On a Caribbean-bound cruise, smooth sailing requires more than calm seas — it demands seamless collaboration.
Royal Caribbean’s global e-commerce team turned to Atlassian's platform after business boomed post-Covid.
The shift is saving more than 800 hours and $500,000 a year in management consulting costs "previously spent on manual reporting,” said Wais Mojaddidi, the unit's director of agile delivery.
Atlassian ( TEAM ) offers tools to tighten staff collaboration and boost productivity and project management across industries.
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Its flagship products include Jira, a platform for managing projects and services and tracking issues, and Confluence, a knowledge-sharing and documentation tool.
Atlassian is benefiting from work rapidly digitalizing, and cloud services are being increasingly adopted. According to a Mordor Intelligence report obtained by Zacks, the global enterprise collaboration market will likely reach $90.6 billion by 2028 from $54.5 billion in 2023.
Still, the market is sharply competitive, crowded by industry leaders like Broadcom ( AVGO ) , Microsoft ( MSFT ) , Alphabet ( GOOGL ) , Salesforce ( CRM ) , and IBM ( IBM ) .
Atlassian’s earnings beat expectations
On Oct. 31, Atlassian reported first-quarter fiscal 2025 earnings and revenue that topped Wall Street estimates.
The infrastructure software provider reported earning 77 cents a share, surpassing analysts’ consensus estimate of 64 cents. Revenue was up 21.5% year-over-year to $1.19 billion.
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The company raised its full-year outlook, now expecting total revenue to rise 16.5% to 17% and cloud revenue up 24%. The prior forecast included growth of 16% in revenue and 23% in cloud revenue.
"With the power of our R&D engine and more than 20 years' worth of data in how teams plan, track and deliver work, we have incredible competitive advantages in the AI era," Atlassian Chief Executive Michael Cannon said during the earnings call.
Atlassian has been investing in AI-driven tools to automate workflows and improve team efficiency. This added to its research and development costs.
In fiscal 2025 Q1, the company’s adjusted R&D expenses climbed 23.7% from a year earlier. Its revenue grew 21.5%.
Analyst lifts TEAM price target; another has a warning
Truist raised its price target on Atlassian stock to $250 from $200 and kept a hold rating, thefly.com reported on Dec. 12.
The investment firm said Atlassian was looking to pivot its go-to-market model to drive higher annual contract value from customers. Its ability to raise prices could speed growth, the analyst tells investors in a research note.
Atlassian has multiple growth drivers for the long term, including new users, new end markets, new products, and the potential to expand contract values, the firm added.
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Macquarie analyst Steve Koenig just initiated coverage of Atlassian with a neutral rating and a $290 price target.
The analyst called TEAM a leader in planning and collaboration solutions for software development, IT, and non-technical teams.
But the investment firm warned that Atlassian's seat-based-pricing model could face challenges amid ongoing software developer layoffs since 2019.
In a seat-based model companies charge clients based on the number of users that need access to their software. So, the more staffers who use software, the more value Atlassian derives. But when companies reduce the workforce, they also reduce the number of users they pay for.
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Atlassian stock closed at $279.18 on Dec. 12. The stock is up 17% year-to-date. It's up about 47% since it closed at $187.64 at the end of October.
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