TEAM Atlassian Corporation PLC

Revenue of $1,286 million, up 21% year-over-year

Subscription revenue of $1,213 million, up 30% year-over-year

GAAP operating margin of (4)% and non-GAAP operating margin of 26%

Cash flow from operations of $352 million and free cash flow of $343 million

Atlassian Corporation (NASDAQ: TEAM), a leading provider of team collaboration and productivity software, today announced financial results for its second quarter ended December 31, 2024. A shareholder letter was posted on Atlassian’s Work Life blog at http://atlassian.com/blog/announcements/shareholder-letter-q2fy25 and in the Investor Relations section of Atlassian’s website at https://investors.atlassian.com.

Second Quarter Fiscal Year 2025 Earnings Results

“The Atlassian System of Work is resonating with enterprises all over the globe, as business leaders increasingly turn to the Atlassian platform to help teams across their organization collaborate on the opportunities and challenges they face,” said Mike Cannon-Brookes, Atlassian’s CEO and co-Founder. “By infusing AI throughout our world-class cloud platform, we’re empowering all teams to accelerate collaboration and unlock organizational knowledge, further enabling them to unleash their full potential.”

“Strong enterprise sales execution drove better-than-expected revenue across both our Cloud and Data Center offerings, as we delivered 30% year-over-year growth in subscription revenue in the second quarter,” said Joe Binz, Atlassian’s CFO. “The momentum we’re seeing across the business reinforces our conviction around investments we are making in our key strategic priorities of serving enterprise customers, AI, and the System of Work to deliver durable, long-term growth.”

Second Quarter Fiscal Year 2025 Financial Highlights:

On a GAAP basis, Atlassian reported:

• Revenue: Total revenue was $1,286.5 million for the second quarter of fiscal year 2025, up 21% from $1,060.1 million for the second quarter of fiscal year 2024.
• Operating Loss and Operating Margin: Operating loss was $57.5 million for the second quarter of fiscal year 2025, compared with operating loss of $49.1 million for the second quarter of fiscal year 2024. Operating margin was (4%) for the second quarter of fiscal year 2025, compared with (5%) for the second quarter of fiscal year 2024.
• Net Loss and Net Loss Per Diluted Share: Net loss was $38.2 million for the second quarter of fiscal year 2025, compared with net loss of $84.5 million for the second quarter of fiscal year 2024. Net loss per diluted share was $0.15 for the second quarter of fiscal year 2025, compared with net loss per diluted share of $0.33 for the second quarter of fiscal year 2024.
• Balance Sheet: Cash and cash equivalents plus marketable securities at the end of the second quarter of fiscal year 2025 totaled $2.5 billion.

On a non-GAAP basis, Atlassian reported:

• Operating Income and Operating Margin: Operating income was $335.1 million for the second quarter of fiscal year 2025, compared with operating income of $250.6 million for the second quarter of fiscal year 2024. Operating margin was 26% for the second quarter of fiscal year 2025, compared with 24% for the second quarter of fiscal year 2024.
• Net Income and Net Income Per Diluted Share: Net income was $255.6 million for the second quarter of fiscal year 2025, compared with net income of $189.5 million for the second quarter of fiscal year 2024. Net income per diluted share was $0.96 for the second quarter of fiscal year 2025, compared with net income per diluted share of $0.73 for the second quarter of fiscal year 2024.
• Free Cash Flow: Cash flow from operations was $351.9 million and free cash flow was $342.6 million for the second quarter of fiscal year 2025. Free cash flow margin for the second quarter of fiscal year 2025 was 27%.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below, under the heading “About Non-GAAP Financial Measures.”

