IT project management software company, Atlassian (NASDAQ:TEAM) will be announcing earnings results tomorrow afternoon. Here's what you need to know.
Last quarter Atlassian reported revenues of $1.06 billion, up 21.5% year on year, beating analyst revenue expectations by 3.6%. It was a very strong quarter for the company, with an impressive beat of analysts' billings estimates and optimistic revenue guidance for the next quarter.
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This quarter analysts are expecting Atlassian's revenue to grow 20.2% year on year to $1.1 billion, slowing down from the 23.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.63 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.7%.
With Atlassian being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for productivity software stocks, but the whole sector has been facing a sell-off since late last year, with stocks down on average 4.3% over the last month. Atlassian is up 4% during the same time, and is heading into the earnings with with analyst price target of $257.6, compared to share price of $199.7.