Benzinga - by Adam Eckert, Benzinga Staff Writer.
Atlassian Corp (NASDAQ:TEAM) shares fell in Thursday’s after-hours session following the company’s fiscal third-quarter results.
- Q3 Revenue: $1.19 billion, versus estimates of $1.10 billion
- Q3 EPS: 89 cents, versus estimates of 62 cents
Adjusted operating was #316.5 million, up 60.60% year-over-year. The adjusted operating margin was 27% for the third quarter of fiscal year 2024, compared with 22%
Cash flow from operations was $565.4 million, and free cash flow was $554.9 million in the third quarter. Atlassian said it ended the quarter with $2.1 billion in cash, cash equivalents and marketable securities.
“Today, Atlassian is a cloud-majority company. We have over 300,000 customers using our Cloud products and have seen a 3x increase in paid seats in Cloud since we announced end-of-support for Server three and a half years ago,” said Mike Cannon-Brookes, co-founder and co-CEO of Atlassian.
“We have a significant opportunity to drive durable, long-term growth as we continue to execute against our cloud roadmap and deliver innovation across our cloud platform. We’re excited to share more at our flagship customer event next week, Team ’24.”
The weakness in Atlassian shares appears to be due to the CEO transition that was announced alongside earnings. Atlassian said Scott Farquhar has decided to step down from his role as co-CEO, effective Aug. 31. Cannon-Brookes will continue to lead Atlassian as CEO.
Outlook: Atlassian expects fourth-quarter revenue between $1.12 billion and $1.135 billion. Cloud revenue growth is expected to be approximately 32% year over year, and data center revenue growth is expected to be 40% to 42%.
Management will hold a conference call to discuss these results at 5 p.m. ET.
TEAM Price Action: Atlassian shares were down 8.79% at $180.97 at the time of writing, per Benzinga Pro.
Photo: courtesy of Atalassian.
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