AtlassianAfter the company’s fiscal second-quarter earnings beat expectations and raised its subscription revenue forecast, shares rose 10% on Thursday.

This is how it worked:

• Earnings:According to Refinitiv, 50 cents per Share is adjusted vs. 39 Cents, as analysts expected,
• Revenue:According to Refinitiv, $688.5 Million is higher than $641.3 Million as analysts expected,

Atlassian announced that revenues rose 37% for the quarter which ended Dec. 31, and they are now at $37 million. letter to shareholders. This quarter saw a net decrease of $621.5 million to $77.5million, compared with the prior year.

Atlassian estimates that subscription revenues will grow by 50% for the whole fiscal year. This compares to the previously projected growth of around 40%. Subscriptions account for 86% of the total revenue. Atlassian reported $975.5 Million in deferred revenue above StreetAccount’s consensus estimate of $971.0 millions.

Atlassian plans to increase prices on its servers and data centers next month. Customers who use Atlassian’s server products and data center services will not be affected by the price hikes. Atlassian’s cloud offeringsThe company stated that they were happy to help.

Atlassian met expectations regarding key financial metrics. However, it ended the quarter at 226,521 customers. This is lower than the StreetAccount estimate 237,100.

Atlassian hasn’t seen the trend of employees leaving their jobs, which has been called the “great resignation” and Scott Farquhar (co-founder, co-CEO) said this on a conference call. He said that there have been some slight increases in compensation.

Atlassian announced on Thursday it also acquired Percept.ai, a virtual agent company, to “bolster our investments into automation and machine-learning.”

Excluding the after-hours jump, Atlassian shares have fallen about 23% since the start of the year, while the S&P 500 index is down around 9%. As interest rate worries push investors to less risky assets, Atlassian is caught up in the broad rotation of cloud-software stocks that are rapidly growing.

However, ServiceNow QualtricsBoth poppedThey beat estimates for their quarterly results and will be releasing earnings reports on Thursday In the weeks ahead, investors will examine earnings reports from several cloud companies as an indicator of how the business is doing in light of changes to their fiscal and economic environment.

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