Recent Business Highlights:

• A Leader in The Forrester Wave™: Knowledge Management Solutions, Q4 2024: Atlassian was named a Leader in The Forrester Wave for Knowledge Management Solutions, Q4 20241, the first-ever Wave for this market. Atlassian offers products like Confluence, Loom, and Rovo which allow all teams to unlock knowledge across their organization and transform traditional silos into enterprise-wide collaboration with an AI-first strategy.
• A Leader in the 2024 Gartner® Magic Quadrant™ for Marketing Work Management Platforms: Atlassian was named a Leader in the 2024 Gartner Magic Quadrant for Marketing Work Management Platforms2. Atlassian tools like Jira and Rovo, along with deep integrations across a broad network of third-party applications enable marketing teams to plan and track work, align on goals, and reduce costs and context switching.
• A Leader in the IDC MarketScape: Worldwide IT Service Management Software 2024 Vendor Assessment: Atlassian was named a Leader in the IDC MarketScape: Worldwide IT Service Management Software 2024 Vendor Assessment. Jira Service Management bridges the gap between software development and IT teams allowing customers to align service delivery with product delivery and overall goals through powerful AI-enabled features like automation and virtual agents.
• Increased Scale in Confluence Cloud: Atlassian announced the general availability of support for up to 150,000 users on a single site for Confluence Cloud, representing a 3x increase in scale. This achievement unlocks many opportunities for customers, such as further enabling migrations from Data Center to Cloud, expanding greater usage across a customer’s organization, and bringing technical and business teams together to accelerate centralized knowledge sharing and seamless collaboration.
• Expanded Strategic Partnership with Amazon Web Services: Atlassian and Amazon Web Services (AWS) announced a multi-year strategic collaboration agreement to further provide Atlassian customers access to the latest cloud-enabled services, including generative AI, underpinned by world-class security, privacy, compliance, and reliability. As part of the expanded partnership, Atlassian and AWS will establish a Cloud Center of Excellence to help streamline complex migrations for large enterprises and equip solutions partners with Cloud and AI skills, further enabling cloud migrations for millions of users.
• Customers with >$10,000 in Cloud ARR: Atlassian ended its second quarter of fiscal year 2025 with 49,449 customers with greater than $10,000 in Cloud annualized recurring revenue (Cloud ARR), an increase of 15% year-over-year.
• Ranked #1 on Fortune’s The Future 50 List: Atlassian was ranked first on Fortune’s The Future 50 List for 2024, which recognizes the companies most likely to adapt, thrive, and grow amid technological and economic change. This achievement underscores Atlassian’s commitment to fostering an innovative, collaborative, and flexible culture that enables technological advancement and incredible value delivery for customers, partners, employees, and shareholders.
• Board of Directors Update: Atlassian appointed Christian Smith to its Board of Directors. Christian is the Chief Revenue Officer at Splunk, a leader in cybersecurity and observability. Prior to this, Christian served as the Chief Revenue Officer at Nintex. Christian has more than 30 years of enterprise experience driving global sales and digital transformation which will be valuable in supporting Atlassian in its key strategic priorities of enterprise, AI, and the System of Work.

Financial Targets:

Atlassian is providing its financial targets as follows:

Third Quarter Fiscal Year 2025:

• Total revenue is expected to be in the range of $1,345 million to $1,353 million.
• Cloud revenue growth year-over-year is expected to be approximately 23.5%.
• Data Center revenue growth year-over-year is expected to be approximately 7.0%.
• Marketplace and other revenue growth year-over-year is expected to be approximately flat.
• Gross margin is expected to be approximately 82.0% on a GAAP basis and approximately 84.5% on a non-GAAP basis.
• Operating margin is expected to be approximately (3.0%) on a GAAP basis and approximately 23.5% on a non-GAAP basis.

Fiscal Year 2025:

• Total revenue growth year-over-year is expected to be in the range of 18.5% to 19.0%.
• Cloud revenue growth year-over-year is expected to be approximately 26.5%.
• Data Center revenue growth year-over-year is expected to be approximately 21.5%.
• Marketplace and other revenue growth year-over-year is expected to be approximately 8.5%.
• Gross margin is expected to be in the range of 81.5% to 82.0% on a GAAP basis and in the range of 84.0% to 84.5% on a non-GAAP basis.
• Operating margin is expected to be approximately (4.0%) on a GAAP basis and approximately 23.5% on a non-GAAP basis.

