Atlassian tanks 10% despite improved earnings

The news: Shares of Nasdaq-listed software giant Atlassian have tumbled more than 10% in extended trading following a quarterly update that beat expectations but still disappointed investors.

The numbers: Atlassian posted quarterly revenue of USD978 million ($1.5 billion), up 21% on the 2022 September quarter, along with earnings per share of 65 US cents, topping an expected 54 cents per share. However, the growth-focused company expanded its net loss to USD31.9 million, up from USD13.7 million in the previous corresponding period. Atlassian shares fell 10.7% to USD162 in aftermarket trade, after closing the session 2% higher at USD181.40.

The context: Outside of the selloff, Atlassian is up more than 40% in 2023. In October, the company bought video messaging service Loom for roughly USD975 million, Atlassian's largest deal so far.