What is driving the growth of Atlassian stock?

Atlassian (TEAM), founded in 2002, specializes in project management applications. Its software suite helps businesses manage nearly all aspects of a project. For instance, its collaboration wiki tool Confluence lets employees collaborate on shared content, while its incident management platform OpsGenie helps users track and fix issues.

Key Growth Drivers

One of the reasons behind the rapid growth of Atlassian stock in recent years is its comprehensive set of software. A smaller group can start with a free version of its tools. However, after finding its effectiveness, those groups usually switch to the paid version of the apps to unlock their full potential.

Moreover, different teams with an organization can also use Atlassian’s products to coordinate on a specific project. The success of its products has helped Atlassian stock gain a record value of more than 850 percent over the past five years. If we look at the recent performance, the company’s share price has jumped over 45 percent during the last 12 months and about +12 percent so far in 2021.

Financial Stats

Atlassian’s financial performance has also improved in recent months. The company reported better-than-expected earnings and revenue for the third quarter ended March 31, 2021. It reported earnings of 63 cents per share for the quarter, contrary to a loss of 65 cents per share in the same period of 2020.

Total revenue for the quarter jumped 38 percent on a year-over-year basis to¬†$568.7 million. The results easily surpassed analysts’ average estimate of 29 cents per share for earnings and $534 million for revenue.

Bottomline

Atlassian’s products have played a critical role in connecting teams within an organization, especially when many businesses have switched to the remote working model. Its project management tools let teams work and collaborate at the time and place of their choice. In short, the strength of its products will continue to boost the value of Atlassian stock in the years to come.