Atlassian (TEAM) recently reported its first-quarter results that continued to surpass estimates. The company continues to expand its product offerings to cash in on the continuing demand for cloud-based enterprise collaboration tools.

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Atlassian’s Financials

For the first quarter, revenue grew 34% to $614 million, ahead of the market’s forecast of $585.64 million. Net loss was $400.1 million, compared with a net loss of $21.6 million a year ago. Adjusted EPS was $0.46, better than the market’s forecast of $0.40.

By segment, Subscription revenues grew 56.6% to $435.3 million and maintenance revenues grew 2.27% to $130.59 million. Other revenues fell 10.3% to $48.14 million.

For the second quarter, Atlassian expects revenues of $630-$645 million and an adjusted loss per share of $0.42-$0.39. The market was looking for revenues of $643.46 million and an EPS of $0.39 for the quarter. Analysts expect Atlassian to end the year with revenues of $2.6 billion and an EPS of $1.61.

Atlassian’s Expansion

Recently, Atlassian announced the expansion of its partnership with Snyk. The expansion will now allow Snyk to integrate itself with Atlassian’s Jira Software and Bitbucket, infusing developers’ workflows with a security-first mindset and protecting their code against problems like open source vulnerabilities that can arise during the development process.

To continue to support enterprise collaboration, Atlassian announced several new services. It recently launched Point A, an Atlassian program that leverages the PaaS strategy and helps create new products in collaboration with customers. It will help deliver cross-product capabilities, such as unified search and common user interfaces, and thus accelerates the process of new product development. Within Point A, Atlassian launched several new products such as Jira Work Management to help non-technical teams connect with their technical counterparts; product management tool Jira Product Discovery for agile teams to help product managers plan product build out better; Team Central to help connect teams; Compass to give software development teams a holistic view of the digital services across their organization, and a ticketing system Halp that can integrate with Slack and Microsoft Teams.

Atlassian continues to face an expanding opportunity globally. The recent pandemic has accelerated the shift to a cloud-based market, and Atlassian is benefiting strongly from it across its portfolio. Its offerings are helping it remain well positioned for the core Developer Market while it expands within the IT department with OpsGenie and within the broader enterprise collaboration market through Jira Service Management. During the recent call, Atlassian reported that more than half of its Jira Cloud users are now outside of IT. Analysts believe that Atlassian has a strong market opportunity ahead, as it has become one of the most often used vendors for Task/Project Management across enterprises.

Atlassian’s stock is trading at $445.43 with a market capitalization of $113.81 billion. It touched a 52-week high of $483.13 in October and a 52-week low of $176.42 in November last year.