A $15m investment in Atlassian could yield a good return!
They have $15m in the bank but are on average burning $3.5-4m per quarter. Let's be extremely generous and say they have revenue of $1m a quarter.
So to be cash-flow even they need a to buy a company that's contributing at least $2.5m a quarter after costs, or $10m a year. "After costs" would have to include not only this new businesses running cost but the cost it would take BUD to integrate it into their business. They also need to keep enough of their cash hoard to be able to operate BUD in the interim or dramatically cut costs (and I mean lay off 2/3rds of BUD staff type dramatically).
So they need to buy a company that's generating more in cash than it will cost BUD to acquire them or BUD are still factoring for an exponential increase in Ohm revenue over the rest of this year to increase it's percentage of revenue contribution to meet their target. (Or they're being loose with the truth)
With their running costs they frankly need to keep most of the cash they have available, so any acquisition would require a CR, a bucket load more dilution and more than likely yet another pivot in direction of the business and the inherent inefficiencies that come with changing direction. Unless they could on-sell Parse... but I suspect it has no value owing to no mentions of it in either the quarterly or even the Annual Report (all 70 pages!!) for that matter.
There aren't any businesses I can think of that fit those criteria, if there were I'd like to buy it myself!!!
The could spend $10m on tickets for the $39 Mega Jackpot however ;-)
BUD Price at posting:
9.5¢ Sentiment: None Disclosure: Not Held
