Atlassian beats Q1 estimates as it deepens focus on IT teams

Still, the collaboration and productivity software firm saw its shares fall in after-hours trading.

Atlassian published its first quarter fiscal 2019 financial results on Thursday, beating market expectations. Nevertheless, shares were down in after-hours trading.

The collaboration and productivity software firm reported a non-IFRS net income of $49.2 million or 20 cents per diluted share. A year prior, net income came to $32.5 million or 13 cents per diluted share. Total revenue in Q1 was $267.3 million, up 37 percent year-over-year.

Wall Street was looking earnings of 19 cents per share on revenue of $259.67 million.

In a statement, co-CEO Scott Farquhar highlighted the Atlassian Summit Europe, which took place during Q1 in Barcelona. The company used the summit to make two announcements: its acquisition of the incident reporting firm OpsGenie, as well as its new incidnet response hub, Jira Ops.

"Alongside our other offerings, these two products support our efforts to deepen Atlassian's focus on IT teams in fiscal 2019 and help realize our broader mission to unleash the potential of every team," Farquhar said.

Atlassian ended the first quarter with a total customer count, on an active subscription or maintenance agreement basis, of 131,684. It added 5,888 net new customers during the quarter.

The company reported a quarterly free cash flow of $74.2 million and free cash flow margin of 28 percent.

For the second quarter, Atlassian expects total revenue in the range of $287 million to $289 million. It expects net income per diluted share to come to about 21 cents on a non-IFRS basis.

Total revenue is expected to be in the range of $1.175 billion to $1.183 billion. Net income per diluted share is expected to be approximately 78 cents on a non-IFRS basis.