Australian software company Atlassian Corp. (NASDAQ:TEAM) declined in pre-market trading after reporting adjusted earnings of $0.73 per share in its second quarter compared to $0.45 in the same period last year. This was above analysts’ expectations of $0.62 per share. In addition, the company’s total revenues surged by 21% year-over-year to $1.06 billion versus Street estimates of $1.02 billion.
Looking forward to its third quarter, Atlassian expects to generate revenues in the range of $1.08 billion to $1.1 billion with an adjusted operating margin of 19.5%. In FY24, the company projected its cloud revenues to grow between 28.5% and 30.5%, with an adjusted operating margin in the range of 20.5% to 21%.
Is TEAM a Good Stock to Buy?
Analysts remain cautiously optimistic about TEAM stock with a Moderate Buy consensus rating based on nine Buys and Holds each. Over the past year, TEAM has surged by more than 35%, and the average TEAM price target of $243.40 implies a downside potential of 4.5% at current levels.
