Atlassian Q3 Earnings: Revenue Beat, EPS Beat, CEO Transition And More
Portfolio Pulse from Adam Eckert
Atlassian Corp (NASDAQ:TEAM) reported fiscal Q3 earnings with revenue and EPS beating estimates, showing a 30% year-over-year revenue increase and a significant improvement in operating income. Subscription revenue grew by 41%, and the company highlighted its transition to a cloud-majority company with over 300,000 customers. However, shares fell in after-hours trading due to the announcement of a CEO transition, with Scott Farquhar stepping down and Mike Cannon-Brookes continuing as CEO. Atlassian expects Q4 revenue to be between $1.12 billion and $1.135 billion, with cloud revenue growth around 32% year over year.
April 25, 2024 | 8:50 pm
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Atlassian reported higher than expected Q3 earnings and revenue, with significant growth in subscription revenue and a positive outlook for Q4. However, shares dropped due to the announcement of a CEO transition.
The drop in Atlassian's share price in after-hours trading can be attributed to the market's reaction to the CEO transition announcement, despite the company's strong fiscal Q3 performance and positive outlook. Such leadership changes often lead to uncertainty among investors, impacting stock prices in the short term.
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