Investors learned the truth about Atlassian's vulnerability to macroeconomic conditions and weakened outlook after the financial markets closed on November 3, 2022. The Company issued a letter to shareholders and held a conference call with analysts to discuss its financial results for the fiscal first quarter of 2023 ended September 30, 2022. In the letter to shareholders, the defendants revealed that “[b]ased on the macro headwinds,” the Company was “lowering our Cloud revenue growth outlook to a range of approximately 40% to 45% year-over-year” for fiscal year 2023. In describing the “macro impacts” on the Company, the letter to shareholders revealed that (1) the Company “saw a decrease in the rate of Free instances converting to paid plans,” calling it a “trend [that] became more pronounced” in the quarter and (2) the Company experienced “a slowing in the rate of paid user growth from existing customers.”

Following this news, the price of Atlassian stock declined almost 29% the following day, from a closing price of $174.17 per share on November 3, 2022 to a closing price of $123.73 per share on November 4, 2022.

Investors who purchased or acquired Atlassian U.S. securities between August 5, 2022 and November 3, 2022 may, no later than April 4, 2023, seek to be appointed as a lead plaintiff representative of the class.