Atlassian's fiscal first-quarter results exceeded what analysts had anticipated. The company's guidance was as predicted. The stock sank in after-hours trading.
Following better-than-expected earnings and revenue, not to mention a forecast that met Wall Street's expectations, Atlassian shares still plummeted by 9% in extended trading on Thursday. Despite the losses, revenue in the quarter ending September 30 was up 21% compared to the same period a year prior, totaling $977.8 million versus the expected $966.1 million. Net loss increased to $31.9 million, or 12 cents per share, from $13.7 million, or 5 cents per share the year prior. The software maker also reported having more than 265,000 customers at the end of the quarter, while deferred revenue of $1.5 billion remained unchanged from the previous quarter.
For the current quarter, Atlassian called for revenues between $1.01 billion and $1.03 billion, in line with the estimate of $1.02 billion. Furthermore, guidance for the full fiscal year saw adjusted operating margin expectation raised to 20% from 18.5%, and a forecast of 25-30% growth in the Cloud, which is the source of its majority of revenue. While this guidance assumes negative impacts from macroeconomic headwinds, it does not take into account the impact of the recently announced acquisition of video-messaging startup Loom for around $975 million.
Excluding after-hours trading, Atlassian stock has increased by about 41% so far this year, higher than the 12% gain in the S&P 500 Index.
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