April 30 (Reuters) – Atlassian raised its annual revenue forecast on Thursday, banking on AI-driven features and a push into the enterprise segment to sustain growth amid tighter spending on collaboration tools.
Shares of the company, which also beat Wall Street estimates for quarterly sales, rose more than 18% in extended trading.
Atlassian has benefited as customers shift from on-premises servers to its cloud and data center offerings, while demand for core products such as Jira remains resilient despite softer client budgets, given their deep integration into enterprise IT workflows.
“Cloud revenue growth accelerated to 29% year-over-year,” said CFO James Chuong, adding that strong seat expansion was seen in Jira alongside increased adoption of new AI features. Jira’s seat-based pricing model bills customers based on the number of people logging into the service.
The company now expects total annual revenue growth at about 24%, up from its previous forecast of 22%.
Atlassian’s stock has been one of the weakest software performers this year, falling around 60% as of close on Thursday as investors weigh the long-term threat from disruptive generative AI.
In March, the company cut about 10% of its workforce, or around 1,600 employees, framing the move as a reallocation of resources toward high-growth areas like AI development and direct enterprise sales.
Third-quarter revenue came in at $1.79 billion, beating analysts’ average estimate of $1.69 billion, according to data compiled by LSEG.
The company reported an adjusted quarterly profit per share of $1.75, compared with estimates of $1.32.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Jonathan Ananda)
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