Shares of Atlassian Corporation (TEAM 2.18%), a collaboration and productivity software company, were climbing today after the company reported its fourth-quarter results. The company's earnings were in line with Wall Street's consensus estimate, but Atlassian's top line outpaced analysts' consensus estimate.
The tech stock was up by 15.2% as of 2:43 p.m. ET.
Atlassian reported non-GAAP earnings per share of $0.27 for the quarter, which was up from $0.24 per share in the year-ago quarter and on par with Wall Street's average estimate.
Investors likely focused their attention on Atlassian's revenue in the quarter, which was up 36% from the year-ago quarter to $760 million and beat analysts' consensus estimate of $724 million.
They were also happy to see that Atlassian's losses narrowed to $105.5 million, an improvement from the company's loss of $213.1 million in the year-ago quarter.
Other bright spots include quarterly subscription revenue that increased 55% to $597 million and the addition of 8,048 customers in the quarter for a total of 242,623.
"While we can't predict what the future holds at a macro level, we're forging ahead with conviction and vigilance as we look to deepen our strategic position," Atlassian co-founder and co-CEO Mike Cannon-Brookes said in a press release.
Atlassian's management issued guidance for the first quarter, with earnings per share in the range of $0.37 to $0.38 and revenue in the range of between $795 million to $810 million.
The first-quarter earnings outlook is in line with analysts' expectations, while the company's revenue guidance is ahead of Wall Street's consensus estimate of $773.5 million.
With the company's solid fourth-quarter results, narrowing losses, and strong guidance, it's no surprise why investors are pushing Atlassian's shares higher today.