Atlassian up 19% at $317 after Q2 earnings beat, FY25 guidance raise

Shares of Atlassian (TEAM) are up 19% afterhours at ~$317 – the highest level since February 2022. The company’s Q2 earnings topped estimates while the management also raised its FY25 guidance. Atlassian now sees FY25: Total revenue growth year-over-year is expected to be in the range of 18.5% to 19.0% from 16.5%-17.0% prior view; Cloud revenue growth year-over-year is expected to be approximately 26.5% vs. 24% prior view; Data Center revenue growth year-over-year is expected to be approximately 21.5% vs. 20.5% prior view; Marketplace and other revenue growth year-over-year is expected to be approximately 8.5% vs. 5.0% prior view; and gross margin is expected to be in the range of 84.0% to 84.5% on a non-GAAP basis vs. 83.5% prior view. Atlassian’s new FY25 revenue outlook implies $5.17B-$5.19B vs. consensus of $5.11B.