Atlassian Stock Tanks On Q3 Earnings As Soft Q4 Guidance Overshadows Better-Than-Expected Results

Atlassian Corp TEAM shares are tumbling in Thursday’s after-hours session on the heels of the company’s fiscal third-quarter results. Here’s a look at the highlights from the quarter.

Q3 Earnings: Atlassian reported third-quarter revenue of $1.36 billion, beating analyst estimates of $1.35 billion. The collaboration and productivity software provider reported third-quarter adjusted earnings of 97 cents per share, beating analyst estimates of 87 cents per share.

Total revenue climbed 14% year-over-year, driven by Cloud revenue growth of 25% year-over-year.

Atlassian generated $652.7 million in cash flow from operations and $638.3 million in free cash flow during the period. The company ended the quarter with $3 billion of cash, cash equivalents and marketable securities.

“Our long-term investments in building a world-class Cloud platform have enabled us to advance the Atlassian System of Work and bring Rovo’s powerful AI capabilities to the center,” said Mike Cannon-Brookes, co-founder and CEO of Atlassian.

“Our vision for the future of human-AI collaboration is resonating deeply with customers, and we are more excited than ever to execute on our mission of unleashing the potential of every team.”

Outlook: Atlassian expects fourth-quarter revenue to be in the range of $1.35 billion to $1.36 billion versus estimates of $1.42 billion. The company anticipates cloud revenue growth of 23% and data center growth of 16.5% on a year-over-year basis in the fourth quarter. Marketplace and other revenue is expected to be approximately flat.

Atlassian also guided for full-year 2025 revenue of $5.19 billion versus estimates of $5.18 billion, according to Benzinga Pro.

TEAM Price Action: Atlassian shares were down 17.71% after-hours, trading at $188.51 at the time of publication on Thursday, per Benzinga Pro.

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