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    Atlassian Announces Third Quarter Fiscal Year 2025 Results

    5/1/25 4:05:00 PM ET
    $TEAM
    Computer Software: Prepackaged Software
    Technology
    Get the next $TEAM alert in real time by email

    Revenue of $1,357 million, up 14% year-over-year

    Subscription revenue of $1,273 million, up 19% year-over-year

    GAAP operating margin of (1)% and non-GAAP operating margin of 26%

    Cash flow from operations of $653 million and free cash flow of $638 million

    Atlassian Corporation (NASDAQ:TEAM), a leading provider of team collaboration and productivity software, today announced financial results for its third quarter ended March 31, 2025. A shareholder letter was posted on Atlassian's Work Life blog at http://atlassian.com/blog/announcements/shareholder-letter-q3fy25 and in the Investor Relations section of Atlassian's website at https://investors.atlassian.com.

    Third Quarter Fiscal Year 2025 Earnings Results

    "I am filled with immense pride as I reflect on Team '25 and our customers' and partners' reactions to our relentless focus on innovation," said Mike Cannon-Brookes, Atlassian's CEO and co-Founder. "Our long-term investments in building a world-class Cloud platform have enabled us to advance the Atlassian System of Work and bring Rovo's powerful AI capabilities to the center. Our vision for the future of human-AI collaboration is resonating deeply with customers, and we are more excited than ever to execute on our mission of unleashing the potential of every team."

    "We delivered total revenue of $1.4 billion in the quarter, driven by Cloud revenue growth of 25% year-over-year," said Joe Binz, Atlassian's CFO. "We remain committed to balancing operational discipline with continued focused investment in key strategic areas like enterprise, AI, and the Atlassian System of Work to drive future growth."

    Third Quarter Fiscal Year 2025 Financial Highlights:

    On a GAAP basis, Atlassian reported:

    • Revenue: Total revenue was $1,356.7 million for the third quarter of fiscal year 2025, up 14% from $1,189.1 million for the third quarter of fiscal year 2024.
    • Operating Income (Loss) and Operating Margin: Operating loss was $12.5 million for the third quarter of fiscal year 2025, compared with operating income of $17.8 million for the third quarter of fiscal year 2024. Operating margin was (1%) for the third quarter of fiscal year 2025, compared with 1% for the third quarter of fiscal year 2024.
    • Net Income (Loss) and Net Income (Loss) Per Diluted Share: Net loss was $70.8 million for the third quarter of fiscal year 2025, compared with net income of $12.8 million for the third quarter of fiscal year 2024. Net loss per diluted share was $0.27 for the third quarter of fiscal year 2025, compared with net income per diluted share of $0.05 for the third quarter of fiscal year 2024.
    • Balance Sheet: Cash and cash equivalents plus marketable securities at the end of the third quarter of fiscal year 2025 totaled $3.0 billion.

    On a non-GAAP basis, Atlassian reported:

    • Operating Income and Operating Margin: Operating income was $348.3 million for the third quarter of fiscal year 2025, compared with operating income of $316.5 million for the third quarter of fiscal year 2024. Operating margin was 26% for the third quarter of fiscal year 2025, compared with 27% for the third quarter of fiscal year 2024.
    • Net Income and Net Income Per Diluted Share: Net income was $261.5 million for the third quarter of fiscal year 2025, compared with net income of $232.5 million for the third quarter of fiscal year 2024. Net income per diluted share was $0.97 for the third quarter of fiscal year 2025, compared with net income per diluted share of $0.89 for the third quarter of fiscal year 2024.
    • Free Cash Flow: Cash flow from operations was $652.7 million and free cash flow was $638.3 million for the third quarter of fiscal year 2025. Free cash flow margin for the third quarter of fiscal year 2025 was 47%.

