(Reuters) -Atlassian forecast fourth-quarter revenue below estimates on Thursday, as enterprise customers cut spending on cloud software services in a tough economy, sending its shares down over 14% after the bell.
Enterprises remain cautious about spending on new software products and have kept a tight leash on costs as they grapple with high interest rates and an uncertain economy.
Atlassian offers collaboration tools — such as Jira software for planning and project management, and Confluence for content creation — that serve over 300,000 customers.
Rovo, Atlassian’s AI assistant, which allows users to do enhanced search, learning and automation across enterprise data, will be included for free in all premium and enterprise editions for subscription products, instead of being priced at $20 monthly per user.
Analysts have said that providing Rovo for free could imply less direct monetary leverage for Atlassian.
For the fourth quarter, Atlassian sees revenue in the range of $1.35 billion to $1.36 billion, while analysts expect $1.36 billion, according to data compiled by LSEG.
Revenue for the three months ended March 31 stood at $1.36 billion, compared with analysts’ average estimate of $1.35 billion.
The company posted third-quarter net loss of 27 cents per share, compared with a profit of 5 cents per share a year ago.
(Reporting by Juby Babu in Mexico City; Editing by Shailesh Kuber and Alan Barona)
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