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Atlassian Shares Gain 22% After Firm Posts 30% Growth in Q4 Revenue

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Shares of Atlassian Corp. Plc. reached a new 52-week high after the company reported FY/21 financial results that included a 50% increase in year-over-year subscription revenue in Q4/21.

After U.S. financial markets closed for trading yesterday, team collaboration and productivity software company Atlassian Corp. Plc (TEAM:NASDAQ) announced financial results for the fourth quarter and full year 2021 ended June 30, 2021.

Atlassian Corp.'s Co-Founder and Co-CEO Mike Cannon-Brookes commented, "Our Q4 was a ripper of a quarter - as we Aussies say - as we added over 23,000 new customers, grew subscription revenue 50 percent year-over-year, and continued to see cloud momentum build…We are incredibly proud of our resilience and execution during fiscal 2021. We continued to innovate with five new products built on top of our cloud platform, surpassed 200,000 customers and $2 billion in revenue, and added over 1,500 new Atlassians to the team."

Scott Farquhar, Atlassian's Co-Founder and Co-CEO stated, "Looking ahead to fiscal 2022 and beyond, the opportunities in front of Atlassian have never been greater…We are reimagining the future of work and are keen to seize the massive opportunities that we see across our three core markets: agile development; IT service management; and work management for all teams. We will continue to put in the hard yards to execute and advance on our mission to unleash the potential of every team."

The company indicated that in Q4/21 on an International Financial Reporting Standards (IFRS) basis, total revenue increased 30% to $559.5 million, compared to $430.5 million in Q4/20. During the quarter, the firm indicated that subscription revenue rose by 50% to $385.5 million, versus $257.5 million in the same quarter in the prior year.

Atlassian reported that during Q4/21, it posted a net loss of $213.1 million, or $0.85 per diluted share, compared to a net loss of $385.2 million, or $1.56 per diluted share in Q4/20.

The company added that as of June 30, 2021, it held cash, cash equivalents and short-term investments totaling $1.2 billion on its balance sheet.

Atlassian stated for FY/21 on an IFRS basis, total revenue increased by 29% to $2.1 billion, up from $1.6 billion during FY/20.

The company reported that operating income improved to $101.6 million in FY/21, compared to $14.1 million in FY/20 and that operating margin improved to 5% from 1% during the previous year. Atlassian listed that during FY/21, it posted a net loss of $696.3 million, or $2.79 per diluted share, compared to a net loss of $350.7 million, or $1.43 per diluted share in FY/20.

The company highlighted that as of the end of its 2021 fiscal year it had 236,118 active customers who contracted for subscription or maintenance services. The firm noted that it added 23,311 net new customers in Q4/21 that included 6,520 net new single-user Trello accounts.

Atlassian stated that it announced its next-generation cloud app development platform called Forge, which it described as an infrastructure and storage platform where developers can build cloud-centric apps capable of integrating with Atlassian cloud products. The platform benefits developers by reducing complexity and costs of creating cloud apps. The firm pointed out that so far more that 500 apps have been launched during Forge's early access program.

The firm commented on its commitment to its "TEAM Anywhere" program and noted that 54% of workers surveyed across a wide range of industries would consider switching companies to access remote work opportunities allowing them the opportunity to thrive in a new age distributed world.

The company offered some forward guidance and advised that for Q1/22 it expects revenues will fall within the range of $575-590 million. Atlassian added that in Q1/22 it anticipates net income of $0.09-0.10 per diluted share on an IFRS basis and $0.38-0.39 on a non-IFRS basis. The firm noted that per share net income figures were calculated based upon a weighted average of 254-256 million outstanding shares.

Atlassian provides a range of team collaboration products and productivity software that allows teams to manage, organize, discuss and complete shared work. The company offers a variety of collaboration products geared for use by software developers, information technology (IT) managers, planning and project managers and content creators. The firm listed that some of its larger customers that use its content creation and sharing, project tracking and service management products include Bank of America, Dropbox, NASA, Redfin and Verizon.

Atlassian Corp. started the day with a market capitalization of around $66.7 billion with approximately 250.1 million shares outstanding. TEAM shares opened 16 % higher today at $310.00 (+$43.21, +16.20%) over yesterday's $266.79 closing price and reached a new 52-week high price this morning of $349.50. The stock has traded today between $310.00 and $349.50 per share and closed for trading at $325.12 (+$58.33, +21.86%).


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