Earnings Results: Atlassian stock drops as revenue outlook comes in light

by | May 4, 2023 | Stock Market

Atlassian Corp. shares fell in the extended session Thursday after the collaboration and productivity software company’s poor revenue outlook overshadowed its earnings beat. Atlassian
shares dropped about 13% after hours, following a 3.4% gain in the regular session to close at $150.05.

Atlassian forecast revenue of $900 million to $920 million for the fiscal fourth quarter, while analysts had estimated $919.4 million on average, as cloud revenue faces “increasing macroeconomic impacts on paid seat expansion from existing customers and new customer conversions, as well as headwinds in areas we have yet to see significant impact,” the company said in its letter to shareholders. The New York-based company reported a fiscal third-quarter loss of $209 million, or 81 cents a share, versus net income of $4.7 million, or 2 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were 54 cents a share, compared with 43 cents a share in the year-ago period. Revenue rose to $915.5 million from $740.5 million in the year-ago quarter. Analysts surveyed by FactSet had forecast adjusted earnings of 35 cents a share on revenue of $903 million, based on Atlassian’s forecast of $890 million to $910 million. The current drop in Atlassian’s stock, howe …

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