Atlassian shares surge as Q2 earnings top estimates; raises guidance for 2022 subscriptions
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Atlassian (NASDAQ:TEAM) shares surges 8.9% premarket after the company posted second quarter revenue of $688.5M, up 37% on the same quarter last year and raised its forecast for subscription revenue.
The company narrowed its net loss to $77.5M from $621.5M in the year-ago quarter; GAAP EPS of -$0.31 beats by $0.03.

For the full fiscal year, Atlassian expects subscription revenue, which accounts for about 86% of the firmâs total revenue will jump by about 50%, up from the previous projection of growth in the mid-40â²s range.
The company ended the quarter with 226,521 customers, , adding 10,021 net new customers during the quarter.
The company also said it acquired AI-powered virtual agent company Percept.ai for an undisclosed amount âbolstering our investments in automation and machine learning."

Q3 2022 Guidance: Revenue is expected to be in the range of $690 million to $705 million vs. consensus of $664.56M;
Gross margin is expected to be in the range of 82% to 83% on an IFRS basis and in the range of 84% to 85% on a non-IFRS basis.
Operating margin is expected to be in the range of (10%) to (9%) on an IFRS basis and in the range of 17% to 18% on a non-IFRS basis.
Net loss per diluted share is expected to be in the range of ($0.33) to ($0.31) on an IFRS basis.
In a letter to shareholders, Cannon-Brookes and Farquhar steered focus toward enterprise subscription growth, and the increasing uptake of its partner program and app marketplace.
The company is increasing prices of its data center and server products next month. The hikes will range from 10% to 25% and will not affect customers that use Atlassianâs cloud offerings, the company said.
Atlassian co-founders and CEOs Scott Farquhar and Mike Cannon-Brookes said the jump is a new record that illustrates the companyâs progress and commitment to âinnovation in the cloudâ.

âPartners are critical to our long-term success. Whatâs more, they see Atlassian Cloud as being critical to their success and are embracing the new opportunities around migrations, sales, and app development it provides,â the co-CEOs wrote. 
âAnd the numbers bear this out: Cloud sales from our Channel Partners in Q2 were up 131% year-over-year.â

Earlier, Atlassian GAAP EPS of -$0.31 beats by $0.03, revenue of $688.53M beats by $46.06M.