Atlassian Corporation (TEAM) Fell as Guidance Missed Investor Expectations

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Hardman Johnston Global Advisors, an investment management company, released its “Hardman Johnston Global Equity” third quarter 2024, investor letter. A copy of the letter can be downloaded here. The portfolio slightly underperformed its benchmark index in the third quarter following a robust first half of the year. Performance was impacted by volatility, especially towards the end of the quarter. The strategy returned 4.50%, net of fees, in the quarter, compared to 6.61% for the MSCI AC World Net Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Hardman Johnston Global Equity highlighted stocks like Atlassian Corporation (NASDAQ:TEAM), in the third quarter 2024 investor letter. Atlassian Corporation (NASDAQ:TEAM) is a company that designs, develops, licenses, and maintains various software products. The one-month return of Atlassian Corporation (NASDAQ:TEAM) was -1.49%, and its shares gained 2.11% of their value over the last 52 weeks. On December 18, 2024, Atlassian Corporation (NASDAQ:TEAM) stock closed at $250.19 per share with a market capitalization of $65.158 billion.

Hardman Johnston Global Equity stated the following regarding Atlassian Corporation (NASDAQ:TEAM) in its Q3 2024 investor letter:

"The top sector detractors from relative performance during the quarter were Information Technology and Financials. Shares of Atlassian Corporation (NASDAQ:TEAM) declined following its earnings release in early August as the company laid out a 16% revenue growth target for the upcoming fiscal year. The guide missed investor expectations and implies a meaningful acceleration in revenue growth beyond FY25 to meet the company’s recently presented 3-year growth CAGR target of +20%. The near-term deceleration is driven mostly by an upcoming period of tough comparables due to the end of maintenance for its server product, which had been an event-driven tailwind for cloud and data center growth. Management has also demonstrated conservatism in its near-term guidance as it considers a worsening macro environment and some disruption as it evolves its go-to-market approach to scale with large enterprises. Atlassian has also been a victim of a challenging software industry, driven by a few top-down headwinds like digestion of software spend following very strong procurement during and exiting the pandemic, a shift of IT budgets from traditional software to AI initiatives, and the current lack of monetization observed by application software companies’ AI offerings."