Atlassian hits 52-week high after reporting better-than-expected earnings, revenue outlook

Atlassian shares popped 19% after the software company blew past Wall Street's fiscal second-quarter earnings and guidance expectations.

The stock traded near a fresh 52-week high and was on pace for their best day since July 30, 2021.

Adjusted earnings came in at 96 cents per share, ahead of the 76 cents per share projected by analysts polled by LSEG. Atlassian reported revenues of $1.29 billion, versus the $1.24 billion estimate.

For the third quarter, Atlassian said it anticipates $1.35 billion in revenue, above the $1.31 billion LSEG estimate and previous guidance.

Atlassian benefited from robust cloud and data center growth during the period as more customers turned to artificial intelligence solutions. That contributed to 30% subscription revenue growth over the prior year. Atlassian also said it now expects 26.5% cloud growth and 21.5% data center growth for the fiscal year.

"The momentum we're seeing across the business reinforces our conviction around investments we are making in our key strategic priorities of serving enterprise customers, AI, and the System of Work to deliver durable, long-term growth," finance chief Joe Binz said in an earnings release.

Shares have gained nearly 10% since the start of the year.