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Here's What Key Metrics Tell Us About Atlassian (TEAM) Q3 Earnings

Zacks Equity Research
·2 min read

For the quarter ended March 2024, Atlassian (TEAM) reported revenue of $1.19 billion, up 29.9% over the same period last year. EPS came in at $0.89, compared to $0.54 in the year-ago quarter.

The reported revenue represents a surprise of +8.49% over the Zacks Consensus Estimate of $1.1 billion. With the consensus EPS estimate being $0.61, the EPS surprise was +45.90%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

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Here is how Atlassian performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Customers: 300,000 compared to the 306,753 average estimate based on three analysts.

  • Revenues- Subscription: $1.07 billion versus the nine-analyst average estimate of $1 billion. The reported number represents a year-over-year change of +40.8%.

  • Revenues- Maintenance: $29.53 million versus the nine-analyst average estimate of $33.18 million. The reported number represents a year-over-year change of -68.7%.

  • Revenues- Other: $88.24 million versus $62.65 million estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +45.7% change.

  • Revenues- Cloud: $703.04 million versus $694.84 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +31.4% change.

  • Revenues- Data Center: $364.13 million versus $296.55 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +64.4% change.

  • Revenues- Server: $29.72 million versus the five-analyst average estimate of $30.78 million. The reported number represents a year-over-year change of -68.5%.

  • Revenues- Marketplace and other: $92.24 million versus the five-analyst average estimate of $66.54 million. The reported number represents a year-over-year change of +42.7%.

View all Key Company Metrics for Atlassian here>>>

Shares of Atlassian have returned +3% over the past month versus the Zacks S&P 500 composite's -3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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Zacks Investment Research