Latest news with #AtlassianCorporation
Yahoo
13-05-2025
- Business
- Yahoo
What Makes Atlassian Corporation Plc (TEAM) an Investment Bet?
Baron Funds, an investment management company, released its 'Baron Technology Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. Market trends are often driven by sentiment in addition to fundamental elements, and the first quarter of 2025 was a clear example of this. January saw a strong performance for the Fund, driven by investor excitement around long-term growth trends in AI. Optimism was fueled by expectations of the new Trump administration's policies to accelerate economic growth. However, by mid-February, fears of tariffs, a potential trade war, and geopolitical shifts reversed market gains, leading to significant volatility. In the first quarter, the fund fell 14.80% (Institutional Shares), underperforming an 11.64% decline for the MSCI ACWI Information Technology Index (the Benchmark) and a 4.27% decline for the S&P 500 index. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Baron Technology Fund highlighted stocks such as Atlassian Corporation (NASDAQ:TEAM). Atlassian Corporation (NASDAQ:TEAM) is a company that designs, develops, licenses, and maintains various software products. The one-month return of Atlassian Corporation (NASDAQ:TEAM) was 7.96%, and its shares gained 21.55% of their value over the last 52 weeks. On May 12, 2025, Atlassian Corporation (NASDAQ:TEAM) stock closed at $223.75 per share with a market capitalization of $58.9 billion. Baron Technology Fund stated the following regarding Atlassian Corporation (NASDAQ:TEAM) in its Q1 2025 investor letter: "We added to the Fund's position in Atlassian Corporation (NASDAQ:TEAM), a mission driven software company redefining how modern teams collaborate, build, and support software. Atlassian is best known for its developer tools – Jira, Confluence, and Jira Service Management – but we believe it is entering a new phase of platform growth driven by AI, deeper enterprise monetization, and a powerful cloud migration cycle. Despite a roughly $60 billion market cap and over 300,000 customers, the company's long-term opportunity remains underappreciated. Fewer than 600 customers today generate over $1 million in annual contract value, suggesting substantial whitespace across the installed base. As Atlassian moves upmarket and transforms into a platform powering the full software development lifecycle, we believe this can be a multi-year compounder. Our thesis is premised on the following drivers: A team of software developers working together in an agile environment. Atlassian Corporation (NASDAQ:TEAM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge fund portfolios held Atlassian Corporation (NASDAQ:TEAM) at the end of the fourth quarter compared to 44 in the third quarter. Atlassian Corporation (NASDAQ:TEAM) generated Q3 2025 revenue of $1.4 billion, representing 14% year-over-year increase. While we acknowledge the potential of Atlassian Corporation (NASDAQ:TEAM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. In another article, we covered Atlassian Corporation (NASDAQ:TEAM) and shared the list of top stocks in Ken Griffin's portfolio to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-05-2025
- Business
- Yahoo
Why Atlassian Corporation (TEAM) Went Down On Friday
We recently published a list of . In this article, we are going to take a look at where Atlassian Corporation (NASDAQ:TEAM) stands against other Friday's worst performers. Wall Street's major indices ended the trading week on a strong note, clocking in robust gains as investors cheered better-than-expected non-farm payrolls last month while digesting more corporate earnings results. The tech-heavy Nasdaq led the rally among all major indices, finishing up 1.51 percent. The S&P 500 clocked in a 1.47-percent gain, while the Dow Jones grew by 1.39 percent. Despite the broader market optimism, 10 companies managed to register declines amid dismal earnings performance in the first quarter of the year. In this article, let us explore Friday's 10 worst performers and the reasons behind their decline. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume. A group of executives in a board room discussing the latest software innovation. Atlassian Corporation (NASDAQ:TEAM) Atlassian Corp. dropped its share prices by 8.99 percent on Friday to finish at $208.48 apiece as investors sold off positions following its disappointing earnings performance during the past quarter of the year. In a statement, Atlassian Corporation (NASDAQ:TEAM) said that net loss in the first quarter of the year expanded by 288 percent to $123.8 million from the $31.9 million registered in the same period last year. Revenues, on the other hand, rose by 21 percent to $1.187 billion from $977.8 million in the same comparable period. Atlassian Corporation (NASDAQ:TEAM) referred to its performance as a 'solid start,' saying that it will continue to focus its investment and execution against its key strategic priorities of serving the enterprise, delivering AI innovation, among others. For the second quarter of the year, Atlassian Corporation (NASDAQ:TEAM) said it expects total revenues to settle anywhere between $1.23 billion and $1.24 billion, with cloud revenue expected to grow 25.5 percent year-on-year. For the full year 2025, the company targets to grow between 16.5 percent and 17 percent. Overall, TEAM ranks 7th on our list of Friday's worst performers. While we acknowledge the potential of TEAM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TEAM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
