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The math on this confuses me. If they have 125,000 customers and are worth $20,000,000,000... investors are valuing each individual customer as being worth $160,000.

There's gotta be a typo in there somewhere, right?



The market value of a company is (in theory) the sum of the lifetime value of all of the customers. No idea what Atlassian's ACV is but $160K is $30K/year over five years (not a crazy estimate for the lifetime of line of business software in an organization). However, investors also care about growth and Atlassian grew subscription revenue 64% from FY17 to FY18.


So this is normal? Crazy. Clearly I'm not a finance guy.




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