Atlassian Skyrockets in IPO
When Atlassian entered the market late on Thursday morning, its shares went out well above the expected price range.
Atlassian Corp. PLC (NASDAQ: TEAM) entered the market late on Thursday morning. The company priced its shares at $21 just above the expected price range of $19 to $20. However despite pricing above the range, shares actually entered the market at $26.50. The company intends to use the net proceeds from this offering for general corporate purposes, including working capital, operating expenses and capital expenditures.
The company was founded in 2002, and its aim is to help software teams work 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.
Atlassian’s 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.
The company 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.
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In the filing the company described its finances as follows:
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.
Shares of Atlassian were last trading up nearly 30% at $27.22, with a daily range of $26.50 to $28.05. So far on the day, roughly 13 million shares have moved.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
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