Atlassian Announces Third Quarter Fiscal Year 2025 Results
Revenue of $1,357 million, up 14% year-over-year Subscription revenue of $1,273 million, up 19% year-over-year GAAP operating margin of (1)% and non-GAAP operating margin of 26% Cash flow from operations of $653 million and free cash flow of $638 million TEAM Anywhere/SAN FRANCISCO, May 01, 2025--(BUSINESS WIRE)--Atlassian Corporation (NASDAQ: TEAM), a leading provider of team collaboration and productivity software, today announced financial results for its third quarter ended March 31, 2025. A shareholder letter was posted on Atlassian's Work Life blog at and in the Investor Relations section of Atlassian's website at Third Quarter Fiscal Year 2025 Earnings Results "I am filled with immense pride as I reflect on Team '25 and our customers' and partners' reactions to our relentless focus on innovation," said Mike Cannon-Brookes, Atlassian's CEO and co-Founder. "Our long-term investments in building a world-class Cloud platform have enabled us to advance the Atlassian System of Work and bring Rovo's powerful AI capabilities to the center. Our vision for the future of human-AI collaboration is resonating deeply with customers, and we are more excited than ever to execute on our mission of unleashing the potential of every team." "We delivered total revenue of $1.4 billion in the quarter, driven by Cloud revenue growth of 25% year-over-year," said Joe Binz, Atlassian's CFO. "We remain committed to balancing operational discipline with continued focused investment in key strategic areas like enterprise, AI, and the Atlassian System of Work to drive future growth." Third Quarter Fiscal Year 2025 Financial Highlights: On a GAAP basis, Atlassian reported: Revenue: Total revenue was $1,356.7 million for the third quarter of fiscal year 2025, up 14% from $1,189.1 million for the third quarter of fiscal year 2024. Operating Income (Loss) and Operating Margin: Operating loss was $12.5 million for the third quarter of fiscal year 2025, compared with operating income of $17.8 million for the third quarter of fiscal year 2024. Operating margin was (1%) for the third quarter of fiscal year 2025, compared with 1% for the third quarter of fiscal year 2024. Net Income (Loss) and Net Income (Loss) Per Diluted Share: Net loss was $70.8 million for the third quarter of fiscal year 2025, compared with net income of $12.8 million for the third quarter of fiscal year 2024. Net loss per diluted share was $0.27 for the third quarter of fiscal year 2025, compared with net income per diluted share of $0.05 for the third quarter of fiscal year 2024. Balance Sheet: Cash and cash equivalents plus marketable securities at the end of the third quarter of fiscal year 2025 totaled $3.0 billion. On a non-GAAP basis, Atlassian reported: Operating Income and Operating Margin: Operating income was $348.3 million for the third quarter of fiscal year 2025, compared with operating income of $316.5 million for the third quarter of fiscal year 2024. Operating margin was 26% for the third quarter of fiscal year 2025, compared with 27% for the third quarter of fiscal year 2024. Net Income and Net Income Per Diluted Share: Net income was $261.5 million for the third quarter of fiscal year 2025, compared with net income of $232.5 million for the third quarter of fiscal year 2024. Net income per diluted share was $0.97 for the third quarter of fiscal year 2025, compared with net income per diluted share of $0.89 for the third quarter of fiscal year 2024. Free Cash Flow: Cash flow from operations was $652.7 million and free cash flow was $638.3 million for the third quarter of fiscal year 2025. Free cash flow margin for the third quarter of fiscal year 2025 was 47%. A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below, under the heading "About Non-GAAP Financial Measures." Recent Business Highlights: Atlassian Team '25: Thousands of customers and partners traveled to Anaheim to witness the latest product announcements and innovations including: Rovo for All: Atlassian announced that its AI solution, Rovo, is now included in all premium and enterprise editions for Jira, Confluence, and Jira Service Management, with standard edition soon to follow. This move brings advanced AI-powered enterprise search, chat, and agents to the center of the Atlassian Platform. Teamwork Collection: Atlassian announced Teamwork Collection, a curated selection of apps - Jira, Confluence, and Loom - alongside Rovo agents powered by the Atlassian Cloud Platform - that helps technical and business teams break down silos, use AI more effectively, and reduce context switching. Strategy Collection: Atlassian announced Strategy Collection, an Enterprise Strategy and Planning solution that brings three apps - Focus, Talent, and Jira Align - together to provide leaders a clear view of the most important priorities and ensures their teams are driving towards the highest value outcomes. Customer Service Management: Atlassian announced its Customer Service Management app, a new AI-powered app designed to connect support, product, development, and operations teams to deliver high-velocity customer service. Expanded Cloud Offerings: Atlassian announced two new offerings: Government Cloud and Isolated