Australian technology giant Atlassian has announced its co-founder and co-chief executive officer Scott Farquhar is stepping down as CEO after “an incredible 23 years”.

Atlassian is behind software such as Jira, Confluence and Trello.

Farquhar would finish in his current role on August 31, said Atlassian co-founder and co-CEO Mike Cannon-Brookes and chief financial officer Joe Binz.

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“He will remain active as a board member and assume a special adviser role,” the pair said in the company’s quarterly update on Friday.

Farquhar says he is looking forward to spending time with his young family, “improving the world via philanthropy” and “mentoring other tech CEOs”.

“While there is never a perfect time to make this change, I take comfort in my decision knowing Atlassian is so well placed for the future,” the 44-year-old said in a note to Atlassian staff on Thursday.

“We have a world-class cloud platform and the best team we’ve ever had.”

His departure comes as the tech giant announced a return to profitability after years of losses, recording net income of $US12.8 million ($A19.6 million) for the three months ending March 31.

Cannon-Brookes called it a “milestone quarter” as the company sought to grow customers for its cloud products after a period of stagnation and restructuring.

Atlassian’s value has more than halved since the record highs of October 2021 to fetch $US198.41 a share at Thursday’s close.

Its share price fell 6.3 per cent in after-hours trading, following the news of Farquhar’s exit.

Cannon-Brookes said it was impossible to quantify his long-term friend’s contribution to Atlassian.

“I couldn’t be prouder of what we have achieved together,” he said on LinkedIn.

“Atlassian and the wider tech ecosystem wouldn’t be what they are today without you.

“From the very beginning, you’ve been an incredible leader, partner and friend.”

Farquhar’s net worth was estimated at $18.16 billion by the Australian Financial Review Rich List in 2023.

Cannon-Brookes will stay on as Atlassian CEO.