Shares of software company Atlassian Corp. plunged in Tuesday’s after-hours market, following its release of first-quarter financial results.
At 6:28 p.m. ET, the stock slid 22.2% to $135 per share. The stock finished the day’s regular session with a 1.03% gain, closing at $174.17 per share.
Atlassian shares traded at a 52-week low of $159.54 on May 18.
After the bell, the company reported a first-quarter loss per share of 5 cents on revenue of $807.4 million. Analysts were expecting a loss per share of 69 cents on revenue of $806.3 million, according to FactSet.
In the year-ago period, the company reported a loss per share of $1.59 on revenue of $614 million.
For the second quarter, Atlassian said it was expecting revenue in a range of $835 million to $855 million. Analysts are expecting revenue of $879.3 million, according to FactSet.
In a letter to shareholders, the company said “last quarter, we shared that we saw a decrease in the rate of Free instances converting to paid plans. That trend became more pronounced in Q1.” The letter also read “this quarter, we started to see a slowing in the rate of paid user growth from existing customers.”
