Home Business Big Business Atlassian shares skyrocket on back of strong results

Atlassian shares skyrocket on back of strong results

The billion-dollar Aussie tech disruptor that's not slowing down.

Azal Khan

Digital Journalist, Your Money

Shares in Australian-born tech giant Atlassian rose more than 10 per cent in after-hours trading Thursday after the company announced better-than-expected earnings.

The software company posted quarterly revenue of US$299 million, slightly beating analyst’s $288.3 million estimates, and were up 39 per cent in year-on-year sales.

In a statement, Scott Farquhar, Atlassian’s co-founder said results highlighted the growing demand for their products.

Mike Cannon-Brookes (L) and Scott Farquhar (R), co-founders of Atlassian and at Fortune’s 40 Under 40 list, October 13, 2016 in San Francisco, California. (Photo by Kelly Sullivan/Getty Images for Fortune)

The second quarter of fiscal 2019 capped off a fantastic 2018, as we eclipsed $1 billion in calendar year revenue for the first time,” Farquhar said.

The much-hyped company develops products and platforms for software developers and global businesses on a subscription basis, pulling in $152.5 million in subscription revenue alone in this quarter.

Atlassian is one of Australia’s great tech start-up success stories, with Farquhar co-founding the global tech giant with his University of New South Wales mate Mike Cannon-Brookes in 2002, using $10,000 in credit card debt.

The pair debuted on the BRW Rich 200 List in 2013, worth $250 million each.

Farquhar and Cannon-Brookes are now the fifth-richest Australians.

Farquhar set a record for the highest price paid for an Australian house in April 2017 when he bought Point Piper estate Elaine for an estimated $71 million.

But it didn’t take long before his mate and business partner knocked him off the perch and set a new record for Australia’s most expensive house when he bought next door to Farquhar.

Cannon-Brookes paid $100 million for Fairwater, a sprawling estate in Point Piper previously owned by the Fairfax family. The elegant estate is the largest privately-held property on Sydney Harbour.

Fairwater in Point Piper was the most expensive house sale in Australia.

The company started to trade on the Nasdaq in December 2015 under the ticker symbol ‘TEAM’, riding off the company’s reputation for its supposedly people-driven culture in which the shoeless founders regularly walk the floor speaking to staff.

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