Cloud. Atlassian achieved FedRAMP® authorization at the Moderate level for its Government Cloud to enable U.S. government agencies and their industry partners to take advantage of the capabilities of the Atlassian Cloud Platform. Atlassian also announced Isolated Cloud, an Atlassian-managed virtual private cloud option for organizations that need a dedicated cloud environment. Learn more about these announcements at Atlassian Williams Racing: Atlassian announced a long-term partnership to be the official title and technology partner of Williams Racing, a storied Formula 1 franchise. This partnership will bring Atlassian's AI-powered collaboration software to the track in front of customers and millions of fans, as it helps Williams Racing accelerate its digital transformation through the power of the Atlassian System of Work. Customers with >$10,000 in Cloud ARR: Atlassian ended its third quarter of fiscal year 2025 with 50,715 customers with greater than $10,000 in Cloud annualized recurring revenue (Cloud ARR), an increase of 14% year-over-year. Recognized on Fortune's List of 100 Best Companies to Work For® 2025: Atlassian was recognized, for the seventh consecutive year, as one of Fortune's 100 Best Companies to Work For®. This achievement reflects the commitment, dedication, and collaborative nature of all Atlassians who carry this remarkable culture. Board of Directors Update: Atlassian appointed Karen Dykstra to its Board of Directors. Karen is the former Chief Financial Officer at VMware, Inc., AOL Inc., and Automatic Data Processing, Inc., and currently sits on the board of directors at Gartner Inc. and Arm Holdings PLC. Karen brings more than 30 years of financial leadership and strong operational experience across many diverse industries, which will be invaluable in supporting Atlassian as it continues to expand its enterprise capabilities. Financial Targets: Atlassian is providing its financial targets as follows: Fourth Quarter Fiscal Year 2025: Total revenue is expected to be in the range of $1,349 million to $1,359 million. Cloud revenue growth year-over-year is expected to be approximately 23.0%. Data Center revenue growth year-over-year is expected to be approximately 16.5%. Marketplace and other revenue growth year-over-year is expected to be approximately flat. Gross margin is expected to be approximately 82.5% on a GAAP basis and approximately 84.5% on a non-GAAP basis. Operating margin is expected to be approximately (5.0%) on a GAAP basis and approximately 22.0% on a non-GAAP basis. For additional commentary regarding financial targets, please see Atlassian's third quarter fiscal year 2025 shareholder letter dated May 1, 2025. With respect to Atlassian's expectations under "Financial Targets" above, a reconciliation of GAAP to non-GAAP gross margin and operating margin has been provided in the financial statement tables included in this press release. Shareholder Letter and Webcast Details: A detailed shareholder letter is available on Atlassian's Work Life blog at and the Investor Relations section of Atlassian's website at Atlassian will host a webcast to answer questions today: When: Thursday, May 1, 2025 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Webcast: A live webcast of the call can be accessed from the Investor Relations section of Atlassian's website at Following the call, a replay will be available on the same website. Atlassian has used, and will continue to use, its Investor Relations website at as a means of making material information public and for complying with its disclosure obligations. About Atlassian Atlassian unleashes the potential of every team. A recognized leader in software development, work management, and enterprise service management software, Atlassian enables enterprises to connect their business and technology teams with an AI-powered system of work that unlocks productivity at scale. Atlassian's collaboration software powers over 80% of the Fortune 500 and 300,000+ customers worldwide - including NASA, Rivian, Deutsche Bank, United Airlines, and Bosch - who rely on our solutions to drive work forward. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, which statements involve substantial risks and uncertainties. In some cases, you can identify these statements by forward-looking words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "should," "estimate," "further," or "continue," and similar expressions or variations, but these words are not the exclusive means for identifying such statements. All statements other than statements of historical fact could be deemed forward looking, including but not limited to risks and uncertainties related to statements about our platform, offerings and planned offerings, investments, System of Work, AI solutions, customers, strategic partnerships, leadership transitions, strategic priorities, anticipated growth, outlook and results, and our financial targets such as total revenue, Cloud, Data Center, and Marketplace and other revenue, and GAAP and non-GAAP financial measures including gross margin and operating margin. