Atlassian

Performance indicators

2021: Revenue - $2.09 billion, loss - $696.3 million

Atlassian ended fiscal 2021 with revenue of $2.09 billion against $1.61 billion in 2020 (up 29%). Most of the revenue came from sales of software subscriptions - $1.32 billion. A year earlier, this figure was measured at $931.5 million.

Earnings from support services brought Atlassian annual revenue of $523 million, which also exceeds the value of a year ago ($469.4 million). Sales of licenses for software installed on client computers decreased on an annualized basis from $95.2 million to $84.8 million, which is due to the company's transition to a cloud-based business model.

Over the past year, we have taken swift and bold steps to continue our transformation into a cloud-focused company and fulfill our mission to unlock the potential of each team. And it's already bearing fruit, "two Atlassian CEOs Scott Farquhar and Mike Cannon-Brooks said in a joint statement.

Atlassian's net losses in 2021 turned out to be $696.3 million, which is almost double the cash losses of a year ago. Losses rose due to increased expenses, including related to securities transactions.

It also follows from the reporting that by the end of June 2021, the company had 236,118 active customers against 174 thousand a year earlier. For the fiscal fourth quarter, Atlassian added 23,311 customers, of which 6,520 are Trello users.

By the end of June 2021, Atlassian had accumulated cash and cash equivalents in the amount of $1.2 billion. The annual cash flow from the main activity increased by 53% and reached $841.3 million.

On the day of financial year 2021 earnings, Atlassian shares rose 9%, thanks to the fact that the company's revenues and forecasts exceeded Wall Street analysts' expectations.^[1]

History

2023

Disabling Russian accounts

The Australian company Atlassian, which is the developer of the Jira and Trello programs, announced the blocking of user accounts from Russia and Belarus in its services. The corresponding notification is contained in the letter sent to customers.

We are contacting you to inform you that Atlassian is curtailing its activities in Russia and Belarus, the document says, which Kommersant got acquainted with.

Atlassian suspends sales and blocks accounts from Russia and Belarus

According to this letter, the accounts of Russian and Belarusian customers will be disconnected from all Atlassian services within a month from the date of receipt of the notification.

Also, as the TAdviser journalist was convinced, when trying to register a new account on the Trello website, a notification appears about the company's suspension of sales of new software in Russia and Belarus.

As the CNews edition notes, the total blocking of the profiles of Russians in Atlassian products, taking into account the first such cases that occurred back in the spring of 2022, was only a matter of time. The Russians had the opportunity to prepare for this, and, as practice has shown, they did not fail to take advantage of it.

Over the past year and a half since Atlassian left Russia, several of its independent counterparts have appeared in Russia. Rostelecom is working on one of them: we are talking about the Yaga planning and communications platform, in which the company invests 1 billion rubles. Yandex also has its own alternative to the Australian Jira and Trello. The Internet giant has been developing its Tracker platform since 2012, and almost immediately after Atlassian imposed its sanctions, Tracker introduced a lot of new features. In total, the system has incorporated more than 100 changes, from small and invisible to radical and directly affecting the user experience.^[2]

Employee Data Breach

In mid-February 2023, it became known that the attackers had stolen data from the Australian company Atlassian, a developer of collaboration software.

The hacking was announced by the hacker group SiegedSec. According to cybercriminals, they were able to steal information about thousands of Atlassian employees, including "email addresses, phone numbers, names and more." In addition, the floor plans of several buildings of the company were stolen.

In addition to these employees, the plans of the company's buildings were stolen

Security experts Check Point Software told BleepingComputer that they analyzed the leak and concluded that it did contain floor plans for Atlassian office buildings in Sydney and San Francisco, as well as a JSON file that includes information about employees. Check Point experts also reported that the hack was carried out not directly, but through a third-party service provider Envoy.

On February 15, 2023, we learned that data from Envoy, a third-party application Atlassian uses to coordinate office resources, had been compromised and released, Atlassian said.

