Shares of enterprise software company (NASDAQ: TEAM) plunged on Friday after the company reported financial results for its fiscal fourth quarter of 2024, ended June 30. As of 11:30 a.m. ET, Atlassian stock was down 16% and had hit new 52-week lows.

For Atlassian, investors are concerned about both the Q4 numbers and the financial guidance for its fiscal 2025. Management had guided for Q4 revenue of $1.135 billion at most. It wound up generating revenue of $1.132 billion, which was inside of its guidance. But its growth did come at a cost.

Enterprises are demanding more capabilities powered by artificial intelligence (AI) than ever before. Atlassian can provide those but there's a cost to developing relevant offerings. In Q4, the company's revenue was up 20% year over year. But research and development expenses were up 24%, driven by investments in AI.

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Source Fool.com