The size of Atlassian's fiscal third-quarter earnings and revenue beat left some analysts hoping for more. TEAM stock tumbled amid a broad sell-off in the tech-heavy Nasdaq composite.
After the market close on Thursday, the enterprise software maker said it earned 47 cents a share, down a penny from a year earlier amid higher investments in sales and cloud infrastructure. Analysts had projected Atlassian earnings of 32 cents per share.
Atlassian said revenue rose 30% to $740.5 million, topping views for $701 million in sales.
TEAM stock tumbled 13.5% to close at 224.83 on the stock market today.
"Strength in the quarter was largely driven by one-time pull-forwards. (We) note that next quarter guide (at mid-point) was $12.5 million above street vs. $33 million coming out of December quarter," said Cowen analyst Derrick Wood in a report. He added that Atlassian's outlook results in "a softer beat and raise cadence vs. recent quarters."
TEAM stock has retreated 41% in 2022 amid a broad pullback in the software sector.
TEAM Stock: Shift To Cloud Business Model
For the June quarter, Atlassian said it expects total revenue in a range of $710 million to $725 million versus estimates of $689 million. Atlassian forecast profit of 24 cents a share versus estimates of 30 cents.
For the March quarter, Atlassian added 8,054 net new customers. It had 234,575 customers at the end of the period.
The software maker is transitioning to a cloud-computing business model. Atlassian is phasing out sales of on-premise software used in the data centers of corporate customers.
Founded in Sydney in 2002, Atlassian sells project management and collaborative software for software developers and information technology engineering teams. TEAM stock holds a Relative Strength Rating of 35 out of a best-possible 99, according to IBD Stock Checkup.
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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
