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Shares of Atlassian Corp PLC (TEAM - Get Report) were popping Friday after the $22 billion enterprise software company beat expectations on both its top and bottom lines.

The stock rose more than 5% in the morning, before ending the day down 2.42% to $9.67 a share. 

Atlassian reported earnings of 25 cents a share in its second quarter, beating analysts' expectations of 21 cents. Net income was $61.7 million, a roughly 100% increase year over year. Sales were $299 million, topping estimates of $288.3 million. 

"The quarter also highlighted the growing demand for Atlassian products to drive digital transformation in businesses large and small," said Co-CEO and co-founder Scott Farquhar. He added, "Our flagship product, Jira Software, surpassed 65,000 customers, and we ended the quarter with more than 138,000 total customers, underscoring the growth opportunity for Jira just within our installed base."

Subscription revenue exploded 56% year over year for the quarter, far outpacing the growth of other revenue segments. Free cash flow for the quarter shot up 81% to $122.6 million. 

Management guided for full-year revenue of between $1.195 billion and $1.199 billion and earnings per share of between 81 and 82 cents. Operating margins for the year are expected to be between 20% and 20.5%. 

Atlassian shares have risen 67% in the past year.