Atlassian stock drops after earnings show large loss

Atlassian stock drops after earnings show large loss

Atlassian Inc. TEAM, -2.08% shares dropped more than 6% in late trading Thursday, after the collaboration-software company reported fiscal first-quarter earnings that included a large, unexpected loss. Atlassian said it lost $242.4 million, or $1.03 a share, much higher than a loss of a nickel a share a year ago. Atlassian explained that the loss was largely a result of a revaluation of debt obligations, however. “Net loss for the first quarter of fiscal 2019 included … finance costs totaling $244.7 million, primarily as a result of marking to fair value the exchange feature on Atlassian’s exchangeable senior notes and the related capped calls,” the company said. After adjusting for that and other effects, the company claimed earnings of 20 cents a share, beating analysts average forecast for adjusted earnings of 19 cents a share, according to FactSet. Atlassian reported revenue of $267.3 million, up from $195.5 million a year ago and higher than the average analyst forecast of $260 million, according to FactSet. Atlassian stock has gained about 80% this year, but has struggled along with much of tech heading into earnings season, declining 14.8% so far in October as the S&P 500 index SPX, -1.44% has dropped 3.6%.

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