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IT project management software company, Atlassian (NASDAQ:TEAM) met Wall Street’s revenue expectations in Q1 CY2025, with sales up 14.1% year on year to $1.36 billion. The company expects next quarter’s revenue to be around $1.35 billion, close to analysts’ estimates. Its non-GAAP profit of $0.97 per share was 4.9% above analysts’ consensus estimates.

Is now the time to buy Atlassian? Find out in our full research report.

Atlassian (TEAM) Q1 CY2025 Highlights:

• Revenue: $1.36 billion vs analyst estimates of $1.35 billion (14.1% year-on-year growth, in line)

• Adjusted EPS: $0.97 vs analyst estimates of $0.93 (4.9% beat)

• Adjusted Operating Income: $348.3 million vs analyst estimates of $321.6 million (25.7% margin, 8.3% beat)

• Revenue Guidance for Q2 CY2025 is $1.35 billion at the midpoint, roughly in line with what analysts were expecting

• Operating Margin: -0.9%, down from 1.5% in the same quarter last year

• Free Cash Flow Margin: 47%, up from 26.6% in the previous quarter

• Billings: $1.53 billion at quarter end, up 2.5% year on year

• Market Capitalization: $59.82 billion

“I am filled with immense pride as I reflect on Team ’25 and our customers’ and partners’ reactions to our relentless focus on innovation,” said Mike Cannon-Brookes, Atlassian’s CEO and co-Founder.

Company Overview

Founded by Australian co-CEOs Mike Cannon-Brookes and Scott Farquhar in 2002, Atlassian (NASDAQ:TEAM) provides software as a service that makes it easier for large teams of software developers to manage projects, especially in software development.

Sales Growth

A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Luckily, Atlassian’s sales grew at a solid 24% compounded annual growth rate over the last three years. Its growth surpassed the average software company and shows its offerings resonate with customers, a great starting point for our analysis.

This quarter, Atlassian’s year-on-year revenue growth was 14.1%, and its $1.36 billion of revenue was in line with Wall Street’s estimates. Company management is currently guiding for a 19.7% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 19.3% over the next 12 months, a deceleration versus the last three years. Despite the slowdown, this projection is noteworthy and indicates the market is baking in success for its products and services.

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