GoKawiilAtlassian shares jumped more than 20% on Friday after the software company topped Wall Street's expectations for the fiscal third quarter, reporting strong cloud growth and data center revenue.
Here's how the company did compared with LSEG estimates:
Earnings per share: $1.75 adjusted vs. $1.32 expected
$1.75 adjusted vs. $1.32 expected Revenue: $1.79 billion vs. $1.69 billion expected
Atlassian's stock has been among the hardest hit by the "SaaS-pocalypse" this year, with shares down more than 45% year to date.
The phrase refers to the sell-off in technology stocks following the release of software built on top of artificial intelligence models from companies like OpenAI and Anthropic. Software executives have responded by saying core business metrics have not deteriorated.
In March, Atlassian laid off about 10% of its workforce, or roughly 1,600 jobs, saying the move would allow it to "self-fund further investment in AI and enterprise sales, while strengthening our financial profile."
Atlassian CEO Mike Cannon-Brookes told CNBC on Thursday that the company saw "incredible strength" in its business during the quarter and that the concerns plaguing the broader software sector may be overblown.