Categories Earnings, Technology

Atlassian stock tanks after reporting Q3 earnings

Atlassian (TEAM), a provider of productivity software solutions, Wednesday reported 38% revenue growth for the third quarter, with positive contributions from all four business segments. On an IFRS basis, Atlassian’s net loss widened to 85 cents per share from loss of 7 cents per share in the third quarter of fiscal 2018. TEAM stock tanked about 10% in the extended trading hours.

On a non-IFRS basis, net income per share was 21 cents per share for Q3 2019 compared with income per share of 9 cents in the prior year period.

Atlassian (TEAM) Q3 2019 earnings - customer growth trend

For the fourth quarter of 2019, net loss per share is expected to be about $0.17 on an IFRS basis, and net income per share is expected to be approximately $0.16 on a non-IFRS basis. Revenue is expected to be in the range of $329 million to $331 million.

For the fiscal year 2019, net loss per share is expected to be approximately $1.78 on an IFRS basis, and net income per share is expected to be approximately $0.82 on a non-IFRS basis. Revenue is estimated to be in the range of $1.205 billion to $1.207 billion.

On March 18, 2019, the San Francisco-based tech firm stated that it expects the acquisition of AgileCraft (now Jira Align), which Atlassian acquired for $166 million, to add approximately $1 million to $2 million to fiscal 2019 revenue. Also, the acquisition is expected to reduce IFRS operating margin by approximately one point and reduce non-IFRS operating margin by approximately half a point for fiscal 2019.

With a net new addition of 5,803 customers in the third quarter, Atlassian ended the quarter with a total customer count, on an active subscription or maintenance agreement basis, of 144,038.

Atlassian stock, which closed down 1.58% at $111.19 today, rose 25% since the beginning of this year and jumped 79% in the past 12 months period.

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