High demand for cloud products, technologies and migration.
Consumer demand for an enhanced digital experience increases the attractiveness of application platforms or platforms as services. In addition, migration to the cloud is still less than 50%, and the trend towards new technologies opens up the potential for further growth of this segment in the coming years.
Atlassian Corporation Plc is a leader in what we call “meta-software”, which includes a number of segments related to providing assistance / automation of software creation, testing, deployment, operation, monitoring and security. Silently but quickly, the company has won the favor of coders with a completely opposite approach, focusing on word of mouth, coder-to-coder referrals and Freemium’s very generous pricing model to increase sales, and has gained a strong reputation for transparent and competent customer resolution.
The company continues its explosive growth phase, and last quarter’s results showed more than 60% growth compared to last year for cloud subscriptions. Meanwhile, total revenue amounted to 740.5 million US dollars, which is 30% more than in the corresponding quarter of 2021. Free cash flow margin remains high at 42%. Cash and cash equivalents plus short-term investments amounted to $ 1.3 billion at the end of March 2022. BBG Consensus: 66.7% BUY rating.
Workday, Inc.. is a pioneer of many cutting-edge innovations and a leading provider of enterprise cloud applications for finance and human resources, helping customers adapt and thrive in a changing world. They have created a set of integrated human capital management (HCM) programs specifically targeted at large enterprises. The WDAY encoders have adapted the free MySQL software, a relational database management system, in a very impressive and clever way. This has allowed the company to increase productivity and allow analytics (such as warehouse capacity forecasting or supply chain simulations) to perform in real time, which is a significant improvement over the traditional system. The co-CEO of Workday said that the continuation of global dynamics and a healthy portfolio of contracts will give him a good role in 2023.
In the first quarter of 2022, the company’s total revenue amounted to 1.43 billion dollars, which is 22.1% more than a year earlier. Subscription revenue was $ 1.27 billion, up 23.2% from the same period a year earlier. BBG Consensus: BUY rating 87.9%..
NICE initially earned revenue from defense contracts, and later released its first commercially available software application, NiceLog, with various enhanced features. Since 2014, the company has decided to reorganize its business to focus on its contact center and financial crime detection applications. Over the past few years, NICE has made further acquisitions of cloud software vendors, and has expanded its financial fraud detection suite to include Guardian Analytics, a British analytical software company used to detect money laundering. Subsequently, NICE successfully switched to the cloud subscription-based business model, which recently grew by 50% (CFRA).
During the first quarter of 2022, as in the previous year, the company maintained high financial results and growth dynamics. Total revenue rose 15.9% to $ 527.4 million in the first quarter of 2022 from $ 455 million a year earlier. Gross profit in the first quarter of 2022 was $ 360.4 million against $ 307.2 million in the first quarter of 2021. Gross profit in the first quarter of 2022 was 68.3% compared to 67.5% in the first quarter of 2021.BBG Consensus: BUY rating 83.3%..
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