Happy Monday, Flux fam!

Here's everything you need to know today - in under 3 minutes.

Today's big stories 

⬆️Atlassian smashes revenue expectations

👑Mattel will once again produce Disney Princess dolls

🤑Apple shrugs off supply chain issues to report record sales

Oh and get this...

Tesla CEO Elon Musk has said the company will prioritise the development of a robot that’s meant to perform tasks that currently can only be done by humans. He even reckons the robot biz could be more successful than the company's EVs. 

Atlassian just beat revenue expectations by about $57 million so never underestimate an Aussie

Background: Atlassian are the biggest of Australia's software success stories. The company launched 20 years ago, financed by $10,000 in credit card...and now, it's a $100 billion company. Whew.

What happened: It's gone from strength to strength since its inception, and the three months to December 2021 were no different. The company posted second quarter revenue of US$689 million, up 37% on the same time the previous year.

What else: Now, the company has issued guidance saying it expects revenue to increase by about 50% this financial year. Yup, you read that right: 50%.

So what's the key learning?

💡Guidance is an informal report that a public company issues to its shareholders. The company uses the company's earnings to set expectations for an upcoming period (i.e. the next quarter...or the next year).

💡The guidance is often used by investors to adjust their expectations of the company's share price. It's like expectation (guidance) vs reality (actual performance).

💡Because Atlassian's 2022 guidance had plenty of good news, it's no surprise we saw a share price increase around 10% on the news.

Mattel just won the rights to produce Disney dolls off their arch rival Hasbro...and I doubt they'll ever 'Let It Go'

Background: Mattel launched back in 1945 in LA, and went on to become the world's second-largest toy maker by revenue (right behind The Lego Group).  

What happened: This crew are the masterminds behind the Barbie franchise. And, up until 2016, they were also making all ya fave Disney Princesses. But that year, they lost the rights to produce those dolls to Hasbro (aka the company's biggest rival).

What else: When Mattel lost the Disney line, they also lost a whopping US$440 million in revenue. But now, Mattel have won the rights back from Hasbro. Cue the cash cow!

So what's the key learning?

💡Intellectual property (IP) is often the company's most valuable asset. And, for established companies, it can be even more valuable when you start to commercialise it.

💡Disney owns copyrights, distribution rights and merch rights to all its famous characters. And, by having these protections, it means Disney can license out its characters to other production companies for a juicy, juicy fee.

💡Now, Hasbro gets to keep its hands on Indiana Jones and Star Wars, but Mattel will get the rights to Frozen's Elsa and all the other popular Disney Princesses...I think we know who won that battle.

Apple dodges a supply chain crisis and that ain't just good news for them

Background: We know many industries around the world have been facing a supply chain crisis. We've got supermarkets running out of meat and timber is harder to find than the Loch Ness monster.

What happened: For the tech industry, it's no different. There have been factory shutdowns, chip shortages and shipping delays...but things have been relatively smooth sailing at Apple.

What else: Apple says the chip shortage is mostly affecting old stock and growing sales in other divisions have made up for any losses. Investors liked the sound of that, sending the company's share price up 5%.

So what's the key learning?

💡A company so large (and so powerful) can almost be an economy unto itself.

💡Given Apple's size (it's a US$2 trillion company), performing well in a quarter will often mean lots of other hardware companies who supply its components are also doing well.

💡We've got companies that produce Apple's batteries, logic boards, screens, cameras...so if demand for Apple products is up, you can bet your bottom dollar that demand for the products made by its suppliers are also up. A high tide raises all ships!