Why Atlassian Stock Tumbled Today
Shares of (NASDAQ: TEAM) tumbled on Friday morning after the Australian work-management software company announced results for its fiscal 2023 third quarter. Management talked about a slowdown in what is arguably the most important part of its business, and that didn't sit well with the market. As of 11:30 a.m. ET, Atlassian stock was down by about 11%.
In the quarter, which ended March 31, Atlassian generated revenue of $915 million. This was a record quarterly high and up nearly 24% year over year. It also surpassed guidance from management and was ahead of Wall Street's expectations.
Atlassian offers free-to-use versions of some of its products, hoping to attract customers who will, in time, upgrade to paid versions. And like many software companies, Atlassian is trying to get its legacy customers to switch to its cloud-based subscription services.