Co-founders of Atlassian paper wealth of software falls $ 1.6 billion overnight


Australian billionaires Mike Cannon-Brookes and Scott Farquhar suffered a massive $ 1.6 billion blow with the market reacting badly to the software group's prospects for the fiscal year.

Co-founders of NASDAQ-listed Atlassian, currently valued at $ 34 billion, were listed in the United States overnight, plunging eight percent from $ 111.19 ($ 165.46) to US $ 100.92 (US $ A141.13).

That resulted in the pair collectively losing $ 1.6 billion.

In its outlook for this fiscal year, the company said it expects earnings to remain at $ 0.82 a share, outpacing earnings expectations at $ 0.10.

According The Sydney Morning Herald, they had stakes of $ 10 billion before the overnight dive.

But analysts say it is only a temporary lapse and will not affect the company's future and despite the fall, Atlassian is still trading around 114 times its future earnings, according to Bloomberg statistics.

The company, which was created by the Sydney duo and university students in 2002, makes a number of corporate software products, including the JIRA project management tool.

For the quarter of March 2019, Atlassian generated revenues of US $ 309 million (US $ A430 million), an increase of 38% over the same period of the previous year. Sydney Morning Herald reported.

In a letter to stakeholders, the pair described their business as being at top speed, working to unlock the potential of each team.

The duo, who last year led the Financial Review Young Rich List with combined net worth of $ 14.2 billion, founded the business software company for 17 years while still living in a stock house and "eating noodles daily ".

Farquhar said it was not until 2003 that they got their first big client. The fax with the American Airlines purchase order is still hanging outside your Sydney office.

"This was the turning point when we knew we were coming," he told the BBC.

They have gone from just a few employees to now boasting a team of members from around the world, including Sydney, San Francisco, Austin, Amsterdam and Manila.

Atlassian floated in the US stock market in 2015.

But Farquhar insisted Atlassian was not an immediate success.

"It took 17 and a half years," he told the BBC. "We made mistakes along the way. We launch products very late. Recently, we had to close a product that did not reach the market. "

The technology duo broke record records for the biggest real estate sales in Australian history when they bought mansions side by side at Sydney's exclusive Point Piper.


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