However, Envoy itself says that they do not know anything about hacking their IT systems. A more detailed analysis of the incident suggests that the attackers were able to steal the credentials of one of the Atlassian employees and use them to access the information stored in the Envoy application. Atlassian told BleepingComputer that the employee's credentials were mistakenly published in a public repository, allowing cybercriminals to use them to steal files through the Envoy application.

The account of the compromised employee was immediately disabled at the beginning of the investigation. Atlassian's product and customer data is not available through the Envoy app and therefore is not at risk, the company said.[3]

2022: Suspension of software sales in Russia

On March 3, 2022, Atlassian, an Australian software developer for development management, ON said it was suspending the sale of all its new one software Russia due to the situation on. Atlassian's To Ukraine development framework includes products such as,, Jira Confluence Bitbucket.

The company also suspends existing licenses from a number of Russian government organizations and individual corporate clients that support military operations through "computer network operations, fighting or disinformation." The specific names of these organizations are not given in Atlassian's statement, but the message suggests that we are talking about businesses with "strength and influence."

Speaking about this, we do not stop our relationship and obligations to our existing small business customers, Atlassian notes.

According to data from publicly available sources, among the large users of Jira in Russia are Sberbank, VTB, Promsvyazbank, Rostelecom, Voskhod Research Institute.

Russia's military operation in Ukraine affects the Atlassian team: the company in this country has a number of developers on a contract basis. Immediate measures were taken through Ukrainian partners to ensure the safety of these developers, and they are supported.

The company condemns Russia's actions in Ukraine and the suspension of sales of its software in Russia are associated with its contribution to the field of human rights.

In Russia, according to Atlassian, it has no direct employees, as well as any services based in Russia.

iFellow, a longtime partner of Atlassian, says there is no massive revocation of existing Server and Data Center licenses, and their renewal is also possible. At the same time, iFellow has created an Atlassian support center, where you can seek advice on licenses and product development.

2021: Atlassian Cloud Enterprise Announcement

In early February 2021, Atlassian officially announced its refusal to sell new licenses for software installed on local computers. Instead, the company will focus on cloud services, and for this it launched the Atlassian Cloud Enterprise solution. Read more here.

2020

Revenue growth by 33%, to $1.61 billion

Atlassian earned $1.61 billion in revenue at the end of 2020, which is 33% more than sales a year ago. Most of this turnover - $931.5 million - came from the implementation of software subscriptions. This is a third more compared to the 2019 reporting year.

The company's revenues from support services for its products rose on an annualized basis from $394.5 million to $469.35 million. Another revenue item - the sale of perpetual software licenses - brought the vendor about $95.2 million at the end of the 2020 financial year against $93.6 million a year earlier.

The company remains unprofitable, but its net losses for the 12-month period closed on June 30, 2020 calendar, significantly decreased - to $350.7 million from $605.6 million a year earlier.

Atlassian continues to suffer losses

It also follows from the annual statements that Atlassian registered cash flows at $574.2 million, which is 19% higher than a year ago.

By the end of June 2020, Atlassian had more than 174 thousand customers, then by the same period of the previous year, the indicator was measured by 152.7 thousand customers. According to the co-founder and CEO of Atlassian, Scott Farquhar, more than 150,000 customers of the company use its cloud products, and Atlassian has made "significant progress towards becoming the world leader in the software market, for which cloud computing is a priority."

The last months of the financial year turned out to be difficult for Atlassian, since due to the COVID-19 coronavirus pandemic, representatives of small and medium-sized businesses, which the company focuses on, canceled their monthly cloud contracts. Because of this, Atlassian forecasts revenues below Wall Street expectations, which, in turn, led to a 7% drop in the manufacturer's quotes on the day the financial results were released.

Atlassian Announces Fourth Quarter and Fiscal Year 2020 Results

Buy Mindville IT Infrastructure Management Software Developer

At the end of July 2020, Atlassian announced the acquisition of Mindville, but did not disclose the value and other terms of the transaction. Read more here.

2019

Atlassian bought Code Barrel

On October 17, 2019, Atlassian announced the acquisition of Code Barrel. Its participants did not disclose the financial component of the transaction. Read more here.

