Atlassian (TEAM) Just Caught My Eye

Atlassian Announces Fourth Quarter and Fiscal Year 2018 Results:

Founder-led, revenue growing, customer count growing, margin improving,operating losses shrinking. Net loss expanding, but plenty of cash on the balance sheet.

Atlassian Marketplace seems to be gaining momentum with $200million in sales for 2018. This a is very high margin enterprise software marketplace.

Most importantly they had a product that wasn’t competing well and were humble enough to admit it and sell it to Slack so they could focus on their core business. This will probably improve margin and net losses.

"Slack has acquired the intellectual property for Stride and Hipchat Cloud, both of which will be discontinued. "

Quarterly revenue of $243.8 million, up 40% year-over-year

Quarterly IFRS operating margin of (2%) and non-IFRS operating margin of 19%

Quarterly free cash flow of $64.4 million and free cash flow margin of 26%

Operating loss was $53.7 million for fiscal year 2018, compared with $63.1 million for fiscal year 2017. Operating margin was (6%) for fiscal 2018, compared with (10%) for fiscal 2017.

Cash and cash equivalents and short-term investments at the end of the fourth quarter of fiscal 2018 totaled $1.7 billion.

Atlassian ended the fourth quarter of fiscal 2018 with a total customer count, on an active subscription or maintenance agreement basis, of 125,796, having added 6,638 net new customers during the quarter.

The Atlassian Marketplace, one of the largest enterprise software marketplaces, passed a new milestone, with more than $500 million in lifetime purchases since its inception in 2012. For fiscal 2018, the Atlassian Marketplace generated over $200 million in purchases.

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Just realized Atlassian made an equity investment in Slack and
Subscription revenue was $117.4 million, up 62% year over year.

I’m a huge fan of the investment in Slack. I think that will be meaningful as Slack IPOs and continues to gain momentum/customers. Also like how fast subscription revenue is growing.

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