Atlassian (TEAM)

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Stocks This Month: Buy V.F. Corporation And Atlassian
Forbesยท 2025-02-16 17:00
Group 1: Market Overview - The S&P 500 is targeting the 6200-6300 area, while the NASDAQ Composite is expected to rally to 20500, indicating a positive market outlook [1][2] - The correction in the market has primarily affected large-cap technology stocks, which have influenced the indices and caused erratic trading since December [2] Group 2: V.F. Corporation - V.F. Corporation specializes in the design, procurement, marketing, and distribution of branded lifestyle apparel, footwear, and accessories [3] - The stock has shown a reversal from a downtrend, with relative strength increasing for over six months, indicating bullish momentum [3] - Historical data suggests that the stock has risen 84% of the time from January 27th to April 5th over the last 44 years, with a potential price target of $40-$45 by year-end [3] Group 3: Atlassian Corporation - Atlassian Corporation designs and maintains various software products globally, and its stock is currently in an uptrend [4] - The stock has formed a base since late 2022, with relative price breaking downtrend lines, suggesting it is still a good buying opportunity [4] - The monthly cycle indicates potential price swings but forecasts a higher close by year-end, with a target range of 360-400 by June [5]
Atlassian Corporation PLC (TEAM) Hit a 52 Week High, Can the Run Continue?
ZACKSยท 2025-02-11 15:16
Company Performance - Atlassian's shares have increased by 36.7% over the past month, reaching a new 52-week high of $326 [1] - The stock has gained 32.7% since the beginning of the year, outperforming the Zacks Computer and Technology sector's 2.2% and the Zacks Internet - Software industry's 18.4% [1] Earnings and Revenue Expectations - Atlassian has consistently exceeded earnings estimates, reporting an EPS of $0.96 against a consensus estimate of $0.73 in its last earnings report [2] - For the current fiscal year, Atlassian is projected to achieve earnings of $3.45 per share on revenues of $5.17 billion, reflecting a 17.75% increase in EPS and an 18.59% increase in revenues [3] - The next fiscal year is expected to see earnings of $4.17 per share on $6.16 billion in revenues, indicating year-over-year changes of 20.99% and 19.12%, respectively [3] Valuation Metrics - Atlassian's current trading metrics show a P/E ratio of 93.7X for the current fiscal year EPS estimates, significantly higher than the peer industry average of 31X [7] - The stock trades at a trailing cash flow multiple of 5X compared to the peer group's average of 27.2X, and has a PEG ratio of 4.68 [7] - The company has a Value Score of F, while its Growth and Momentum Scores are both A, resulting in a VGM Score of B [6] Zacks Rank and Investment Potential - Atlassian holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates, indicating potential for further stock price appreciation [8] - The recommendation for investors is to consider stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, which Atlassian meets [8] Industry Context - The Internet - Software industry is performing well, ranking in the top 30% of all industries, providing favorable conditions for Atlassian and its peers [11]
Don't Overlook Atlassian (TEAM) International Revenue Trends While Assessing the Stock
ZACKSยท 2025-02-10 15:21
Core Insights - The international operations of Atlassian (TEAM) are crucial for assessing its financial resilience and growth prospects, especially given its expansive global footprint [1][2] Group 1: International Revenue Performance - Atlassian's total revenue for the quarter reached $1.29 billion, reflecting a 21.4% increase year-over-year [4] - EMEA contributed $525.48 million, accounting for 40.85% of total revenue, surpassing the consensus estimate of $494.23 million by 6.32% [5] - Asia Pacific generated $141.82 million, representing 11.02% of total revenue, exceeding expectations by 4.33% [6] Group 2: Future Revenue Predictions - Analysts project Atlassian's revenue for the ongoing