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. The achievement or success of the matters covered by such forward-looking statements involves known and unknown risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management's beliefs and assumptions only as of the date such statements are made. Further information on these and other factors that could affect our financial results is included in filings we make with the Securities and Exchange Commission (the "SEC") from time to time, including the section titled "Risk Factors" in our most recently filed Forms 10-K and 10-Q. These documents are available on the SEC Filings section of the Investor Relations section of our website at About Non-GAAP Financial Measures In addition to the measures presented in our condensed consolidated financial statements, we regularly review other measures that are not presented in accordance with U.S. generally accepted accounting principles ("GAAP"), defined as non-GAAP financial measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts and make strategic decisions. The key measures we consider are non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share and free cash flow (collectively, the "Non-GAAP Financial Measures"). These Non-GAAP Financial Measures, which may be different from similarly titled non-GAAP measures used by other companies, provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be unrelated to our core operations. Management believes that tracking and presenting these Non-GAAP Financial Measures provides management, our board of directors, investors and the analyst community with the ability to better evaluate matters such as: our ongoing core operations, including comparisons between periods and against other companies in our industry; our ability to generate cash to service our debt and fund our operations; and the underlying business trends that are affecting our performance. Our Non-GAAP Financial Measures include: Non-GAAP gross profit and non-GAAP gross margin. Excludes expenses related to stock-based compensation and amortization of acquired intangible assets. Non-GAAP operating income and non-GAAP operating margin. Excludes expenses related to stock-based compensation and amortization of acquired intangible assets. Non-GAAP net income and non-GAAP net income per diluted share. Excludes expenses related to stock-based compensation, amortization of acquired intangible assets, gain on a non-cash sale of a controlling interest of a subsidiary and the related income tax adjustments. Free cash flow. Free cash flow is defined as net cash provided by operating activities less capital expenditures, which consists of purchases of property and equipment. We understand that although these Non-GAAP Financial Measures are frequently used by investors and the analyst community in their evaluation of our financial performance, these measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. We compensate for such limitations by reconciling these Non-GAAP Financial Measures to the most comparable GAAP financial measures. We encourage you to review the tables in this press release titled "Reconciliation of GAAP to Non-GAAP Results" and "Reconciliation of GAAP to Non-GAAP Financial Targets" that present such reconciliations. Customers with >$10,000 in Cloud ARR We define the number of customers with Cloud ARR greater than $10,000 at the end of any particular period as the number of organizations with unique domains with an active Cloud subscription for two or more seats and greater than $10,000 in Cloud ARR. We define Cloud ARR as the annualized recurring revenue run-rate of Cloud subscription agreements at a point in time. We calculate Cloud ARR by taking the Cloud monthly recurring revenue ("Cloud MRR") run-rate and multiplying it by 12. Cloud MRR for each month is calculated by aggregating monthly recurring revenue from committed contractual amounts at a point in time. Cloud ARR and Cloud MRR should be viewed independently of revenue and do not represent our revenue under GAAP, as they are operational metrics that can be affected by contract start and end dates and renewal rates. Atlassian Corporation Condensed Consolidated Statements of Operations (U.S. $ and shares in thousands, except per share data) (unaudited) Three Months Ended March 31, Nine Months Ended March 31, 2025 2024 2025 2024 Revenues: Subscription $ 1,272,876 $ 1,071,355 $ 3,618,072 $ 2,855,518 Other 83,840 117,773 212,888 371,495 Total revenues 1,356,716 1,189,128 3,830,960 3,227,013 Cost of revenues (1) (2) 219,675 213,425 660,426 585,990 Gross profit 1,137,041 975,703 3,170,534 2,641,023 Operating expenses: Research and development (1) (2) 685,320 576,490 1,968,634 1,595,007 Marketing and sales (1) (2) 295,832 223,814 820,119 637,894 General and administrative (1) 168,345 157,595 483,694 458,249 Total operating expenses 1,149,497 957,899 3,272,447 2,691,150 Operating income (loss) (12,456 ) 17,804 (101,913 ) (50,127 ) Other expense, net (14,861 ) (10,990 ) (42,292 ) (23,964 ) Interest income 27,767 21,414 81,917 69,233 Interest expense (7,804 ) (8,453 ) (22,413 ) (26,430 ) Income (loss) before income taxes (7,354 ) 19,775 (84,701 ) (31,288 ) Provision for income taxes (63,453 ) (7,023 ) (148,083 ) (72,312 ) Net income (loss) $ (70,807 ) $ 12,752 $ (232,784 ) $ (103,600 ) Net income (loss) per share attributable to Class A and Class B common stockholders: Basic $ (0.27 ) $ 0.05 $ (0.89 ) $ (0.40 ) Diluted $ (0.27 ) $ 0.05 $ (0.89 ) $ (0.40 ) Weighted-average shares used in computing net income (loss) per share attributable to Class A and Class B common stockholders: Basic 262,671 259,717 261,423 258,738 Diluted 262,671 261,778 261,423 258,738 (1) Amounts include stock-based compensation as follows: Three Months Ended March 31, Nine