At its TEAM24 event, Atlassian (NASDAQ:TEAM) revealed a relatively bullish longer-term revenue guide that boosted its share price on Thursday.
At the time of writing, the stock is up 2.8% at $177.62 after rising as high as $182.77 earlier in the session.
Atlassian provided a revenue guide of 20%+ CAGR over the next three years. According to analysts at BMO Capital, the company's management emphasized the "+" a few times at the event. In addition, Atlassian management also commented about surpassing $10 billion in annual revenues in the next five years.
"Atlassian offered many interesting pieces of financial information at TEAM24, along with a relatively bullish longer-term rev guide," wrote the firm. "While we think TEAM remains more in the 'show me' stage, we come away a bit more encouraged given the targets and financial disclosures that support the rev growth potential such as cloud NRR," they wrote.
Meanwhile, analysts at Wolfe Research stated that while they expected a few high-level thoughts about growth and a lot of talk about AI, they did not expect TEAM "to demo the most innovative GenAI use case since Copilot." They were also surprised by the total revenue CAGR guide and commentary for revenue within the next five years.
"While we are not fans of long-term realistic targets, the math's don't lie, and if this TEAM executes (still a big if), at 27x FCF, there is a LOT of upside," stated Wolfe Research.