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Atlassian Shares Jump After Q3 Beat With 32% Revenue Growth

Service Collection passing $1 billion in recurring revenue signals broad product traction.

Overview

  • Atlassian beat expectations in fiscal Q3 with $1.79 billion in revenue and $1.75 in EPS, which pushed the stock sharply higher in after-hours trading.
  • Total revenue rose 32% from a year ago, which the CEO linked to customers signing bigger, longer-term commitments on the company’s AI-powered platform.
  • Profitability strengthened with operating income of $607.2 million and a 34% operating margin, up from 26% a year earlier.
  • The company’s Service Collection topped $1 billion in annual recurring revenue and is growing more than 30% year over year.
  • Management guided fourth-quarter revenue to $1.65 billion to $1.66 billion, which is roughly in line with analyst estimates.