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3 Reasons why Atlassian is Great to Invest in
As the covid-19 pandemic has driven the employers to embrace remote work culture, it has made a unique advancement for Atlassian, and its team-based software products have a substantial financial resource to invest in its ecosystem of products
Fremont, CA: Software products from Atlassian Corporation have raised its stocks significantly and over the past three years, and shareholders have seen a 390 percent return on their investments.
Here are three reasons why this software powerhouse is a must-buy:
Rock-Solid Financials Provide Optionality
Atlassian's cashflow is remarkable, and the balance sheet is on solid foot, although it reported a $19.9 million operating loss on revenues of $411.6 million last quarter.
The company produced $140.3 million in free cash flow, which is an outstanding 34 percent of the top line, and the balance sheet included $2.1 billion in cash and equivalent with zero debts. With this strong financial position, it gave the company optionality in this challenging time.
Atlassian offers a set of software products that can help teams manage all areas of a project. From using its Confluence product to combine shared content to OpsGenie to locate and manage issues to Jira to identify who is doing what, all the products can work smoothly together.
Atlassian's ecosystem of tools makes its land and expand model significantly efficient. As the company's product help to manage the activities of the team, when one member of a team tries the software, the usage spreads easily across the organization. The incorporation of the toolset makes for a substantial switching cost, and this ecosystem of products is driving the growth of the company in its vast addressable market.
Huge Market Opportunity Growth
The business model of Atlassian is to help increase revenue with existing customers, and for over two years, the revenue has jumped significantly than its client base revealing that customers are paying more every year for the company's services. Another interesting aspect for investors is that the company has hardly tapped its addressable market, and it is scaling over its primary focus on software developers and reaching out to business users throughout the enterprise.
Management accessed there are over 23 million software developers globally who are prime candidates for Atlassian's team collaboration toolset.
See also: Top Remote Monitoring Solution Companies