Why Atlassian (TEAM) Stock Is Nosediving Friday

Atlassian Corp TEAM shares are trading lower by 6.43% to $170.68, though off the session low of $158.41, Friday morning after the company reported second-quarter earnings results.

What Happened?

Atlassian reported quarterly earnings of 45 cents per share which beat the analyst consensus estimate of 31 cents. The company also reported quarterly sales of $872.70 million, which beat the analyst consensus estimate of $851.32 million by 2.5%. This sales figure is a 26.8% increase over sales of $688.53 million in the same period last year.

Atlassian says the company's operating loss was $99.2 million for the second quarter of the fiscal year 2023, compared with an operating income of $23.0 million for the second quarter of the fiscal year 2022.

Atlassian also says the company's net loss was $205.0 million for the second quarter of the fiscal year 2023, compared with a net loss of $22.3 million for the second quarter of the fiscal year 2022.

What Else?

"We closed out 2022 with quarterly revenue of $873 million, up 27% year-over-year, driven by subscription revenue growth of 40% year-over-year," said Scott Farquhar, Atlassian's co-founder and co-CEO.

"We are proud of everything we have accomplished in yet another unpredictable year. 2023 will be all about helping our customers navigate these challenging times, absorbing the macro-driven impacts on our business, and setting Atlassian up for long-term success."

According to data from Benzinga Pro, TEAM has a 52-week high of $352.92 and a 52-week low of $113.86.