Atlassian shares up on strong outlook

Mike Cannon-Brookes’ tech company swung to a loss, but still beat analyst expectations.

Mike Cannon-Brookes and fellow founder of Atlassian, Scott Farquhar pictured together in their Sydney HQ

Hello and welcome to The Download, The Australian’s technology blog for the latest tech news.

Chris Griffith 11.05am: New Uber Eats work contracts under fire

Uber is under fire over a new contract that says food delivery riders can be sacked if their actions have “the potential” to cause adverse publicity in the media.

The new contract follows the settlement of an unfair dismissal case in the Federal Court.

The Transport Workers Union has been campaigning about the conditions food delivery drivers face, including the risk they face on the road following several deaths in Australia of delivery riders on bicycles.

A reported five delivery drivers were killed on Sydney roads between late September and November last year.

Food delivery using an app is highly popular and fashionable, and is seen as a benefit of the digital age, but in industrial terms, there is grave concern about the work conditions of those who deliver.

The TWU’s latest campaign is around a new contract’s terms and conditions.

The TWU says the contract asks riders to take out their own workers’ compensation insurance, and warns they could have their pay revoked if a customer complaint is received, without right of reply.

“Meanwhile, Uber maintains the right to unilaterally alter the terms of the agreement at any time,” says the TWU.

One TWU concern is a clause that riders can be immediately terminated if “the rider engages in conduct that has the potential to cause adverse publicity, media attention or regulatory scrutiny or which may be detrimental to Uber‘s reputation or brand.”

We are seeking comment from Uber.

Lachlan Moffet Gray 9.35am: NAB to acquire neobank 86 400

NAB will acquire neobank 86 400 for approximately $220m and integrate it into its UBank online banking platform.

As of January 15, 86 400 had more than 85,000 customers, $375 million of deposits, $270 million in approved residential mortgages1 and 2,500 accredited brokers.

NAB chief operating officer Les Matheson said the acquisition was consistent with NAB’s long-term strategy.

“Bringing together UBank and 86 400 is consistent with NAB’s long-term strategy and growth plans and will enable us to develop a leading digital bank that can attract and retain customers at scale and pace,”

“The combined business will deliver accelerated innovation and an enhanced customer experience to create a stronger and more competitive banking alternative for Australian customers.”

NAB will increase its 18.6 per cent stake in the neobank to 100 per cent through a scheme of arrangement which will be scrutinised by the ACCC, APRA and the treasurer Josh Frydenberg.

The board of 86 400 has unanimously recommended that shareholders vote in favour of the scheme.

9.30am: Atlassian projects higher 3Q revenue

Atlassian Corp. projects higher revenue in the fiscal third quarter compared with the previous year as the software company sees cloud demand continuing momentum due to the COVID-19 pandemic.

Atlassian anticipates revenue of $US475 million to $US490 million, ahead of the $US411.6 million it reported in last year’s third quarter. It also topped analysts polled by FactSet’s estimates of $US472 million.

The company expects losses of 14 cents to 15 cents a share for the quarter, but a profit around 20 cents to 21 cents a share on an adjusted basis. Analysts were targeting a loss of 8 cents a share and an adjusted profit of 25 cents a share.

Atlassian’s shares rose 3.5pc after hours to $US235.14.

Dow Jones Newswires