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Australian tech billionaires Mike Cannon-Brookes and Scott Farquhar have had about a billion dollars wiped from each of their fortunes in a matter of hours, after shares in their enterprise software firm Atlassian sank by more than 10 per cent in after-hours trading.<\/p>\n
Investors pummeled Atlassian\u2019s shares on Friday morning AEDT, after the workplace software provider\u2019s net loss widened to $US31.9 million ($49.7 million), compared with a net loss of $US13.7 million a year earlier. The company, which is listed on the US-based Nasdaq, is yet to post a full-year profit.<\/p>\n
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Atlassian\u00a0co-CEOs Mike Cannon-Brookes and\u00a0Scott Farquhar.<\/span>Credit: <\/span>Louie Douvis<\/cite><\/p>\n Two of Australia\u2019s wealthiest people, Cannon-Brookes has an estimated fortune of $16.1 billion, just ahead of his co-founder Farquhar on $15.6 billion, and the pair have each held on to about 20 per cent of the company they started more than 20 years ago.<\/p>\n If the after-hours drop materialises when the Nasdaq reopens, the founders\u2019 holdings will fall by about $US1 billion each.<\/p>\n In its financial results for the first quarter of fiscal year 2024 on Friday, Atlassian posted total revenue of $US978 million, up 21 per cent from a year earlier, while growth slowed for a fifth consecutive quarter. Its results were largely in line with analyst expectations.<\/p>\n Excluding the after-hours drop, Atlassian shares are up by 41 per cent over the past 12 months, compared with the broader S&P 500 index which has risen by 12 per cent.<\/p>\n Cannon-Brookes and Farquhar warned shareholders in a letter that the macroeconomic environment remained uncertain, leading to caution from customers to pay for software products.<\/p>\n \u201cOur guidance assumes that macroeconomic headwinds continue to negatively impact growth in paid seat expansion at existing customers and free-to-paid conversion rates, and that the trends we\u2019ve seen in these areas throughout the last year persist in financial year 2024,\u201d the pair said in the letter.<\/p>\n \u201cAtlassian has a strong track record for anticipating workplace trends and making bold moves to capitalise on them. We believe a ripper team, an expanding customer base, and our steady drumbeat of innovations will drive long-term durable growth.\u201d<\/p>\n The company\u2019s collaboration and IT service management applications, including Jira, Confluence and Trello, have more than 265,000 customers globally, according to its latest figures.<\/p>\n It has made two major acquisitions this year, including enterprise video chat maker Loom for $US975 million, Melbourne-based cloud platform provider AirTrack, and has added AI functionality across its product suite.<\/p>\n Atlassian in March joined other technology companies in laying off 5 per cent of its workforce, and said it would be \u201creinvesting in roles that better support our priorities\u201d. It said on Friday that its headcount had reached 11,151 workers, which was 14 per cent higher than a year ago.<\/p>\n Speaking on the sidelines of Atlassian\u2019s Teams summit in Las Vegas in April, Cannon-Brookes said he had no plans to depart the company he co-founded more than two decades ago, despite rising commitments relating to environmental activism and philanthropy.<\/p>\n \u201cI\u2019ve had a 90\/10 rule for many years\u2026 And I don\u2019t intend to change that,\u201d Cannon-Brookes said.<\/p>\n \u201cNinety per cent of my hours are spent here [at Atlassian], 10 per cent are spent outside.<\/p>\n \u201cI have a lot of great teams of people outside, but this is something that\u2019s a very intentional choice of how to spend my time, and that\u2019s how I can have the greatest impact.\u201d<\/p>\n The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. <\/i><\/b>Sign up to get it every weekday morning<\/i><\/b>.<\/i><\/b><\/p>\nMost Viewed in Business<\/h2>\n
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