Atlassian is seeking to raise external capital for the first time in its 13-year history, with the homegrown tech success story filing a preliminary prospectus for an initial public offering in the United States overnight.
The filing comes after a long period of speculation that Atlassian would go public, with reports as recently as yesterday speculating about when the former Smart50 finalist would lodge its prospectus with the US Securities and Exchange Commission.
Get business news first
Sign up to SmartCompany’s daily newsletter
While Atlassian has not put a hard number on how much capital it is seeking to raise via its listing on the NASDAQ exchange, it has nominated a notional maximum aggregate offering of $US250 million.
The company was recently valued at approximately $US3 billion ($4.25 billion).
While Atlassian has not specified a date for the float, it is likely to occur before the end of the year.
“Atlassian is a special company. We are unlike any other enterprise software company you’ve seen before,” said founders Mike Cannon-Brookes and Scott Farquhar in a letter in the prospectus.
“We have an ambitious mission, a decade-long history of consistent growth and free cash flow, a culture of innovation, and a unique model that both propels our existing business and opens up future growth opportunities.”
Cannon-Brookes and Farquhar, who founded Atlassian in 2002, said the future of their business will be driven by the power of teamwork.
“Atlassian’s mission is to unleash the potential in every team,” the said.
“Our products help teams organise, discuss and complete their work. And what teams do can change the world. We have helped NASA teams design the Mars Rover, Cochlear teams develop hearing implants and hundreds of thousands of other teams do amazing things. We have an incredible opportunity to help millions more teams in organisations across nearly every industry.”
“Teamwork is hard. We make it easier.”
Cannon-Brookes and Farquhar said teamwork has been, and remains, a key value at Atlassian. In fact, Atlassian will list on the NASDAQ under the ticker name ‘TEAM’.
“We began Atlassian as a team. We lead Atlassian as a team. We’re two founders. We’re two co-CEOs,” they said.
“We’re made better through teamwork and a deep shared belief in what we’re building. It’s unusual, but after 13 years, we’re practiced at it. We believe Atlassian is stronger for it.”
Here’s six things Atlassian revealed about itself in its SEC filing.
1. Atlassian’s revenue exceeded $US300 million last year
In the 2015 financial year, Atlassian collected revenue of US$319.5 million. Its revenue has been growing steadily over the past three years, increasing at a compound annual rate of 47%.
2. Atlassian has been profitable for 10 years
Perhaps unsurprisingly to some, Atlassian has been profitable for the past decade.
In the 2015 financial year, Atlassian recorded net income of $US6.8 million. The year before, its net income was $US19 million and in the 2013 fiscal year, the company’s net income came in at $US10.8 million.
3. It has more than 50,000 customers
Atlassian says its user base is currently at 51,000 customers, which come from 160 countries.
4. Its top clients include NASA and Cochlear
The software company also says 79 of the Fortune 100 businesses currently use its products.
Some of its high-profile clients have also been using Atlassian for a long time; Cisco Systems, Kroger and Verizon Communications are listed in the prospectus as having bought their first Atlassian products before 2003 and they are still customers today.
5. Cannon-Brookes and Farquhar each hold 37.7% of the company
Atlassian’s founders currently own the vast majority of shares in the tech company, with both Cannon-Brookes and Farquhar each holding 37.7% of the company.
The next largest shareholders is Accel Partners, which holds a 12.7% stake. Richard Wong owns 7.3% of Atlassian and Jay Simons holds a 2% stake.
Post-IPO Atlassian will have a dual-class stock voting structure, which means Cannon-Brookes and Farquhar will hold on to majority voting power over other shareholders.
Cannon-Brookes and Farquhar have an estimated combined wealth of $2.3 billion, which is likely to increase following the float.
6. Atlassian is incorporated in the United Kingdom
According to the filing, Atlassian was recently restructured and reincorporated in the United Kingdom.
However, the company’s main offices are still in San Francisco and its home city, Sydney.