Atlassian is a company I’ve wanted to own for awhile. I have taken a starter position a couple of times in the past, but was never comfortable with the valuation. It has come down enough now that I am establishing a full position.
Atlassian is a global software company helping teams around the world unleash their potential. We build tools that help teams collaborate, build, and create together.
Revenue growth (%)
2017 34 36 36 37
2018 42 43 40 40
2019 38
FCF $ (% of revenue)
2015 66 (21%)
2016 95 (21%)
2017 183 (29%)
2018 281 (32%)
1Q19
earnings slides :https://seekingalpha.com/article/4212728-atlassian-2019-q1-r…
Rev. $267 M( +38%) (258-260 guidance)
gm 86%( up from 84)
om 23 % (up from 20)
over 131,000 customers, added over 6000
2q19G Rev of 287-289 (36%)
fy2019g Revenue: 1175-1183 (up from 1146-1154)
FCF 360-370 (up from 330-360)
I like:
consistent great rev. growth
improving cash flows
improving margins
management: Last year they purchased Trello. This year, they realize Slack has a better product, and they partner with them and close their product.
Focusing on R&D
consistent beat and raise
Will be watching:
Customers: they have 131,000. When are they going to reach their TAM? So far their guidance shows this isn’t a problem yet.
Jim