Atlassian Raises Revenue Forecast: Cloud Business Booms

The Australian software company Atlassian has significantly raised its revenue forecast for the coming year as the demand for its cloud products is rapidly increasing. Consequently, the company’s shares climbed an impressive 17 percent in after-hours trading. Companies worldwide are increasingly moving their business processes to the cloud, leading to investments in products and services from providers like Atlassian. The trend towards the use of artificial intelligence, in particular, increases the urgency to integrate cloud-based software solutions. "Atlassian has performed exceptionally well and can now announce the completion of its transformation to the cloud," said Zeus Kerravala, Chief Analyst at ZK Research. He added that the steady growth in the cloud business is particularly pleasing to investors, as it promises greater stability and predictability compared to previous results. The majority of Atlassian's revenues come from its collaboration tools, such as Jira software for planning and project management and Confluence for content creation. The company has over 300,000 customers, including renowned names like the gaming platform Roblox, automotive manufacturer Mercedes-Benz, and social media platform Reddit. For the fiscal year 2025, Atlassian now expects revenue growth between 16.5% and 17.0%. In the last quarter, revenue rose by 21% to $1.19 billion, surpassing analysts’ estimates. Particularly noteworthy was the growth in the cloud segment, with an increase of 31% to $792.3 million. Adjusted earnings per share amounted to 77 cents in the first quarter, also exceeding expectations. For the second quarter, the company forecasts revenue between $1.23 and $1.24 billion. Additionally, Brian Duffy, the former CEO of SoftwareOne, will join Atlassian as Chief Revenue Officer starting January 1.