fiscal quarter to be $1.35 billion, a 13.3% increase from the previous year, with EMEA and Asia Pacific expected to contribute $540.22 million and $146.8 million, respectively [7] - For the full year, total revenue is anticipated to reach $5.17 billion, marking an 18.6% increase, with EMEA and Asia Pacific projected to contribute $2.08 billion and $573.93 million, respectively [8] Group 3: Market Dynamics and Stock Performance - The reliance on global markets presents both opportunities and challenges for Atlassian, making the analysis of international revenue trends essential for forecasting future performance [9] - Over the past four weeks, Atlassian's stock has increased by 29.7%, significantly outperforming the S&P 500's 2.1% rise, and has seen a 30.9% increase over the last three months compared to the S&P 500's 1.2% increase [13]
Atlassian: Its Team Is Creating A Set Of New Growth Tailwinds
Seeking Alphaยท 2025-02-06 21:42
Group 1 - Bert Hochfeld has a strong background in economics and business, with degrees from the University of Pennsylvania and Harvard [1] - Hochfeld has extensive experience in the tech industry, having worked for notable companies such as IBM, Raytheon Data Systems, and BMC Software [1] - He founded Hochfeld Independent Research Group in 2001, providing research services to major institutions and hedge funds [1] - The Hepplewhite Fund, which he operated, was rated as the best performing small-cap fund for the five years ending in 2011 by Hedge Fund Research [1] - Hochfeld has published over 500 articles on Seeking Alpha, focusing on information technology companies [1] - He ranks in the top 0.1% of Tip Ranks analysts for his successful selection of information technology stocks [1] Group 2 - In 2012, Hochfeld was convicted of misappropriating funds from his hedge fund [1]
1 Artificial Intelligence (AI) Stock Down 33% to Buy Hand Over Fist, According to Wall Street
The Motley Foolยท 2025-02-06 14:37
Core Viewpoint - Atlassian is experiencing a new growth phase driven by artificial intelligence (AI), with its stock price more than doubling since mid-2022, although it remains 33% below its all-time high from 2021 [2]. Group 1: Company Overview - Atlassian is a leading enterprise software company known for products like Jira and Confluence, utilized by over 300,000 businesses to enhance productivity [1]. - The company has introduced over 50 AI-powered features in its products, significantly improving user efficiency, with users saving an average of 45 minutes per week [4]. Group 2: Financial Performance - In the second quarter of fiscal 2025, Atlassian achieved a record revenue of $1.28 billion, marking a 21% increase year-over-year, driven by cloud revenue growth of 30% and data center revenue growth of 32% [7][8]. - Despite a net loss of $38.2 million in Q2, this represented a 54% reduction from the previous year's loss, with non-GAAP profitability of $255.6 million, a nearly 35% increase year-over-year [10]. Group 3: AI Impact - The introduction of Atlassian Intelligence has led to a 40% increase in sales of Premium and Enterprise plans, indicating strong demand for AI features [9]. - The number of monthly active users for AI tools surpassed 1 million, with interactions increasing 25-fold compared to the previous year, demonstrating high engagement with the new offerings [6]. Group 4: Market Sentiment - Analysts are overwhelmingly positive about Atlassian, with 17 out of 32 analysts giving it the highest buy rating, and no analysts recommending a sell [11]. - The consensus price target for Atlassian stock is $353.76, suggesting a potential upside of 15%, while the highest target of $420 implies a 37% upside [12]. Group 5: Long-term Potential - Atlassian's addressable market is valued at $67 billion, growing at an annual rate of 13%, indicating significant growth potential for the company [13]. - The stock is currently trading at a price-to-sales ratio of 16.6, which is a 15% discount to its long-term average, making it an attractive option for long-term investors [13].
Atlassian (TEAM) is a Great Momentum Stock: Should You Buy?