Months Ended March 31, 2025 2024 2025 2024 Cost of revenues $ 20,980 $ 17,840 $ 62,225 $ 53,874 Research and development 240,847 190,322 694,570 528,587 Marketing and sales 43,071 33,383 122,323 103,832 General and administrative 41,944 40,974 132,600 121,652 (2) Amounts include amortization of acquired intangible assets, as follows: Three Months Ended March 31, Nine Months Ended March 31, 2025 2024 2025 2024 Cost of revenues $ 10,131 $ 12,454 $ 30,377 $ 25,282 Research and development 94 94 281 281 Marketing and sales 3,672 3,646 11,017 8,723 Atlassian Corporation Condensed Consolidated Balance Sheets (U.S. $ in thousands) (unaudited) March 31, 2025 June 30, 2024 Assets Current assets: Cash and cash equivalents $ 2,660,859 $ 2,176,930 Marketable securities 313,592 161,973 Accounts receivable, net 642,036 628,049 Prepaid expenses and other current assets 158,728 109,312 Total current assets 3,775,215 3,076,264 Non-current assets: Property and equipment, net 93,003 86,315 Operating lease right-of-use assets 164,322 172,468 Strategic investments 217,304 223,221 Intangible assets, net 258,682 299,057 Goodwill 1,292,942 1,288,756 Deferred tax assets 5,515 3,934 Other non-current assets 76,733 62,118 Total assets $ 5,883,716 $ 5,212,133 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 192,915 $ 177,545 Accrued expenses and other current liabilities 661,036 577,359 Deferred revenue, current portion 2,092,287 1,806,269 Operating lease liabilities, current portion 44,645 48,953 Total current liabilities 2,990,883 2,610,126 Non-current liabilities: Deferred revenue, net of current portion 275,916 308,467 Operating lease liabilities, net of current portion 198,723 214,474 Long-term debt 987,232 985,911 Deferred tax liabilities 20,433 20,387 Other non-current liabilities 41,607 39,917 Total liabilities 4,514,794 4,179,282 Stockholders' equity Common stock 3 3 Additional paid-in capital 5,223,786 4,212,064 Accumulated other comprehensive income (loss) (26,355 ) 25,300 Accumulated deficit (3,828,512 ) (3,204,516 ) Total stockholders' equity 1,368,922 1,032,851 Total liabilities and stockholders' equity $ 5,883,716 $ 5,212,133 Atlassian Corporation Condensed Consolidated Statements of Cash Flows (U.S. $ in thousands) (unaudited) Three Months Ended March 31, Nine Months Ended March 31, 2025 2024 2025 2024 Cash flows from operating activities: Net income (loss) $ (70,807 ) $ 12,752 $ (232,784 ) $ (103,600 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 23,178 23,464 69,154 55,560 Stock-based compensation 346,842 282,519 1,011,718 807,945 Deferred income taxes 1,746 3,207 (1,183 ) (98 ) Amortization of interest rate swap contracts (6,337 ) — (20,357 ) — Net loss on strategic investments 6,643 4,060 24,546 11,750 Net foreign currency loss (gain) (5,169 ) (2,276 ) (7,750 ) 142 Other (264 ) 412 (241 ) (680 ) Changes in operating assets and liabilities, net of business combinations: Accounts receivable, net 53,770 (119,819 ) (13,955 ) (166,494 ) Prepaid expenses and other assets (294 ) (35,986 ) (65,967 ) (59,528 ) Accounts payable (93 ) 28,227 14,626 28,850 Accrued expenses and other liabilities 131,508 67,149 53,804 54,958 Deferred revenue 171,958 301,681 253,467 393,135 Net cash provided by operating activities 652,681 565,390 1,085,078 1,021,940 Cash flows from investing activities: Business combinations, net of cash acquired (994 ) — (5,969 ) (844,727 ) Purchases of property and equipment (14,366 ) (10,520 ) (29,853 ) (19,522 ) Purchases of strategic investments (1,100 ) (4,250 ) (26,650 ) (8,250 ) Purchases of marketable securities (116,716 ) (74,544 ) (277,039 ) (213,690 ) Proceeds from maturities of marketable securities 53,584 63,000 125,212 79,150 Proceeds from sales of marketable securities and strategic investments 2,622 — 6,935 61,392 Net cash used in investing activities (76,970 ) (26,314 ) (207,364 ) (945,647 ) Cash flows from financing activities: Principal payments of term loan facility — (12,500 ) — (25,000 ) Repurchases of Class A Common Stock (134,305 ) (35,377 ) (387,156 ) (203,029 ) Other — — (3,143 ) — Net cash used in financing activities (134,305 ) (47,877 ) (390,299 ) (228,029 ) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash 1,783 (2,769 ) (3,709 ) (1,986 ) Net increase (decrease) in cash, cash equivalents, and restricted cash 443,189 488,430 483,706 (153,722 ) Cash, cash equivalents, and restricted cash at beginning of period 2,218,639 1,461,763 2,178,122 2,103,915 Cash, cash equivalents, and restricted cash at end of period $ 2,661,828 $ 1,950,193 $ 2,661,828 $ 1,950,193 Atlassian Corporation Revenues by Deployment Options (U.S. $ in thousands) (unaudited) Three Months Ended March 31, Nine Months Ended March 31, 2025 2024 2025 2024 Cloud $ 880,429 $ 703,036 $ 2,519,697 $ 1,960,893 Data Center 388,516 364,134 1,086,391 881,835 Server — 29,720 — 177,645 Marketplace and other (1) 87,771 92,238 224,872 206,640 Total revenues $ 1,356,716 $ 1,189,128 $ 3,830,960 $ 3,227,013 (1) Included in Marketplace and other is premier support revenue. Premier support consists of subscription-based arrangements for a higher level of support across different deployment options. Premier support is recognized as Subscription revenue on the Condensed Consolidated Statements of Operations as the services are delivered over the term of the arrangement. Atlassian Corporation Reconciliation of GAAP to Non-GAAP Results (U.S. $ and shares in thousands, except percentage and