Atlassian (TEAM) shares surged Friday after the business-software company posted better-than-expected quarterly results and raised its guidance as demand for artificial intelligence (AI) technology sent subscriptions surging.
The company behind project-tracking tool Jira reported first-quarter fiscal 2025 earnings per share of $0.77, with revenue jumping 21.5% to $1.19 billion. Both exceeded estimates. Subscription revenue rose 33%.
Atlassian now projects full-year revenue growth of 16.5% to 17% and a cloud revenue rise of 24%. That’s up from its earlier projection of a revenue gain of 16% and cloud revenue rise of 23% for the year.
CFO Joe Binz added the company continues to focus its investment and execution “against our key strategic priorities of serving the enterprise, delivering AI innovation, and further bringing together technology and business teams.”
Shares of Atlassian rose 16% Friday, returning to multimonth highs, but have nevertheless lost about 7% this year.
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