Atlassian Skyrockets in IPO

By Chris Lange Updated Jan 13, 4:13PM EST · Published Dec 10, 3:27PM EST

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Atlassian Skyrockets in IPO — © Thinkstock

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.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.