For additional commentary regarding financial targets, please see Atlassian’s second quarter fiscal year 2025 shareholder letter dated January 30, 2025.

With respect to Atlassian’s expectations under “Financial Targets” above, a reconciliation of GAAP to non-GAAP gross margin and operating margin has been provided in the financial statement tables included in this press release.

Shareholder Letter and Webcast Details:

A detailed shareholder letter is available on Atlassian’s Work Life blog at https://atlassian.com/blog/announcements/shareholder-letter-q2fy25, and the Investor Relations section of Atlassian’s website at https://investors.atlassian.com. Atlassian will host a webcast to answer questions today:

• When: Thursday, January 30, 2025 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).
• Webcast: A live webcast of the call can be accessed from the Investor Relations section of Atlassian’s website at https://investors.atlassian.com. Following the call, a replay will be available on the same website.

Atlassian has used, and will continue to use, its Investor Relations website at https://investors.atlassian.com as a means of making material information public and for complying with its disclosure obligations.

About Atlassian

Atlassian unleashes the potential of every team. Our software development, service management and work management software helps teams organize, discuss, and complete shared work. The majority of the Fortune 500 and over 300,000 companies of all sizes worldwide - including NASA, BMW, Kiva, Deutsche Bank and Dropbox - rely on our solutions to help their teams work better together and deliver quality results on time. Learn more about our products, including Jira, Confluence and Jira Service Management at https://atlassian.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, which statements involve substantial risks and uncertainties. In some cases, you can identify these statements by forward-looking words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “should,” “estimate,” “further,” or “continue,” and similar expressions or variations, but these words are not the exclusive means for identifying such statements. All statements other than statements of historical fact could be deemed forward looking, including but not limited to risks and uncertainties related to statements about our platform, products, product features, System of Work, AI capabilities, enterprise sales, customers, strategic partnerships, leadership transitions, strategic priorities, anticipated growth, outlook and results, and our financial targets such as total revenue, Cloud, Data Center, and Marketplace and other revenue, and GAAP and non-GAAP financial measures including gross margin and operating margin.

We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

The achievement or success of the matters covered by such forward-looking statements involves known and unknown risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management’s beliefs and assumptions only as of the date such statements are made.

Further information on these and other factors that could affect our financial results is included in filings we make with the Securities and Exchange Commission (the “SEC”) from time to time, including the section titled “Risk Factors” in our most recently filed Forms 10-K and 10-Q. These documents are available on the SEC Filings section of the Investor Relations section of our website at https://investors.atlassian.com.

About Non-GAAP Financial Measures

In addition to the measures presented in our condensed consolidated financial statements, we regularly review other measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), defined as non-GAAP financial measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts and make strategic decisions. The key measures we consider are non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share and free cash flow (collectively, the “Non-GAAP Financial Measures”). These Non-GAAP Financial Measures, which may be different from similarly titled non-GAAP measures used by other companies, provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be unrelated to our core operations. Management believes that tracking and presenting these Non-GAAP Financial Measures provides management, our board of directors, investors and the analyst community with the ability to better evaluate matters such as: our ongoing core operations, including comparisons between periods and against other companies in our industry; our ability to generate cash to service our debt and fund our operations; and the underlying business trends that are affecting our performance.

Our Non-GAAP Financial Measures include:

• Non-GAAP gross profit and non-GAAP gross margin. Excludes expenses related to stock-based compensation and amortization of acquired intangible assets.
• Non-GAAP operating income and non-GAAP operating margin. Excludes expenses related to stock-based compensation and amortization of acquired intangible assets.
• Non-GAAP net income and non-GAAP net income per diluted share. Excludes expenses related to stock-based compensation, amortization of acquired intangible assets, gain on a non-cash sale of a controlling interest of a subsidiary and the related income tax adjustments.
• Free cash flow. Free cash flow is defined as net cash provided by operating activities less capital expenditures, which consists of purchases of property and equipment.

