Atlassian forecasts second-quarter revenue above estimates on AI demand boost
AI (Artificial Intelligence) letters are placed on computer motherboard in this illustration taken, June 23, 2023. REUTERS/Dado Ruvic/Illustration
Atlassian forecast second-quarter revenue above estimates on Thursday, betting on strong demand for its enterprise software services as businesses upgrade to integrate artificial intelligence, sending its shares up nearly 7 per cent in extended trading.
Businesses rushing to adopt AI are increasingly leveling up their systems to incorporate the data-intensive tech, helping drive demand for Atlassian's enterprise software services.
Atlassian expects revenue of between $1.535 billion and $1.54 billion in the second quarter, compared with analysts' average estimate of $1.51 billion, according to data compiled by LSEG.
Atlassian also announced that its finance chief Joe Binz will retire, effective June 30, 2026, and the company has commenced a search for its next CFO.
The company has been looking to improve cross-selling across its portfolio of products and is working to drive demand through its own AI products such as its Rovo Dev coding agent.
Atlassian's collaboration tools - such as Jira software for planning and project management and Confluence for content creation — serve over 300,000 customers.
It expects cloud revenue to grow about 22.5 per cent in the second quarter.
However, Atlassian's revenue stood at $1.37 billion for the three months ended September 30, compared with analysts' average estimate of $1.40 billion, according to data compiled by LSEG.
Its first-quarter adjusted profit stood at $1.04 per share, compared with the estimates of 84 cents.
