Shares in Atlassian Corp. jumped nearly 16% in late trading today after the Australian collaboration software company topped analysts’ estimates on revenue and earnings in its fiscal 2025 first quarter, driven by surging subscription revenue.

For the quarter ended Sept. 30, Atlassian reported adjusted earnings of 77 cents per share, up from 65 cents per share the fiscal year prior, on revenue of $1.188 billion, up 21% year-over-year. Both were big beats, as analysts had expected adjusted earnings of 54 cents per share on revenue of $966.11 million.

Atlassian’s subscription revenue was the story of the quarter, with the company seeing subscription revenue grow 33% year-over-year, to $1.132 billion. “Other” revenue declined 56%, to $55.8 million. By deployment, cloud revenue was up 31% year-over-year, to $792.3 million, data center revenue rose 38%, to $355.6 million, and marketplace and other revenue increased 16%, to $59.8 million.

The company ended the quarter with 46,844 customers spending $100,000 or more in annualized recurring revenue, up 17% year-over-year. Through its products, Atlassian now has more than 125,000 Jira customers, more than 55,000 Jira Service Management customers and in excess of 100,000 Confluence customers.

Highlights in the quarter included Atlassian announcing in August that it had acquired artificial intelligence video meeting recording and post-meeting assistant startup Rewatch Inc. The acquisition dovetails with Loom, a work-focused video collaboration platform that Atlassian acquired in October 2023 for $975 million.

Atlassian also introduced Atlassian Focus, a product designed to support enterprise leaders within its Enterprise Strategy and Planning solution. The feature serves as a central hub for leadership teams to visualize strategic priorities, connect work to goals and enhance organizational alignment, with the aim of eliminating silos and increasing customer value.

Additionally, Atlassian expanded its premium offerings with the general availability of Jira Product Discovery Premium, Compass Premium and Guard Premium. The premium editions offer enterprise-grade features, including enhanced administrative controls, higher automation limits and advanced capabilities across Atlassian’s product suite.

“Fiscal year 2025 is off to a solid start,” Joe Binz, chief financial officer at Atlassian, said in the company’s earnings release. “We continue to focus our investment and execution against our key strategic priorities of serving the enterprise, delivering AI innovation and further bringing together technology and business teams with the Atlassian System of Work.”

For its fiscal second quarter, Atlassian expects revenue of $1.223 billion to $1.241 billion., driven by cloud revenue growth of 25.5% year-over-year and data center revenue growth of 27.5%.

Photo: Atlassian