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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?

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Hi AJ-

I started a position in Team after the fall post earnings. I like this company a lot. FCF this last year was up to $193 M, almost double the year before, to 30% of revenue.

One thing I haven't liked is the high SBC, but during the last investor day presentation, they said they are going to bring that down to 3%/year going forward.

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I spent the money to subscribe to Bert Hutchfield’s service. Got an email Friday or Thursday that it might be wise to hold or to even buy TEAM in the dip.

I use JIRA all day long at work. My daughter in San Francisco Who is applying for project manager jobs says almost every one she applies for asks for JIRA knowledge.
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The days of managing work items with sticky notes and a bunch of fragmented tools are long gone. You can't deliver a quality product at this scale without having tools like the Atlassian suite,” 

We were using a lot of different tools to manage our development cycle – navigating through different UIs, different logins, etc. It caused a lot of friction in our workflow,” says Louis Bennett, director of engineering for Trulia's Consumer Web Products.

i have never worked in a team like that so it is a bit hard for me to understand the problem.

TEAM looks interesting but pricy
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