Software-Tools Maker Atlassian Files for IPO
November 09 2015 - 06:40PM
Dow Jones News
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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