Atlassian Files for IPO
Atlassian has filed its paperwork with the U.S. Securities and Exchange Commission (SEC) to allow it to proceed with a proposed initial public offering (IPO). The filing is for its Class A ordinary shares, although no terms regarding its share count or a price range have been set. Atlassian said that it intends to list its common stock on the Nasdaq Global Market under the TEAM stock ticker.
Goldman Sachs and Morgan Stanley will act as lead joint book-running managers for the proposed IPO. Additional book-running members were listed as Allen, UBS Securities and Jefferies. Co-managers were Canaccord Genuity, JMP Securities, Raymond James and William Blair.
Atlassian was founded in 2002, and its aim is to help software teams work better together with its products designed to help developers collaborate with other non-developer teams involved in software innovation. The company said that its products serve teams of all sizes and industries. The company’s filing said:
Our products include JIRA for team planning and project management, Confluence for team content creation and sharing, HipChat for team messaging and communications, Bitbucket for team code sharing and management and JIRA Service Desk for team services and support applications.
Atlassian claims to have over 51,000 customers, some $320 million in revenue and $7 million in net income for its fiscal year 2015, as well as 47% compounded revenue growth over the past three years. It also claims to have 10 years of profitability.
The company’s filing further said:
Our total revenues were $148.5 million, $215.1 million and $319.5 million for the fiscal years ended June 30, 2013, 2014 and 2015, respectively, representing a compound annual growth rate of 46.7% from fiscal 2013 to fiscal 2015. Our total revenues were $67.9 million and $101.8 million for the three months ended September 30, 2014 and 2015, respectively, representing an annual growth rate of 49.9%. We generated net income of $10.8 million, $19.0 million and $6.8 million for the fiscal years ended June 30, 2013, 2014 and 2015, respectively, and $3.6 million and $5.1 million for the three months ended September 30, 2014 and 2015, respectively. We also generated free cash flow of $47.1 million, $65.0 million and $65.5 million for the fiscal years ended June 30, 2013, 2014 and 2015, respectively, and $3.6 million and $8.2 million for the three months ended September 30, 2014 and 2015, respectively.
Atlassian will have two classes of ordinary shares after the offering, via Class A ordinary shares and Class B ordinary shares. As we see with other offerings, the shareholder rights for each class are identical for cash flow and earnings, but not in voting. Each Class A ordinary share is entitled to one vote and each Class B ordinary share is entitled to 10 votes, even if the Class B is convertible into one Class A ordinary share.