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Atlassian Gears Up For Growth, Unfazed By COVID-19

May 05, 2020 7:46 AM ETAtlassian Corporation (TEAM)1 Comment
Sramana Mitra profile picture
Sramana Mitra


  • Atlassian likely to see some impact due to COVID-19, but determined to leverage its agile, resilient culture to make strategic bets that position it for long-term growth.
  • Atlassian's new offerings.
  • Focused on furthering its cloud transition, hiring, investing in R&D, acquiring customers, and strengthening its long-term market position through potential M&A.

Last week, leading enterprise collaboration software provider Atlassian (NASDAQ:TEAM) reported a strong third quarter that beat estimates. Even though the company is likely to see some impact due to the COVID-19 situation, it is determined to leverage its agile, resilient culture to make strategic bets that would position it for long-term growth.

Atlassian's Financials

For the third quarter, revenue grew 33% to $411.6 million, ahead of the market's forecast of $395.1 million. Net loss was $158.8 million, compared with net loss of $202.8 million a year ago. Adjusted EPS was $0.25, better than the market's forecast of $0.21.

By segment, Subscription revenues grew 47% to $244.2 million and maintenance revenues grew 21% to $119.6 million. License revenue declined 9% to $21 million and other revenues increased 29% to $26.8 million.

For the fourth quarter, Atlassian expects revenues to grow 31-32% to $400-415 million with an adjusted EPS of $0.17-0.22. It expects to end fiscal 2020 with revenues of $1.584-1.5999 billion and an EPS of $1.06-1.12.

Atlassian's New Offerings

During the quarter, Atlassian completed the full rollout of free cloud editions across its core products - Jira Software, Confluence and Jira Service Desk. The free editions represent Atlassian's commitment to make its products more accessible to more teams throughout the world.

At its Remote Summit early last month, Atlassian announced Cloud Enterprise, its most advanced cloud offering that sharpens its focus on enterprise. Cloud Enterprise addresses the needs of the largest enterprises across Jira Software, Jira Service Desk, and Confluence. Key features include managing collaboration across unlimited users, data residency, and centralized administration tools.

At the summit, Atlassian also announced new functions in Jira Align that leverage AI-powered predictive analytics. Align integrates technology from the $166 million acquisition of enterprise workstream management software AgileCraft. Align can now track work across both Jira

This article was written by

Sramana Mitra profile picture
Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual accelerator that aims to help one million entrepreneurs globally to reach $1 million in revenue and beyond. She is a Silicon Valley entrepreneur and strategy consultant, she writes the blog Sramana Mitra On Strategy, and is author of the Entrepreneur Journeys book series and Vision India 2020. From 2008 to 2010, Mitra was a columnist for Forbes. As an entrepreneur CEO, she ran three companies: DAIS, Intarka, and Uuma. Sramana has a master’s degree in electrical engineering and computer science from the Massachusetts Institute of Technology. Full bio can be found at http://www.sramanamitra.com/bio/

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