Atlassian beats Q1 expectations, outlook falls short

The collaboration and productivity software company reported​ non-GAAP earnings of 30 cents per share on revenue of $459.5 million.

Atlassian handily topped its first quarter financial targets on Thursday but its guidance for the current quarter fell short of analyst estiamts. The collaboration and productivity software company reported non-GAAP earnings of 30 cents per share on revenue of $459.5 million, up 26% from a year ago.

Wall Street was expecting the company to report earnings of 27 cents per share on revenue of $440.4 million.

Atlassian's subscription revenue climbed to $277.9 million, up from $201.1 million the year prior. Elsewhere, Atlassian said it grew its customer count on a net basis by 8,620 for the quarter. It ended Q1 with a total customer count on an active subscription or maintenance agreement basis of 182,717.

"We continued to build momentum in the cloud, and delivered increased value to our customers," said Mike CannonBrookes, Atlassian's co-founder and co-CEO. "We are laser focused on delivering the best experience to customers in the cloud by building powerful new editions like Cloud Premium and Cloud Enterprise, scaling products like Atlassian Access, and cementing partnerships with best-of-breed SaaS providers such as Slack."

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In terms of guidance, Atlassian is expecting second quarter revenue in the range of $460 million to $475 million, with EPS between 30 cents and 32 cents. Analysts expect the company to report second quarter earnings of 33 cents per share on revenue of $479.6 million. Shares of Atlassian were down over 4% after hours.