Atlassian announced its revenue for the second quarter, which topped $1 billion USD for the first time.
👉 Background: Atlassian is the Australian founded, but NASDAQ-listed software giant. Atlassian does everything collaboration in workplaces, like project management and software code hosting. They run Jira, Bitbucket, Trello and recently acquired Loom too.
👉 What happened: Atlassian announced its revenue for the second quarter, which topped $1 billion USD for the first time. In other good news, Atlassian was still losing money... but less than before - it lost $84 million this quarter compared to over $200 million USD in the same quarter last year.
👉 What else: Immediately after the news, Atlassian's shares jumped 10%. But after-hours, its share price slid 9%—which is a 19% turnaround in just a few hours. Talk about a swing!
💡Not all that glitters is golden. While Atlassian's quarterly results seemed pretty favourable on the headline figures, the details of the report weren't as attractive.
💡Once investors and analysts had time to deeper into the earnings report, they saw concerns around Atlassian's future guidance, revenue growth rates, and profit margins.
💡In particular, Atlassian warned that their cloud revenue has decelerated from 49% in the first quarter of FY23 to an expectation of under 30% for the second quarter. And as a cloud business, this is a major red flag.
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