per share data) (unaudited) Three Months Ended March 31, Nine Months Ended March 31, 2025 2024 2025 2024 Gross profit GAAP gross profit $ 1,137,041 $ 975,703 $ 3,170,534 $ 2,641,023 Plus: Stock-based compensation 20,980 17,840 62,225 53,874 Plus: Amortization of acquired intangible assets 10,131 12,454 30,377 25,282 Non-GAAP gross profit $ 1,168,152 $ 1,005,997 $ 3,263,136 $ 2,720,179 Gross margin GAAP gross margin 84 % 82 % 83 % 82 % Plus: Stock-based compensation 2 2 2 1 Plus: Amortization of acquired intangible assets — 1 — 1 Non-GAAP gross margin 86 % 85 % 85 % 84 % Operating income GAAP operating income (loss) $ (12,456 ) $ 17,804 $ (101,913 ) $ (50,127 ) Plus: Stock-based compensation 346,842 282,519 1,011,718 807,945 Plus: Amortization of acquired intangible assets 13,897 16,194 41,675 34,286 Non-GAAP operating income $ 348,283 $ 316,517 $ 951,480 $ 792,104 Operating margin GAAP operating margin (1 %) 1 % (3 %) (2 %) Plus: Stock-based compensation 26 25 27 26 Plus: Amortization of acquired intangible assets 1 1 1 1 Non-GAAP operating margin 26 % 27 % 25 % 25 % Net income GAAP net income (loss) $ (70,807 ) $ 12,752 $ (232,784 ) $ (103,600 ) Plus: Stock-based compensation 346,842 282,519 1,011,718 807,945 Plus: Amortization of acquired intangible assets 13,897 16,194 41,675 34,286 Less: Gain on a non-cash sale of a controlling interest of a subsidiary — — — (1,378 ) Less: Income tax adjustments (1) (28,427 ) (78,969 ) (103,777 ) (146,271 ) Non-GAAP net income $ 261,505 $ 232,496 $ 716,832 $ 590,982 Net income per share GAAP net income (loss) per share - diluted $ (0.27 ) $ 0.05 $ (0.89 ) $ (0.40 ) Plus: Stock-based compensation 1.29 1.08 3.82 3.11 Plus: Amortization of acquired intangible assets 0.05 0.06 0.16 0.13 Less: Gain on a non-cash sale of a controlling interest of a subsidiary — — — (0.01 ) Less: Income tax adjustments (1) (0.10 ) (0.30 ) (0.39 ) (0.56 ) Non-GAAP net income per share - diluted $ 0.97 $ 0.89 $ 2.70 $ 2.27 Weighted-average diluted shares outstanding Weighted-average shares used in computing diluted GAAP net income (loss) per share 262,671 261,778 261,423 258,738 Plus: Dilution from dilutive securities (2) 5,959 — 3,601 1,273 Weighted-average shares used in computing diluted non-GAAP net income per share 268,630 261,778 265,024 260,011 Free cash flow GAAP net cash provided by operating activities $ 652,681 $ 565,390 $ 1,085,078 $ 1,021,940 Less: Capital expenditures (14,366 ) (10,520 ) (29,853 ) (19,522 ) Free cash flow $ 638,315 $ 554,870 $ 1,055,225 $ 1,002,418 (1) We utilize a fixed long-term projected non-GAAP tax rate in our computation of the non-GAAP income tax adjustments in order to provide better consistency across interim reporting periods. In projecting this long-term non-GAAP tax rate, we utilized a three-year financial projection that excludes the direct and indirect income tax effects of the other non-GAAP adjustments reflected above. Additionally, we considered our current operating structure and other factors such as our existing tax positions in various jurisdictions and key legislation in major jurisdictions where we operate. For fiscal years 2025 and 2024, we determined the projected non-GAAP tax rate to be 26% and 27%, respectively. This fixed long-term projected non-GAAP tax rate eliminates the effects of non-recurring and period specific items which can vary in size and frequency. Examples of the non-recurring and period specific items include but are not limited to changes in the valuation allowance related to deferred tax assets, effects resulting from acquisitions, and unusual or infrequently occurring items. We will periodically re-evaluate this long-term rate, as necessary, for significant events. The rate could be subject to change for a variety of reasons, for example, significant changes in the geographic earnings mix or fundamental tax law changes in major jurisdictions where we operate. (2) The effects of these dilutive securities were not included in the GAAP calculation of diluted net loss per share for the three and nine months ended March 31, 2025 and nine months ended March 31, 2024, because the effect would have been anti-dilutive. Atlassian Corporation Reconciliation of GAAP to Non-GAAP Financial Targets Three Months Ending June 30, 2025 GAAP gross margin 82.5% Plus: Stock-based compensation 1.5 Plus: Amortization of acquired intangible assets 0.5 Non-GAAP gross margin 84.5% GAAP operating margin (5.0%) Plus: Stock-based compensation 26.0 Plus: Amortization of acquired intangible assets 1.0 Non-GAAP operating margin 22.0% View source version on Contacts Investor Relations Contact Martin LamIR@ Media Contact Marie-Claire Maplepress@
Yahoo
13-04-2025
- Business
- Yahoo
Atlassian Corporation (TEAM): Among the Top Stocks in Ken Griffin's Portfolio to Buy According to Analysts
