Atlassian Corporation (TEAM) Market Cap

Atlassian Corporation (TEAM) has a market capitalization of $19.59B, based on the latest available market data.

Financials updated after earnings reported 2025-12-31.

Sector: Technology
Industry: Software - Application
Employees: 12157
Exchange: NASDAQ Global Select
Headquarters: Sydney, NSW, AU
Website: https://www.atlassian.com

Loading company profile...

Expand full investment commentary ▼

📘 ATLASSIAN CORP CLASS A (TEAM) — Investment Overview

🧩 Business Model Overview

Atlassian Corporation, trading under the ticker TEAM, is a leading global provider of collaboration, project management, and productivity software. Founded in Sydney, Australia, Atlassian has built its reputation on fostering teamwork and innovation among software development, IT operations, and business teams. At its core, Atlassian operates a product-centric, self-service, and highly scalable business model that leverages a "land and expand" approach. Its software tools facilitate agile project management, incident response, workflow automation, and knowledge sharing, which are mission-critical for organizations worldwide. The product portfolio includes flagship offerings like Jira Software (project and issue tracking), Confluence (team collaboration), Jira Service Management (ITSM), Bitbucket (code repository), and Trello (visual collaboration). Atlassian’s unique go-to-market model largely bypasses traditional sales teams in favor of viral product-led growth; customers typically discover, trial, and adopt products organically. This minimizes customer acquisition costs and supports widespread adoption across organizations of all sizes—from small startups to Fortune 500 enterprises.

💰 Revenue Streams & Monetisation Model

Atlassian generates recurring revenues primarily via subscription-based pricing models for its cloud-based offerings. Its revenues are diversified across three principal streams: 1. **Cloud Subscriptions:** The company has made a decisive shift to cloud delivery, offering multi-tiered, per-user subscription plans for most products. This provides customers with access to continuous updates, robust security, and scalable performance. 2. **Data Center & Server Licenses:** For regulated industries and enterprises preferring on-premises or private cloud deployment, Atlassian offers Data Center products on a subscription basis. However, the company has signaled a strategic prioritization of cloud, with on-premises offerings gradually de-emphasized. 3. **Marketplace & Add-ons:** Atlassian’s open platform supports a thriving ecosystem of third-party and in-house plugins and apps, available through the Atlassian Marketplace. The marketplace generates transactional revenues (often on a revenue-sharing basis) and strengthens product stickiness. Additional revenue sources include professional services and training, though these remain a smaller proportion of the total. Overall, the company’s model emphasizes high gross margins, predictable recurring revenues, and upsell opportunities as customers scale their usage or add additional products.

🧠 Competitive Advantages & Market Positioning

Atlassian’s competitive advantages are multifaceted: - **Product-Led Growth:** By enabling users to self-serve, trial, and deploy products independently, Atlassian achieves rapid and cost-efficient customer acquisition. This model is both scalable and defensible, as product adoption accelerates virally within organizations. - **Ecosystem & Marketplace:** The vast array of integrations and third-party applications reinforces customer lock-in and boosts the products’ extensibility. Developers and partners are incentivized to build for Atlassian’s platforms given the large, engaged user base. - **Broad Product Suite:** Serving multiple workflows across project management, IT service management, and software development, Atlassian’s offerings span organizational silos, enabling cross-functional collaboration and increasing customer wallet share. - **Brand & Trust:** The company’s focus on transparency, reliability, and agile best practices has solidified its reputation as a mission-critical partner for modern digital enterprises. In its market segment, Atlassian competes with a range of best-of-breed point solutions (such as Asana or ServiceNow), but its interconnected suite of tools, open platform, and favorable pricing position it as a “Swiss Army knife” for knowledge and technical teams.

🚀 Multi-Year Growth Drivers

Several structural tailwinds and internal initiatives underpin Atlassian’s growth trajectory: - **Cloud Migration:** An ongoing migration of legacy on-premises customers to the cloud not only delivers higher recurring revenues but also enhances opportunities for upselling and cross-selling additional products and premium features. - **Product Innovation:** Continued investment in R&D drives new product launches and feature enhancements that expand the company’s addressable market. Examples include advanced analytics, AI-powered automation, and solutions tailored for non-technical teams. - **Expansion into Enterprise & ITSM:** Atlassian is increasingly targeting the lucrative enterprise market and expanding its presence in IT service management, traditionally dominated by incumbents with higher price points. - **International Penetration:** With customers in dozens of countries, further international expansion remains a meaningful growth lever, both through direct adoption and via an extended partner and channel ecosystem. - **Marketplace Monetisation:** As customer reliance on integrations and custom workflows rises, Marketplace revenues are poised to scale. Atlassian’s app ecosystem fosters greater loyalty and product differentiation.

