Atlassian Soars on Positive 4Q and CFO Appointment
2022.08.05 18:46
Atlassian (TEAM) Soars on Positive 4Q and CFO Appointment
By Michael Elkins
Atlassian Corp. (NASDAQ:TEAM) soared in pre-market trading Friday and is currently up almost 14% mid-day after the company reported 4Q results and offered some forward-looking commentary on the earnings call.
The Australian software company reported 4Q adjusted EPS of $0.27, compared to EPS of $0.24 in the year-ago period, in line with what analysts were expecting. Revenue came in at $760 million, up 35% YoY, ahead of the consensus projection of $723 million.
TEAM reported an EBIT of 14.4%, below the analyst consensus of 15.3%. TEAM also announced Joe Binz as the new CFO. Binz will take over the position in September following a successful stint as Corporate VP of Finance at Microsoft (NASDAQ:MSFT).
A Raymond James analyst commented on the management change in a note saying that he believes “Binz’s background could serve TEAM well into the later stages of its cloud transition given Microsoft’s successful Azure business.”
Co-founder and co-CEO, Mike Cannon-Brookes projected confidence in the company during the call.
“We capped off fiscal year 2022 with strong Q4 results, growing Cloud revenue 55 percent year-over-year,” said Mike Cannon-Brookes, Atlassian’s co-founder and co-CEO. “We believe that Atlassian is uniquely positioned, with great momentum and a differentiated business model. While we can’t predict what the future holds at a macro level, we’re forging ahead with conviction and vigilance as we look to deepen our strategic position.”
Co-founder and co-CEO, Scott Farquhar spoke about the company’s pride in their hiring practices, seeing potential in TEAM’s future.
“Our strong competitive position provides us with the flexibility to invest purposefully and create value for our customers,” said Scott Farquhar, Atlassian’s co-founder, and co-CEO. “We’re proud of how we continue to execute against our long-term plans, which includes bringing on top-tier talent from across the globe. We added over 2,300 new Atlassians in fiscal year 2022, and they will be instrumental to helping us achieve our mission to unleash the potential of every team.”
TEAM management provided guidance for the 1st quarter in 2023 on the call. Total revenue is expected to be in the range of $795 million to $810 million. Net income per diluted share is expected to be approximately $0.37 to $0.38.
A Piper Sandler analyst offered positive comments on TEAM in a note saying he continues to view Atlassian as “a franchise name to own” with “potential for “beat and raises.”
