Atlassian: No Room To Move Higher

Gary Alexander
31.07K Followers

Summary

  • Shares of Atlassian have moved higher in the wake of an incredibly strong fiscal third-quarter print.
  • Atlassian's total revenue growth accelerated to 38% y/y (from 23% y/y in Q2), while subscription revenue jumped 43% y/y (vs. 36% y/y in Q2).
  • The company continues to see strength in its Trello work management product, especially following the rollout of features like smart cards.
  • At the same time, this best-in-class software company is fully valued at ~25x forward revenue.

TechCrunch Disrupt NY 2015 - Day 3
Photo by Noam Galai/Getty Images Entertainment via Getty Images

In my view, the era of richly valued growth stocks is at an end, at least in the near term. Investors are putting growth on the back burner to focus on the "reopening trade", which

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This article was written by

31.07K Followers
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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