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Atlassian | Transitioning from Server to Cloud & Now to AI Atlassian’s Secret to Success: Free Stuff, Fancy Upgrades, and Lots of AI In 2020, Atlassian, the Australian software leader known for tools like Jira and Confluence, initiated its transition to a cloud-first model, phasing out its legacy Server business. This strategic pivot has reshaped its revenue model and driven significant growth. Cloud Momentum Atlassian’s Cloud revenue surged 31% year-over-year in Q1 FY25 to $792 million, surpassing investor expectations. The transition highlights the company’s agility and sustained expansion in a competitive market. SaaS Growth Strategy Atlassian employs a "land-and-expand" SaaS model, attracting customers with low-cost or free products and encouraging upgrades to premium features and additional solutions. Key Highlights -💻 300,000+ customers, including 84% of Fortune 500 companies, spanning software development, IT, and business teams. - 🏢 524 enterprise customers generating $MIL:1M+ ARR, reflecting deeper engagement with large organizations. -🤖 AI adoption: A 10x increase in Atlassian Intelligence usage this year has driven premium upgrades and enhanced productivity. Innovation and Expansion Atlassian continues to focus on product-led growth with recent launches like Atlassian Focus for enterprise strategy and Advanced Editions , offering premium features for existing tools. Financial Perspective -Profitability challenges: Q1 FY25 saw a $32 million operating loss (3% loss margin), a slight decline from last year. This is due to sustained R&D investments (51% of revenue, +2pp YoY), reflecting a long-term growth strategy over immediate profitability. -Server phase-out: Ending the Server business has boosted cloud and data center revenue. -Data Center growth: Revenue grew 38% YoY to $336 million, serving as a transitional solution for customers not yet ready for full cloud migration. Atlassian is positioning Data Center as a stepping stone rather than a permanent option. Future Outlook Atlassian is well placed to leverage rising demand for cloud based tools and AI advancements. However, challenges persist, including macroeconomic uncertainties, competition, and profitability pressures. While generative AI offers new opportunities, it also presents risks such as increased competition and the potential slowing of paid seat growth, a critical revenue stream. Atlassian’s ability to navigate these challenges will determine its long-term success in this transformative phase.
NASDAQ:TEAMLong
by moonypto
1
Roblox | Where Kids Thrive, Stocks Pump and Gamers High FiveRoblox Economics: Teaching 13 Year Olds How to Out Monetize Wall Street RBLX surges 50% since our first signal so let’s explore its potential upside From PlayStation to Paychecks: How Roblox Gamified the Economy From hosting virtual concerts with millions of participants to offering user generated games rivaling major studios, Roblox has evolved into a cultural phenomenon nearly 20 years after its PC debut. It is reshaping the social gaming and entertainment landscape. CEO Baszucki Says Roblox Saves Lives; Haters Say It Destroys Wallets! Founder CEO David Baszucki shared: “Our mission is to connect 1 billion people with optimism and civility. This resonates deeply with me, as several parents have told me their children’s lives were saved through connections made on Roblox” Roblox was already a standout in last year’s Future 50 ranking for its unique value. Currently, over 3 million creators develop games and experiences using Roblox Studio, its proprietary development tool. The platform’s economy thrives on its in-game currency, Robux, rewarding creators based on user spending. For instance, Uplift Games, a Roblox-exclusive studio, supports a 60 person team. Two core growth drivers -Content loop:High quality content attracts users, who then inspire the creation of even more content. - Social loop:Increased participation enhances the platform's appeal to new users. Exploring Roblox’s Expanding Universe -User Generated Content (UGC):Like YouTube, Roblox empowers creators of all skill levels to share their visions. - A Growing Metaverse:Beyond gaming, it hosts virtual events and educational activities, positioning itself as a hub for social interaction. -Broadening Demographics: Once dominated by young users, Roblox now attracts older audiences. In Q3 2024, users aged 13+ made up 60% of its user base, up from 57% the previous year. Roblox by the Numbers -Daily Active Users (DAUs):89 million, up 27% YoY, with strong growth in APAC (+37%) and a 59% rise in Japan. -User Engagement:20.7 billion hours logged, growing 29% YoY. -Q3 Bookings:$1.1 billion (+34% YoY), reflecting robust user spending. -Regional Bookings:North America (62%) and Europe (19%) dominate. The October 2023 PlayStation launch doubled Roblox’s console presence, boosting both users and bookings. To attract console studios, Roblox announced a 70% revenue share for items priced $49.99 or higher, aiming to encourage premium content. Challenges and Opportunities -Short Seller Allegations: In October, Hindenburg Research accused Roblox of inflating metrics and neglecting child safety, highlighting its ongoing unprofitability. Despite initial concerns, the claims lacked substantial evidence. -Profitability Issues: Operating margins remain negative (-30%), with high infrastructure, safety, and AI costs. Expense management is critical for turning a profit. - Advertising Growth: Partnerships with DoubleVerify and Shopify pave the way for in-platform ads and merchandise. With users averaging over two hours daily, this represents untapped potential. -Virtual Economy Improvements: Enhanced discovery features increased payers by 30% to 19 million, with a 6% rise in bookings per DAU. - Cash Flow Strength: Free cash flow hit a record $218 million (+266% YoY), driven by efficient cost management. - Stock-Based Compensation (SBC): SBC equals 29% of revenue, diluting shares (~3% annually). While common in tech, this high level raises concerns for long-term investors. Future Outlook Roblox raised its FY bookings guidance to $4.36 billion (+24% YoY). Achieving sustainable growth while tackling profitability challenges, content moderation, and investor dilution will determine its long-term success. The company’s ability to navigate these issues will shape its legacy in gaming and beyond.
