Atlassian CEO Mike Cannon-Brookes says software not dead despite shares slumping 69 per cent
Atlassian co-founder Mike Cannon-Brookes told sceptical investors it’s building a “f..king great business” even as its stock price collapses.
Atlassian co-founder Mike Cannon-Brookes told sceptical investors it’s building a “f..king great business” as it posted sales up 23 per cent to $US1.6 billion ($2.3 billion) in the December quarter.
The Sydney-founded software’s company’s shares slumped another 6.3 per on Wall Street on Thursday to take its 12-month fall to close to 70 per cent.
Sellers are worried that Atlassian’s corporate customers will not need its Jira or Trello products in the future as they use artificial intelligence to replace them.
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By continuing you agree to our Terms and Privacy Policy.“I’m convinced AI is great for Atlassian. Others think software is dead,” Mr Cannon-Brookes told shareholders. “In this environment it seems that noise swamps signal, nuance gets lost.”
The group posted a net loss of $US42.6 million for the quarter, although an adjusted basis backing out certain costs it flagged a profit of $US320.9 million.
Earnings per share of $US1.22 came in ahead of the sell-side consensus forecast of $US1.14.
However, the stock tumbled another 6 per cent in after-hours markets as free cashflow plunged 51 per cent to $US168.5 million in an outcome it blamed on the timing of billings and other one-off payments in the quarter.
It lifted its guidance for total revenue growth of 22 per cent in financial year 2026.
Stock-based compensation for the quarter to staff totalled $US452.6 million. In 2025 the homegrown software giant reported around 13,800 employees.
A staff member with $1 million invested and unvested stock would have seen the value of that fall to around $300,000 over the horror 12-month run for the share price.
Atlassian said neither Mr Cannon-Brookes or other senior staff are available for interview.
