Atlassian shares dropped over 16% in after-hours trading Thursday following the release of its fiscal third-quarter results. The company reported third-quarter revenue of $1.36 billion and adjusted earnings of 97 cents per share, both topping analyst estimates. Analysts had expected $1.35 billion in revenue and 87 cents in earnings. CEO Mike Cannon-Brookes said long-term investments in its Cloud platform have advanced the Atlassian System of Work and integrated Rovo’s AI capabilities at its core. Atlassian forecasted fourth-quarter revenue below estimates at $1.35 billion to $1.36 billion, with expected cloud growth of 23%, data center growth of 16.5%, and flat marketplace revenue.