NYSE:RBLXLong
by moonypto
COINBASE | COIN & SECCoinbase shares are up 35% since the SEC sued the crypto exchange for allegedly selling unregistered securities But Coinbase stock has bounced back, rising some 35% after dropping to a low of about $50 on the day that the SEC sued the U.S.’s largest crypto exchange. As of Wednesday morning, shares were trading near $70, and the publicly traded company’s market capitalization has risen to about $16.5 billion. The resurgence of Coinbase mirrors the broader boomerang of the crypto market in June, riding a Wall Streetfueled fever for Bitcoin that has lifted other cryptocurrencies and injected optimism into an industry that was reeling from a battery of enforcement from the federal government. The Coinbase stock has been rallying, the price of Bitcoin has been rallying, and then these two things usually play off of each other. Specifically, Bitcoin’s resurgence is tied to BlackRock’s recent filing of an application for Bitcoin spot exchange-traded fund, a surprising vote of confidence from the US.’s largest asset manager in the world’s largest cryptocurrency by market capitalization. Shortly after BlackRock’s application became public, the price of Bitcoin soared, notching its highest price in more than a year as a slew of other asset managers filed applications for Bitcoin spot ETFs, potentially opening up the cryptocurrency to trillions in dollars from brokerage accounts and pension funds. And where Bitcoin goes, so goes the broader market, as the total market capitalization of all cryptocurrencies jumped from just about $1 trillion to now about $1.17 trillion. BlackRock’s ETF filing was not only a vote of confidence in Bitcoin but also Coinbase. Its application listed the publicly traded crypto exchange as the custodian for holding the trust’s underlying Bitcoin. For them to continue and list Coinbase as a custodian for their ETF was a strong signal that these SEC allegations are not that big of a deal I think the market is telling us…the worst is behind us, as far as U.S. regulatory crackdown is concerned
NASDAQ:COIN
by moonypto
6
Unity Software IncUnity Software stock soared on Monday, rising nearly 20% into the close after a shoutout during Apple's Worldwide Developers Conference. Unity's gaming software will be used in Apple's new mixed reality headset, the Apple Vision Pro, Apple announced on Monday. "We know there is a community of developers who have been building incredible 3D apps for years," Apple's vice president of worldwide developer relations said during the WWDC presentation. And today we are excited to share that we've been working with Unity to bring those apps to Vision Pro. So popular Unity-based games and apps can gain full access to vision OS features such as pass-through, high-resolution renderings, and native gestures." Volume in Unity stock shot up to more than triple the 20-day moving average as the stock had its best intraday performance since November 10.Unity operates a cross-platform game engine that was first discussed at a Apple WWDC in 2005 in regards to the Mac. The company went public in 2020 and the stock was bought up to nearly $200 a share during the 2021 tech surge in stocks. Ark Innovation Founder Cathie Wood is a shareholder. Unity is the 15th largest holding in Ark's flagship fund, the Ark Innovation ETF (ARKK) and represents 3.46% of the total portfolio. On May 10, Unity reported first-quarter earnings that beat Street estimates for revenue while posting a wider-than-expected loss per share. Unity reported first-quarter revenue of $500.36 million compared to Wall Street estimates for $477.67, per Bloomberg data. Unity's adjusted earnings per share loss of $0.09 was more than $0.01 the Street had been expecting. Like others in the gaming sector, Unity spent its first-quarter earnings call positioning itself as an AI winner. "AI is going to have a profound effect on the industry," Unity CEO John S. Riccitiello said on the company's earnings call. "First, it's going to lead to inflection up in growth as game types are built that were no longer — were not previously possible. And secondly, we're going to see, I believe, some of the crazy expense that goes on in some high-end production come down some. It's a favorable part for the game industry for growth. And I guess it'd be very favorable for Unity as we drive some of these changes through the industry."
NYSE:ULong
by moonypto
4