We recently published a list of . In this article, we are going to take a look at where Atlassian Corporation (NASDAQ:TEAM) stands against other top stocks in Ken Griffin's portfolio to buy according to analysts. Ken Griffin is one billionaire investor wary of the negative impact of US President Donald Trump's combative approach to trade policy. Aggressive trade tariffs in the push to try and settle trade imbalances between the US and other nations have sent shockwaves in the equity markets. Likewise, Griffin believes the damage has already been done, given that the broader equity market has already pulled back significantly since Trump assumed office on January 20, 2025. 'From my vantage point, the bombastic rhetoric, the damage has already been done,' Griffin said Tuesday at the UBS Financial Services Conference in Key Biscayne, Florida. 'It's a huge mistake to resort to this form of rhetoric when you're trying to drive a bargain because … it tears into the minds of CEOs, policymakers that we can't depend upon America, as our trading partner.' The billionaire hedge fund manager's remarks followed Trump's signing of an order imposing 25% import duties on steel and aluminum. According to Ken Griffin, Trump's trade policies have the potential to affect long-term investments for multinational companies. Companies are increasingly slowing down their investments, especially abroad, worried about the long-term impact of trade tariffs. READ ALSO: Top 10 Growth Stocks in David Tepper's Portfolio and Billionaire Ken Fisher's Top 13 Growth Stock Picks. 'It makes it difficult for multinationals, in particular, to think about how to plan for the next five, 10, 15, 20 years, particularly when it comes to long lead time capital investments that could be adversely impacted by a degradation of the current terms of engagement as amongst the leading Western countries when it comes to terms and trade,' he said. The remarks come on the Fed opting to go slow on interest rate cuts for the second straight meeting after conducting three consecutive rate reductions beginning September 2024. The central bank opted to maintain the benchmark rate at 4.5%, wary of inflation ticking higher amid the ongoing trade war between the US and other countries. According to the US central bank, GDP growth will slow in 2025, and core inflation will be higher. This partially reflects the anticipated effects of the retaliatory actions and newly imposed U.S. tariffs. The US central bank is going slow on interest rate cuts, and the warning of a potential economic growth slowdown has rattled the equity markets. After years of blockbuster gains, the S&P 500 has pulled back significantly from record highs. Investors remain wary of the uncertainties triggered by the ongoing trade war and its potential impact, especially on economic growth. It remains to be seen if Citadel Investment Group will continue to average the 19% gain it has accrued annually over the years amid the choppy markets. Amid the concerns, billionaire investor Ken Griffin remains bullish on some equity plays he believes are well-positioned to benefit amid the current investment environment. While Griffin's investment portfolio in Citadel Investment Group boasts significant exposure to tech stocks, its $577.87 billion portfolio value also boasts significant stakes in the services healthcare and basic materials sector. The diversification play is one of Griffin 's investment strategies focusing on identifying and investing in equities expected to provide strong performance relative to the benchmark index. As co-chief investment officer and executive chairman, Griffin plays an active role in the hedge fund's investment strategy. We combed Citadel Investment Group's SEC Q4 2024 13F filings to identify the top 10 stocks in Ken Griffin's portfolio to buy, according to analysts. From the resultant data, we settled on the top 10 picks trading at significant discounts but with significant upside potential (more than 40%), according to Wall Street Analysts (as of April 11). Finally, we ranked the stocks in ascending order based on their upside potential while also detailing hedge fund sentiments regarding the stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A group of executives in a board room discussing the latest software Corporation (NASDAQ:TEAM) is a technology company that develops and provides collaboration and tools for software development and IT teams. The company offers Jira, a project management system that connects technical and business teams. It remains one of the top stocks to buy according to analysts, on unlocking new growth opportunities due to the artificial intelligence spectacle. Atlassian Corporation (NASDAQ:TEAM) delivered impressive second-quarter fiscal 2025 results as revenues totaled $1.286 billion, above 1.241 billion projected. The 21% year-over-year revenue increase came as Atlassian recorded a 15% increase in subscription customers spending at least $10,000 annually on its solutions. Additionally, it had a record number of deals worth more than $1 million. Buoyed by the wave of deals and customer growth, Atlassian expects its full-year revenue to increase by between 18.5% and 19%, up from an initial guidance of between 16.5% and 17%. Atlassian Corporation (NASDAQ:TEAM) is in a phase of robust growth owing to advancements in cloud scalability, strategic partnerships and customer growth. Additionally, it has expanded its strategic collaboration with Amazon Web Services, which is expected to unlock significant opportunities for edge cloud-enabled services, including generative artificial intelligence. Overall, TEAM ranks 6th on our list of top stocks in Ken Griffin's portfolio to buy according to analysts. While we acknowledge the potential of TEAM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TEAM but that trades at less than 5 times its earnings check out our report about the READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
05-04-2025
- Business
- Yahoo
Is Atlassian Corp. (TEAM) One of the Best Enterprise Software Stocks to Buy Now?
