Atlassian reported a surge in its share value following its impressive quarterly results and updated guidance, fueled by rising demand for artificial intelligence (AI) technologies. The company, which develops the project-tracking software, Jira, announced a $0.77 earnings per share for the first quarter of fiscal 2025, experiencing a 21.5% revenue jump to $1.19 billion. Both figures exceeded market estimates, with subscription revenue showing a hefty 33% increase.
The company has now upgraded its full-year revenue growth projections from 16% to a range of 16.5% to 17%. Additionally, an increase from 23% to 24% is expected in cloud revenue. CFO Joe Binz remarked that the company will continue to align its investments and execution strategies to serve the enterprise, foster AI innovation, and streamline the integration of technology and business teams.
Atlassian shares gained 16% on Friday, reaching multi-month highs. Despite this rise, the company's shares are still down by 7% this year.