Why Atlassian Stock Popped 18% Last Month
Shares of workplace-management software company Atlassian (NASDAQ: TEAM) were up 18.3% in August, according to data provided by S&P Global Market Intelligence. While many software companies have disappointed this earnings season, Atlassian delivered a strong quarter to the market's delight, sending the stock up for the month.
Atlassian reported financial results for the fourth quarter of its fiscal 2022 on Aug. 4. In Q4, the company generated revenue of $760 million, which was up 36% year over year and significantly ahead of its guidance of $725 million at most. This pleasantly surprised investors and sent the stock higher.
Analysts raved about Atlassian's subscription cloud revenue stream. To their point, the company had subscription revenue of $597 million in Q4, more than 78% of total revenue and up 55% year over year. For perspective, only 75% of revenue in the third quarter was subscription revenue. Analysts like subscription revenue because it's predictable.
Source Fool.com
