Atlassian shares slump on Cloud revenue miss, analyst downgrade By Investing.com

Atlassian (NASDAQ:) shares tumbled more than 16% in after-hours trading Thursday after the company reported fourth quarter results.

The team collaboration software provider reported adjusted earnings per share of $0.66 for its fiscal fourth quarter, surpassing analyst estimates of $0.56. Revenue rose 20% YoY to $1.13 billion, also beating the consensus forecast of $1.08 billion.

However, Atlassian’s outlook for slowing growth in the coming year is likely what sparked a sharp sell-off. The company projected total revenue growth of approximately 16% for fiscal 2025, a significant deceleration from the 23% growth achieved in fiscal 2024.

“We grew revenue to $4.4 billion, generated free cash flow of over $1.4 billion, and surged past 300,000 customers,” said Mike Cannon-Brookes, Atlassian’s co-founder and co-CEO. “With this setup, we feel tremendously optimistic about what is ahead of us.”

For the first quarter of fiscal 2025, Atlassian expects revenue between $1.15 billion and $1.16 billion, in line with analyst expectations. The company forecasts cloud revenue growth of about 27% YoY and data center revenue growth of approximately 35% YoY for Q1.

Atlassian ended the quarter with 45,842 customers with over $10,000 in cloud annual recurring revenue, up 18% from the previous year. The number of customers spending more than $1 million annually grew 48% YoY.