Atlassian (NASDAQ:TEAM) Reports Earnings Results, Falls Short of Expectations

Atlassian (NASDAQ:TEAM - Get Free Report) released its latest earnings results on Thursday. The technology firm announced earnings per share (EPS) of ($0.12) for the quarter, which fell short of the analysts' consensus estimate of $0.73 by a significant margin of ($0.85), according to reports. Furthermore, the company reported a negative net margin of 8.59% and a return on equity of -23.35%. With these figures, it is clear that Atlassian did not meet the market's expectations.

Atlassian Stock Performance

As a result of the earnings announcement, Atlassian's stock experienced a decline of $4.38 during mid-day trading on Thursday, bringing the share price to $266.95. The trading volume for the day reached 3,682,127 shares, which is considerably higher than its average volume of 1,833,907 shares. Over the past year, Atlassian shares have seen a low of $135.29 and a high of $287.97. The firm holds a market capitalization of approximately $69.52 billion and possesses a price-to-earnings ratio of -175.62. Additionally, the company's current ratio is 1.18, quick ratio is 1.18, and the debt-to-equity ratio stands at 0.96. The fifty-day moving average is noted at $259.32, while the two-hundred-day moving average is $206.76.

Wall Street Analyst Insights

Several analysts from various firms have provided their perspectives on Atlassian following the earnings report. For instance, Mizuho raised their price target for the stock from $240.00 to $285.00, while giving it an “outperform” rating. Oppenheimer also increased their price target from $270.00 to $300.00, maintaining an “outperform” rating in their latest notes. Jefferies Financial Group set an even higher target, adjusting their price from $300.00 to $325.00, while labeling the stock as a “buy.” Scotiabank raised their price target from $175.00 to $250.00, and Robert W. Baird moved their target from $175.00 to $200.00, offering a “neutral” rating. Overall, nine analysts suggest holding the stock while sixteen analysts recommend buying, yielding a consensus rating classified as a "Moderate Buy" alongside an average target price of $273.19.

Insider Transactions

In related developments, President Anutthara Bharadwaj sold 1,520 shares of Atlassian on January 17th, at an average price of $259.85, amounting to a transaction value of $394,972. Following this sale, Bharadwaj retains ownership of 210,471 shares valued at roughly $54,690,889.35. Additionally, CEO Michael Cannon-Brookes disposed of 7,948 shares at an average price of $269.01, which provided a total of $2,138,091.48 from the sale and reduced his direct ownership to 349,712 shares worth approximately $94,076,025.12. Over the last quarter, company insiders have sold 264,240 shares valued at approximately $66,529,872, with insiders currently holding 38.55% of the company’s stock.

About Atlassian

Atlassian Corporation operates through its various subsidiaries, focusing on the design, development, licensing, and maintenance of a broad array of software products globally. The company’s product portfolio includes notable tools such as Jira Software and Jira Work Management, providing platforms for project management and collaboration among technical and business teams; Confluence, a tool for organizing knowledge across all teams; and Trello, which facilitates structured collaboration amongst teams.

Earnings, Stocks, Atlassian