Atlassian Corporation PLC (NASDAQ: TEAM) stock fell 1.1% on January 18th, 2019 (as of 11:50 am GMT-5; Source: Google finance) on lower than expected outcome.
The company posted the net income of $61.7 million for the second quarter of fiscal 2019, compared with $32.0 million for the second quarter of fiscal 2018. Operating income was $74.8 million for the second quarter of fiscal 2019, compared with $46.7 million for the second quarter of fiscal 2018. Operating margin was 25% for the second quarter of fiscal 2019, compared with 22% for the second quarter of fiscal 2018. Cash flow from operations for the second quarter of fiscal 2019 was $130.4 million, while capital expenditures totaled $7.8 million, resulting in free cash flow of $122.6 million, an increase of 81% year-over-year. Free cash flow margin for the second quarter of fiscal 2019 was 41%.
Atlassian ended the second quarter of fiscal 2019 with a total customer count, on an active subscription or maintenance agreement basis, of 138,235. Atlassian added 6,551 net new customers during the quarter; this number benefited from an increase of 1,396 customers as a result of our acquisition of Opsgenie during the quarter. Excluding Opsgenie, Atlassian added 5,155 net new customers during the quarter.
On October 1, 2018, Atlassian closed its acquisition of Opsgenie, whose technology enables companies to better plan for and respond to IT service disruptions. When outages occur, Opsgenie’s technology quickly routes alerts to the appropriate IT teams, speeding diagnosis and resolution, and reducing downtime. The acquisition was valued at approximately $295 million, of which approximately $259 million was paid in cash and the remainder in Atlassian restricted shares subject to continued vesting provisions.
In December, Atlassian announced the acquisition of one of Trello’s most popular integrations, Butler for Trello, bringing the power of workplace automation to Trello boards. Trello will incorporate Butler’s automation technology to allow teams of all kinds, such as HR, marketing, and finance, to codify business processes.
TEAM in the second quarter of FY 19 has reported the adjusted earnings per share of 25 cents, while adjusted revenue growth of 39 percent to $298.98 million in the second quarter of FY 19.