    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:

    • Atlassian Team ‘25: Thousands of customers and partners traveled to Anaheim to witness the latest product announcements and innovations including:
      • Rovo for All: Atlassian announced that its AI solution, Rovo, is now included in all premium and enterprise editions for Jira, Confluence, and Jira Service Management, with standard edition soon to follow. This move brings advanced AI-powered enterprise search, chat, and agents to the center of the Atlassian Platform.
      • Teamwork Collection: Atlassian announced Teamwork Collection, a curated selection of apps - Jira, Confluence, and Loom - alongside Rovo agents powered by the Atlassian Cloud Platform - that helps technical and business teams break down silos, use AI more effectively, and reduce context switching.
      • Strategy Collection: Atlassian announced Strategy Collection, an Enterprise Strategy and Planning solution that brings three apps - Focus, Talent, and Jira Align - together to provide leaders a clear view of the most important priorities and ensures their teams are driving towards the highest value outcomes.
      • Customer Service Management: Atlassian announced its Customer Service Management app, a new AI-powered app designed to connect support, product, development, and operations teams to deliver high-velocity customer service.
      • Expanded Cloud Offerings: Atlassian announced two new offerings: Government Cloud and Isolated Cloud. Atlassian achieved FedRAMP® authorization at the Moderate level for its Government Cloud to enable U.S. government agencies and their industry partners to take advantage of the capabilities of the Atlassian Cloud Platform. Atlassian also announced Isolated Cloud, an Atlassian-managed virtual private cloud option for organizations that need a dedicated cloud environment.

    Learn more about these announcements at https://www.atlassian.com/blog/product-news.

    • Atlassian Williams Racing: Atlassian announced a long-term partnership to be the official title and technology partner of Williams Racing, a storied Formula 1 franchise. This partnership will bring Atlassian's AI-powered collaboration software to the track in front of customers and millions of fans, as it helps Williams Racing accelerate its digital transformation through the power of the Atlassian System of Work.
    • Customers with >$10,000 in Cloud ARR: Atlassian ended its third quarter of fiscal year 2025 with 50,715 customers with greater than $10,000 in Cloud annualized recurring revenue (Cloud ARR), an increase of 14% year-over-year.
    • Recognized on Fortune's List of 100 Best Companies to Work For® 2025: Atlassian was recognized, for the seventh consecutive year, as one of Fortune's 100 Best Companies to Work For®. This achievement reflects the commitment, dedication, and collaborative nature of all Atlassians who carry this remarkable culture.
    • Board of Directors Update: Atlassian appointed Karen Dykstra to its Board of Directors. Karen is the former Chief Financial Officer at VMware, Inc., AOL Inc., and Automatic Data Processing, Inc., and currently sits on the board of directors at Gartner Inc. and Arm Holdings PLC. Karen brings more than 30 years of financial leadership and strong operational experience across many diverse industries, which will be invaluable in supporting Atlassian as it continues to expand its enterprise capabilities.

    Financial Targets:

    Atlassian is providing its financial targets as follows:

    Fourth Quarter Fiscal Year 2025:

    • Total revenue is expected to be in the range of $1,349 million to $1,359 million.
    • Cloud revenue growth year-over-year is expected to be approximately 23.0%.
    • Data Center revenue growth year-over-year is expected to be approximately 16.5%.
    • Marketplace and other revenue growth year-over-year is expected to be approximately flat.
    • Gross margin is expected to be approximately 82.5% on a GAAP basis and approximately 84.5% on a non-GAAP basis.
    • Operating margin is expected to be approximately (5.0%) on a GAAP basis and approximately 22.0% on a non-GAAP basis.

    For additional commentary regarding financial targets, please see Atlassian's third quarter fiscal year 2025 shareholder letter dated May 1, 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-q3fy25, 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, May 1, 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. A recognized leader in software development, work management, and enterprise service management software, Atlassian enables enterprises to connect their business and technology teams with an AI-powered system of work that unlocks productivity at scale. Atlassian's collaboration software powers over 80% of the Fortune 500 and 300,000+ customers worldwide - including NASA, Rivian, Deutsche Bank, United Airlines, and Bosch - who rely on our solutions to drive work forward.