We understand that although these Non-GAAP Financial Measures are frequently used by investors and the analyst community in their evaluation of our financial performance, these measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. We compensate for such limitations by reconciling these Non-GAAP Financial Measures to the most comparable GAAP financial measures. We encourage you to review the tables in this press release titled “Reconciliation of GAAP to Non-GAAP Results” and “Reconciliation of GAAP to Non-GAAP Financial Targets” that present such reconciliations.

Customers with >$10,000 in Cloud ARR

We define the number of customers with Cloud ARR greater than $10,000 at the end of any particular period as the number of organizations with unique domains with an active Cloud subscription for two or more seats and greater than $10,000 in Cloud ARR.

We define Cloud ARR as the annualized recurring revenue run-rate of Cloud subscription agreements at a point in time. We calculate Cloud ARR by taking the Cloud monthly recurring revenue (“Cloud MRR”) run-rate and multiplying it by 12. Cloud MRR for each month is calculated by aggregating monthly recurring revenue from committed contractual amounts at a point in time. Cloud ARR and Cloud MRR should be viewed independently of revenue and do not represent our revenue under GAAP, as they are operational metrics that can be affected by contract start and end dates and renewal rates.

__________________________   1 Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. For more information, read about Forrester’s objectivity at https://www.forrester.com/about-us/objectivity/.   2 Gartner, Magic Quadrant for Marketing Work Management Platforms, Michael McCune, Lacretia Marsh, et al., 17 December 2024. Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. The Gartner content described herein (the “Gartner Content”) represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this Press Release), and the opinions expressed in the Gartner Content are subject to change without notice. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved.

Atlassian Corporation

Condensed Consolidated Statements of Operations

(U.S. $ and shares in thousands, except per share data)

(unaudited)

 

Three Months Ended December 31,

 

Six Months Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenues:

 

 

 

 

 

 

 

Subscription

$

1,213,248

 

 

$

932,181

 

 

$

2,345,196

 

 

$

1,784,163

 

Other

 

73,215

 

 

 

127,929

 

 

 

129,048

 

 

 

253,722

 

Total revenues

 

1,286,463

 

 

 

1,060,110

 

 

 

2,474,244

 

 

 

2,037,885

 

Cost of revenues (1) (2)

 

223,127

 

 

 

194,536

 

 

 

440,751

 

 

 

372,565

 

Gross profit

 

1,063,336

 

 

 

865,574

 

 

 

2,033,493

 

 

 

1,665,320

 

Operating expenses:

 

 

 

 

 

 

 

Research and development (1) (2)

 

680,213

 

 

 

536,779

 

 

 

1,283,314

 

 

 

1,018,517

 

Marketing and sales (1) (2)

 

271,894

 

 

 

220,513

 

 

 

524,287

 

 

 

414,080

 

General and administrative (1)

 

168,708

 

 

 

157,344

 

 

 

315,349

 

 

 

300,654

 

Total operating expenses

 

1,120,815

 

 

 

914,636

 

 

 

2,122,950

 

 

 

1,733,251

 

Operating loss

 

(57,479

)

 

 

(49,062

)

 

 

(89,457

)

 

 

(67,931

)

Other expense, net

 

(7,999

)

 

 

(4,639

)

 

 

(27,431

)

 

 

(12,974

)

Interest income

 

25,586

 

 

 

22,593

 

 

 

54,150

 

 

 

47,819

 

Interest expense

 

(7,291

)

 

 

(9,001

)

 

 

(14,609

)

 

 

(17,977

)

Loss before income taxes

 

(47,183

)

 

 

(40,109

)

 

 

(77,347

)

 

 

(51,063

)

Provision for (benefit from) income taxes

 

(8,975

)

 

 

44,360

 

 

 

84,630

 

 

 

65,289

 

Net loss

$

(38,208

)

 

$

(84,469

)

 

$

(161,977

)

 

$

(116,352

)

Net loss per share attributable to Class A and Class B common stockholders:

 

 

 

 

 

 

 

Basic

$

(0.15

)

 

$

(0.33

)

 

