Shares of Atlassian Corporation (TEAM 16.57%), 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 pm 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.
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Atlassian. The Motley Fool has a disclosure policy.