    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, offerings and planned offerings, investments, System of Work, AI solutions, 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.

    Atlassian Corporation

    Condensed Consolidated Statements of Operations

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

    (unaudited)

     

     

    Three Months Ended March 31,

     

    Nine Months Ended March 31,

     

     

    2025

     

     

     

    2024

     

     

     

    2025

     

     

     

    2024

     

    Revenues:

     

     

     

     

     

     

     

    Subscription

    $

    1,272,876

     

     

    $

    1,071,355

     

     

    $

    3,618,072

     

     

    $

    2,855,518

     

    Other

     

    83,840

     

     

     

    117,773

     

     

     

    212,888

     

     

     

    371,495

     

    Total revenues

     

    1,356,716

     

     

     

    1,189,128

     

     

     

    3,830,960

     

     

     

    3,227,013

     

    Cost of revenues (1) (2)

     

    219,675

     

     

     

    213,425

     

     

     

    660,426

     

     

     

    585,990

     

    Gross profit

     

    1,137,041

     

     

     

    975,703

     

     

     

    3,170,534

     

     

     

    2,641,023

     

    Operating expenses:

     

     

     

     

     

     

     

    Research and development (1) (2)

     

    685,320

     

     

     

    576,490

     

     

     

    1,968,634

     

     

     

    1,595,007

     

    Marketing and sales (1) (2)

     

    295,832

     

     

     

    223,814

     

     

     

    820,119

     

     

     

    637,894

     

    General and administrative (1)

     

    168,345

     

     

     

    157,595

     

     

     

    483,694

     

     

     

    458,249

     

    Total operating expenses

     

    1,149,497

     

     

     

    957,899

     

     

     

    3,272,447

     

     

     

    2,691,150

     

    Operating income (loss)

     

    (12,456

    )

     

     

    17,804

     

     

     

    (101,913

    )

     

     

    (50,127

    )

    Other expense, net

     

    (14,861

    )

     

     

    (10,990

    )

     

     

    (42,292

    )

     

     

    (23,964

    )

    Interest income

     

    27,767

     

     

     

    21,414

     

     

     

    81,917

     

     

     

    69,233

     

    Interest expense

     

    (7,804

    )

     

     

    (8,453

    )

     

     

    (22,413

    )

     

     

    (26,430

    )

    Income (loss) before income taxes

     

    (7,354

    )

     

     

    19,775

     

     

     

    (84,701

    )

     

     

    (31,288

    )

    Provision for income taxes

     

    (63,453

    )

     

     

    (7,023

    )

     

     

    (148,083

    )

     

     

    (72,312

    )

    Net income (loss)

    $

    (70,807

    )

     

    $

    12,752

     

     

    $

    (232,784

    )

     

    $

    (103,600

    )

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

     

     

     

     

     

     

     

    Basic

    $

    (0.27

    )

     

    $

    0.05

     

     

    $

    (0.89

    )

     

    $

    (0.40

    )

    Diluted

    $

    (0.27

    )

     

    $

    0.05

     

     

    $

    (0.89

    )

     

    $

    (0.40

    )

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

     

     

     

     

     

     

     

    Basic

     

    262,671

     

     

     

    259,717

     

     

     

    261,423

     

     

     

    258,738

     

    Diluted

     

    262,671

     

     

     

    261,778

     

     

     

    261,423

     

     

     

    258,738

     

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

     

    Three Months Ended March 31,

     

    Nine Months Ended March 31,

     

    2025

     

    2024

     

    2025

     

    2024

    Cost of revenues

    $

    20,980

     

    $

    17,840

     

    $

    62,225

     

    $

    53,874

    Research and development

     

    240,847

     

     

    190,322

     

     

    694,570

     

     