$

(0.62

)

 

$

(0.45

)

Diluted

$

(0.15

)

 

$

(0.33

)

 

$

(0.62

)

 

$

(0.45

)

Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders:

 

 

 

 

 

 

 

Basic

 

261,147

 

 

 

258,601

 

 

 

260,812

 

 

 

258,254

 

Diluted

 

261,147

 

 

 

258,601

 

 

 

260,812

 

 

 

258,254

 

(1) Amounts include stock-based compensation as follows:

 

Three Months Ended December 31,

 

Six Months Ended December 31,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

Cost of revenues

$

23,031

 

$

19,213

 

$

41,245

 

$

36,034

Research and development

 

260,278

 

 

187,819

 

 

453,723

 

 

338,265

Marketing and sales

 

43,260

 

 

38,168

 

 

79,252

 

 

70,449

General and administrative

 

52,161

 

 

44,645

 

 

90,656

 

 

80,678

(2) Amounts include amortization of acquired intangible assets, as follows:

 

Three Months Ended December 31,

 

Six Months Ended December 31,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

Cost of revenues

$

10,130

 

$

7,056

 

$

20,246

 

$

12,828

Research and development

 

93

 

 

93

 

 

187

 

 

187

Marketing and sales

 

3,673

 

 

2,712

 

 

7,345

 

 

5,077

Atlassian Corporation

Condensed Consolidated Balance Sheets

(U.S. $ in thousands)

(unaudited)

 

December 31, 2024

 

June 30, 2024

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

2,217,604

 

 

$

2,176,930

 

Marketable securities

 

251,629

 

 

 

161,973

 

Accounts receivable, net

 

695,661

 

 

 

628,049

 

Prepaid expenses and other current assets

 

156,806

 

 

 

109,312

 

Total current assets

 

3,321,700

 

 

 

3,076,264

 

Non-current assets:

 

 

 

Property and equipment, net

 

85,443

 

 

 

86,315

 

Operating lease right-of-use assets

 

172,905

 

 

 

172,468

 

Strategic investments

 

222,299

 

 

 

223,221

 

Intangible assets, net

 

272,578

 

 

 

299,057

 

Goodwill

 

1,292,187

 

 

 

1,288,756

 

Deferred tax assets

 

6,881

 

 

 

3,934

 

Other non-current assets

 

72,312

 

 

 

62,118

 

Total assets

$

5,446,305

 

 

$

5,212,133

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

190,550

 

 

$

177,545

 

Accrued expenses and other current liabilities

 

531,283

 

 

 

577,359

 

Deferred revenue, current portion

 

1,914,090

 

 

 

1,806,269

 

Operating lease liabilities, current portion

 

48,644

 

 

 

48,953

 

Total current liabilities

 

2,684,567

 

 

 

2,610,126

 

Non-current liabilities:

 

 

 

Deferred revenue, net of current portion

 

282,155

 

 

 

308,467

 

Operating lease liabilities, net of current portion

 

209,097

 

 

 

214,474

 

Long-term debt

 

986,785

 

 

 

985,911

 

Deferred tax liabilities

 

20,054

 

 

 

20,387

 

Other non-current liabilities

 

44,092

 

 

 

39,917

 

Total liabilities

 

4,226,750

 

 

 

4,179,282

 

Stockholders’ equity

 

 

 

Common stock

 

3

 

 

 

3

 

Additional paid-in capital

 

4,876,944

 

 

 

4,212,064

 

Accumulated other comprehensive income (loss)

 

(38,617

)

 

 

25,300

 

Accumulated deficit

 

(3,618,775

)

 

 

(3,204,516

)

Total stockholders’ equity

 

1,219,555

 

 

 

1,032,851

 

Total liabilities and stockholders’ equity

$

5,446,305

 

 

$

5,212,133

 

Atlassian Corporation

Condensed Consolidated Statements of Cash Flows

(U.S. $ in thousands)

(unaudited)

 

Three Months Ended December 31,

 

Six Months Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net loss

$

(38,208

)

 

