From SiliconANGLE · Duncan Riley · · 1m
Atlassian Shares Drop 17% as Subscription Growth Slows
Atlassian shares plummet 17% after forecasting slower subscription growth despite earnings beat.
In brief
Atlassian shares plummet 17% after forecasting slower subscription growth despite earnings beat. Atlassian shares fell 17% in after-hours trading as slower subscription growth forecasts overshadowed a strong earnings report. Originally reported by SiliconANGLE.
Atlassian Shares Fall
Atlassian shares fell 17% in after-hours trading on a forecast for slower subscription growth.
Earnings Beat
Atlassian reported adjusted earnings per share of $1.65, up from $1.04, on $1.772 billion revenue.
Cloud Revenue Growth
Cloud revenue rose 31% to $1.302 billion, with enterprise customers adding Jira and Confluence seats.
Data Center Slows
Data Center revenue growth slowed to 5%, with customers planning moves to the cloud.
Subscription Growth Forecast
Atlassian expects subscription annual recurring revenue growth to slow to 18.5% by fiscal year-end.
CEO's AI Statement
CEO Mike Cannon-Brookes said enterprise AI has reached an inflection point with shared context platforms winning.
“enterprise ai has reached "an inflection point"”
Investor Reaction
Investors sold shares on slower subscription growth forecasts despite strong earnings results.
The headline
Atlassian shares fell 17% in after-hours trading as slower subscription growth forecasts overshadowed a strong earnings report.