    528,587

    Marketing and sales

     

    43,071

     

     

    33,383

     

     

    122,323

     

     

    103,832

    General and administrative

     

    41,944

     

     

    40,974

     

     

    132,600

     

     

    121,652

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

     

    Three Months Ended March 31,

     

    Nine Months Ended March 31,

     

    2025

     

    2024

     

    2025

     

    2024

    Cost of revenues

    $

    10,131

     

    $

    12,454

     

    $

    30,377

     

    $

    25,282

    Research and development

     

    94

     

     

    94

     

     

    281

     

     

    281

    Marketing and sales

     

    3,672

     

     

    3,646

     

     

    11,017

     

     

    8,723

    Atlassian Corporation

    Condensed Consolidated Balance Sheets

    (U.S. $ in thousands)

    (unaudited)

     

     

    March 31, 2025

     

    June 30, 2024

    Assets

     

     

     

    Current assets:

     

     

     

    Cash and cash equivalents

    $

    2,660,859

     

     

    $

    2,176,930

     

    Marketable securities

     

    313,592

     

     

     

    161,973

     

    Accounts receivable, net

     

    642,036

     

     

     

    628,049

     

    Prepaid expenses and other current assets

     

    158,728

     

     

     

    109,312

     

    Total current assets

     

    3,775,215

     

     

     

    3,076,264

     

    Non-current assets:

     

     

     

    Property and equipment, net

     

    93,003

     

     

     

    86,315

     

    Operating lease right-of-use assets

     

    164,322

     

     

     

    172,468

     

    Strategic investments

     

    217,304

     

     

     

    223,221

     

    Intangible assets, net

     

    258,682

     

     

     

    299,057

     

    Goodwill

     

    1,292,942

     

     

     

    1,288,756

     

    Deferred tax assets

     

    5,515

     

     

     

    3,934

     

    Other non-current assets

     

    76,733

     

     

     

    62,118

     

    Total assets

    $

    5,883,716

     

     

    $

    5,212,133

     

    Liabilities and Stockholders' Equity

     

     

     

    Current liabilities:

     

     

     

    Accounts payable

    $

    192,915

     

     

    $

    177,545

     

    Accrued expenses and other current liabilities

     

    661,036

     

     

     

    577,359

     

    Deferred revenue, current portion

     

    2,092,287

     

     

     

    1,806,269

     

    Operating lease liabilities, current portion

     

    44,645

     

     

     

    48,953

     

    Total current liabilities

     

    2,990,883

     

     

     

    2,610,126

     

    Non-current liabilities:

     

     

     

    Deferred revenue, net of current portion

     

    275,916

     

     

     

    308,467

     

    Operating lease liabilities, net of current portion

     

    198,723

     

     

     

    214,474

     

    Long-term debt

     

    987,232

     

     

     

    985,911

     

    Deferred tax liabilities

     

    20,433

     

     

     

    20,387

     

    Other non-current liabilities

     

    41,607

     

     

     

    39,917

     

    Total liabilities

     

    4,514,794

     

     

     

    4,179,282

     

    Stockholders' equity

     

     

     

    Common stock

     

    3

     

     

     

    3

     

    Additional paid-in capital

     

    5,223,786

     

     

     

    4,212,064

     

    Accumulated other comprehensive income (loss)

     

    (26,355

    )

     

     

    25,300

     

    Accumulated deficit

     

    (3,828,512

    )

     

     

    (3,204,516

    )

    Total stockholders' equity

     

    1,368,922

     

     

     

    1,032,851

     

    Total liabilities and stockholders' equity

    $

    5,883,716

     

     

    $

    5,212,133

     

    Atlassian Corporation

    Condensed Consolidated Statements of Cash Flows

    (U.S. $ in thousands)

    (unaudited)

     

     

    Three Months Ended March 31,

     

    Nine Months Ended March 31,

     

     

    2025

     

     

     

    2024

     

     

