IT project management software company, Atlassian (NASDAQ:TEAM) will be reporting results tomorrow after market close. Here’s what to expect.
Atlassian beat analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $1.29 billion, up 21.4% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA 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 13.6% year on year to $1.35 billion, slowing from the 29.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.93 per share.
Analysts covering the company have generally 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 3% on average.
Looking at Atlassian’s peers in the productivity software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Pegasystems delivered year-on-year revenue growth of 44.1%, beating analysts’ expectations by 33.1%, and ServiceNow reported revenues up 18.6%, in line with consensus estimates. Pegasystems traded up 28.8% following the results while ServiceNow was also up 15.4%.
Read our full analysis of Pegasystems’s results here and ServiceNow’s results here.
Investors in the productivity software segment have had steady hands going into earnings, with share prices flat over the last month. Atlassian is up 5.3% during the same time and is heading into earnings with an average analyst price target of $300.95 (compared to the current share price of $227.92).
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