$

(84,469

)

 

$

(161,977

)

 

$

(116,352

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

23,149

 

 

 

17,012

 

 

 

45,976

 

 

 

32,096

 

Stock-based compensation

 

378,730

 

 

 

289,845

 

 

 

664,876

 

 

 

525,426

 

Deferred income taxes

 

(2,161

)

 

 

(8,618

)

 

 

(2,929

)

 

 

(3,305

)

Amortization of interest rate swap contracts

 

(6,865

)

 

 

—

 

 

 

(14,020

)

 

 

—

 

Net loss on strategic investments

 

2,611

 

 

 

1,442

 

 

 

17,903

 

 

 

7,690

 

Net foreign currency loss (gain)

 

(5,621

)

 

 

2,237

 

 

 

(2,581

)

 

 

2,418

 

Other

 

(968

)

 

 

154

 

 

 

23

 

 

 

(1,092

)

Changes in operating assets and liabilities, net of business combinations:

 

 

 

 

 

 

 

Accounts receivable, net

 

(211,755

)

 

 

(156,163

)

 

 

(67,725

)

 

 

(46,675

)

Prepaid expenses and other assets

 

(25,759

)

 

 

(486

)

 

 

(65,673

)

 

 

(23,542

)

Accounts payable

 

24,863

 

 

 

33,648

 

 

 

14,719

 

 

 

623

 

Accrued expenses and other liabilities

 

30,464

 

 

 

59,140

 

 

 

(77,704

)

 

 

(12,191

)

Deferred revenue

 

183,425

 

 

 

135,852

 

 

 

81,509

 

 

 

91,454

 

Net cash provided by operating activities

 

351,905

 

 

 

289,594

 

 

 

432,397

 

 

 

456,550

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Business combinations, net of cash acquired

 

—

 

 

 

(844,727

)

 

 

(4,975

)

 

 

(844,727

)

Purchases of property and equipment

 

(9,336

)

 

 

(5,333

)

 

 

(15,487

)

 

 

(9,002

)

Purchases of strategic investments

 

(11,500

)

 

 

(250

)

 

 

(25,550

)

 

 

(4,000

)

Purchases of marketable securities and other investments

 

(116,619

)

 

 

(69,783

)

 

 

(160,323

)

 

 

(139,146

)

Proceeds from maturities of marketable securities

 

25,480

 

 

 

16,150

 

 

 

71,628

 

 

 

16,150

 

Proceeds from sales of marketable securities and strategic investments

 

271

 

 

 

41,513

 

 

 

4,313

 

 

 

61,392

 

Net cash used in investing activities

 

(111,704

)

 

 

(862,430

)

 

 

(130,394

)

 

 

(919,333

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Principal payments of term loan facility

 

—

 

 

 

(12,500

)

 

 

—

 

 

 

(12,500

)

Repurchases of Class A Common Stock

 

(69,241

)

 

 

(101,773

)

 

 

(252,851

)

 

 

(167,652

)

Other

 

—

 

 

 

—

 

 

 

(3,143

)

 

 

—

 

Net cash used in financing activities

 

(69,241

)

 

 

(114,273

)

 

 

(255,994

)

 

 

(180,152

)

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash

 

(9,056

)

 

 

4,063

 

 

 

(5,492

)

 

 

783

 

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

161,904

 

 

 

(683,046

)

 

 

40,517

 

 

 

(642,152

)

Cash, cash equivalents, and restricted cash at beginning of period

 

2,056,735

 

 

 

2,144,809

 

 

 

2,178,122

 

 

 

2,103,915

 

Cash, cash equivalents, and restricted cash at end of period

$

2,218,639

 

 

$

1,461,763

 

 

$

2,218,639

 

 

$

1,461,763

 

Atlassian Corporation

Revenues by Deployment Options

(U.S. $ in thousands)

(unaudited)

 

Three Months Ended December 31,

 

Six Months Ended December 31,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

Cloud

$

846,962

 

$

653,210

 

$

1,639,268

 

$

1,257,857

Data Center

 

