Atlassian forecasts robust Q4 revenue on AI-based cloud services boost

Enterprise software maker Atlassian TEAM on Thursday forecast fourth-quarter revenue above Wall Street estimates, signaling a surge in demand for artificial intelligence-enabled cloud services.

The positive outlook signals growing demand for its cloud services, as large pool of enterprises are increasingly moving towards cloud from servers and are opting for paid premium edition.

Cloud revenue growth in rose 30% to $703 million in the third quarter from a year ago, which is primarily driven by companies moving to AI-enabled cloud premium after the company announced end-of-support for servers.

The company, which was being led by its co-founders Scott Farquhar and Mike Cannon Brookes as co-CEOs, said Farquhar will step down from his role while Brookes will continue as CEO.

Atlassian, which has over 300,000 customers, offers collaboration tools such as Jira software for planning and project management, and Confluence for content creation, among others.

Atlassian expects fourth-quarter revenue to be in the range of $1.12 billion to $1.14 billion, compared with the estimates of $1.11 billion, according to LSEG data

The software maker's revenue stood at $1.19 billion in the three months to March 31, compared with analysts' average estimate of $1.10 billion.

The company reported a profit of 5 cents per share in the quarter, compared to a loss of 81 cents per share in the year-ago quarter.