Atlassian sales soar - oh, and it just bought another company

• First quarter fiscal year results for the Nasdaq-listed tech giant were filed with the US Securities and Exchange Commission today

• Net income was US$69.3 million for the first quarter FY2020

• Total revenue was US$363.4 million for Q1 FY20, up 36% from the same period a year ago

• Operating loss was US$4.6 million

• Net income per diluted share was $0.28, a turnaround on a net loss of $1.03 in Q1 FY19.

• Cash and cash equivalents, and short-term investments at the end of Q1 FY20 total $1.8 billion

Australian tech giant Atlassian has bought the company behind automate routine operations in Jira, Code Barrel, the company revealed with reported a 36% jump in revenue to US$363.4 million as part of its first quarter financial results.

“We are also excited to announce that Atlassian has acquired Code Barrel, the creator of Automation for Jira,” co-founder and co-CEO Scott Farquhar said.

“Automation for Jira is already used by thousands of organisations to help them reduce repetitive work and unleash the potential of their teams. This acquisition is an important step as we continue to enhance our cloud products.”

Atlassian did not reveal a price, but says Automation for Jira is now used by more than 6,000 companies, including Visa, Airbnb and TripAdvisor, running more than 40 million automation rules.

The acquisition comes as US-listed (Nasdaq: TEAM) global tech unicorn latest quarterly earnings report shows non-GAAP (Generally Accepted Accounting Principles) revenue was up 36% from a year ago to $363.4 million – 28 cents earnings per share (EPS).

The result beat Wall Street expectations of $351 million at 24 cents EPS.

Subscription customer numbers grew by 7,060, net, for the quarter to a total of 159,787.

The operating loss was $4.6 million for the quarter, compared to a $0.2 million loss in the same period last year. Operating margin was -1% for the first quarter of fiscal 2020, compared with 0% for Q1 FY19.

On a non-IFRS (International Financial Reporting Standards) basis, Atlassian reported operating income was US$85 million for Q1 FY20 and an operating margin of 23%.

Co-founder and co-CEO Mike Cannon-Brookes declared the company was “out of the blocks in good form in fiscal 2020”.

“We updated Atlassian’s Cloud platform in a big way with new Free and Premium editions,” he said.

“Our disruptive model continues to win new customers, both large and small, and these new editions offer them more choice and capabilities. Premium also showcases the increased sophistication of our enterprise cloud offerings, giving large companies the flexibility and the tools they need.”

Atlassian remains bullish on its second quarter with guidance ahead of market predictions. The company expects Q2 earnings of US$386 million to $390 million with a gross margin of 83% on an IFRS basis and 86% non-IFRS.

FY2020 total revenue is expected to be in the range of $1,560 million to $1,574 million. Operating margin is expected to be approximately -3% on an IFRS basis and approximately 20% on a non-IFRS basis.

Net income per diluted share is expected to be approximately $0.01 on an IFRS basis and approximately $1.00 on a non-IFRS basis.

Atlassian shares finished down 1.32% at US$122.64 when the market closed on Thursday. They hit a year-high of $146.70 on August 13.

The company’s market cap is just under US$30 billion.