Enterprise Software Maker Atlassian Raises Q3 Revenue Guidance on Strong Demand for AI-Enabled Cloud Services
Sydney: Atlassian Corporation projected third-quarter revenue above market estimates and elevated its full-year revenue outlook on Thursday, reflecting robust demand for its enterprise software solutions powered by artificial intelligence (AI). The announcement propelled the company's shares 16% higher in extended trading.
Atlassian's growth is attributed to the increasing adoption of AI-driven project management and productivity software as businesses prioritize efficiency and cost reduction.
"Exceptional sales execution across our cloud and data center offerings fueled revenue surpassing expectations," commented Joe Binz, Atlassian's Chief Financial Officer. "We achieved 30% year-on-year growth in subscription revenue during Q2."
The company's collaborative tools, including Jira for project management and Confluence for content creation, cater to over 300,000 customers. Atlassian's recent introduction of Rovo, an AI assistant that enhances enterprise data search, learning, and automation, has further expanded its product portfolio.
For the third quarter, Atlassian forecasts revenue between $1.35 billion and $1.34 billion, surpassing analyst projections of $1.31 billion. The company has revised its fiscal year 2025 revenue growth target to 18.5%-19%, an upward adjustment from the previous range of 16.5%-17%.
Atlassian reported revenue of $1.29 billion for the quarter ended December 31, exceeding analyst consensus of $1.24 billion.