Enterprise collaboration and app development software firm Atlassian Corp. Plc. delivered another impressive quarterly report today, beating analysts’ expectations on profit and revenue and sending its stock higher after-hours.

The company reported a fiscal first-quarter profit before certain costs such as stock compensation of 46 cents per share on revenue of $614 million, up 34% from the same period one year ago. Wall Street had been looking for a profit of 40 cents per share on revenue of $583.8 million.

The company also reported a net loss of $400.1 million, up from a loss of $21.6 million a year ago. It attributed much of that net loss to a nonoperating expense, mostly marking to fair value exchangeable senior notes and related capped calls.

Atlassian’s stock gained more than 7% in extended trading, pushing it close to a new all-time high.

Atlassian is the developer of the popular Jira family of work management tools, which are used by teams in areas such as software development to coordinate their activities. The company also sells Trello, another best-selling project management application, and its Confluence collaboration software.

Co-founder and co-Chief Executive Scott Farquhar (pictured) said the company continues to innovate across all three of its core markets. “One example we’re most proud of is Jira Service Management being named the sole visionary in Gartner’s 2021 Magic Quadrant for IT Service Management Tools in its inaugural year in market,” he said.

The software maker is in the midst of a transition to a cloud computing-based business model, phasing out sales of licensed software that’s hosted in private data centers in favor of subscriptions. Atlassian is hoping the transition will enable it to secure a more reliable stream of subscription revenue, rather than rely on one-off license sales.

In the report, Atlassian said revenue from its cloud-based products rose 50% year-over-year, adding 11,746 new customers in the quarter. It now has a total customer count, on an active subscription or maintenance agreement basis, of 216,500 customers, it said.

“The company is firing on all cylinders, fueled by the imperative of enterprise acceleration,” said Holger Mueller, an analyst with Constellation Research Inc. “Atlassian has the tools to make enterprises more agile and move faster, so that explains its ongoing growth. It’s good to see Atlassian also appears to be making good progress in terms of its operating income, which is important as it needs to drive a profit sooner rather than later.”

Atlassian expressed confidence that it will be able to keep up the strong momentum it has shown over the last few quarters. In its second quarter guidance, it said it expects revenue of between $630 million to $645 million, well ahead of Wall Street’s target of $620.6 million.

The company also revealed its Chief Financial Officer James Beer is planning to retire at the end of June 2022. Atlassian said it has already begun an external search for a CFO to succeed him.

Photo: Atlassian/Facebook