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Australian project management software company Atlassian’s sharemarket value has broken through the $US100 billion mark, trading on the NASDAQ under the symbol TEAM, the move lifted the personal wealth of its Australian founders to over $US23 billion each. Remote work in the pandemic has beena boon for the company.

 Atlassian

The shift to remote work with the work from home and work from anywhere trend since in the Corenavirus pandemic has boosted demand for its software.

Shares in Atlassian Corporation Plc traded Friday at $409.60, eclipsing its 52-week high and closed at 404.60 ▲ 0.69 (+0.17%) friday. Over the past year, Atlassian Corporation Plc has traded in a range of $164.16 to $409.60. The move has taken the Sydney-based company’s valuation to $US101.93 billion ($AUD141 billion)

Founders and Co-chief executives Mike Cannon-Brookes and Scott Farquhar both hold 22.7 per cent stakes in the business, which they founded in 2002 using $10,000 in credit card debt. Atlassian was listed on the Nasdaq in December 2015 at $US21 a share, valuing it at $US4.4 billion. The success has not gone unnoticed in Australia this week the Atlassian co-founders Scott Farquhar & Mike Cannon-Brookes received the Global Sydney Business Award.

In today's highly votatile stockmarket and threat of overvaluation and with that a plummeting stock price many analysts have looked at Atlassian debt manage ment as a plus.  They have cut debt of US$348.8m at the end of June 2021 from US$889.2m over a year ago.  Their cash position is also healthy. they have US$1.23b in cash to offset the debt, meaning TEAM has US$883.4m net cash.

TEAM Debt Equity 9 18 2021

Source: Yahoo Finance

TEAM was a record initial public offering for an Australian company at the time it went publicon the NASDAQ.  From there the latest milestone highlights the significant value created for shareholders since, according to Gavin Appel, an Atlassian investor and founder of consultancy Ignition Lane.

“For that business to go from $US4.4 billion to $US100 billion is an extraordinary feat, and shows the strong foundations Mike and Scott have built in the organisation,” he said. “By continuing to invest in product development and giving more value to customers they give more value to shareholders.”

Atlassian’s share price has been climbing steadily all year, but jumped significantly off the back of its fourth quarter results in July when it recorded a 29 per cent rise in annual sales to $US2.1 billion and flagged more growth to come.

The Sydney company reported a fiscal fourth-quarter loss of $213.1 million, or 85 cents per share, compared with a loss of $385.2 million, or $1.56 per share a year ago. Adjusted earnings of 24 cents per share topped analyst estimates of 18 cents per share.

"Our Q4 was a ripper of a quarter - as we Aussies say - as we added over 23,000 new customers, grew subscription revenue 50% year-over-year, and continued to see cloud momentum build," said co-CEO Mike Cannon-Brookes.

Revenue rose to $559.5 million from $430.5 million a year ago versus analyst estimates of $471.6 million. Atlassian forecast adjusted earnings between 38 cents and 39 cents per share on revenue between $575 million and $590 million for the first quarter. Analysts are expecting earnings of 30 cents per share on revenue of $539.1 million.

Atlassian competes with the likes of Salesforce, Slack, and Microsoft Teams, surpassed 200,000 customers and $2 billion in revenue during the fiscal year.

"Looking ahead to fiscal 2022 and beyond, the opportunities in front of Atlassian have never been greater," said Scott Farquhar, Atlassian's co-founder and co-CEO.

The firm expects to see gains in its three core markets: agile development; IT service management; and team work management.

Cameron Deatsch, Atlassian's Chief Revenue Officer said last week "Atlassian has 700 solution partners out there in the industry, doing consulting engagements. Many of them had built large businesses around managing, installing and patching on-prem software. Over the last year, we saw them all on the cloud, or a huge majority, and we saw a 300% increase in our channel selling cloud in FY21."

About Atlassian

Atlassian Corporation PLC produces software that helps teams work together more efficiently and effectively. The company provides project planning and management software, collaboration tools, and IT help desk solutions. The company operates in four segments: subscriptions (term licenses and cloud agreements), maintenance (annual maintenance contracts that provide support and periodic updates and are generally attached to perpetual license sales), perpetual license (upfront sale for indefinite usage of the software), and other (training, strategic consulting, and revenue from the Atlassian Marketplace app store). Atlassian was founded in 2002 and is headquartered in Sydney, Australia. Atlassian has 200,000+ customers and a team of 6,000+.

Source: Atlassian

From The TradersCommunity Research Desk

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