Atlassian (NASDAQ:TEAM) Shares Slide After Quarterly Loss and Soft Revenue Outlook

May 02, 2025 11:00 AM AEST | By Team Kalkine Media

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Atlassian (NASDAQ:TEAM) Shares Slide After Quarterly Loss and Soft Revenue Outlook — Image source: shutterstock

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Highlights

Atlassian posts unexpected quarterly net loss

Revenue guidance misses analyst expectations

New AI assistant launched for enterprise users

Atlassian (NASDAQ:TEAM), the Australian tech firm behind popular software tools like Jira and Confluence, experienced a steep drop in its stock price during after-hours trading, following the release of its third-quarter financial results. The company reported a net loss of US$70.8 million, a significant reversal from the US$12.8 million net profit it posted in the same quarter last year.

Despite showing 14% year-over-year growth in quarterly revenue to US$1.4 billion—largely driven by a 19% rise in subscription revenue to US$1.3 billion—the market reacted negatively to the company's weaker-than-expected guidance for the fourth quarter. Atlassian forecast revenue between US$1.349 billion and US$1.359 billion, which fell short of analyst projections.

This unexpected swing to a loss, paired with cautious revenue guidance, led to a 17.5% drop in Atlassian’s share price in extended trading, even though it had edged up 0.3% before the announcement.

Atlassian’s leadership remains optimistic about its future, with co-founder and CEO Mike Cannon-Brookes emphasizing the company’s growing focus on artificial intelligence. He noted that their human-AI collaboration vision is "resonating deeply with customers." A central part of this strategy is Rovo, Atlassian’s newly launched AI assistant, now available at no additional cost to premium and enterprise clients.

Rovo integrates features like AI-powered enterprise search, chat functions, and digital agents—aimed at streamlining collaboration and improving productivity across teams. This move is aligned with the broader tech sector’s push toward embedding AI into enterprise software platforms.

While Atlassian isn’t part of the ASX200 index, its financial movements often spark interest among those tracking high-growth Australian tech stocks. Investors and market watchers are also closely observing the impact of AI innovation on companies traditionally known for collaboration tools.

With the broader market’s renewed focus on dependable income sources, some investors may also be shifting their attention towards ASX dividend stocks in search of more stable returns amid tech sector volatility.

As the company navigates macroeconomic challenges and works to scale its AI capabilities, the next few quarters will be crucial in determining how well Atlassian can balance innovation with financial performance.

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