⚠ Risk Factors to Monitor

Notwithstanding its strengths, several risk factors require careful monitoring: - **Platform Transition Risks:** The migration from on-premises to cloud, while value-accretive long-term, can lead to customer churn, short-term revenue recognition headwinds, or operational hiccups. - **Competitive Pressures:** Atlassian faces competition from focused collaboration tools, ITSM suites, and emerging cloud-native entrants. Additionally, large platform vendors may attempt to bundle competing solutions. - **Execution Risk in Upmarket Expansion:** Success in the enterprise segment demands robust sales execution, deep integrations, data security, and tailored support—areas where Atlassian continues to invest but where established competitors may have an advantage. - **Pricing Sensitivity & Margin Pressure:** Although generally cost-effective versus rivals, aggressive competitive pricing, macroeconomic conditions, or increased infrastructure spending could pressure margins or limit pricing power. - **Cybersecurity & Data Privacy:** As a cloud-first software company handling sensitive enterprise data, Atlassian is exposed to evolving security threats, regulatory requirements, and customer trust considerations.

📊 Valuation & Market View

Atlassian is typically valued at a premium to traditional software and SaaS peers, reflecting expectations of robust multi-year revenue growth, high gross margins, and substantial free cash flow generation. The company’s unique model—scalable self-service adoption, a diversified customer base, and a high degree of operating leverage—supports top-quartile valuations within the SaaS landscape. Key valuation metrics investors consider include enterprise value-to-revenue (EV/Revenue) multiples, projected free cash flow margins, net revenue retention rates, and the pace of migration to cloud subscriptions. The longevity and stickiness of Atlassian’s recurring revenue base underpin greater visibility and support for durable premium multiples. Ultimately, the company’s market perspective is anchored in the secular shift toward cloud software, digital collaboration, and the proliferation of agile work practices in organizations of all sizes.

🔍 Investment Takeaway

Atlassian Corporation Class A represents a compelling long-term investment opportunity in the digital transformation and enterprise collaboration ecosystem. Its differentiated approach—defined by product-led growth, a robust cloud migration strategy, and a broad, extensible software suite—drives durable customer adoption and expanding monetization. While the company faces risks associated with competition, platform transitions, and execution complexity in the enterprise segment, its agile innovation culture and ecosystem-driven moat offer meaningful offsets. Investors should weigh valuation considerations in the context of Atlassian’s secular growth drivers, recurring revenue visibility, and proven track record in scaling workflows that are essential to modern businesses. The investment case for Atlassian centers on its ability to grow share in a vast and fragmented market, monetizing the ongoing shift toward cloud-native, collaborative, and automated knowledge work, while maintaining a high-velocity, efficient operating model.

⚠ AI-generated — informational only. Validate using filings before investing.

📢 Show latest earnings summary

TEAM Q2 2026 Earnings Summary

Overall summary: Atlassian delivered a milestone quarter with $1B in cloud revenue (+26% y/y), ARR above $6B, and RPO up 44% to $3.8B. Enterprise momentum was strong, with record $1M+ deals and rapid adoption of AI features (5M Robo MAUs) and Teamwork Collection (>1M seats). Management emphasized AI as a structural tailwind, a predictable seat-based pricing model, and improving gross margins despite AI costs. While the Data Center segment is expected to decline meaningfully next year, leadership reaffirmed confidence in the long-term cloud growth trajectory. Overall tone was bullish and execution-focused.

Growth

  • Surpassed $6B ARR
  • First-ever $1B cloud revenue quarter (+26% y/y)
  • RPO rose 44% y/y to $3.8B; accelerated for the third straight quarter
  • Cloud NRR at 120%+ and ticking up for the third consecutive quarter
  • Record number of $1M+ ACV deals, nearly doubling y/y
  • Robo AI capabilities surpassed 5M monthly active users
  • Teamwork Collection surpassed 1M seats sold in under nine months; >1,000 customers upgraded

Business development

  • Enterprises standardizing on Atlassian: Cisco, Expedia, Reddit, Synchrony Financial
  • Teamwork Collection positioned as main AI monetization driver with expanded AI credits
  • Deep partnership and model usage with Anthropic; CoWork integrates via Atlassian’s MCP server
  • Broad distribution: >350,000 customers; >80% of the Fortune 500; 60% of the Forbes AI 50
  • Marketing/brand partnership: Atlassian Williams Racing (alongside Anthropic)

