Skip to main content
This Board Has Moved

This board has been migrated to our new platform! Check out the new home page at discussion.fool.com or click below to go directly to the new Board on the new site.

Go to the New Site
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1

You already have this message marked for reply in your Favorites.

https://seekingalpha.com/article/4164294-atlassian-necessary...

Gary Alexander reporting on Atlassian’s latest quarter.

He thinks the valuation is a bit rich currently at 11.7x EV/FTM based on expected growth of 35% slowing from 41% this past year. Customer growth and free cash flow look quite good.

It looks like TEAM is in the same spot as many of our companies. High valuation based on great historical growth but facing a potential slowdown. I haven’t followed the company closely enough to speculate on future growth at this point.

There is a chart on customer growth in Gary’s article. Two specific occurrences caused large growth in the past - the acquisition of Trello and changes in billing of one of their products. You’ll note two large step gains in specific quarters where these occurred.

Finally, look at the R&D spend. 37.2% of sales!!!
That is about as high as I’ve seen. That suggests some nice future growth in earnings if it can be throttled.

Anyone else have opinions?

A.J.
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.