Shares in Atlassian Corp. skyrocketed in after-hours trading today after the Australian collaboration software company reported strong beats in revenue and earnings in its fourth quarter.

Atlassian reported adjusted earnings of $147 million, or 57 cents per share, up from $68.5 million, or 27 cents per share, in the same quarter of last year. Revenue rose 24% year-over-year, to at $939.1 million. Analysts were expecting adjusted earnings per share of 36 cents on revenue of $920.4 million.

Atlassian saw an operating loss of $50.4 million in the quarter, up from a loss of $42.3 million in the fourth quarter of last year. The company’s operating margin was 5%, down from 6% a year prior. The Sydney-based company had $2.1 billion in cash, cash equivalents and market securities on hand as of the end of June.

Highlights in the quarter included Atlassian introducing new security capabilities for Jira Software Cloud, the company’s signature project management and software issue tracking tool, aimed at assisting developers with their workflows by bringing security visibility directly under their control.

The new offering saw Atlassian partnering with security vendors to automatically pull vulnerability information directly into Jira so that developers and engineers no longer need to use different tools during their processes. Companies partnering with Atlassian included Snyk Inc., Mend Inc., Lacework Inc., StackHawk LLC and JFrog Ltd., with more to come. The aim is to foreward DevOps teams with trackable issues so that they can quickly understand what needs to be fixed and send it to the correct people to triage the problem in a centralized location.

For its full fiscal year 2023, Atlassian booked adjusted earnings of $492.3 million, or $1.92 per share, up from $383.5 million or $1.50 per share, in the previous fiscal year. Revenue rose 26%, $3.5 billion.

“We closed out a challenging year with strong momentum in cloud migrations, enterprise sales and within the ITSM market, reinforcing our conviction in our strategy which has positioned us well for fiscal year 2024 and beyond,” Scott Farquhar, Atlassian’s co-founder and co-chief executive officer, said in the company’s earnings release.

Atlassian said that it expects revenue of between $950 million and $970 million for the first quarter of fiscal year 2024, driven by 25% to 27% year-over-year cloud revenue growth. Investors loved the numbers, as shares in Atlassian surged by nearly 24% in late trading.

Image: Atlassian