Purchase of Agile software manufacturer AgileCraft for $166 million

March 18, 2019 Atlassian announced the acquisition of the manufacturer ON for - Agile development for AgileCraft $166 million. Most of this amount (about $154 million) will be paid from the buyer's own funds, and the remaining share will be paid in the form of his shares with limited circulation. The deal is scheduled to close in April 2019. More. here

6-fold loss growth to $637.6 million

In fiscal 2019, Atlassian's revenue for the first time exceeded $1 billion and reached $1.21 billion, which is 37% higher than a year ago.

Most of the company's revenues are related to the sale of renewable software subscriptions: for the year, the vendor earned $634 million from this against $410.7 million a year earlier. Revenue from support services during this time increased from $326.5 million to $394.5 million, and annual sales of perpetual licenses increased from $83.2 million to $93.6 million.

Atlassian financials

Although Atlassian's revenue continues to grow rapidly, the company remains unprofitable. Moreover, its monetary losses are growing. In fiscal 2019, the corporate software manufacturer's net losses increased almost 6-fold to $637.6 million. The company explained the tangible increase in losses by non-cash expenses of $533.9 million related to the adjustment of the fair value of senior notes and other securities.

By the end of the reporting year, Atlassian's solutions were used by 152,727 customers versus 125,796 a year earlier.

Commenting on the financial results, co-founder and one of the two CEOs of Atlassian Mike Cannon-Brooks noted that the company has become focused on cloud computing, and it has more than 125 thousand customers using cloud solutions. More than 90 % of new customers prefer such products.

Atlassian will continue to invest in the cloud business to meet the needs of the largest Fortune 500 companies and drive long-term business growth, Cannon-Brooks said. As part of the development of the cloud business, free versions of certain products will be offered, he said.

However, by the end of fiscal 2019, most of the Atlassian software used by companies, especially large ones, is installed on their servers.^[4]

2018

Triple loss growth to $119.34 million

In fiscal 2018, Atlassian's revenue reached $873 million, up from $619.94 million a year earlier. At the same time, the losses of the Australian company during this time almost tripled - from $42.5 million to $119.34 million. The reporting 12-month period ended on June 30, 2018 of the calendar year.

Atlassian's biggest revenues still come from the sale of software subscriptions. In 2018, the company earned $403.21 million on this against $242.13 million in 2017. Customer support services brought the vendor $325.9 million in revenue, which is 23% more than a year ago. Revenue from the sale of perpetual licenses in comparison with the year increased from $74.57 million to $85.48 million.

Atlassian financials

By the end of June 2018, Atlassian had amassed 125,796 customers, an increase of 6,638 from three months earlier. The financial report also states that annual sales at the Atlassian Marketplace enterprise software store exceeded $200 million, and the total number of purchases on the portal since its launch in 2012 amounted to more than half a billion dollars.

After the publication of the financial results, Atlassian quotes jumped by $13.67 or almost 21% (to $80.5) due to the fact that the company's revenues and forecast exceeded market expectations.

Atlassian Customer Base Growth

Commenting on the financial results, Atlassian co-founder and CEO Scott Farquhar called the 2018 fiscal year "grandiose" and noted that the company generated more than $281 million in free cash flow.

Along with the publication of the reports, Atlassian announced the sale of its corporate messengers to HipChat and Stride to Slack. As part of the deal, the cost of which was not disclosed, the services sold will be closed, and their users will be transferred to Slack.^[5]

Purchase a developer to monitor the IT infrastructure of OpsGenie

In early September 2018, Atlassian announced the acquisition of a developer ON for monitoring IT infrastructures OpsGenie for $295 million. This transaction will strengthen the buyer's position in the market software to manage IT operations. More. here

2017: Buying Trello

In 2017, the company for $425 million absorbed the developer of the project management service Trello.

2015: Going public

On December 10, 2015, the initial public offering of Atlassian shares took place. The debut of the Australian software developer on the NASDAQ exchange was very successful and above its own expectations.

As part of the IPO, Atlassian sold 22 million shares at a price of $21 apiece, as a result of which the company raised $462 million, and its business was valued at $4.4 billion. A week before the placement, the vendor expected its price range at $16.50-18.50, and a little later the forecast was raised to $19-20. In addition, the number of actually placed securities was 10% higher than expected. The IPO was organized by Goldman Sachs, Morgan Stanley, Allen & Company, UBS and Jefferies.

