Atlassian revenue surges on new customer boom

Atlassian revenue surges on new customer boom

Productivity software powerhouse Atlassian (NASDAQ: TEAM) has recorded a strong quarter, buoyed by a surge of new customers and the success of 'Team Tour', its latest global initiative.

Founded by young Aussie entrepreneurs Mike Cannon-Brookes and Scott Farquhar, the company recorded a quarterly revenue of $223.7 million up by 40 per cent year-on-year.

Although revenue increased, Atlassian posted a net loss of $14.3 million. This result is an improvement on the $17.5 million loss it booked during 3Q17.

The company cut its operating losses down to $10.9 million for 3Q18, which is also an upgrade on 3Q17's operating loss figure of $23.1 million.

Atlassian gained sales momentum during the quarter when it added 6,587 new customers to the company's burgeoning pool of software and maintenance subscribers.

The company now boasts a combined customer count of 119,158 worldwide.

Atlassian's 2018 'Team Tour' initiative generated further interest by hosting several international customer events, at which the company unveiled product updates, talked through new team practises and discussed the future of the industry.

Almost 3,000 users and partners have attended events so far, with the 11-city world tour set to wrap up in Tokyo on 23 May.

Scott Farquhar has revealed there were major updates to the Atlassian board during 3Q18, including his own resignation as chair of the company.

Farquhar will remain as a director while former Google senior vice president Dr Shona Brown will assume the role of chair. Brown has been a member of the Atlassian board since 2015.

Executive vice president and general manager of Intuit's Small Business and Self-Employed Group Sasan Goodarzi also joined the board during the quarter.

Intuit is a global platform with a suite of products and services under the QuickBooks brand.

Atlassian is expecting to beat its 3Q18 performance during the final quarter of the year, posting a revenue guidance of between $232-234 million.

The company expects to achieve a total full-year revenue of between $862-864 million as well as a free cash flow margin of between $265-272 million.

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