Atlassian (TEAM) Q3 Earnings: What To Expect

Collaboration software company Atlassian (NASDAQ:TEAM) will be reporting results this Thursday after market hours. Here’s what you need to know.

Atlassian beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $1.38 billion, up 22.3% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but revenue guidance for next quarter slightly missing analysts’ expectations.

Is Atlassian a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Atlassian’s revenue to grow 18% year on year to $1.40 billion, slowing from the 21.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.84 per share.Atlassian Total Revenue

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, only Pegasystems has reported results so far. It beat analysts’ revenue estimates by 8.5%, delivering year-on-year sales growth of 17.3%. The stock traded up 15% on the results.

Read our full analysis of Pegasystems’s earnings results here.

Investors in the productivity software segment have had fairly steady hands going into earnings, with share prices down 1.3% on average over the last month. Atlassian’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $246.24 (compared to the current share price of $163.90).

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