Atlassian beats Q1 expectations with revenue up 42 percent

The collaboration and productivity software company saw its subscription revenue grow 69 percent.

(Image: Atlassian)

Atlassian published its first quarter financial results for fiscal 2018 on Thursday, beating market estimates.

The enterprise software company reported a net income of of $29.9 million, or 12 cents per diluted share, compared with $22.7 million, or 10 cents per share, a year prior. Revenue for Q1 2018 came to $193.8 million, up 42 percent year over year.

Analysts were expecting earnings of 9 cents on revenue of $185 million.

Subscription revenue was particularly strong, up 69 percent year over year at $84.4 million. The company grew its customer count on net by 4,246 for the quarter. It ended Q1 with a total customer count on an active subscription or maintenance agreement basis of 107,746.

The company reported a free cash flow of $62.7 million, an increase of 140 percent year over year.

For Q2, Atlassian is expecting revenue in the range of $203 million to $205 million. For the full fiscal year 2018, it's expecting revenue in the range of $841 million to $847 million.