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Atlassian beats Wall Street's expectations yet again with 38% revenue growth, but the stock slips down over 9%

Apr 18, 2019, 01:55 IST

AtlassianAtlassian co-CEOs Mike Cannon-Brookes (left) and Scott Farquhar (right)

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  • Atlassian beat Wall Street's expectations on Wednesday as it reported revenues of $309.3 million, up from 38% a year ago.
  • However, the stock was down a hair over 9% in after-hours trading at the time of writing.
  • Visit BusinessInsider.com for more stories.

Atlassian delivered yet another quarter of growth, seeing its revenue spike 38% from last year and surpassing Wall Street's expectations on both the top and bottom lines.

"We achieved a strong third quarter and wrapped up another successful Atlassian Summit, our flagship user conference," Mike Cannon-Brookes, Atlassian's co-founder and co-CEO, said in a statement.

However, shares of Atlassian were down just over 9% in after-hours trading at the time of writing, after telling investors that its earnings per share for the next quarter will be short of Wall Street expectations, though revenue is tracking ahead of guidance.

Here's what Atlassian reported:

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  • Revenue: $309.3 million. Analysts were expecting $304.65 million.
  • Earnings per share: $0.21. Wall Street was looking for $0.18.
  • Revenue (next quarter): $329 million to $331 million. Analysts had predicted $327.32 million.
  • EPS (next quarter): $0.16. Wall Street was forecasting $0.19.

In the past quarter, Atlassian added over 5,000 new customers, bringing its total customer count to 144,038. And in April, Atlassian acquired software management startup AgileCraft for about $166 million.

Read more: The president of $26.6 billion Atlassian explains the 'gnarly problem' that prompted its $166 million acquisition of AgileCraft

At its most recent annual conference, it announced an array of new products, including new features for its team collaboration product Confluence.

Last quarter, Atlassian reported revenues of $299 million, up 39% from the year before.

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