ZACKSยท 2025-02-05 18:00
Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Summary: Atlassian (TEAM) - Atlassian currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] - Over the past week, TEAM shares have increased by 15.85%, significantly outperforming the Zacks Internet - Software industry, which rose by only 0.43% [5] - In a longer timeframe, TEAM shares have gained 27.79% over the past month, compared to the industry's 3.19% [5] - Over the last quarter, TEAM shares increased by 29.13%, and over the past year, they have risen by 49.92%, while the S&P 500 only moved 5.98% and 23.28%, respectively [6] - The average 20-day trading volume for TEAM is 2,020,631 shares, indicating a bullish trend as the stock is rising with above-average volume [7] Earnings Outlook - In the past two months, 9 earnings estimates for TEAM have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $3.19 to $3.41 [9] - For the next fiscal year, 8 estimates have also moved upwards, with no downward revisions during the same period [9] Conclusion - Considering the strong momentum indicators and positive earnings outlook, TEAM is identified as a 2 (Buy) stock with a Momentum Score of A, making it a promising candidate for near-term investment [11]
Here's Why Atlassian (TEAM) is a Strong Momentum Stock
ZACKSยท 2025-02-05 15:51
Core Insights - The Zacks Premium service provides tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores offer a framework for evaluating stocks based on value, growth, and momentum characteristics [3][4][5][6][7] Zacks Style Scores - The Style Scores categorize stocks into Value, Growth, Momentum, and a combined VGM Score, each with ratings from A to F [4][5][6][7] - Value Score focuses on identifying undervalued stocks using financial ratios [4] - Growth Score assesses a company's financial health and future growth potential [5] - Momentum Score evaluates stocks based on price trends and earnings estimate changes [6] - VGM Score combines all three styles to provide a comprehensive assessment of stocks [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions [8] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +25.41% since 1988 [9] - A large number of stocks are rated, with over 800 top-rated stocks available for selection [10] Stock Highlight: Atlassian (TEAM) - Atlassian is recognized as a leader in enterprise collaboration and workflow software, offering cloud-based solutions [12] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong potential [12] - TEAM has a Momentum Style Score of A, with a 27.8% increase in share price over the past four weeks [13] - Recent upward revisions in earnings estimates for fiscal 2025 have increased the Zacks Consensus Estimate by $0.22 to $3.41 per share [13] - TEAM has an average earnings surprise of 27.9%, making it a strong candidate for investors [13]
Atlassian Q2: This Is Just The Beginning
Seeking Alphaยท 2025-02-03 12:19
Core Viewpoint - The article discusses the investment strategy and background of Amrita, who leads a family office fund focused on sustainable, growth-driven companies, while also highlighting her achievements in financial literacy and investment portfolio management [1]. Group 1: Company Overview - Atlassian (NASDAQ: TEAM) was previously covered with a maintained "buy" rating despite limited upside to a price target of $244, indicating confidence in the company's growth potential [1]. - The family office fund led by Amrita aims to maximize shareholder equity by investing in companies that meet growth-oriented goals [1]. Group 2: Investment Strategy - Amrita's investment strategy is rooted in democratizing financial literacy and simplifying complex macroeconomic concepts for broader understanding [1]. - The fund's objective is to invest in sustainable companies, reflecting a trend towards socially responsible investing [1]. Group 3: Professional Background - Amrita has five years of experience in high-growth supply-chain start-ups in San Francisco, where she led strategy and user acquisition efforts [1]. - She has collaborated with venture capital firms and start-ups, enhancing her expertise in maximizing returns for clients during the pandemic [1].
Atlassian (TEAM) - 2025 Q2 - Quarterly Report
2025-01-31 21:13
Customer Growth - As of December 31, 2024, the company had more than 300,000 customers, with 49,449 customers generating over $10,000 in annualized recurring revenue from Cloud offerings[108][109]. - The number of customers with greater than $10,000 in Cloud ARR increased from 42,864 in December 2023 to 49,449 by December 2024[109]. Financial Performance - Total revenues increased by $226.4 million, or 21%, to $1,286.5 million for the three months ended December 31, 2024, compared to the same period in 2023[128]. - Subscription revenues rose by $281.1 million, or 30%, to $1,213.2 million, driven by paid seat expansion, price increases, and migrations[129]. - Total revenues increased by $436.4 million, or 21%, to $2,474,244 thousand for the six months ended December 31, 2024, compared to $2,037,885 thousand in the same period of 2023[144]. - Subscription revenues increased by $561.0 million, or 31%, to $2,345,196 thousand for the six months ended December 31, 2024, compared to $1,784,163 thousand in the same period of 2023[145]. Cash Flow - Free cash flow