Atlassian shares trip on slowing revenue growth
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The news: Software products maker Atlassian has lifted first quarter revenue but forecast slower growth over the next year, sending its shares sharply lower.
The numbers: The Sydney-based company posted June quarter revenue of USD1.13 billion ($1.74 billion), up 20% from a year earlier, while its quarterly net loss widened to USD196.9 million, compared with a USD58.9 million net loss a year ago.
It expects fiscal year 2025 revenue growth to slow to 16%, compared with analyst estimates of 18.3%, sending its shares 13% lower in after-market trading on the Nasdaq.
The context: The weaker forecast comes as enterprise customers moderate spending on cloud software services in a tough economy. Businesses have been holding back spending as high interest rates have pinched budgets, forcing companies to forgo premium software products.
Atlassian, which has over 300,000 customers, offers collaboration tools such as Jira software for planning and project management, and Confluence for content creation, among others.
Co-CEO Scott Farquhar is due to step down from his position at the end of the month to spend more time with his young family, but will continue as an active board member and assume a special adviser role. Co-founder Mike Cannon-Brookes will continue to lead as CEO.
The source: Atlassian earnings release
