Atlassian Inc. is an Australian enterprise application software company that focuses on developing products for software developers, project manager as well as content managers. The company is most famous for its Jira application, which is a project and issue tracker. Another application the company is known for is its Wiki-joint-effort application, Confluence.
Atlassian was launched in 2002, and in December 2015, it launched its IPO. The company has set up an issue price of $21, and started by offering the sale of 22 million shares to generate $462 million from the IPO. Within the first day of its launch, Atlassian shares jumped a huge 32% to trade at $27.78 per share.
On Friday, the company saw another jump after it announced its first quarter earnings result. Shares soared more than 20% higher during Friday’s trading on the back of these results. Thursday saw the company closing the day with a market cap of more than $9 billion, but by Friday, the company’s market cap had cross the magical $10 billion mark. And by the end of the trading day on Friday, Atlassian crossed the $11 billion mark to close the week on a very high note at $11.40 billion (this number is now almost double the company’s IPO valuation).
Atlassian saw a growth of 42% in its revenue to $193.8 million this quarter. This is up from the same time last year, when revenue was at $136.8 million. The customer base has grown to more than 107,700 customers with subscription or maintenance-agreement accounts. Revenue targets for 2018 are on track to reach the goal of $841 million to $847 million. Trello is expected to contribute $20 million to that total.
Profit from shares is at $0.12, which is up from last year’s $0.10. The consensus target profit was $0.09 per share.
Quarter 2 target estimates are set at $203 million to $205 million. Adjusted earnings per share are also estimated to be at $0.12 per share.
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The company’s new product, Stride, was not included in this quarter’s results as the product hasn’t been completely launched yet. The product will offer chat and video-conferencing features as well as a superset of features from Hipchat, which Atlassian had acquired earlier in the year. The company, however, was very positive about the impact Stride is going to make in the market.
Atlassian shares closed the week’s trading on Friday at $50.17 per share. The company’s stocks are up by more than 65% this year.
Analysts have also given the company positive ratings. JMP Securities increase its target share price from $41.00 to $47.00 and gave the company an “outperform” rating. BTIG Research gave Atlassian a “neutral” rating. However, Jefferies Group LLC gave the company a “buy” rating and also increased the company’s target stock price to $53.00. BMO Capital Markets gave the company a “market perform” rating with an increased stock price target of $42.00. Robert W. Baird stuck to its “buy” rating of the company and also issued a stock price target of $43.00.
Nine analysts have given Atlassian a “buy” rating, while six have given the company a “hold” rating. Overall, the company was given a consensus rating of “buy” with a stock price target of $46.73.
So far this year, Atlassian stocks have grown more than 100%, vis-à-vis the S&P 500, which is up by 15% and the Dow Jones Industrial Average, which is up by 17.2%.
Analysts and investors are alike are happy with the company’s performance but say that Atlassian has plenty of room to grow even more.