Shares of Atlassian Corp (NASDAQ:TEAM) surged in early trading on Friday, after the company reported upbeat results for its fiscal fourth quarter.

The results came amid an exciting earnings season. Here are some key analyst takeaways from the earnings release.

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Mizuho Securities: Atlassian’s total revenues grew by a healthy 24% year-on-year, “nicely exceeding the Street's +20% estimate,” Romanelli said in a note. “Cloud revenue growth of 30% Y/Y also came in above the Street's +27% target,” he added.

“Encouragingly, mgmt cited strong cloud migrations and slightly better-paid user expansion as upside drivers this quarter,” the analyst further wrote.

Truist Securities: The company delivered a beat “across both top and bottom lines,” Fishbein said. “Cloud growth delivered upside to our expectations, and the company highlighted significant traction with enterprise customers in ITSM and premium products."

“We see guidance for the year ahead as being on the conservative side, which we favor given the macro headwinds that impacted its business versus their initial expectations last year."

Morgan Stanley: “Sustaining 30% cloud growth with a big margin/FCF beat likely proved better than feared despite persistent macro headwinds,” Weiss wrote in a note.

“With FY24 cloud guide of 25-30% YoY appropriately conservative and management committing to margin expansion in FY25 and beyond, we see catalysts for forward revisions,” he added.

JMP Securities: Atlassian’s better-than-expected results were “characterized by growth stabilization,” Walravens said.

“While Atlassian continues to see pressure on its free to paid conversion, it saw improvement and outperformance in a number of parts of its business in June,” including enterprise purchases of cloud and data center and stronger-than-expected server renewals.

TEAM Price Action: Shares of Atlassian had declined by 19.44% to $202.62 at the time of publication Friday.