SAN FRANCISCO—Software-tools maker Atlassian Pty Ltd., which has been valued privately at more than $3.3 billion, made its IPO filing public on Monday after filing confidentially earlier this year.

The company will likely be watched intently by other closely held, highly valued companies that will need at some point to return money to their investors.

Atlassian, however, in several ways isn't typical of its peers. Founded in Australia in 2002, the company was bootstrapped to profitability by its founders and didn't raise venture capital until 2010. It has since raised two rounds of funding totaling $210 million so its employees could sell shares.

Revenue for the fiscal year ended June 30 was $319.5 million, up nearly 50% from $215.1 million in 2014. Net income fell by about two-thirds to $6.8 million, down from $19 million the year before.

But the company's growth continues. For the quarter ended Sept. 30, revenue increased to $101.8 million from $67.9 million. Net income rose to $5.1 million from $3.6 million.

Principal shareholders include Accel Partners, which was the sole venture capital investor in 2010 when Atlassian raised $60 million and holds 12.5% of shares, according to the filing. Accel General Partner Rich Wong is on the board.

Founders and Co-Chief Executives Michael Cannon-Brookes and Scott Farquhar each own 37.2% of the company's pre-IPO shares, the filing says.

Given the growing use of software even by nontech companies to perform critical business functions, Atlassian is in a hot space. Its products include HipChat, which enables messaging, group chat, voice, video, and file or screen sharing on any connected device. The company competes against Slack Technologies Inc., another fast-growing software company that has raised $315 million and was last valued at about $2.8 billion.

Atlassian's core product is JIRA, which manages workflow for teams, and the company also creates developer tools and a service desk product that competes with help-desk software such as Zendesk and Freshdesk.

Other Atlassian competitors include Rally Software Development Corp., which went public in 2013 and is valued at about $500 million, and GitHub, a San Francisco company that has raised $350 million and was last valued at about $2 billion.

Atlassian has filed to list its common stock on the Nasdaq Global Market under the ticker symbol TEAM. Goldman, Sachs & Co. and Morgan Stanley & Co. will act as lead joint book-running managers for the offering, with Allen & Co., UBS Securities and Jefferies acting as additional book-running managers and Canaccord Genuity, JMP Securities, Raymond James & Associates and William Blair & Co. acting as co-managers.

Atlassian said in its filing that it could raise up to $250 million in the offering though that is an estimate that is used to calculate filing fees and is likely to change. The company hasn't yet said how many shares it plans to offer or how they will be priced.

 

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(END) Dow Jones Newswires

November 09, 2015 18:25 ET (23:25 GMT)

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