Atlassian delivers $688 million revenue in Q2

Atlassian beat revenue and EPS estimates for Q2, delivering more than 10,000 net new customers and an increase in subscription revenue. 

The company, best known for its Jira workflow tools, reported second quarter revenue of $688.5 million with a net loss of $77.5 million, or 31 cents a share. 

Wall Street was expecting Atlassian to report revenue of $642.47 million with non-IFRS earnings between 35 cents and 38 cents per share.

Scott Farquhar, Atlassian’s co-founder and co-CEO, said 98% of the more than 10,000 net new customers this quarter came from their cloud division. 

“We also saw subscription revenue grow 64% year-over-year, which reflects our continued investment in our Cloud platform and the strong focus and effort we have put in to helping our customers seamlessly move to Cloud,” Farquhar said. 

Atlassian’s other co-founder and co-CEO Mike Cannon-Brookes noted that the company surpassed $2 billion in sales in December. 

Atlassian said it expects third quarter revenue between $690 million and $705 million with adjusted earnings of in the range of $0.29 to $0.31.