A cloud-based SaaS stock growing fast and discussed before. I have been long.
New article from IBD “New America” column for those that are new to this. They provide project management tool for developers that allows control of code development and good coordination and communication. They are a land-and-expand model that allows you to start adding on lots of nifty widgets. For instance, Jira-BitBucket which is a controlled version of the open-source control library Github(recently bought by Microsoft). They have also created a ServiceDesk module, one were are contemplating along with the much more expensive ServiceNow (also a great company and growth stock). They have transitioned mostly to subscription, but do still have licenses for off-cloud needs (like classified government licenses).
Their “free candy” prices start out at any easy to try price, and then get you to expand once you realize how good it is and how many people in the org can gain value and efficiency from it. For example, you can get a free trial of bitbucket, but also for $10/month it will support up to 10 users. Have a big org and love it, $7/month/user for over 10 users.
Jira Software, ServiceDesk, Ops, Core, Statuspage, Opsgenie, Confluence (document collaboration), Trello (visual project collaboration), bitbucket, SourceTree, Bamboo (integration release and management). For those nerds out there you can see how you might start simple and expand away.
From the article
Subscription fees accounted for 46% of revenue in fiscal 2018, which ended June 30, up from 24% in 2014. In the December quarter, revenue jumped 39% to $299 million. Subscription revenue boomed 56% to $152.5 million, accounting for more than half of sales…
Atlassian had 138,235 customers as of Dec. 31, up from 65,673 in September 2017.
With its growing suite of cloud tools, some analysts view Atlassian as a possible takeover target. Google’s cloud-computing business and Microsoft loom as potential buyers, analysts say.
One key to Atlassian’s profitability has been the lack of a direct sales force. Atlassian markets products through paid search online. It also hosts customer events that foster a strong user community.
In fiscal 2018, Atlassian spent only 21% of revenue on sales and marketing. It poured 47% of revenue, meanwhile, into research and development.
Top-notch growth ratings and #1 in its stock group.
Composite Rating 99 Pass
EPS Rating …99 Pass
RS Rating …98 Pass
Group RS Rating …A+ Pass
SMR Rating …A Pass
Acc/Dis Rating …B+ Pass
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Atlassian Corp Plc Cl A (TEAM)
COMPOSITE RATINGEPS RATINGRELATIVE STRENGTH RATINGSMR® RATINGACC/DIS RATING®
ABOUT TEAM: AUSTRALIAN COMPANY THAT DESIGNS AND DEVELOPS SOFTWARE TO HELP TEAMS IN MANAGEMENT, COLLABORATION, INTEGRATION
RANK WITHIN COMP SFTWR-SPEC ENTERPRS GROUP:
1ALRM ALARM.COM HOLDINGS INC
2RP REALPAGE INC
3TEAM ATLASSIAN CORP PLC CL A
4CSOD CORNERSTONE ONDEMAND INC
5HUBS HUBSPOT INC
Composite Rating 99
MARKET DIRECTION AND INDUSTRY GROUP FOR TEAM
Market Direction Market in confirmed uptrend
Industry Group Rank (1 to 197) 6
Group RS Rating A+
FUNDAMENTAL PERFORMANCE FOR TEAM
EPS Due Date 04/17/2019
EPS Rating 99
EPS % Chg (Last Qtr) 92%
Last 3 Qtrs Avg EPS Growth 63%
EPS Est % Chg (Current Qtr) 80%
Last Quarter % Earnings Surprise 19.0%
3 Yr EPS Growth Rate 27%
Consecutive Yrs of Annual EPS Growth 4
EPS Est % Chg for Current Year 58%
Sales, Margin, ROE
SMR Rating A
Sales % Chg (Last Qtr) 39%
3 Yr Sales Growth Rate 39%
Annual Pre-Tax Margin 20.4%
Annual ROE 13.7%
Debt/Equity Ratio 92%
TECHNICAL PERFORMANCE FOR TEAM
Price And Volume
RS Rating 98
% Off 52 Week High 0%
Price vs. 50-Day Moving Average 18%
50-Day Average Volume 1.7 Mil
Supply And Demand
Market Capitalization $24.1 B
Accumulation/Distribution Rating B+
Up/Down Volume 1.4
% Change In Funds Owning Stock 6%
Qtrs Of Increasing Fund Ownership 7
If you buy into combining TA with great growth fundamentals, then you will be disappointed because it is about 14% above its breakout buy point of $89.92 (yes, I add to my position there). But keep this on your list.
Also long NOW.