What happened

Atlassian Corp. (NASDAQ:TEAM) stock jumped 14% in May, according to data from S&P Global Market Intelligence. For some context, the S&P 500 returned 2.4% in the month.

Shares of the Australian collaboration and productivity software company have tacked on another 3.8% so far in June, bringing their year-to-date 2018 gain to 45.4% through Tuesday, June 12. The broader market has returned 5.2% so far this year.

Names of some of the company's main products along with related images in a collage pattern.

Image source: Atlassian.

So what 

Atlassian stock's May gain appears to be more of a continuation of the strong upward momentum that began last October rather than due to any one specific event. The market loved the company's fiscal first-quarter 2018 results released in mid-October, sending shares soaring nearly 25% the next trading day. Since then, the company has reported second-quarter (January) and third-quarter (April) results -- and has continued to beat Wall Street's bottom-line expectations. 

In the third quarter, Atlassian once again reported robust revenue growth, with revenue up 40% year over year to $223.7 million, while its net loss on the basis of International Financial Reporting Standards (IFRS) narrowed to $14.3 million, or $0.06 per share, from $17.5 million, or $0.08 per share, in the year-ago quarter. On an adjusted basis, the company posted net income of $24.6 million, or $0.10 per share, up from $18.9 million, or $0.08 per share, in the third quarter of fiscal 2017. 

Now what

For fiscal full-year 2018, Atlassian expects revenue in the range of $862 million to $864 million, which would represent growth of about 39% over the $619.9 million the company took in in fiscal 2017. It projects a loss per share of $0.44 to $0.43 on an IFRS basis, versus a loss of $0.19 in the year-ago period, and adjusted earnings per share (EPS) of $0.47 to $0.48, up from $0.36 in fiscal 2017.

Atlassian's future looks promising. The company's growing revenue at a torrid pace in what's a potentially massive total addressable market (TAM), and its adjusted EPS is expected to increase this year. 

Beth McKenna has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Atlassian. The Motley Fool has a disclosure policy.