Operating Margin - Atlassian Corp (SWB:48D)

Watchlist Manager

Watchlist

Price: 137.9 EUR 1.38%

Market Cap: 35.6B EUR

-3.6%

Current

-4%

Average

3.3%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

-3.6%

Operating Profit

-194.8m

Revenue

5.5B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
US	A	Atlassian Corp SWB:48D	36.3B EUR	-4%
US		Ezenia! Inc OTC:EZEN	567B USD	-132%
US		Palantir Technologies Inc NYSE:PLTR	435.5B USD	22%
DE		SAP SE XETRA:SAP	242.9B EUR	27%
US		Salesforce Inc NYSE:CRM	247B USD	22%
US		Applovin Corp NASDAQ:APP	227B USD	60%
US		Intuit Inc NASDAQ:INTU	186.9B USD	27%
US		Adobe Inc NASDAQ:ADBE	151.2B USD	36%
US	N	NCR Corp LSE:0K45	134B USD	5%
US		Cadence Design Systems Inc NASDAQ:CDNS	88.1B USD	32%
US		Synopsys Inc NASDAQ:SNPS	84B USD	17%

Atlassian Corp
Glance View

Economic Moat

None

Market Cap

36.3B EUR

Industry

Technology

Atlassian Corporation was born out of an ambitious vision of two university friends, Mike Cannon-Brookes and Scott Farquhar, who launched the company in 2002 from Sydney, Australia. Unlike many tech startups that focus on a single, groundbreaking product, Atlassian set its sights on the broader goal of revolutionizing how teams collaborate, communicate, and manage projects. From day one, the company embraced an unconventional business model, eschewing a large sales force and instead letting their software speak for itself. This approach not only cultivated a loyal customer base but also allowed Atlassian to innovate continuously, creating tools that became staple assets for teams worldwide. Its flagship products, Jira and Confluence, became synonymous with project management and collaboration across diverse industries, from tech startups to Fortune 500 companies. With its cloud-first strategy, Atlassian capitalized on the growing demand for SaaS (Software as a Service), providing scalable solutions that cater to the evolving needs of modern workforces. At its core, Atlassian generates revenue through a subscription-based model, selling licenses to users who rely on its suite of products to streamline workflows and enhance productivity. Its cloud offerings have increasingly become the centerpiece of its financial growth strategy, as businesses transition away from on-premises solutions. This shift not only aligns with global IT trends but also positions Atlassian to tap into a recurring revenue stream that scales predictably with customer expansion. In addition, Atlassian supplements its revenue through enterprise agreements, which offer tailored solutions to its largest clients. While the company prides itself on minimal marketing expenditures, focusing instead on customer-driven expansion and community engagements, its commitment to R&D ensures that it remains at the cutting edge of collaborative technology. As a result, Atlassian continues to thrive as it empowers agile teams and fosters a culture of innovation in organizations around the world.

View 48D Analysis

48D Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

US	Johnson & Johnson NYSE:JNJ	Pharmaceuticals
US	Berkshire Hathaway Inc NYSE:BRK.A	Financial Services
US	Bank of America Corp NYSE:BAC	Banking
US	Mastercard Inc NYSE:MA	Technology
US	UnitedHealth Group Inc NYSE:UNH	Health Care
US	Exxon Mobil Corp NYSE:XOM	Energy
US	Pfizer Inc NYSE:PFE	Pharmaceuticals
US	Palantir Technologies Inc NYSE:PLTR	Technology
US	Nike Inc NYSE:NKE	Textiles, Apparel & Luxury Goods
US	Visa Inc NYSE:V	Technology
CN	Alibaba Group Holding Ltd NYSE:BABA	Retail
US	JPMorgan Chase & Co NYSE:JPM	Banking
US	Coca-Cola Co NYSE:KO	Beverages
US	Walmart Inc NYSE:WMT	Retail
US	Verizon Communications Inc NYSE:VZ	Telecommunication
US	Chevron Corp NYSE:CVX	Energy

	Johnson & Johnson NYSE:JNJ	211.58 USD 0.75%
	Berkshire Hathaway Inc NYSE:BRK.A	748 886.97 USD 0.85%
	Bank of America Corp NYSE:BAC	55.14 USD 1.06%
	Mastercard Inc NYSE:MA	571.93 USD 1.52%
	UnitedHealth Group Inc NYSE:UNH	341.84 USD 1.52%
	Exxon Mobil Corp NYSE:XOM	118.82 USD -0.6%

	Franklin Covey Co NYSE:FC	16.63 USD -0.12%
	Mohawk Industries Inc NYSE:MHK	112.49 USD -0.15%
	Ardmore Shipping Corp NYSE:ASC	11.14 USD -1.68%
	ASGN Inc NYSE:ASGN	48.07 USD 0.94%
	Skyworks Solutions Inc NASDAQ:SWKS	66.97 USD -1.88%
	Weatherford International PLC NASDAQ:WFRD	80.34 USD -1.07%

	Johnson & Johnson NYSE:JNJ	211.58 USD 0.75%
	Bank of America Corp NYSE:BAC	55.14 USD 1.06%
	Mastercard Inc NYSE:MA	571.93 USD 1.52%
	Salesforce Inc NYSE:CRM	262.23 USD -0.05%
	Abbvie Inc NYSE:ABBV	223.32 USD -0.29%
	Home Depot Inc NYSE:HD	359.65 USD 0.61%

	Monolithic Power Systems Inc NASDAQ:MPWR	946.51 USD -3.56%
	Applovin Corp NASDAQ:APP	670.67 USD -6.46%
	NVIDIA Corp NASDAQ:NVDA	175.02 USD -3.27%
	Cal-Maine Foods Inc NASDAQ:CALM	86.89 USD -0.79%
	Pro Medicus Ltd ASX:PME	234.43 AUD 0.62%
	Lundin Gold Inc TSX:LUG	111.41 CAD -0.21%

Atlassian Corp
SWB:48D