Atlassian shares plummet on swing to quarterly loss, revenue guidance
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The news: Shares in Atlassian tanked in after-hours trading on the Nasdaq after the Australian software giant swung to a net loss of USD70.8 million ($111 million) in the third quarter, compared with net income of USD12.8 million in the prior corresponding period.
The numbers: Atlassian shares were last down 17.5% in extended trading on Wall Street after closing 0.3% higher before the earnings announcement.
The Sydney-based company reported Q3 revenue of USD1.4 billion, up 14% year over year, with subscription revenue climbing 19% to USD1.3 billion.
However, its fourth-quarter revenue guidance of USD1.349 billion to USD1.359 billion was below analysts' expectations.
The context: Co-founder and chief executive Mike Cannon-Brookes told investors that Atlassian's vision for human-AI collaboration is "resonating deeply with customers."
The company, which builds collaboration tools for software development and project management, said its new AI assistant, Rovo, is now free for all premium and enterprise customers, bringing AI-powered enterprise search, chat, and agents to the centre of its platform.
The source: Nasdaq
