Atlassian rising as fiscal Q3 tops expectations, Q4 revenue view higher

Atlassian said its subscription revenue rose 43%, year over year, in the quarter.

Jira project management software maker Atlassian this afternoon reported Q3 revenue that was at the high end of a pre-announcement two weeks ago, and an outlook for this quarter's revenue that was higher as well. 

The report sent Atlassian shares slightly higher in late trading. 

Co-CEO and co-founder Scott Farquhar remarked that the company "drove strong revenue growth and financial results, but we are most proud of how we continue to create lasting value for teams and customers in the cloud through initiatives like Open DevOps and the recent acquisitions of ThinkTilt and Chartio."

Co-CEO Mike Cannon-Brookes lauded the value of the cloud versions of the company's software, stating, 

The Atlassian cloud platform allows us to innovate faster than ever for teams and organizations of all sizes, highlighted by our announcement of Point A. The Point A program fast-tracks our most promising ideas and vets early versions with our users, so customers can get value out of early products from day 1. Our new products are able to rapidly evolve thanks to our incredible R&D teams building on top of our multi-year cloud platform investment.

Revenue in the three months ended in March rose 38%, year over year, to $569 million, yielding net income of 48 cents a share, excluding some costs.

Also: Atlassian broadens Jira's reach beyond tech teams with Jira Work Management

The report was consistent with a revenue pre-announcement by Atlassian offered back on April 13th. That revenue outlook was much higher than consensus at the time.

Analysts had been modeling $534 million and 29 cents per share.

Atlassian said its subscription revenue rose 43%, year over year, to $350 million.

For the current quarter, the company sees revenue of $513 million to $528 million, and EPS of approximately 17 cents, excluding some costs. That compares to consensus for $505 million and a 23-cent profit per share.

It has been a busy few weeks for Atlassian as it preannounced strong earningsacquired ThinkTilt and Chartio and launched Atlassian Cloud Enterprise