Atlassian forecasts second-quarter revenue above estimates on AI demand boost

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(Reuters) -Atlassian forecast second-quarter revenue above estimates on Thursday, betting on strong demand for its enterprise software services as businesses upgrade to integrate artificial intelligence, sending its shares up nearly 7% in extended trading.

Businesses rushing to adopt AI are increasingly leveling up their systems to incorporate the data-intensive tech, helping drive demand for Atlassian’s enterprise software services.

Atlassian expects revenue of between $1.535 billion and $1.54 billion in the second quarter, compared with analysts’ average estimate of $1.51 billion, according to data compiled by LSEG.

Atlassian also announced that its finance chief Joe Binz will retire, effective June 30, 2026, and the company has commenced a search for its next CFO.

The company has been looking to improve cross-selling across its portfolio of products and is working to drive demand through its own AI products such as its Rovo Dev coding agent.

Atlassian’s collaboration tools – such as Jira software for planning and project management and Confluence for content creation — serve over 300,000 customers.

It expects cloud revenue to grow about 22.5% in the second quarter.

However, Atlassian’s revenue stood at $1.37 billion for the three months ended September 30, compared with analysts’ average estimate of $1.40 billion, according to data compiled by LSEG. 

Its first-quarter adjusted profit stood at $1.04 per share, compared with the estimates of 84 cents.

(Reporting by Arsheeya Bajwa; Editing by Anil D’Silva)