362,281

 

 

274,758

 

 

697,875

 

 

517,701

Server

 

—

 

 

69,173

 

 

—

 

 

147,925

Marketplace and other (1)

 

77,220

 

 

62,969

 

 

137,101

 

 

114,402

Total revenues

$

1,286,463

 

$

1,060,110

 

$

2,474,244

 

$

2,037,885

(1) Included in Marketplace and other is premier support revenue. Premier support consists of subscription-based arrangements for a higher level of support across different deployment options. Premier support is recognized as subscription revenue on the Condensed Consolidated Statements of Operations as the services are delivered over the term of the arrangement.

Atlassian Corporation

Reconciliation of GAAP to Non-GAAP Results

(U.S. $ and shares in thousands, except percentage and per share data)

(unaudited)

 

Three Months Ended December 31,

 

Six Months Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Gross profit

 

 

 

 

 

 

 

GAAP gross profit

$

1,063,336

 

 

$

865,574

 

 

$

2,033,493

 

 

$

1,665,320

 

Plus: Stock-based compensation

 

23,031

 

 

 

19,213

 

 

 

41,245

 

 

 

36,034

 

Plus: Amortization of acquired intangible assets

 

10,130

 

 

 

7,056

 

 

 

20,246

 

 

 

12,828

 

Non-GAAP gross profit

$

1,096,497

 

 

$

891,843

 

 

$

2,094,984

 

 

$

1,714,182

 

Gross margin

 

 

 

 

 

 

 

GAAP gross margin

 

83

%

 

 

82

%

 

 

82

%

 

 

82

%

Plus: Stock-based compensation

 

1

 

 

 

2

 

 

 

2

 

 

 

2

 

Plus: Amortization of acquired intangible assets

 

1

 

 

 

—

 

 

 

1

 

 

 

—

 

Non-GAAP gross margin

 

85

%

 

 

84

%

 

 

85

%

 

 

84

%

Operating income

 

 

 

 

 

 

 

GAAP operating loss

$

(57,479

)

 

$

(49,062

)

 

$

(89,457

)

 

$

(67,931

)

Plus: Stock-based compensation

 

378,730

 

 

 

289,845

 

 

 

664,876

 

 

 

525,426

 

Plus: Amortization of acquired intangible assets

 

13,896

 

 

 

9,861

 

 

 

27,778

 

 

 

18,092

 

Non-GAAP operating income

$

335,147

 

 

$

250,644

 

 

$

603,197

 

 

$

475,587

 

Operating margin

 

 

 

 

 

 

 

GAAP operating margin

 

(4

%)

 

 

(5

%)

 

 

(4

%)

 

 

(3

%)

Plus: Stock-based compensation

 

29

 

 

 

28

 

 

 

27

 

 

 

25

 

Plus: Amortization of acquired intangible assets

 

1

 

 

 

1

 

 

 

1

 

 

 

1

 

Non-GAAP operating margin

 

26

%

 

 

24

%

 

 

24

%

 

 

23

%

Net income

 

 

 

 

 

 

 

GAAP net loss

$

(38,208

)

 

$

(84,469

)

 

$

(161,977

)

 

$

(116,352

)

Plus: Stock-based compensation

 

378,730

 

 

 

289,845

 

 

 

664,876

 

 

 

525,426

 

Plus: Amortization of acquired intangible assets

 

13,896

 

 

 

9,861

 

 

 

27,778

 

 

 

18,092

 

Less: Gain on a non-cash sale of a controlling interest of a subsidiary

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,378

)

Less: Income tax adjustments (1)

 

(98,791

)

 

 

(25,731

)

 

 

(75,350

)

 

 

(67,302

)

Non-GAAP net income

$

255,627

 

 

$

189,506

 

 

$

455,327

 

 

$

358,486

 

Net income per share

 

 

 

 

 

 

 

GAAP net loss per share - diluted

$

(0.15

)

 

$

(0.33

)

 

$

(0.62

)

 

$

(0.45

)

Plus: Stock-based compensation

 

