Photo Credit: mohamed Hassan from Pixabay

Enterprise collaboration solutions provider Atlassian (Nasdaq: TEAM) continues to deliver strong growth over the quarters. It recently announced a series of acquisitions that are helping it drive growth inorganically.

Atlassian’s Financials

Revenues for the quarter grew 21% to $1.43 billion, ahead of the market’s forecast by 2.3%. Adjusted EPS of $1.04 was also ahead of the market’s forecast of $0.83.

By segment, Subscription revenues grew 22% to $1.37 billion compared with the analyst estimates of $1.33 billion. Other revenues fell 19% to $58.1 million due to the ongoing phase-out of Data Center and Server-related sales.

For the second quarter, Atlassian expects revenues of $1.535-$1.543 billion compared with the market’s estimates of $1.51 billion.

Atlassian’s Acquisitions

As part of its AI-focus, Atlassian announced the acquisition of New York-based The Browser Co. for an estimated $610 million. Founded in 2019, The Browser Co. is known for its Dia and Arc browsers. Arc was launched in 2022 and is a customizable browser that comes with a built-in whiteboard and the ability to share groups of tabs. The Dia browser, is another AI-focused browser, that allows people to chat with an AI assistant about multiple browser tabs at once. Together, Atlassian wants to integrate the browsers with its expertise on how workers operate to create a solution that is optimized for the SaaS applications and helps employees “connect the dots between apps, tabs and tasks”. Prior to the acquisition, The Browser Co. was privately held with investors including Atlassian Ventures, and Salesforce Ventures. It did not share its detailed financials. Reports suggest that both Perplexity and OpenAI were in talks with The Browser Co. about a possible acquisition as well.

Atlassian also announced the acquisition of DX, a leader in engineering intelligence, for $1 billion. Salt Lake City-based DX came out of stealth mode in 2022. Founders Abi Noda and Greyson Junggren wanted to create a company to provide engineering teams with insights that they were not getting from metrics being published through GitHub. They wanted to measure developer productivity by combining both qualitative and quantitative data. DX’s solution collects several data points and helps power insights into developer productivity and experience. Its customers include Pinterest, GitHub, BNY and Xero to name a few.

Post the merger, Atlassian and DX will be able to provide customers with visibility into the bottlenecks faced by developers, and the tools needed to address those bottlenecks. Together, they will be able to provide their customers with information on AI adoption and impact, a 360° visibility into developer experience, and real-time insights into developer productivity and system health. Prior to the acquisition, DX was privately held and did not disclose funding or financial details. Its investors included Preface Ventures, and it is estimated the company had raised only $5 million in funding so far.

Meanwhile, Atlassian’s stock is trading at $153.88 with a market capitalization of $41.7 billion. It has fallen from the year high of $326 it had climbed to in February last year. The stock has recovered from the 52-week low of $139.70 that it was trading at in November last year.

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