Atlassian slides after soft earnings guidance triggers price target cut at Canaccord
Atlassian (NASDAQ:TEAM) stock is down 9%, Friday, after Canaccord Genuity Group lowered its price target on software company despite the earnings results coming in above the consensus estimates.
The equities researchers at Canaccord reduced their price target on Atlassian to $300 from $375, still implying a potential upside of 15.4% from stock's last close.

That follows the company's latest Q3 financial results where next quarter's earnings outlook fell short of expectation.

Guidance Update: On Thursday, Atlassian said it expects its Non-GAAP EPS to be ~$0.24, which is below the consensus of $0.31. GAAP EPS projected to be -$0.40.
Revenue is guided to range between $710M-725M, vs. consensus of $694M; Non-GAAP Gross Margin to be between 84-85%; Non-GAAP Operating Margin of 15% and GAAP Margin of -11%.
âWe now have line of sight to $10 billion in annual revenue based on our current markets and products,â said Mike Cannon-Brookes, Atlassianâs co-founder and co-CEO.

Q3 Results Highlights: Atlassian's third quarter revenue of $740M (+30.1% Y/Y) beats by $36.12M. It includes quarterly subscription revenue of $555M (+59% Y/Y).
GAAP Operating Loss of $16.1M compared to operating income of $69.5M a year ago.
Non-GAAP Operating Income of $179.2M (vs. $175.7M); Operating margin was 24% (vs. 31%) when compared with 3Q21.
Cash flow from operations was $353M.
Free cash flow margin was 42%.
Non-GAAP EPS of $0.47 beats by $0.15.

The company ended the quarter with $1.3B in cash, cash equivalents plus short-term investments.
A look through TEAM's comparative rating analysis against peer.