2. Atlassian Corporation Plc (NASDAQ:TEAM)
Number of Hedge Fund Holders: 66
Atlassian Corporation Plc (NASDAQ:TEAM) is a leading global provider of collaboration software for teams, with a suite of products that help teams work together more effectively. The company has a strong product portfolio with a number of market-leading products, including JIRA, Confluence, and Bitbucket. The market for collaboration and development tools is growing strongly, driven by the continued growth of the software development industry and the shift to Agile and DevOps methodologies and Atlassian Corporation Plc (NASDAQ:TEAM) is well-positioned to capitalize on these secular trends. The stock is ranked among the stocks that will double in 2023.
On November 3, Atlassian Corporation Plc (NASDAQ:TEAM) announced earnings for the fiscal first quarter of 2023. The company reported an EPS of $0.36 and generated a revenue of $807.39 million, up 31.49% year over year, and ahead of estimates by $0.97 million. The company has free cash flows of $826.7 million.
At the close of Q2 2022, Atlassian Corporation Plc (NASDAQ:TEAM) was spotted on 66 investors’ portfolios that held stakes of $3.49 billion in the company. Of those, Durable Capital Partners was the most prominent shareholder in the company and disclosed a position worth $485.6 million.
Here is what Artisan Partners had to say about Atlassian Corporation Plc (NASDAQ:TEAM) in its second-quarter 2022 investor letter:
“Atlassian Corporation Plc (NASDAQ:TEAM) is a leading provider of innovative, customizable team-collaboration software tools for over 200,000 customers. Despite positive fundamental momentum—the company recently reported 30% revenue growth and 28% trailing twelve months FCF margins—shares traded lower during Q2 as investors rotated out of high-growth stocks with elevated multiples. The company’s highly efficient sales and marketing capability, combined with substantial R&D investment, points to sustained long-term revenue and FCF growth. Meanwhile, we recognize a recession would likely have an impact on Atlassian via slowing growth metrics. However, we believe its low priced, mission critical cloud tools would prove relatively resilient in this scenario. For these reasons and shares trading at a very attractive valuation for a business with highly recurring revenues, strong revenue growth prospects and attractive margins, we added to our position.”