Atlassian co-founder and CEO Mike Cannon-Brooks, center, and co-founder Scott Farquhar, third from left, smile as they begin trading in the company's stock on NASDAQ, New York, Dec. 10, 2015.

According to the results of the first day of trading in Atlassian shares, their value increased by 32% compared to the offering price - to $27.78. The company's market capitalization increased to almost $5.8 billion, while in 2014, as part of a private financing round, Atlassian was valued at $3.3 billion, the agency said. Reuters

Atlassian's offering turned out to be the sixth largest in 2015, and the company became the first since early July to issue shares on the exchange at a price above the upper limit of the planned interval. At the same time, 2015 will be the worst year for the IPO market in terms of the volume of raising funds since 2009, analysts at Renaissance Capital say.

Atlassian claims that the company has remained profitable since 2005. However, in fiscal 2015, the software manufacturer's profit decreased by about two-thirds compared to a year ago and amounted to only $6.78 million. The company warns of a further drop in revenues due to the cost of developing new technologies.

This can create certain problems, says James Gellert, head of Rapid Ratings, an assessment of the financial condition of organizations and enterprises. According to him, a few months before going public, Atlassian hastily released several new products, which, due to the high speed of development, could be low-quality.^[6]

"If they lose the trust of the developer community, they will have serious sales issues," Gellert stated.

2014: London Management Company

In 2014, the London-based management company was incorporated, with headquarters and major management and engineering units retaining the Sydney location

2013: 24k companies - users of Atlassian products

By September 2013, Atlassian products are being used by major technology companies (such as Apple, Cisco, HP, Oracle, Samsung, SAP, Siemens), banks and financial institutions (Bank of America, BNP Paribas, Deutsche Bank, HSBC), research organizations (NASA Space Center, European Space Agency), telecommunications giants and television networks (AT&T , Verizon, Vodone, BBC, and production companies.

Atlassian Software System software is used by over 24,000 companies around the world, including such famous ones as Facebook, Twitter, Citigroup, eBay, Netflix and Nike, BMW, Cisco, Adobe, Apache. The Atlassian partner network has about 300 companies.

2010-2012

• In 2012, the HipChat service was acquired.
• In 2010, the Bitbucket project hosting and joint development service was acquired.
• In July 2010, the company raised an investment of $60 million from venture capital investors Accel Partners.

2007

In 2007, Cenqua was acquired, the creator of a number of software development products - Crucible, FishEye, Bamboo, Clover, Jira, the products were preserved and developed in Atlassian.

2002: Founding a company in Sydney

The Australian company Atlassian began operations in 2002, in a garage (a traditional place for successful IT startups) in the Australian capital Sydney for a bank-occupied $10,000.

The Australian company Atlassian was founded by University of New South Wales alumni Scott Farquhar and Mike Cannon-Brooks. They did not like all the traditional "features" of business software: the complexity of installation, the unfriendness of interfaces and, of course, the high price. The idea for the new company was to offer the market an alternative - this is how the Atlassian JIRA process and project management product was born, and later a content collaboration product that allows you to organize knowledge exchange throughout the company - Atlassian Confluence.

The founders of Atlassian decided to apply the consumer model to the distribution of business software: instead of the traditional direct sale of complex software to a handful of customers, Scott and Mike began selling their products online to more customers, making their product less expensive, but also easy to install and use. The company allowed its potential customers to study and try the proposed software and actively shared information with members of the professional IT communities. As a result, the combination of an open business model and quality products led to the formation, without exaggeration, of an army of loyal consumers around the world. Atlassian's strategy is openness in everything: the development process is transparent, users can report errors and monitor the status of their correction; product code is transparent, all customers have access to source code to make changes and customize the product for their tasks as needed. Atlassian actively cooperates with the developer community: all company products are based on open source components. At the same time, many of these components were developed by Atlassian and then transferred to the community. All this helps the company reduce development costs and quickly release new versions of its products.

Notes