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Collaboration software provider Atlassian to go public with $250M IPO

Collaboration software provider Atlassian to go public with $250M IPO

Atlassian, the company behind collaboration software like HipChat and JIRA, has filed paperwork with the United States Securities and Exchange Commission (SEC) to go public. The company is seeking to raise $250 million from the public market through its Initial Public Offering (IPO) and will trade on the NASDAQ stock exchange under the symbol “TEAM”.

The company previously sought to go public under the JOBS Act, but now it’s publicly disclosing its standing for everyone to see. Goldman Sachs and Morgan Stanley have been chosen as the two underwriters for this offering.

It is approaching the market apparently in good financial standing: in its 2015 fiscal year, Atlassian reported that it has $319.52 million in revenue, and net income of $6.75 million. In fact, at least since 2013, the company continues to be profitable. This year, the three biggest markets in terms of revenue are the Americas ($159.38 million, a 46 percent annual increase), followed by Europe ($127.7 million, a 51 percent increase), and Asia Pacific ($32.44 million, a 54 percent increase).

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Both of Atlassian’s founders, Michael Cannon-Brookes and Scott Harquhar, retain a considerable share of the company’s equity: 37.2 percent each.  Only Accel Partners holds a significant amount (12.5 percent) that comes close.

In going after public money, the company says it’s going to be “the first time in our 13-year history” that it’ll be raising any external financing. Yes, it did get $60 million from Accel Partners in 2010, but that and other funds raised by institutional partners were through the secondary markets. Atlassian says that it’s mission is about “unleashing the potential in every team” and it has a slate of products designed to make it happened, powered by more than 1,300 employees scattered around the world.

Some of its risks it outlined for potential shareholders are around its inability to sustain its revenue growth in the future, and if its security measures fail to protect against unauthorized access to customer data.

Because Atlassian is incorporated in the United Kingdom, it’s subject to different rules than a typical U.S. company going public. It’ll be deemed a “foreign private issuer”, which means it won’t be subject to the same stringent corporate governance guidelines and disclosure requirements like its U.S.-based competitors should they go public.

The company says that 864 of its customers have spent at least $50,000 on its products this fiscal year, including Bose, Fitbit, Red Bull, PayPal, Visa, Novartis, Abbott Laboratories, NASA, Adobe, Citrix, Cisco, Samsung, Verizon, Neiman Marcus, Tesla, and Toyota Motors Europe.

Atlassian is the provider of products like JIRA for project management, Confluence for content creation, HipChat for messaging, Bitbucket for code sharing and management, and JIRA Service Desk for support requests. The company says that it now sees 5 million monthly active users across its products from across 450,000 organizations. Within those, there were 51,000 customers (those that have at least one active and paid license) as of the end of September, which is a 129 percent increase since June 2010.

Atlassian is a software company that provides innovative enterprise software solutions to a number of organizations. Originally founded in 2002 in Sydney, Australia, the company has quickly grown to establish a global presence with ove… read more »

Mike Cannon-Brookes is the co-founder and co-CEO of Atlassian – an award-winning enterprise software company that helps innovators everywhere plan, build, and launch great software. Sydney-based Atlassian counts some of the world’s l… read more »

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