Like most enterprise software companies: by selling software to the enterprise. Yet Atlassian is unique among its enterprise B2B peers by shirking from employing a traditional salesforce.
One inquiry we ran across in our research was “Why is atlassian losing money?”.
Atlassian reported strong fiscal first-quarter results, with revenue rising 26% year over year to $459.5 million.
How did Atlassian’s revenue grow 37% in Q1?
Thanks to exceptional cloud adoption, Atlassian’s revenue growth accelerated this quarter to 37%, having previously been in the high-20%-to-low-30% range. Cloud revenue grew 58% year-over-year, which marked a strong acceleration in growth from Q1 2022, when Atlassian posted 53% year-over-year revenue growth.
Then, what makes Atlassian’s pricing so unique?
In this world, Atlassian stand out as an anomaly. Their goal with their pricing is to get out of the customer’s way, to make it as easy as possible to get up and running with their software, without hassle or drawn-out sales processes. Point, click, buy and use. “A really common friction point that people insert is cost.
Shares of Atlassian are still very expensive. They dipped roughly 30% — in line with the tech sell-off — but not as much as many other high-flying tech stocks., service Now, for example, trades at 19 times sales.
What does Atlassian do?
Atlassian makes workplace software products, including project management tool Jira, and co-founders and co-CEOs Mike Cannon-Brookes and Scott Farquhar said the company has been cautious on its pricing as a result of the “uncertain macro environment”.
Then, why become an Atlassian solution partner?
Unlock new opportunities, differentiate your services, and grow your business as an Atlassian partner. The Atlassian Solution Partner Program will help you deliver outstanding consulting, sales, and technical services to our 138,000 customers of every size, in every industry, around the world.
While researching we ran into the question “Why is Atlassian still unprofitable?”.
However, these investments are paying off : Atlassian has become a leader in the Enterprise Service Management space, according to Forrester’s Wave.
Why is Atlassian moving from on-premises to cloud?
The move helps Atlassian to push more customers to the cloud, as 75 per cent of its paying users are still using at least one on-premises deployment. Mr Cannon-Brookes and Mr Farquhar said the company had put in the “hard yakka” over the years to build a scalable cloud platform.