Atlassian Beats Q2 Estimates, Announces Google Cloud AI Partnership: Here Are The Details

Atlassian Corp TEAM shares are falling in after-hours Thursday after the company announced financial results and announced a partnership with Alphabet Inc GOOGGOOGL.Track TEAM stock live prices here.What Happened: Atlassian announced fourth-quarter revenue of $1.38 billion, up 22% year-over-year. The revenue beat a Street consensus estimate of $1.36 billion according to data from Benzinga Pro.The company reported earnings per share of 98 cents, beating a Street consensus estimate of 86 cents per share.Subscription revenue was $1.31 billion in the fourth quarter, up 23% year-over-year.The company said its cloud revenue was $928 million in the fourth quarter, up 26% year-over-year.Full-year revenue for Atlassian was $5.2 billion, up 20% year-over-year. "We closed out FY25 delivering over $5.2 billion of revenue, generating over $1.4 billion in free cash flow, and reaching 2.3 million AI monthly active users," Atlassian CEO Mike Cannon-Brookes said. "AI is fundamentally changing the way we work, and creating significant tailwinds for Atlassian in the process."Atlassian also announced Thursday a multi-year partnership with Google Cloud to accelerate cloud transformation and deliver advanced AI capabilities to customers. Atlassian's multi-cloud platform will also run on Google Cloud's AI-optimized infrastructure, according to the company.The partnership brings Atlassian's app Jira, Confluence and Loom to Google Cloud."By combining our leading teamwork platform and AI offering Rovo with Google's AI and cloud infrastructure, we're empowering customers to build the next generation of intelligent agents with advanced capabilities," Cannon-Brookes said.Read Also: Stock Tanks On Q3 Earnings As Soft Q4 Guidance Overshadows Better-Than-Expected ResultsWhat's Next: Atlassian is forecasting first-quarter revenue to be in a range of $1.395 billion to $1.403 billion. Analysts expect the company to report revenue of $1.413 billion, according to data from Benzinga Pro.Atlassian expects first-quarter cloud revenue to be up 22.5% year-over-year.For the full fiscal year, Atlassian expects revenue of $6.154 billion, up 18% year-over-year. The company expects full-year cloud revenue growth to be 21% year-over-year."AI is fundamentally changing the way we work, and creating significant tailwinds for Atlassian in the process," Cannon-Brookes said." We are uniquely positioned to help every team unleash enterprise knowledge at scale."TEAM Price Action: Atlassian stock is down 0.8% to $169.56 in after-hours trading Thursday versus a 52-week trading range of $136.84 to $326. Assessing Atlassian: Insights From 10 Financial Analysts Photo: Shutterstock