Scott Farquhar, co-founder and co-CEO of software company Atlassian, speaks during the jobs and skills summit at Parliament House on September 1, 2022 in Canberra, Australia. The Australian Government is bringing together political, business, union and community group leaders at Parliament House to address the issues facing the Australian economy and workforce as inflation and interest rates continue to increase.
Martin Ollman | beautiful pictures
Atlassian shares fell as much as 22% on Thursday after the collaborative software maker reported earnings that were lower than analysts expected and delivered a disappointing outlook.
Here’s how the company did it:
- Income: 36 cents/share, adjusted, compared with 38 cents/share as expected, according to Refinitiv.
- Turnover: $807.4 million, compared with $806.4 million as expected, according to Refinitiv.
Revenue increased 31% year-on-year in the quarter ended September 30, according to a statement. Net loss narrowed to $13.7 million from $411.2 million a year ago, thanks to market-based accounting adjustments for strategic investments.
For its fiscal second quarter, Atlassian posted revenue of $835 million to $855 million, well below the Refinitiv consensus of $879.2 million. This guidance assumes that current macroeconomic conditions persist through the remainder of fiscal year 2023.
Scott Farquhar, Atlassian’s co-founder and co-CEO, told analysts the company is feeling the impact of the volatile global economy. The percentage of free users of Atlassian’s software that are converting to paid services is declining, as is the expansion of the number of paid users in existing customers, which is slowing hiring. .
Atlassian added 6,550 customers, resulting in a total of 249,173. Analysts polled by StreetAccount had predicted 250,700.
Farquhar says Atlassian will slow its own headcount growth going forward.
Cameron Deatsch, Atlassian’s chief revenue officer, says the company’s competitive position relative to its rivals has not changed.
Before the after-hours plunge, shares of Atlassian were down 54% for the year, compared with a 20% drop for the S&P 500.
CLOCK: Citi’s Radke says companies like MongoDB and Atlassian are the more defensive places.
