Valuation is the sum of all the future cash the business makes to the owners, using a concept called terminal value to determine this. Current year profits plus annual growth determines future cash flows until growth is flat and ends. Therefore growth rate matters more in companies that expect to grow their cash as current year earnings is not indicative of value. Their sustained revenue growth is astounding. The fact they even have a profit surprises me as you don't double your revenues without investment from cash. Besides tax is the biggest unnecessary expense so minimizing it is good business. Personally I think Atlassian is under valued and the market value on opening day will be much higher. Sent from Outlook
On Tue, Nov 10, 2015 at 2:16 PM -0800, "Matt Moore" <[email protected]> wrote: 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 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 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 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. Vist http://siliconbeachaustralia.org for more >> >> Forum rules >> 1) No lurkers! It is expected that you introduce yourself. >> 2) No jobs postings. You can use http://siliconbeachaustralia.org/jobs >> >> >> To post to this group, send email to >> [email protected] >> To unsubscribe from this group, send email to >> [email protected] >> For more options, visit this group at >> http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en >> >> --- >> You received this message because you are subscribed to the Google Groups >> "Silicon Beach Australia" group. >> To unsubscribe from this group and stop receiving emails from it, send an >> email to [email protected]. >> For more options, visit https://groups.google.com/d/optout. >> >> -- >> -- >> You received this message because you are subscribed to the Silicon Beach >> Australia mailing list. Vist http://siliconbeachaustralia.org for more >> >> Forum rules >> 1) No lurkers! It is expected that you introduce yourself. >> 2) No jobs postings. You can use http://siliconbeachaustralia.org/jobs >> >> >> To post to this group, send email to >> [email protected] >> To unsubscribe from this group, send email to >> [email protected] >> For more options, visit this group at >> http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en >> >> --- >> You received this message because you are subscribed to the Google Groups >> "Silicon Beach Australia" group. >> To unsubscribe from this group and stop receiving emails from it, send an >> email to [email protected]. >> For more options, visit https://groups.google.com/d/optout. > > -- > -- > You received this message because you are subscribed to the Silicon Beach > Australia mailing list. Vist http://siliconbeachaustralia.org for more > > Forum rules > 1) No lurkers! It is expected that you introduce yourself. > 2) No jobs postings. You can use http://siliconbeachaustralia.org/jobs > > > To post to this group, send email to > [email protected] > To unsubscribe from this group, send email to > [email protected] > For more options, visit this group at > http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en > > --- > You received this message because you are subscribed to the Google Groups > "Silicon Beach Australia" group. > To unsubscribe from this group and stop receiving emails from it, send an > email to [email protected]. > For more options, visit https://groups.google.com/d/optout. -- Matt Moore M. +61 (0) 423 784 504 [email protected] http://innotecture.com.au/ -- -- You received this message because you are subscribed to the Silicon Beach Australia mailing list. Vist http://siliconbeachaustralia.org for more Forum rules 1) No lurkers! It is expected that you introduce yourself. 2) No jobs postings. You can use http://siliconbeachaustralia.org/jobs To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en --- You received this message because you are subscribed to the Google Groups "Silicon Beach Australia" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. For more options, visit https://groups.google.com/d/optout. -- -- You received this message because you are subscribed to the Silicon Beach Australia mailing list. Vist http://siliconbeachaustralia.org for more Forum rules 1) No lurkers! It is expected that you introduce yourself. 2) No jobs postings. You can use http://siliconbeachaustralia.org/jobs To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en --- You received this message because you are subscribed to the Google Groups "Silicon Beach Australia" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. For more options, visit https://groups.google.com/d/optout.