     

    2025

     

     

     

    2024

     

    Cash flows from operating activities:

     

     

     

     

     

     

     

    Net income (loss)

    $

    (70,807

    )

     

    $

    12,752

     

     

    $

    (232,784

    )

     

    $

    (103,600

    )

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

     

     

     

     

     

     

     

    Depreciation and amortization

     

    23,178

     

     

     

    23,464

     

     

     

    69,154

     

     

     

    55,560

     

    Stock-based compensation

     

    346,842

     

     

     

    282,519

     

     

     

    1,011,718

     

     

     

    807,945

     

    Deferred income taxes

     

    1,746

     

     

     

    3,207

     

     

     

    (1,183

    )

     

     

    (98

    )

    Amortization of interest rate swap contracts

     

    (6,337

    )

     

     

    —

     

     

     

    (20,357

    )

     

     

    —

     

    Net loss on strategic investments

     

    6,643

     

     

     

    4,060

     

     

     

    24,546

     

     

     

    11,750

     

    Net foreign currency loss (gain)

     

    (5,169

    )

     

     

    (2,276

    )

     

     

    (7,750

    )

     

     

    142

     

    Other

     

    (264

    )

     

     

    412

     

     

     

    (241

    )

     

     

    (680

    )

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

     

     

     

     

     

     

     

    Accounts receivable, net

     

    53,770

     

     

     

    (119,819

    )

     

     

    (13,955

    )

     

     

    (166,494

    )

    Prepaid expenses and other assets

     

    (294

    )

     

     

    (35,986

    )

     

     

    (65,967

    )

     

     

    (59,528

    )

    Accounts payable

     

    (93

    )

     

     

    28,227

     

     

     

    14,626

     

     

     

    28,850

     

    Accrued expenses and other liabilities

     

    131,508

     

     

     

    67,149

     

     

     

    53,804

     

     

     

    54,958

     

    Deferred revenue

     

    171,958

     

     

     

    301,681

     

     

     

    253,467

     

     

     

    393,135

     

    Net cash provided by operating activities

     

    652,681

     

     

     

    565,390

     

     

     

    1,085,078

     

     

     

    1,021,940

     

    Cash flows from investing activities:

     

     

     

     

     

     

     

    Business combinations, net of cash acquired

     

    (994

    )

     

     

    —

     

     

     

    (5,969

    )

     

     

    (844,727

    )

    Purchases of property and equipment

     

    (14,366

    )

     

     

    (10,520

    )

     

     

    (29,853

    )

     

     

    (19,522

    )

    Purchases of strategic investments

     

    (1,100

    )

     

     

    (4,250

    )

     

     

    (26,650

    )

     

     

    (8,250

    )

    Purchases of marketable securities

     

    (116,716

    )

     

     

    (74,544

    )

     

     

    (277,039

    )

     

     

    (213,690

    )

    Proceeds from maturities of marketable securities

     

    53,584

     

     

     

    63,000

     

     

     

    125,212

     

     

     

    79,150

     

    Proceeds from sales of marketable securities and strategic investments

     

    2,622

     

     

     

    —

     

     

     

    6,935

     

     

     

    61,392

     

    Net cash used in investing activities

     

    (76,970

    )

     

     

    (26,314

    )

     

     

    (207,364

    )

     

     

    (945,647

    )

    Cash flows from financing activities:

     

     

     

     

     

     

     

    Principal payments of term loan facility

     

    —

     

     

     

    (12,500

    )

     

     

    —

     

     

     

    (25,000

    )

    Repurchases of Class A Common Stock

     

    (134,305

    )

     

     

    (35,377

    )

     

     

    (387,156

    )

     

     

    (203,029

    )

    Other

     

    —

     

     

     

    —

     

     

     

    (3,143

    )

     

     

    —

     

    Net cash used in financing activities

     

    (134,305

    )

     

     

    (47,877

    )

     

     