for the three months ended December 31, 2024, increased by $58.3 million to $342.6 million compared to the same period in 2023, primarily due to an increase in net cash provided by operating activities[110]. - Free cash flow decreased by $30.6 million during the six months ended December 31, 2024, compared to the same period in 2023, primarily due to increased cash paid to employees and vendors[111]. - Free cash flow for the six months ended December 31, 2024, was $416.9 million, compared to $447.5 million in 2023, indicating a decrease of 6.8%[173]. Operating Expenses - Research and development expenses increased by $143.4 million, or 27%, totaling $680.2 million, largely due to a $133.2 million rise in employee compensation expenses[132]. - Marketing and sales expenses rose by $51.4 million, or 23%, to $271.9 million, mainly from a $33.0 million increase in employee compensation and a $12.5 million rise in advertising expenses[133]. - General and administrative expenses increased by $11.4 million, or 7%, totaling $168.7 million, primarily due to a $13.6 million rise in employee compensation expenses[134]. Profitability - Operating loss for the three months ended December 31, 2024, was $57.5 million, compared to a loss of $49.1 million in the same period of 2023[127]. - Net loss for the three months ended December 31, 2024, was $38.2 million, representing a 3% decrease compared to a net loss of $84.5 million in the prior year[127]. - Non-GAAP net income for the six months ended December 31, 2024, was $455.3 million, compared to $358.5 million in 2023, reflecting a year-over-year increase of 27%[173]. Revenue Costs - Cost of revenues increased by $28.6 million, or 15%, totaling $223.1 million, driven by higher hosting fees and employee compensation expenses[131]. - Cost of revenues increased by $68.2 million, or 18%, to $440,751 thousand for the six months ended December 31, 2024, compared to $372,565 thousand in the same period of 2023[147]. Cash and Securities - As of December 31, 2024, the company had cash and cash equivalents totaling $2.2 billion, marketable securities totaling $251.6 million, and accounts receivables totaling $695.7 million[159]. - The company expects existing cash and cash equivalents, along with cash generated from operations and borrowing capacity, to be sufficient to meet anticipated cash needs for at least the next 12 months[169]. Debt and Financing - As of December 31, 2024, the company had $500.0 million in 5.250% senior notes due 2029 and $500.0 million in 5.500% senior notes due 2034[164]. - The company amended its credit facility in August 2024 to provide a $750 million senior unsecured revolving credit facility, replacing a previous $1 billion facility[165]. - The Board of Directors authorized a new share repurchase program in September 2024, allowing for the repurchase of up to $1.5 billion of Class A Common Stock, following the completion of a previous $1 billion program[166]. - Approximately 1.5 million shares of Class A Common Stock were repurchased for approximately $252.3 million at an average price of $168.30 per share during the six months ended December 31, 2024[167]. Market Risk - There have been no material changes to market risk as presented in the Annual Report on Form 10-K for the year ended June 30, 2024[176].
Atlassian's Cloud Strength, AI Momentum, Enterprise Deals Impress Analysts
Benzingaยท 2025-01-31 20:35
Core Viewpoint - Wall Street analysts have rerated Atlassian Corp after the company reported better-than-expected fiscal second-quarter 2025 results, leading to raised price targets for the stock [1][2]. Financial Performance - Atlassian reported adjusted EPS of $0.96, exceeding consensus estimates of $0.76, with total revenue of $1.286 billion, surpassing the consensus of $1.240 billion, reflecting a 21% year-over-year growth [2][3]. - Cloud revenue reached $847 million, up 30% year-over-year, exceeding guidance of 25.5% and consensus estimates of 26% [3]. - Data Center revenue totaled $362 million, increasing 32% year-over-year, surpassing the consensus of 28% [3]. - Billings were reported at $1.470 billion, representing a 21% year-over-year growth, exceeding expectations [3]. Analyst Projections - Analysts project third-quarter revenue of $1.35 billion and EPS ranging from 88 cents to 92 cents [4][10][12][15]. - JMP Securities and Raymond James analysts noted the continuation of strong Cloud growth and provided optimistic guidance for future performance [4][11]. Market Position and Strategy - Atlassian has captured 85% of the Fortune 500, indicating a significant market opportunity of $14 billion, supported by a new Chief Revenue Officer with experience at SAP [6]. - The company is focusing on enterprise customers, which presents both risks and opportunities, particularly in customer acquisition costs [6]. AI and Future Growth - The introduction of paid SKUs for AI is seen as a positive step towards monetization, with over 1 million monthly active users for Rovo and Atlassian Intelligence features [7][8]. - Analysts highlighted the potential for AI to enhance customer acquisition and long-term value, despite initial concerns about rising costs [7]. Stock Performance - Following the positive quarterly results, Atlassian's stock price increased by 13.1%, reaching $310.95 [19].