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Aussie Tech finds success in offshore markets

04 April 2018  |  NEWS

(Atlassian’s Mike Cannon-Brookes (right) Scott Farquhar (left). Source: Atlassian)

Atlassian Inc. (NASDAQ: TEAM) is a Sydney-based tech company that develops and sells cloud-based collaboration software for teams of all sizes. It was founded by two classmates from The University of New South Wales in 2002. Since then, it has become a pillar of success for Australian technology firms, through its record-breaking valuation of $US 4.4bn in its Initial Public Offering (IPO) in December of 2015 and its ongoing rise on the NASDAQ.

The company’s decision to bypass the ASX and list on the US’s NASDAQ caused some confusion at the time, but the decision stands to be vital for the company’s success as it has provided greater exposure for the tech company. It is not uncommon for big companies to list in the US rather than their home country – China’s Alibaba and Baidu did it, and Sweden’s Spotify plans to as well.

Since its IPO, the share price has more than doubled, and its market cap currently exceeds $US 13bn – making its co-founders, Michael Cannon-Brookes and Scott Farquhar, the 499th and 500th richest people on the planet. 

Aussie Tech_graph 

(Source: Nasdaq: 20-Mar-2018)

Atlassian is growing but has plenty of opportunities left. In the most recent financial report, its revenue grew 43% to $US 212.6 million in one quarter beating analyst expectations. Its user base also grew to over 100,000 users, and revenue is forecasted to hit between 841 million to 847 million in fiscal 2018. Atlassian also said that its ‘Marketplace’ of business apps had surpassed a new revenue milestone during the quarter, reaching $US 350 million in lifetime sales since its launch in 2012. The Marketplace currently has over 3,500 applications build on top of Atlassian’s core products.

Investors were clearly encouraged by the company’s results and outlook. Atlassian adopts a laid-back approach to marketing, with no pushy salespeople. They let their products do the talking, and this has made it a $US 13bn company, and the additional products developed with its IPO funds and profit give the potential for more growth.

The pair of university classmates who founded Atlassian in 2002 have become figureheads for Australia’s tech scene. To become involved in this Aussie success story, you will need to purchase the stock on the NASDAQ – A US exchange - where the ticker symbol is TEAM. Most local brokers who provide access to who provide access to  international share trading markets do so at exorbitant prices. With Monex, you can purchase companies listed in the United States starting from just $US 9.99 per trade.


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