Shares of software solutions provider Atlassian Corp. (NASDAQ:TEAM) are trending lower at the time of publishing today owing to the company’s third-quarter showing.
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Revenue rose 23.6% year-over-year to $915.4 million, surpassing estimates by $13.7 million. EPS at $0.54 too comfortably surpassed expectations by $0.19. The company’s quarterly subscription revenue witnessed a 37% year-over-year rise to $761 million during this period.
Further, the company added 6,598 net new customers in Q3, taking the total customer count to 259,775.
Looking ahead, for Q1 2023, the company expects the top line to hover between $900 million and $920 million. The guidance came in lower than the consensus estimate of ~919.4 million at the midpoint. The operating margin is anticipated at 17%.
Overall, the Street has a $185 consensus price target on Atlassian, implying a potential upside of 23.3% in the stock. That’s after a nearly 8.8% drop in the share price over the past month.
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