    (390,299

    )

     

     

    (228,029

    )

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

     

    1,783

     

     

     

    (2,769

    )

     

     

    (3,709

    )

     

     

    (1,986

    )

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

     

    443,189

     

     

     

    488,430

     

     

     

    483,706

     

     

     

    (153,722

    )

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

     

    2,218,639

     

     

     

    1,461,763

     

     

     

    2,178,122

     

     

     

    2,103,915

     

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

    $

    2,661,828

     

     

    $

    1,950,193

     

     

    $

    2,661,828

     

     

    $

    1,950,193

     

    Atlassian Corporation

    Revenues by Deployment Options

    (U.S. $ in thousands)

    (unaudited)

     

     

    Three Months Ended March 31,

     

    Nine Months Ended March 31,

     

    2025

     

    2024

     

    2025

     

    2024

    Cloud

    $

    880,429

     

    $

    703,036

     

    $

    2,519,697

     

    $

    1,960,893

    Data Center

     

    388,516

     

     

    364,134

     

     

    1,086,391

     

     

    881,835

    Server

     

    —

     

     

    29,720

     

     

    —

     

     

    177,645

    Marketplace and other (1)

     

    87,771

     

     

    92,238

     

     

    224,872

     

     

    206,640

    Total revenues

    $

    1,356,716

     

    $

    1,189,128

     

    $

    3,830,960

     

    $

    3,227,013

     

    (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 March 31,

     

    Nine Months Ended March 31,

     

     

    2025

     

     

     

    2024

     

     

     

    2025

     

     

     

    2024

     

    Gross profit

     

     

     

     

     

     

     

    GAAP gross profit

    $

    1,137,041

     

     

    $

    975,703

     

     

    $

    3,170,534

     

     

    $

    2,641,023

     

    Plus: Stock-based compensation

     

    20,980

     

     

     

    17,840

     

     

     

    62,225

     

     

     

    53,874

     

    Plus: Amortization of acquired intangible assets

     

    10,131

     

     

     

    12,454

     

     

     

    30,377

     

     

     

    25,282

     

    Non-GAAP gross profit

    $

    1,168,152

     

     

    $

    1,005,997

     

     

    $

    3,263,136

     

     

    $

    2,720,179

     

    Gross margin

     

     

     

     

     

     

     

    GAAP gross margin

     

    84

    %

     

     

    82

    %

     

     

    83

    %

     

     

    82

    %

    Plus: Stock-based compensation

     

    2

     

     

     

    2

     

     

     

    2

     

     

     

    1

     

    Plus: Amortization of acquired intangible assets

     

    —

     

     

     

    1

     

     

     

    —

     

     

     

    1

     

    Non-GAAP gross margin

     

    86

    %

     

     

    85

    %

     

     

    85

    %

     

     

    84

    %

    Operating income

     

     

     

     

     

     

     

    GAAP operating income (loss)

    $

    (12,456

    )

     

    $

    17,804

     

     

    $

    (101,913

    )

     

    $

    (50,127

    )

    Plus: Stock-based compensation

     

    346,842

     

     

     

    282,519

     

     

     

    1,011,718

     

     

     

    807,945

     

    Plus: Amortization of acquired intangible assets

     

    13,897

     

     

     

    16,194

     

     

     

    41,675

     

     

     

    34,286

     

    Non-GAAP operating income

    $

    348,283

     

     

    $

    316,517

     

     

    $

    951,480

     

     

    $

    792,104

     

    Operating margin

     

     

     

     

     

     

     

    GAAP operating margin

     

    (1

    %)

     

     

    1

    %

     

     

    (3

    %)

     

     

    (2

    %)

    Plus: Stock-based compensation

     

    26

     

     

     

    25

     

     

     

    27

     

     

     

    26

     

    Plus: Amortization of acquired intangible assets

     

    1

     

     

     

    1

     

     

     

    1

     

     

     

    1

     

