IT project management software company, Atlassian (NASDAQ:TEAM) will be reporting earnings this Thursday after market hours. Here’s what to look for.
Atlassian met analysts’ revenue expectations last quarter, reporting revenues of $1.36 billion, up 14.1% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA 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.
This quarter, analysts are expecting Atlassian’s revenue to grow 19.8% year on year to $1.36 billion, in line with the 20.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.85 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Atlassian has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.9% on average.
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. ServiceNow delivered year-on-year revenue growth of 22.4%, beating analysts’ expectations by 2.9%, and Microsoft reported revenues up 18.1%, topping estimates by 3.5%. ServiceNow traded up 4.3% following the results while Microsoft was also up 3.8%.
Read our full analysis of ServiceNow’s results here and Microsoft’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the productivity software stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.4% on average over the last month. Atlassian is down 14.4% during the same time and is heading into earnings with an average analyst price target of $274.49 (compared to the current share price of $185.01).
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