Atlassian Corp. shares soared 33% in after-hours trading after the collaborative software maker reported better-than-expected fourth-quarter results and issued optimistic guidance.
Atlassian reported earnings of $1.87 a share and revenue of $1.7 billion, up 28% from a year ago. Analysts tracked by FactSet had expected earnings of $1.50 a share and revenue of $1.66 billion.
"Q4 was another outstanding quarter, capping off an incredible fiscal year. We're firing across every strategic priority -- enterprise, AI and the System of Work -- while driving durable, profitable growth," CEO and Co-Founder Mike Cannon-Brookes wrote in a letter to shareholders.
As customers decide what kinds of companies they want to be in the AI era, they are voting their wallets, he said, "doubling down" with larger and longer deals, including signing the largest enterprise deal in company history with one of the world's largest consumer technology companies.
The maker of workplace software programs Trello, Jira, and Confluence reported a record quarter in terms of $1 million, $3 million, and $5 million annual contract value deals. Annual recurring revenue customers of at least $3 million grew more than 50% from a year ago, while its $5 million-plus customers grew more than 70%.
Cloud revenue surged to $1.2 billion, as growth accelerated to 31% from a year ago. Subscription annual recurring revenue of $6.6 billion increased 23% from last year, while remaining performance revenue increased 44% to $4.8 billion.
Atlassian stock is down 32% this year through Thursday's close and down 35.6% over the past 12 months.
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