1.43

 

 

 

1.12

 

 

 

2.53

 

 

 

2.03

 

Plus: Amortization of acquired intangible assets

 

0.05

 

 

 

0.04

 

 

 

0.11

 

 

 

0.07

 

Less: Gain on a non-cash sale of a controlling interest of a subsidiary

 

—

 

 

 

—

 

 

 

—

 

 

 

(0.01

)

Less: Income tax adjustments (1)

 

(0.37

)

 

 

(0.10

)

 

 

(0.29

)

 

 

(0.26

)

Non-GAAP net income per share - diluted

$

0.96

 

 

$

0.73

 

 

$

1.73

 

 

$

1.38

 

Weighted-average diluted shares outstanding

 

 

 

 

 

 

 

Weighted-average shares used in computing diluted GAAP net loss per share

 

261,147

 

 

 

258,601

 

 

 

260,812

 

 

 

258,254

 

Plus: Dilution from dilutive securities (2)

 

4,546

 

 

 

1,051

 

 

 

2,422

 

 

 

1,030

 

Weighted-average shares used in computing diluted non-GAAP net income per share

 

265,693

 

 

 

259,652

 

 

 

263,234

 

 

 

259,284

 

Free cash flow

 

 

 

 

 

 

 

GAAP net cash provided by operating activities

$

351,905

 

 

$

289,594

 

 

$

432,397

 

 

$

456,550

 

Less: Capital expenditures

 

(9,336

)

 

 

(5,333

)

 

 

(15,487

)

 

 

(9,002

)

Free cash flow

$

342,569

 

 

$

284,261

 

 

$

416,910

 

 

$

447,548

 

(1) We utilize a fixed long-term projected non-GAAP tax rate in our computation of the non-GAAP income tax adjustments in order to provide better consistency across interim reporting periods. In projecting this long-term non-GAAP tax rate, we utilized a three-year financial projection that excludes the direct and indirect income tax effects of the other non-GAAP adjustments reflected above. Additionally, we considered our current operating structure and other factors such as our existing tax positions in various jurisdictions and key legislation in major jurisdictions where we operate. For fiscal years 2025 and 2024, we determined the projected non-GAAP tax rate to be 26% and 27%, respectively. This fixed long-term projected non-GAAP tax rate eliminates the effects of non-recurring and period specific items which can vary in size and frequency. Examples of the non-recurring and period specific items include but are not limited to changes in the valuation allowance related to deferred tax assets, effects resulting from acquisitions, and unusual or infrequently occurring items. We will periodically re-evaluate this long-term rate, as necessary, for significant events. The rate could be subject to change for a variety of reasons, for example, significant changes in the geographic earnings mix or fundamental tax law changes in major jurisdictions where we operate.

(2) The effects of these dilutive securities were not included in the GAAP calculation of diluted net loss per share for the three and six months ended December 31, 2024 and 2023, because the effect would have been anti-dilutive.

Atlassian Corporation

Reconciliation of GAAP to Non-GAAP Financial Targets

 

Three Months Ending

March 31, 2025

GAAP gross margin

82.0%

Plus: Stock-based compensation

1.5

Plus: Amortization of acquired intangible assets

1.0

Non-GAAP gross margin

84.5%

 

 

GAAP operating margin

(3.0%)

Plus: Stock-based compensation

25.5

Plus: Amortization of acquired intangible assets

1.0

Non-GAAP operating margin

23.5%

 

Fiscal Year Ending

June 30, 2025

GAAP gross margin

81.5% to 82.0%

Plus: Stock-based compensation

1.5

Plus: Amortization of acquired intangible assets

1.0

Non-GAAP gross margin

84.0% to 84.5%

 

 

GAAP operating margin

(4.0%)

Plus: Stock-based compensation

26.5

Plus: Amortization of acquired intangible assets

1.0

Non-GAAP operating margin

23.5%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250130093810/en/

Investor Relations Contact Martin Lam IR@atlassian.com

Media Contact Marie-Claire Maple press@atlassian.com