior
projection of 16.5% to 17%.
    The enterprise software developer's revenue stood at $1.29 billion in the three months to
Dec. 31, compared with analysts' average estimate of $1.24 billion.
    
     
     
     

 (Reporting by Juby Babu in Mexico City; Editing by Alan Barona)
 ((Juby.Babu@thomsonreuters.com))