Atlassian (NASDAQ: TEAM) reported Q3 EPS of $0.63, $0.34 better than the analyst estimate of $0.29. Revenue for the quarter came in at $568.7 million versus the consensus estimate of $533.73 million.

“The Atlassian cloud platform allows us to innovate faster than ever for teams and organizations of all sizes, highlighted by our announcement of Point A,” said Mike Cannon-Brookes, Atlassian’s co-founder and co-CEO. “The Point A program fast-tracks our most promising ideas and vets early versions with our users, so customers can get value out of early products from day 1. Our new products are able to rapidly evolve thanks to our incredible R&D teams building on top of our multi-year cloud platform investment.”

“We continue to deliver innovation in the cloud in order to unleash the potential of every team,” said Scott Farquhar, Atlassian’s co-founder and co-CEO. “In Q3, we drove strong revenue growth and financial results, but we are most proud of how we continue to create lasting value for teams and customers in the cloud through initiatives like Open DevOps and the recent acquisitions of ThinkTilt and Chartio.”

GUIDANCE:

Atlassian sees Q4 2021 EPS of $0.17, versus the consensus of $0.23. Atlassian sees Q4 2021 revenue of $513-528 million, versus the consensus of $504.68 million.

Atlassian is providing its financial targets for the fourth quarter of fiscal year 2021 as follows:

Fourth Quarter Fiscal Year 2021:

• Total revenue is expected to be in the range of $513 million to $528 million.
• Gross margin is expected to be in the range of 82% to 83% on an IFRS basis and in the range of 84% to 85% on a non-IFRS basis.
• Operating margin is expected to be approximately (6%) on an IFRS basis and approximately 13% on a non-IFRS basis.
• Net loss per diluted share is expected to be approximately ($0.08) on an IFRS basis, and net income per diluted share is expected to be approximately $0.17 on a non-IFRS basis.
• Weighted average share count is expected to be in the range of 250 million to 252 million shares when calculating diluted IFRS net loss per share and in the range of 255 million to 257 million shares when calculating diluted non-IFRS net income per share.

For additional commentary regarding financial targets, please see Atlassian’s third quarter fiscal year 2021 shareholder letter dated April 29, 2021.

For earnings history and earnings-related data on Atlassian (TEAM) click here.