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. 

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