    Non-GAAP operating margin

     

    26

    %

     

     

    27

    %

     

     

    25

    %

     

     

    25

    %

    Net income

     

     

     

     

     

     

     

    GAAP net income (loss)

    $

    (70,807

    )

     

    $

    12,752

     

     

    $

    (232,784

    )

     

    $

    (103,600

    )

    Plus: Stock-based compensation

     

    346,842

     

     

     

    282,519

     

     

     

    1,011,718

     

     

     

    807,945

     

    Plus: Amortization of acquired intangible assets

     

    13,897

     

     

     

    16,194

     

     

     

    41,675

     

     

     

    34,286

     

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

     

    —

     

     

     

    —

     

     

     

    —

     

     

     

    (1,378

    )

    Less: Income tax adjustments (1)

     

    (28,427

    )

     

     

    (78,969

    )

     

     

    (103,777

    )

     

     

    (146,271

    )

    Non-GAAP net income

    $

    261,505

     

     

    $

    232,496

     

     

    $

    716,832

     

     

    $

    590,982

     

    Net income per share

     

     

     

     

     

     

     

    GAAP net income (loss) per share - diluted

    $

    (0.27

    )

     

    $

    0.05

     

     

    $

    (0.89

    )

     

    $

    (0.40

    )

    Plus: Stock-based compensation

     

    1.29

     

     

     

    1.08

     

     

     

    3.82

     

     

     

    3.11

     

    Plus: Amortization of acquired intangible assets

     

    0.05

     

     

     

    0.06

     

     

     

    0.16

     

     

     

    0.13

     

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

     

    —

     

     

     

    —

     

     

     

    —

     

     

     

    (0.01

    )

    Less: Income tax adjustments (1)

     

    (0.10

    )

     

     

    (0.30

    )

     

     

    (0.39

    )

     

     

    (0.56

    )

    Non-GAAP net income per share - diluted

    $

    0.97

     

     

    $

    0.89

     

     

    $

    2.70

     

     

    $

    2.27

     

    Weighted-average diluted shares outstanding

     

     

     

     

     

     

     

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

     

    262,671

     

     

     

    261,778

     

     

     

    261,423

     

     

     

    258,738

     

    Plus: Dilution from dilutive securities (2)

     

    5,959

     

     

     

    —

     

     

     

    3,601

     

     

     

    1,273

     

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

     

    268,630

     

     

     

    261,778

     

     

     

    265,024

     

     

     

    260,011

     

    Free cash flow

     

     

     

     

     

     

     

    GAAP net cash provided by operating activities

    $

    652,681

     

     

    $

    565,390

     

     

    $

    1,085,078

     

     

    $

    1,021,940

     

    Less: Capital expenditures

     

    (14,366

    )

     

     

    (10,520

    )

     

     

    (29,853

    )

     

     

    (19,522

    )

    Free cash flow

    $

    638,315

     

     

    $

    554,870

     

     

    $

    1,055,225

     

     

    $

    1,002,418

     

     

    (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 nine months ended March 31, 2025 and nine months ended March 31, 2024, because the effect would have been anti-dilutive.

    Atlassian Corporation

    Reconciliation of GAAP to Non-GAAP Financial Targets

     

     

    Three Months Ending

    June 30, 2025

    GAAP gross margin

    82.5%

    Plus: Stock-based compensation

    1.5

    Plus: Amortization of acquired intangible assets

    0.5

    Non-GAAP gross margin

    84.5%

     

     

    GAAP operating margin

    (5.0%)

    Plus: Stock-based compensation

    26.0

    Plus: Amortization of acquired intangible assets

    1.0

    Non-GAAP operating margin

    22.0%

     

    View source version on businesswire.com: https://www.businesswire.com/news/home/20250501473152/en/

    Investor Relations Contact

    Martin Lam

    [email protected]

    Media Contact

    Marie-Claire Maple

    [email protected]

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