Atlassian stock slides after Q2 results as CEO rejects ‘software is dead’ AI fears
Atlassian shares dropped roughly 6% in after-hours trading Thursday following its latest earnings report. The software firm posted a 23% increase in quarterly revenue, hitting $1.586 billion for the quarter ended Dec. 31. However, free cash flow plunged to $168.5 million, down from $342.6 million a year earlier. The company forecast third-quarter revenue between $1.689 billion and $1.697 billion, projecting around 22% revenue growth for the fiscal year. The move comes amid a wider selloff in software and data-services stocks, rattled by fears that rapidly advancing AI tools might undermine the seat-based subscription model charging per user. The S&P 500 software and services index dropped 3.1% on Thursday, poised to lose around $1 trillion in market value since Jan. 28. ServiceNow and Salesforce were among the latest to take hits, Reuters reported.