"Atlassian’s IPO Isn’t Really A Referendum on Unicorns" (TEAM)
From Wired:
Australian software company Atlassian
will begin trading on Nasdaq at opening today with the symbol TEAM. The
company plans to sell 22 million shares at $21 a share, which would
give it a valuation of $4.4 billion—a big jump from its reported $3.3
billion last year.
Atlassian sells collaboration tools for programmers and software
project managers, such as the bug tracking tool JIRA, which competes
with IBM’s Rational; the instant message app HipChat, which competes
with Slack; and the code collaboration and hosting site BitBucket, which
competes with GitHub.
Atlassian’s IPO is being touted as a referendum on the prospects of
other tech companies with valuations of over a billion dollars—often
referred to as “unicorns.” If the public market validates the billions
it was supposedly worth when it was still private, the theory goes, then
maybe the froth around other unicorns isn’t so frothy after all. But
Atlassian isn’t exactly representative of the unicorn crowd....MORE
...While a weak showing for Atlassian today would be certainly be a bad
omen for other unicorns, a successful IPO for the company won’t say much
about how investors will view companies like Airbnb (valued at $25.5
billion), Dropbox (valued at $10 billion), and Uber (seeking a valuation
of $62.5 billion). Rather, Atlassian’s IPO may be more of a bellwether
for tech companies further down the food chain—those that have
bootstrapped, or taken relatively modest amounts of funding, and those
with old-fashioned business models like selling software licenses to
large organizations....