Atlassian stock tumbled Friday after the software maker reported fiscal third quarter earnings that topped estimates while revenue edged by Wall Street targets amid its shift to a subscription, cloud-based business model. June quarter revenue guidance for Atlassian stock came in below views.
Reported after the market close on Thursday, Atlassian earnings for the March quarter rose 9% to 97 cents a share on an adjusted basis.
Further, revenue climbed 14% to $1.357 billion.
Wall Street analysts polled by FactSet had projected adjusted profit of 90 cents on revenue of $1.353 billion
"The quarter was colored by a smaller-than-normal cloud beat, an in-line on-prem data center segment and a back-end loaded enterprise deal quarter that Atlassian pinned not on macro but on the sales process," said UBS analyst Karl Keirstead in a report.
On the stock market today, Atlassian stock plunged 16.5% to 191.20 in early trading.
Heading into the Atlassian earnings report, TEAM stock had retreated 4% in 2025.
For the June quarter, Atlassian said it expects total revenue of $1.354 billion at the midpoint of guidance versus Wall Street estimates of $1.357 billion. Atlassian says it expects cloud computing services growth of 23% in the June quarter, slowing from 25% growth is fiscal Q3.
Founded in Sydney in 2002, Atlassian sells project management and collaborative software for software developers and information technology engineering teams.
The software maker is transitioning to a cloud-computing business model. In addition, Atlassian is phasing out sales of on-premise software used in the data centers of corporate customers.
Meanwhile, Atlassian stock holds a Relative Strength Rating of 86 out of a best possible 99, according to IBD Stock Checkup.
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