The $43 billion Australian software giant Atlassian has stayed resilient through the coronavirus pandemic, as its catalog of collaboration software drove thousands of new customers during the remote work boom.
One of Atlassian’s top priorities is investing aggressively in its cloud products, as well as making sure they work well with each other.
Atlassian faces some competition from Microsoft, but Gregg Moskowitz, managing director at Mizuho, says Atlassian has a stronger product portfolio and a different way of gaining customers.
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Atlassian began as an idea by college friends Scott Farquhar and Mike Cannon-Brookes in 2002: A company dedicated to making tools for their fellow software developers.
Eighteen years or so later, Atlassian is now Australia’s biggest tech success story, valued at $43 billion, with its stock price growing sixfold since its 2015 IPO. As the world continues to turn to software to power everything from finance to fitness, Atlassian has grown accordingly, adding 3,000 new customers in its most recent quarter, and 6,000 the quarter before — even amid the coronavirus pandemic.
In that quarter, the company reported on Thursday, it booked some $430 million in revenue, up 29% from the same period last year. Its stock is up 44% from the beginning of the year, putting it well ahead of the turbulence that’s rocked the stock market.
It all speaks to the momentum that Atlassian has built in the industry: Its flagship product Jira, which is used for tracking software projects, is much stronger than its competitors, says Gregg Moskowitz, managing director at Mizuho Financial Group, who watches Atlassian closely. He expects that its business will only grow more over time, even if Atlassian faces some coronavirus-related impact on smaller customers or customers in travel and hospitality.
Plus, customers will prioritize continuing to pay for Atlassian’s products since it helps employees work together remotely, Moskowitz says.
“There can be additional challenges although we really think Atlassian will be more resilient than most software companies,” Moskowitz said.
The one company that could possibly pose as a threat over time is Microsoft, as the tech titan gets more into the developer space, Moskowitz says — though he’s not too concerned about it, given Atlassian’s lead in the specific niches in which it plays.
“There’s a very large technology gap that exists in the market where Atlassian plays,” Moskowitz said. “Microsoft has been here longer than Atlassian. There certainly hasn’t been anything to derail Atlassian’s growth. Customers will unquestionably view Atlassian as a superior offering.”
Meet the 15 executives leading Atlassian’s growth, even amid the coronavirus pandemic:
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Title: Cofounder and co-CEO
Mike Cannon-Brookes cofounded the Australian software giant Atlassian with his best friend Scott Farquhar.
At Atlassian, Cannon-Brookes oversees the company’s product and engineering teams, including its flagship software project tracking software Jira and its project management software Confluence.
“From everything I can tell, [Cannon-Brookes and Farquhar] work seamlessly …read more
Source:: Business Insider