Photo Credit: mohamed Hassan from Pixabay
 

Enterprise collaboration solutions provider Atlassian (Nasdaq: TEAM) recently announced its first quarter results that surpassed market expectations. The company recently expanded its communication capabilities with the $975 million acquisition of Loom.
 

Atlassian’s Financials

For the first quarter, revenues grew 21% to $977.8 million, soaring ahead of the market’s forecast of $959 million. Adjusted EPS of $0.65 was also ahead of the market’s forecast of $0.54.

By segment, Subscription revenues grew 31% to $852 million and Maintenance revenues fell 30% to $78.6 million. Other revenues grew 10% to $47.2 million.

For the second quarter, Atlassian expects revenues of $1.010-$1.030 billion, in line with the Street’s estimate of $1.01 billion.
 

Atlassian’s $975M Loom Acquisition

Recently, Atlassian announced its acquisition of San Francisco based-Loom for an estimated $975 million. Founded in September 2016 by Joe Thomas, Shahed Khan, and Vinay Hiremath, Loom is a work communication tool that allows users to create videos that can be shared with a link without the need to switch applications or upload content.

The acquisition will allow customers to virtually log issues in Jira, use videos to connect with employees at scale, send tailored video updates to clients, and create personalized welcome videos for new employees. The integration of both Atlassian and Loom’s AI ventures provides customers with the ability to seamlessly transition between video, transcripts, summaries, documents, and the workflows derived from them.

Prior to the acquisition, Loom had raised $200 million in funding from Sequoia, Andreessen Horowitz, and Kleiner Perkins. Its most recent round was held in May 2021 where it raised $130 million.

Atlassian’s stock is trading at $186.1 with a market capitalization of $48 billion. It touched a 52-week high of $215.77 in September and a 52-week low of $113.86 in November last year.

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