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Atlassian Corporation PLC (NASDAQ:TEAM) Has Lot Of Growth Potential, Says Jay Simons After Company’s Stock Nearly Doubled Last Year

Atlassian Corporation PLC (NASDAQ:TEAM) nearly doubled last year and the most recent quarter announcement revealed that its revenue has hit $212 million which is up by 43% from the almost a year earlier. According to the President of the company, Jay Simons these escalations have put the company tantalizingly close to a big achievement.

Reports indicate that the software giant from Australia well known for its Jira, HipChat, and Confluence products-the popular collaboration tools are something on a tear. In an interview, Simons said that the company is knocking on the door of $1 billion in (annual) revenue which according to him is a milestone to be proud of. According to BTIG analyst Joel Fishbein, ‘viral sales strategy’ is driving the growth of Atlassian.

The working of the company is quite different. It does not have a direct sales team but believes in attracting new customers largely through word of mouth. And this approach has certainly worked well for Atlassian as the company managed to add 5,000 new customers in the most recent quarter, says Simons. He stated that customers are buying their products and they are not actually selling them.

Atlassian Expanding Globally, Attracting New Customers

The company aims to expand globally and hence is setting up new customer contact centers across the world. Atlassian is also betting heavily on its recent acquisitions such as Trello which is a project management tool putting Atlassian into more direct competition with Microsoft Office. Simons also said that much of the growth of the company is coming from its existing corporate and institutional customers.

Interestingly, the tools of the company first found traction with the IT staff, customer’s programmers and other technical workers. Now the company is aiming to attract users in sales teams, customer’s legal departments, and other non-technical departments. Simons said that there still is a lot more teams to reach which offers a huge growth potential for the company.

Despite facing a major $47 million hit to its bottom due to changes in tax rates the Australian software giant is still going great guns.

About the author

Daryl Brant

Brant is Investing News Center's writer focused on technology companies.

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