Q1 2025 Earnings Summary
Reported on Oct 31, 2024 (After Market Close)
Pre-Earnings Price$188.54Last close (Oct 31, 2024)
Post-Earnings Price$225.45Open (Nov 1, 2024)
Price Change
$36.91(+19.58%)
- Atlassian's Cloud revenue grew 31%, exceeding expectations due to better-than-expected paid seat expansion and migrations. This strong cloud performance indicates successful execution and sustained demand, positioning the company well for continued growth in this segment.
- The company is rapidly innovating in AI, with Atlassian Intelligence and Rovo now generally available, leading to more than 10x increase in usage since the start of the year. This is driving increased customer adoption of higher-value editions and migrations to the cloud, enhancing revenue growth prospects.
- Jira Service Management (JSM) continues strong growth with over 55,000 customers, leveraging AI to deliver industry-leading capabilities, recognized by Forrester for leadership in AI and service management. This strengthens Atlassian's competitive position in the service management space, expanding opportunities for growth.
- Macroeconomic uncertainty remains a significant risk, with factors like the upcoming U.S. elections, regional military conflicts, and tempered IT spending outlooks potentially impacting Atlassian's growth.
- Execution risks in transforming the enterprise go-to-market motion could affect future performance, as Atlassian is still in the early stages of this evolution and acknowledges there's a lot of work left to do.
- Delays in cloud migration for large data center customers may occur due to macroeconomic factors and internal customer environments, potentially slowing cloud revenue growth.
Research analysts covering Atlassian.