What happened

Shares of Atlassian (TEAM -0.09%) were moving higher last month, gaining 13%, according to data from S&P Global Market Intelligence. The maker of enterprise cloud software benefited due to momentum from a strong earnings report at the end of July and from an analyst endorsement at the end of August.

As you can see from the chart below, the stock gain was headed higher over the second half of the month.

TEAM Chart

TEAM data by YCharts

So what

On the last day of trading in July, Atlassian shares jumped 22% after the company smashed estimates, posting revenue growth of 30% to $560 million, well ahead of estimates at $524.1 million. On the bottom line, the company reported an adjusted profit per share of $0.24, edging out the consensus at $0.18.

Two people having a collaborative work session using a laptop, a calculator, and charts.

Image source: Getty Images.

Guidance was also strong, as the company called for subscription revenue growth in the low-to-mid 40% range, which was ahead of estimates.

Building on that momentum and broader growth in tech stocks, Atlassian bounced higher early in the month and finished strong after Wolfe Research gave the stock an outperform rating and a price target of $400. Analyst Alex Zukin called the company "one of the best and most durable growth stories in software," and likened it to a Salesforce.com for developers.

Now what

Atlassian may not get the most attention in the cloud software sector, but like peers such as ServiceNow and Workday, the company is benefiting from an enterprise shift to collaborative cloud software tools like Trello, one of its more popular apps; and the stock is up more than 1,000% in the last five years, showing that it's quietly crushing the market.

With a high free cash flow margin and strong subscription revenue growth, the company looks poised to continue to outperform.