Can't say I'm particularly bullish about Atlassian
With a market cap of $50b at time of writing and EBITDA of $42m this is one of the more expensive tech plays on the market at the moment. Cash is sitting at 1.28b so I'm also curious if a cap raise is on the horizon.
Don't get me wrong, I use Confluence and Trello at work so I understand the benefits from a product perspective and quarterly revenue was up 30% YoY to $740.5m. They also announced that they have a path to $10 billion in annual subscription based revenue based off their existing product suite.
But it's also will need to deliver on growth for it to reach a consistent profitability level considering that their most recent quarter produced a net loss of $31 million.
I'm wondering if there are better buys currently given the recent sell-off. TSLA, SHOP, TWLO are a few that I think represent better opportunities.