Looking at Atlassian's F1, they are plouging a significant proportion of revenue back into R&D. The F1 doesn't break out revenue by product or R&D spend in anyway so its difficult to be sure if that investment is paying off - is the 45%+ annual revenue growth is driven by new products (which is good news) or just by Jira (which is not so good). While revenue growth is strong, the fact that both R&D and Marketing & Sales expenses are growing faster than revenue is a bit of a worry.
As everyone on this list knows, a market valuation is basically a bet on future returns. That bet on Atlassian could pay off handsomely if they can maintain their current growth rates without blowing out their costs. The bigger question for me is what are the potential limits to their growth based on their current model? My impression is that tech geeks love their products and they have a very passionate and supportive user base within that community. However they don't necessarily have the mindshare outside that group. N.B. This isn't a pop at Atlassian - good on 'em for their success so far. On Wed, Nov 11, 2015 at 8:24 AM, Alex North <[email protected]> wrote: > http://ben-evans.com/benedictevans/2014/9/4/why-amazon-has-no-profits-and-why-it-works > > On Wed, 11 Nov 2015 at 08:16 Chris Were <[email protected]> wrote: >> >> I understand where you're coming from, but just look at that efficiency! >> >> http://tomtunguz.com/atlassian-s-1/ >> >> Sent from my phone >> >> On 11 Nov 2015, at 1:11 am, Dean Collins <[email protected]> wrote: >> >> Can someone explain to me how Atalassian is worth $3.5b when it only made >> $6m profit last year? >> >> >> >> >> http://www.smh.com.au/business/world-business/investors-look-past-dual-stock-structure-in-atlassian-float-20151110-gkv47r.html >> >> >> >> I mean seriously folks....we are getting beyond a joke here. >> >> >> >> >> >> Regards, >> >> >> >> Dean Collins >> Cognation Inc >> [email protected] >> +1-212-203-4357 New York >> +61-2-9016-5642 (Sydney in-dial). >> +44-20-3129-6001 (London in-dial). >> >> >> >> -- >> -- >> You received this message because you are subscribed to the Silicon Beach >> Australia mailing list. 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