Atlassian stock crashes on weak Q4 outlook, cloud slowdown
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Atlassian (NASDAQ:TEAM) shares fell more than 9% on Friday after the software company issued an outlook for its fiscal fourth-quarter that was weaker than expected.
Looking ahead, Atlassian (TEAM) expects sales to be between $900M and $920M, with the mid-point below the $919.4M analysts were expecting.
On the earnings call, CFO Joe Binz said the low-end of the guidance assumes continued weakness in places like paid seat expansion and free to paid conversions, but also some macro impact in areas that had held up well, such as churn upsell and migrations. 
"So we do expect and have built in pretty substantial macroeconomic headwinds at the low end of that range," Binz said.
Adjusted gross margins are forecast to be around 83.5% and adjusted operating margins are expected to be around 17% during the period.
San Francisco, California-based Atlassian (TEAM) reported third-quarter results that topped estimates, earning an adjusted 54 cents per share and $915.45M in revenue. Analysts were expecting 34 cents per share and $901.77M in revenue.
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