At Last, the Atlassian Quarter We've Been Waiting For
-By Kaia Beckett, MBA | [email protected]
Atlassian, the Australian maker of collaboration products and services, had a blowout quarter last week which helped the stock pop 24.64% in one day to new all-time highs. The company is now worth almost $11.5 billion and is up more than double from its initial public offering at $21 a little less than 2 years ago.
Surprisingly, this 11 billion dollar company still loses money, but it has been growing revenue steadily and quickly. Revenue grew 42% to $193 million and profit came in at a loss of $22 million on a GAAP basis. investors are focused on the non-GAAP cash flow which has grown to $62 million and is up 140% over last year.
The company benefited from a one time gain of 14000 customers which came from Bitbucket Cloud (who were there before but are now paying and meet the definition of a customer). At the same time, the company added over 4000 net new customers organically. Atlassian continues to add new products to its portfolio. It's latest is called Stride (not the gum), which seems to be the firm's answer to Slack. The tool has very similar features to Slack, but fits in well as a collaborative offering in the Atlassian family. Given the many companies use Jira to track issues, Atlassian has the power to take this further and closely combine the two products into something that could be more powerful than the individual parts. Not only this but Stride seems to undercut the pricing of Slack, which could put pressure on the private company which has been dominating the market.
Finally, the company has refreshed its growing brand with new logos that now appear on Atlassian products.