Financials

  • Cloud revenue reached $1B in the quarter (+26% y/y)
  • ARR exceeded $6B
  • RPO at $3.8B (+44% y/y), reflecting rising multi-year commitments
  • Cloud NRR 120%+ and improving
  • Gross margin continues to improve for multiple consecutive quarters despite AI usage growth
  • Record $1M+ ACV deals nearly doubled y/y

Capital & funding

  • Pricing framework remains primarily seat-based with selective consumption add-ons (Forge, Bitbucket Pipelines, extra AI credits)
  • AI costs managed within pricing envelope, supporting gross margin improvements
  • No new capital raises or detailed capital return commentary in the provided remarks

Operations & strategy

  • AI-first system of work: Robo agents embedded across search, chat, and agentic workflows
  • Teamwork Graph exceeds 100B objects/connections, enabling context-aware AI
  • Enterprise-grade security, governance, and compliance emphasized for large-scale deployments
  • Long-term investments in product, R&D, and GTM driving enterprise standardization
  • Hybrid pricing approach; prioritizes predictable, seat-based pricing favored by customers
  • Integration-first ecosystem strategy (e.g., MCP server) to interoperate with third-party AI tools

Market & outlook

  • Customer conversations are more strategic and senior-level, centered on AI-driven transformation
  • CFO signaled Data Center (on-prem) segment expected to be meaningfully down next year (tough comp)
  • Management reiterated confidence in long-term cloud growth guide through FY27
  • Q3 guidance approach consistent with prior year methodology
  • Rising RPO and multi-year deals provide revenue visibility

Risks & headwinds

  • Macro uncertainty and market volatility affecting software sentiment
  • Expected decline in Data Center revenue as cloud migration progresses
  • Competitive pressure from AI-native collaboration tools; mitigated by partnerships and integration
  • Potential AI infrastructure cost pressures, though currently managed within margins

Sentiment: positive

📊 Atlassian Corporation (TEAM) — AI Scoring Summary

📊 AI Stock Rating — Summary

Atlassian reported a quarterly revenue of $1.586 billion with an EPS of -$0.16, translating to a negative net margin due to a net loss of $42.645 million. The company generated a healthy free cash flow of $168.5 million, indicating strong operational cash inflow despite the net loss. On a year-over-year basis, revenue growth remains robust, driven primarily by continued expansion in cloud services. However, profitability is challenged, evidenced by negative EPS and net income, largely due to high operational expenses and investments. Cash flow quality is solid, with significant operating cash flow well exceeding capital expenditures, suggesting efficient capital management. Atlassian's balance sheet reflects moderate leverage, with total liabilities of $4.57 billion and a net debt of $232.7 million, demonstrating financial discipline and resilience. Shareholder returns appear modest, with the company prioritizing stock repurchases over dividends, returning $194.3 million via buybacks. While analyst sentiment reflects a broad range ($105 to $290) with a consensus target of $190.83, current valuation metrics were not provided. The focus on expanding product offerings and maintaining liquidity positions Atlassian for potential growth, but operational efficiencies need to improve to enhance profitability.

AI Score Breakdown

Revenue Growth — Score: 8/10

Atlassian demonstrated strong revenue growth, driven by expansion in cloud services and a broadening customer base.

Profitability — Score: 5/10

EPS is negative due to significant operating expenses, reflecting challenges in achieving profitability.

Cash Flow Quality — Score: 9/10

The company has a robust free cash flow, with operating cash flow significantly surpassing capital expenditures.

Leverage & Balance Sheet — Score: 7/10

Moderate leverage with a balanced debt profile; net debt is manageable relative to cash at hand.

Shareholder Returns — Score: 6/10

Focused more on share buybacks with no dividends; moderate total returns to shareholders.

Analyst Sentiment & Valuation — Score: 6/10

Analyst targets vary widely, reflecting uncertain market sentiment; a consolidation of valuation metrics is needed.

⚠ AI-generated — informational only, not financial advice.

SEC Filings

Related Companies in Technology

FN logo

FABRINET (FN)

Technology

$19.55B

NTAP logo

NETAPP INC (NTAP)

Technology

$19.77B

SMCI logo

SUPER MICRO COMPUTER INC (SMCI)

Technology

$19.40B

ENTG logo

ENTEGRIS INC (ENTG)

Technology

$20.12B

ALAB logo

ASTERA LABS INC (ALAB)

Technology

$20.23B

CRDO logo

CREDO TECHNOLOGY GROUP HOLDING LTD (CRDO)

Technology

$20.28B