Atlassian Corporation Plc (NASDAQ:TEAM) shares closed more than 7% lower on Friday following the company’s Investor Day, which was not impressive to most investors.

Analysts at Oppenheimer provided their views on the company, mentioning the management’s note regarding a line-of-sight to $10 billion in revenue, driven solely by organic growth with current products and end-markets. However, it remains committed to investing in product roadmap/cloud-first objectives and expects to heavily ramp its OpEx (particularly R&D), which will drag margins near term. As such, the company expects full 2023 operating margins to decline to mid-teens % (vs. 26% last quarter).

While the efforts to invest in R&D and sales will pressure the operating line near term, the analysts see it as necessary to drive the multiple levers for long-term growth and reiterated their Outperform rating.