Collaboration software company Atlassian (NASDAQ:TEAM) will be announcing earnings results this Thursday after market hours. Here’s what to look for.
Atlassian beat analysts’ revenue expectations last quarter, reporting revenues of $1.79 billion, up 31.7% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ billings estimates.
Is Atlassian a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Atlassian’s revenue to grow 19.9% year on year, slowing from the 22.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Atlassian has a history of exceeding Wall Street’s expectations.
Looking at Atlassian’s peers in the productivity software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Microsoft delivered year-on-year revenue growth of 17.7%, beating analysts’ expectations by 2.6%, and ServiceNow reported revenues up 24%, topping estimates by 1.6%. Microsoft traded up 15.5% following the results while ServiceNow was down 3.7%.
Read our full analysis of Microsoft’s results here and ServiceNow’s results here.
There has been positive sentiment among investors in the productivity software segment, with share prices up 9.6% on average over the last month. Atlassian is up 28.2% during the same time and is heading into earnings with an average analyst price target of $140.33 (compared to the current share price of $109.63).
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