Tech Players Atlassian, Afterpay and NEXTDC in Action

  • May 12, 2020 AEST
  • Team Kalkine
Tech Players Atlassian, Afterpay and NEXTDC in Action

Technology stocks have always been amongst the popular choice for investors. In the current times, when most of the other industries are struggling to survive, several tech sector players are gaining momentum, as on a global level, most of the people are confined to their homes. Consequently, demand for tech products and services is growing. Additionally, there is increased demand for software that can aid in preventing theft of confidential data or cyberattacks.

Interesting Read: Technology has changed the way we work amid the COVID-19 crisis: A look at in-demand technologies

Both NASDAQ and ASX tech sector bounced back on 24 March 2020, after a major drop majorly owing to the COVID-19 pandemic. On 11 May 2020, NASDAQ index closed at 9192.34, up by 0.7786% from its previous close. S&P/ASX 200 Information Technology (Sector) settled at 1,411.8 on 11 May 2020, up 1.87% from the previous close. However, it was trading downward by 1.09% to 1,396.4 on 12 May 2020 (at AEST 1:29 PM).

In this article, we are discussing recent updates of two tech stocks listed on ASX and one listed on NASDAQ.              

Atlassian Corporation PLC (NASDAQ: TEAM)

Team collaboration and productivity software provider Atlassian Corporation PLC and device-to-cloud cybersecurity company McAfee recently teamed up to accelerate BornSecure cloud capabilities.

McAfee and Atlassian Collaborate to Boost Cloud Security Capabilities

Recently, McAfee and Atlassian, the two tech sector players, joined hands to deliver advanced data security and threat protection to customer base seeking to speed up their transition to the cloud. With this collaboration, Atlassian clients would be able to make use of the McAfee MVISON Cloud power to help securely accelerate their business through  

  • Prevention of sensitive or regulated data from being uploaded or shared with unauthorised parties;
  • Limiting downloading or syncing to unmanaged devices, in addition to securing complete control over user access by enforcing context-specific access policies to Jira Software Cloud and Confluence Cloud;
  • Detecting and remediating against misconfigurations and configuration drift in Atlassian’s Bitbucket Cloud and Bamboo products from standard benchmarks;
  • Gaining access to ability to capture the complete audit trail of all user activity that is enriched with threat intelligence.

 

3Q FY20 Performance

On 30 April 2020, the Company released financial results for Q3FY2020 ended 31 March 2020.

  • Total revenue increased by 33% to $411.6 million as compared to the previous corresponding period.
  • Operating losses in Q3FY2020 stood at $19.9 million, down from $27.6 million in the same period a year ago.
  • Net loss incurred by the Company was noted at $158.8 million, compared with $202.8 million in the year-ago period.
  • Net cash and cash equivalents by the end of Q3FY2020 stood at $2.1 billion.

 

Third Quarter Business Highlights

  • Based on an active subscription or maintenance deal, Atlassian by the end of Q3FY2020 noted a total of 171,051 clients. During the March 2020 quarter, the Company reported 6,261 net new clients.
  • Atlassian finalised the complete rollout of free cloud versions throughout its main products. These free editions signify the Company’s dedication to making its products more open to additional teams, globally.
  • At Remote Summit, the Company announced its most advanced cloud offering, Cloud Enterprise, holding the potential to deal with the needs of largest businesses across Confluence, Jira Service Desk and Jira Software.
  • For its combined Jira Software and Jira Align solution, Atlassian was recognised as a Leader in the 2020 Magic Quadrant for Enterprise Agile Planning Tools of Gartner, and in “Completeness of Vision”, was placed at the top.
  • During the quarter, Tami Rosen joined the Company as new Chief People Officer. Earlier, Tami Rosen held leadership positions at Goldman Sachs as well as Apple. He was the first Chief People Officer for Quora and Luminar Technologies.
  • Cameron Deatsch, who was the Head of Server & Data Center product teams at Atlassian, became the new Chief Revenue Officer.

 

FY2020 Outlook

For the complete financial year 2020, the Company has provided its financial targets.   

  • Total revenue is expected to be between $1,584 million and $1,599 million.
  • Gross margin is projected to be ~ 83% on an IFRS basis and ~ 86% on a non-IFRS basis.
  • Operating margin would be between (1.5%) and (0.5%) on an IFRS basis and 21.5% to 22.5% on a non-IFRS basis.
  • Free cash flow expected between $445 million and $475 million and cash flow from operations anticipated between $512 million and $542 million.

 

Stock Information: On 11 May 2020, Atlassian stock closed the day’s trade at US$176.60, moving upward by 0.23% from its previous close.

Afterpay Limited (ASX: APT)

BNPL player Afterpay Limited (ASX: APT) made a significant announcement during early May 2020 regarding Tencent Holdings Limited becoming a substantial holder of APT shares. Tencent Holdings lodged a notice of initial substantial holder on the ASX on 1 May 2020.

Tencent Holdings Limited is a Hong Kong Stock Exchange-listed company that provides internet value-added services, such as online advertising, digital entertainment, and FinTech and cloud services, in addition to WeChat, Weixin, QQ and other communication platforms.

 

 

Stock Information: On 12 May 2020 (AEST 02:42 PM), APT stock was trading downward by 1.565% to $41.510.

NEXTDC Limited (ASX: NXT)

NEXTDC Limited (ASX: NXT) is an ASX200 listed technology company and is the most innovative Data Centre-as-a-Service provider.

SPP Completed; $863 Million Raised Via SPP and Institutional Placement

On 5 May 2020, NEXTDC announced to have raised $191 million with the completion of its share purchase plan (SPP), involving the expected issue of 24.6 million new fully paid ordinary shares. The SPP was open for 17,015 qualified shareholders. Applications were received from nearly 8,684 shareholders with average application amounting to $22,051.

The Company has raised a total of $863 million. Of the total, $672 million was raised via institutional placement and $191 million through the recently completed SPP.

Proceeds from the capital raising would help the Company in maintaining its significant momentum in looking for growth opportunities, which include the commencement of Phase 1 of the proposed development of a new data centre in Sydney.

Funding would also provide balance sheet flexibility that is needed for accelerating and expanding various growth initiatives in line with latest and projected material customer contract wins.

Material Customer Contract Wins:

On 1 May 2020, NXT announced that contracted commitments at its Victorian data centre facilities improved by ~ 6MW to over 27MW. This, along with expansion options at the Victorian data centres, are now ~ 60MW.

After these new customer commitments, NEXTDC would bring forward 3MW of incremental capacity in the 4th phase of construction, thereby increasing the M2 total to 25MW and total Victorian capacity to 40MW.

Revenue from these new contracted commitments is anticipated to start in the second half of FY2021, after the completion as well as commissioning of the connected data halls at M2.

Stock Information: On 12 May 2020 (AEST 03:07 PM), NXT stock was trading at $9.440, down 1.152% from the last close.

 


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