TEAM has been gaining new customers at a fast clip and it has been active on the M&A front, recently acquiring OpsGenie, which has developed a platform that enables companies to better plan for and respond to IT service disruptions.
A key initiative is that TEAM is doubling down on supporting the needs of IT teams. Serving IT departments is an adjacent market TEAM has been serving for years yet the company feels it has barely scratched the surface of this significant opportunity. Also, just this past Monday, Atlassian announced it will acquire AgileCraft, a provider of enterprise agile planning software. AgileCraft helps companies build and manage a ‘master plan' of their most strategic projects and workstreams.
On the new product front, TEAM recently introduced Jira Ops, a unified incident command center for IT teams to coordinate response and resolution. Alongside other offerings, these two products (Jira Ops and OpsGenie) support TEAM's efforts to deepen its focus on IT teams. IT departments is an adjacent market TEAM has been serving for years yet the company feels it has barely scratched the surface of this significant opportunity. This year, TEAM will place more emphasis on the IT market through R&D investments, partnerships and marketing. The OpsGenie acquisition is a big part of this.
Unlike Smartsheet, Atlassian is much larger (market cap $27 bln vs $5 bln for SMAR) and it's profitable. It reported more revenue in DecQ at $299 mln than Smartsheet guided to for the full year in FY20: $253-257 mln. Also, while SMAR is a long way from profits, TEAM has guided to non-IFRS EPS this fiscal year of $0.81-0.82. Where it is similar to SMAR is its lofty valuation. It has a current P/E above 130x and a price/sales above 20x.
In sum, TEAM continues to see strong demand across its product line, and most notably, its core JIRA product for planning, tracking, and managing projects.