TEAM Earnings Prediction
The chart below shows how TEAM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TEAM sees a +0.40% change in stock price 10 days leading up to the earnings, and a -1.36% change 10 days following the report. On the earnings day itself, the stock moves by +1.07%. This data can give you a slight idea of what to expect for the next quarter's release.
TEAM Key Earning Data
TEAM Earnings Analysis
Positive
Strong Revenue Growth: Atlassian achieved an annual run rate revenue exceeding $5 billion, with subscription revenue growing 30% year over year, indicating strong financial performance and growth momentum.
AI User Engagement Growth: The number of monthly active users utilizing Atlassian intelligence features surpassed 1 million, with AI interactions increasing more than 25 times year over year, showcasing significant customer engagement and product adoption.
Premium Sales Surge: Sales for premium and enterprise additions rose over 40% year over year, reflecting successful upselling strategies and increased customer commitment to higher-value products.
Record High Enterprise Deals: A record number of deals exceeding $1 million in annual contract value were signed during the quarter, highlighting strong demand from large enterprises for Atlassian's cloud solutions.
Gross Margin Improvement: Gross margins improved to 85%, exceeding guidance and driven by revenue outperformance and lower-than-expected cloud costs, indicating effective cost management and operational efficiency.
Negative
SMB Growth Concerns: Paid seat expansion rates in SMB remained stable, indicating a lack of growth momentum in this segment, which is concerning given the macroeconomic uncertainties.
Enterprise Revenue Opportunity Gap: Despite a record number of deals greater than $1,000,000, only 10% of revenues are derived from the largest customers, highlighting a significant opportunity gap in enterprise penetration.
Operating Margin Outlook: Operating margins in H2 are expected to be slightly lower than H1 due to increased spending on sales and marketing, which may not yield immediate returns.
Conservative Guidance Approach: The company has adopted a more conservative and risk-adjusted approach to guidance, reflecting ongoing uncertainties in the macro environment and execution risks in the enterprise go-to-market strategy.
Cloud Margin Decline Forecast: Cloud gross margins are projected to decline over the next three years due to a revenue mix shift, which could impact overall profitability despite current improvements.
TEAM FAQs
How does TEAM typically perform around its earnings report dates?
TEAM's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a +0.40% change leading up to the report and a -1.36% change in the 10 days following the release.
