Home / Business and Economy / AI Fuels Atlassian R&D Despite Stock Drop
AI Fuels Atlassian R&D Despite Stock Drop
6 Feb
Summary
- Atlassian CEO Mike Cannon-Brookes hailed AI as a major benefit.
- Company's R&D spending reached $826 million for the quarter.
- Shares fell over 8% in late trading, over 62% year-to-date.
Atlassian CEO Mike Cannon-Brookes has voiced strong optimism regarding the impact of artificial intelligence on the company's future, describing it as "one of the best things" to happen to Atlassian and the software industry. This positive outlook comes amidst a challenging period for the company's stock. Shares saw a decline of over 8% in late trading and have fallen more than 62% year-to-date.
Despite market fluctuations, Atlassian is maintaining a robust commitment to innovation. The company's research and development spending for the quarter reached $826 million, exceeding estimates by approximately 22.5%. This significant investment is directed towards advancing AI capabilities and the development of its Rovo product.
Cannon-Brookes highlighted the strategic importance of substantial R&D investment, particularly in the current AI-driven era, deeming it essential for adaptation and competitiveness. He also noted overwhelmingly positive customer feedback regarding AI's potential, evidenced by an increase in long-term customer commitments over the past year.
