By Cara Waters
Atlassian is continuing to grow through COVID-19 with the Australian software giant acquiring asset management company Mindville and reporting revenue up 33 per cent for the year to $US1.6 billion ($2.2 billion).
The Nasdaq-listed company on Friday revealed in its quarterly results that it generated $US430 million in revenue for the past three months, up 29 per cent and ahead of analysts' expectations of $US411 million.
It booked a net loss of US$350 million across the year, down from its US$533 million loss last year.
Atlassian co-chief executives Scott Farquhar and Mike Cannon-Brookes. The software company's revenue is up 33 per cent for the year. Credit: Louie Douvis
Net income for the period came in at $US63 million, up 23 per cent on last year, while free cash flow was down 3 per cent (year-on-year) at $US96 million.
Atlassian said it had adapted quickly to operate as a fully-remote company in the face of the COVID-19 pandemic, and enabled many customers to do the same through its workplace software products which include project management tools such as JIRA and Trello and document sharing platform Confluence.
The company said its aggressive push to move customers to the cloud was tracking well. Cloud-delivered services made up half of Atlassian's revenue but the company said there was still work to be done to reach its ambition of having 90 per cent of its users on the cloud.
Atlassian has been offering considerable discounts to get users to make the shift with many customers offered 55 per cent off subscriptions.
The company said it was investing for the long term and would take advantage of the talent available as a result of the pandemic to hire more than 1000 new employees with the majority in research and development.
Atlassian's acquisition of Mindville, details of which were not disclosed, opens up a new market for the company enabling it to offer a configuration management data base for customers to track and configure hardware and software applications directly into Atlassian products.
Mindville is based in Sweden and has over 1700 customers worldwide including NASA, Spotify, and Samsung and it follows Atlassian's acquisition of Halp earlier this year.
In a call with analysts, Atlassian co-founder and co-chief executive Mike Cannon-Brookes said the company would continue to be bold in its strategy even though some of its smaller customers had "churned" as a result of coronavirus.
"We'll make choices other companies may shy away from relying on our past experience to guide our path forward with success we continue our transformation into a $5 billion global software leader," he said.
Mr Cannon-Brookes said 2021 was going to be a challenging year as the world continued to emerge from the impact of coronavirus.
"Whether the recovery sort of slowly comes back like a marshmallow or snaps back quickly like a rubber band that is, that's out of our control," he said. "However, what is in control is our ability to continue to invest prudently and for the long term so that we can come out of this strongly however that happens."
He said Atlassian was looking to make long term investments and its main focus was on "just building a kick ass cloud offering".
The company now has over 174,000 customers, up 14 per cent from last year.
Atlassian's shares have soared since its 2015 initial public offering on the US Nasdaq exchange and are up 43 per cent this year. On Friday, its market value stood at $US46 billion.