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Atlassian Q3 solid, shares down on mixed guidance

The collaboration and productivity software company reported strong customer momentum in the third quarter.
Written by Natalie Gagliordi, Contributor

Collaboration and productivity software company Atlassian delivered better-than-expected third quarter financial results on Wednesday buoyed by strong customer momentum. The company grew its customer count on net by 5,803 for the quarter. It ended Q3 with a total customer count on an active subscription or maintenance agreement basis of 144,038. Nonetheless, mixed Q4 guidance sent the company's shares down more than 10% after market.


As for the rest of the numbers, the San Francisco-based company reported a net loss of $202.8 million, or 85 cents per share. Non-GAAP earnings were 21 cents per share on revenue of $309.3 million, up 38% from a year ago.

Wall Street was expecting the company to report earnings of 18 cents per share on revenue of $304.65 million. 

Atlassian's subscription revenue remained strong, rising to $166.5 million. The company reported a free cash flow of $127.1 million, an increase of 47% year over year.


For Q4, Atlassian is expecting revenue in the range of $329 million to $331 million, with EPS of 16 cents. Analysts expect the company to report fourth quarter earnings of 19 cents per share on revenue of $327.2 million. 

For the full fiscal year 2019, the company is expecting revenue in the range of $1.205 billion to $1.207 billion with earnings of 82 cents per share. For the year analysts expect earnings of 82 cents a share on revenue of $1.2 billion.

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