What happened
Enterprise software developer Atlassian (TEAM -0.30%) was developing quite the bull following this week. Although the quarterly results it posted on Thursday were mixed, investors found them encouraging enough to drive the stock higher. As of Friday before market open, according to data compiled by S&P Global Market Intelligence, the shares had risen by 11% week-to date.
So what
For its second quarter of fiscal 2023, Atlassian's revenue amounted to $873 million. That was 27% higher on a year-over-year basis, although it didn't quite reach the average analyst estimate of slightly over $877 million.
That wasn't the case with profitability, however. On the bottom line, Atlassian's non-GAAP (adjusted) net income was a bit under $115 million ($0.45 per share). While this was only a 4% improvement on the second quarter of 2022's result, those analysts were collectively projecting the specialty tech company would net $0.43 per share.
Atlassian ascribed much of its revenue gain to a boost in its take for subscriptions, which rose 40% from the year-ago quarter.
Now what
In its earnings release, Atlassian quoted its co-founder and co-CEO Scott Farquhar as saying that "2023 will be all about helping our customers navigate these challenging times, absorbing the macro-driven impacts on our business, and setting Atlassian up for long-term success."
The company proffered guidance for both its current (third) quarter, and for the entirety of fiscal 2023. For the latter period, it's expecting annual growth to come in at around 25%, on the back of cloud sales that should notch a 35% to 40% improvement. The adjusted operating margin should land at roughly 17%.
