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Atlassian (TEAM) Q4 Earnings Report Preview: What To Look For

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TEAM Cover Image

IT project management software company, Atlassian (NASDAQ: TEAM) will be reporting results tomorrow after market close. Here’s what to look for.

Atlassian beat analysts’ revenue expectations by 3% last quarter, reporting revenues of $1.19 billion, up 21.5% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EBITDA estimates but a miss of analysts’ billings estimates.

Is Atlassian a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Atlassian’s revenue to grow 16.9% year on year to $1.24 billion, slowing from the 21.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.76 per share.

Atlassian Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Atlassian has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.9% on average.

With Atlassian being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for productivity software stocks. However, there has been positive investor sentiment in the segment, with share prices up 8.8% on average over the last month. Atlassian is up 12% during the same time and is heading into earnings with an average analyst price target of $290.55 (compared to the current share price of $276.02).

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