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6 Metrics Behind Atlassian's Soaring Stock Price

By Daniel Sparks – Aug 19, 2019 at 5:01PM

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See how revenue, free cash flow, and active customers jumped in the company's fiscal 2019.

One stock that has been on fire over the past 12 months is Atlassian (TEAM 0.89%). The productivity software specialist's stock has surged more than 80% during this period, crushing the S&P 500's paltry 3% rise during this same time frame. The rise reflects impressive momentum during the company's fiscal 2019, for which Atlassian reported its final results late last month.

Here's a look back at some of the key metrics in Atlassian's fiscal 2019, capturing its strong growth during this period.

A cartoon of Trello employees and the Trello logo

Image source: Atlassian.

1. Revenue increased 37%

Atlassian's fiscal 2019 revenue jumped 37% year over year to $1.21 billion. While this growth was a slight deceleration from the 41% growth in fiscal 2018, it was significantly higher than the company's initial guidance for fiscal 2019 revenue to be about $1.15 billion.

2. Non-IFRS operating income popped 44%

Highlighting the company's scalable business model, Atlassian's non-IFRS (International Financial Reporting Standards) operating income increased 44% year over year to $251.2 million. This was aided by the company's fast-growing revenue and expanded operating margin. Atlassian's non-IFRS operating margin widened from 20% in fiscal 2018 to 21% in fiscal 2019.

3. Free cash flow skyrocketed 50%

Atlassian's free cash flow (cash from operations less capital expenditures) increased 50% year over year to $422.2 million in fiscal 2019.

4. Non-IFRS earnings per share soared 69%

The productivity software specialist's non-IFRS net income rose from $124.5 million in fiscal 2018 to $214.2 million in fiscal 2019. This translated to non-IFRS earnings per share of $0.86, up 69% from $0.51 in fiscal 2018.

5. More than 150,000 customers

The company wrapped up fiscal 2019 with 152,727 customers who have either an active subscription or a maintenance agreement. This is up from 125,796 active customers at the end of fiscal 2018. Atlassian, therefore, added 26,931 customers during the fiscal year, and 8,689 of these customers were added in the company's fiscal fourth quarter alone.

6. Expect fiscal 2020 revenue of at least $1.54 billion

In its fiscal fourth-quarter and full-year earnings release last month, management initiated strong guidance for fiscal 2020, guiding for revenue during the period to be between $1.540 billion and $1.556 billion. The midpoint of this guidance range represents 28% year-over-year growth. Though this would mark a meaningful deceleration, management's guidance typically proves to be conservative.

Overall, it's easy to see why investors have been buying up the company's stock over the last 12 months. The company's revenue crushed management's initial full-year outlook as Atlassian added nearly 27,000 new active customers. In addition, the company was able to do this while significantly improving free cash flow and non-IFRS profitability.

Based on management's guidance for 28% revenue growth in fiscal 2020, Atlassian clearly expects more robust momentum in the coming quarters.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Atlassian. The Motley Fool has a disclosure policy.

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Atlassian Corporation Plc Stock Quote
Atlassian Corporation Plc
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