We recently published a list of . In this article, we are going to take a look at where Atlassian Corporation (NASDAQ:TEAM) stands against other best enterprise software stocks to buy now. In 2024, the global enterprise market size was estimated at $263.79 billion, according to Grand View Research. It's expected to now grow at a CAGR of 12.1% from 2025 to 2030, due to the increasing demand for automated and integrated solutions. Enterprise software becomes more desirable as organizations seek reduced reliance on HR to eliminate manual errors and automate routine tasks. Therefore, ERP (enterprise resource planning), CRM (customer relationship management), and data analytics software are becoming increasingly popular. Enterprise software is actively transforming with the integration of AI technologies, which changes how it's designed, deployed, and utilized. According to Endava, GenAI is driving this transformation by incorporating creative and analytical capabilities into enterprise applications. This enables software to undergo intelligent tasks like generating reports, creating personalized training materials, and writing codes. AI not only automates manual jobs but also allows hyper-personalization of customer-facing enterprise software. This allows platforms like CRM and e-commerce to deliver targeted content and recommendations, which leads to higher customer satisfaction and improved sales. This is fueled by adaptive AI-enhanced enterprise software that learns from vast datasets to provide real-time and individualized interactions. AI-driven automation is also becoming more popular in core business processes. ERP and workflow management systems are automating complex tasks and reducing manual intervention to improve overall efficiency. Enterprises are streamlining operations and making data-driven solutions through the integration of now-standard features like process mining, intelligent document processing, and predictive analytics. Agentic AI is further pushing enterprise software towards greater autonomy. These are AI systems that act like human agents and autonomously perceive, reason, and analyze data to achieve certain goals. As enterprise software continues to integrate advanced AI capabilities in its regular applications, the technology becomes more proactive and intelligent. We sifted through ETFs and financial media reports to compile a list of the top enterprise software stocks. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database which tracks the moves of over 900 elite money managers. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A group of executives in a board room discussing the latest software innovation. Number of Hedge Fund Holders: 75 Atlassian Corporation (NASDAQ:TEAM) designs, develops, and licenses various software products worldwide. Its product portfolio includes Jira, which includes a project management system. It offers Confluence, which is a connected workspace. It also has Loom, which is a video communication tool; and Trello, which captures and adds structure to fluid and fast-forming work. On March 20, Stephens initiated coverage of the company with an Equal Weight rating and a $255 price target. This was due to the company's broad TAM and database for team organization which is essential for AI optimization. The company's enterprise software segment is focused on its cloud-based platform and AI-driven tools. In FQ2 2025, the company made over $5 billion in annual run-rate revenue while the subscription revenue grew by 30% year-over-year. Atlassian Corp. (NASDAQ:TEAM) is serving enterprise customers through AI innovation. Over 1 million monthly active users utilize the Atlassian Intelligence features. This led to a 25x year-over-year increase in AI interactions. The company's AI capabilities fuel the adoption of premium and enterprise editions due to improved automation and analytics. In FQ2, the sales of higher-value SKUs were up 40%. It secured a record number of deals in the quarter which exceeded $1 million in annual contract value. Hardman Johnston Global Equity Strategy stated the following regarding Atlassian Corporation's (NASDAQ:TEAM) performance in its Q4 2024 investor letter: 'The top individual contributors to relative performance during the quarter were Atlassian Corporation (NASDAQ:TEAM), Standard Chartered, and Howmet Aerospace. Shares of Atlassian recovered sharply in the fourth quarter, driven by strong outperformance in Cloud and Data Center revenue growth and operating margins exceeding guidance by 360 bps. Paid seat expansion and cloud migrations led the earnings beat at the collaborative software maker, as management indicated that the macroeconomic environment has remained stable sequentially. Atlassian demonstrated a strong pace of innovation in the quarter, rolling out three new Premium versions of existing products, including Guard, Product Discovery, and Compass, plus two new out-of-the-box AI agents in Autodev and Autoreview to enhance engineering workflow efficiency. Additionally, Atlassian appointed its new CRO, Brian Duffy, whose background in the cloud division at SAP serves as a potential catalyst to scaling Atlassian's enterprise go-to-market sales approach.' Overall, TEAM ranks 7th on our list of best enterprise software stocks to buy now. While we acknowledge the growth potential of TEAM, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TEAM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
