Key facts
- Atlassian shares surged approximately 30% premarket after exceeding earnings and revenue expectations for its fourth fiscal quarter.
- Twilio's stock rose about 17% premarket following a second-quarter earnings report that surpassed analyst forecasts for revenue and earnings.
- Five9 reported a modest gain premarket after its second-quarter results slightly beat consensus estimates for revenue and earnings.
- HubSpot's stock closed down 19% on Thursday, despite beating second-quarter earnings and revenue estimates, due to a weaker-than-expected third-quarter revenue forecast.
- HubSpot's CEO cited longer sales cycles and tighter customer budgets as reasons for its lowered full-year forecast.
The market is showing a clear divergence in performance among software-as-a-service (SaaS) companies, with some experiencing significant gains while others face declines, challenging the notion of a universal 'SaaSpocalypse' driven by AI.
Atlassian shares surged approximately 30% in premarket trading after the company reported fiscal fourth-quarter revenue of $1.77 billion, a 28% increase that surpassed analysts' $1.66 billion estimate. Adjusted earnings of $1.87 per share also beat the consensus of $1.50. Cloud revenue grew 31% to $1.2 billion, driven by strong cloud adoption and AI-related product demand.
Twilio jumped about 17% premarket after its second-quarter revenue reached $1.50 billion, up 22% and exceeding the $1.43 billion forecast. The company reported adjusted earnings of $1.47 per share, beating the $1.32 consensus, and achieved a record $353 million in free cash flow. Third-quarter revenue guidance was also optimistic, with a midpoint of $1.51 billion, supported by AI voice and messaging demand.
Five9 saw a modest 1.7% increase premarket following a slight beat on second-quarter revenue ($312.4 million, up 10%) and earnings (70 cents per share). While subscription revenue grew 14% and AI revenue surged 78%, profitability metrics were mixed, with adjusted gross margin narrowing and adjusted earnings per share decreasing year-over-year.
HubSpot's stock closed down 19% on Thursday, despite beating second-quarter revenue ($911.7 million, up 20%) and earnings ($3.26 per share) estimates. The company's third-quarter revenue forecast of $924 million to $925 million fell short of the roughly $941 million expected by analysts. HubSpot also lowered its full-year revenue forecast midpoint by $22 million. CEO Yamini Rangan attributed the slowdown to extended buying processes due to pricing and product changes, alongside tighter customer budgets leading to longer sales cycles. CFO Kate Bueker noted that customer additions were below expectations.