Atlassian plummets more than 20% on weak earnings report and disappointing forecast

Atlassian shares fell arsenic overmuch arsenic 22% connected Thursday aft the collaboration bundle shaper reported little net than analysts expected and issued a disappointing outlook.

Here's however the institution did:

• Earnings: 36 cents per share, adjusted, vs. 38 cents per stock arsenic expected, according to Refinitiv.
• Revenue: $807.4 million, vs. $806.4 cardinal arsenic expected, according to Refinitiv.

Revenue accrued 31% twelvemonth implicit twelvemonth successful the 4th that ended Sept. 30, according to a statement. Net nonaccomplishment narrowed to $13.7 cardinal from $411.2 cardinal 1 twelvemonth ago, acknowledgment to a mark-to-market accounting accommodation connected strategical investments.

For the fiscal 2nd quarter, Atlassian sees $835 cardinal to $855 cardinal successful revenue, beneath the Refinitiv statement of $879.2 million. The guidance assumes that macroeconomic existent conditions persist done the remainder of the 2023 fiscal year.

Scott Farquhar, Atlassian's co-founder and co-CEO, told analysts that the institution has been feeling the interaction of a volatile planetary economy. The complaint astatine which escaped users of Atlassian's bundle are converting to the paid offerings is cooling, arsenic is the enlargement of the fig of paid users astatine existing customers, which are slowing the gait of hiring.

Atlassian added 6,550 customers, resulting successful a full of 249,173. Analysts polled by StreetAccount had expected 250,700.

The company's competitory presumption comparative to rivals has not been changing, said Cameron Deatsch, Atlassian's main gross officer.

Prior to the after-hours plunge, shares of Atlassian had fallen 54% for the year, compared with a 20% driblet successful the S&P 500.

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