Quarterly revenue of $1,189 million, up 30%
year-over-year
Quarterly subscription revenue of $1,071
million, up 41% year-over-year
Quarterly GAAP operating margin of 1% and
non-GAAP operating margin of 27%
Quarterly cash flow from operations of $565
million and free cash flow of $555 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, 2024. Atlassian also
announced co-founder Scott Farquhar will step down as co-CEO
effective August 31, 2024, with co-founder Mike Cannon Brookes
continuing to lead Atlassian as CEO. A shareholder letter was
posted on Atlassian’s Work Life blog at
http://atlassian.com/blog/announcements/shareholder-letter-q3fy24
and in the Investor Relations section of Atlassian’s website at
https://investors.atlassian.com.
Third Quarter Fiscal Year 2024 Earnings Results
“It’s been a milestone quarter for Atlassian,” said Mike
Cannon-Brookes, co-founder and co-CEO.
“We’ve delivered $1.2 billion in revenue in Q3, up 30%
year-over-year, driven by subscription revenue growth of 41%
year-over-year. We drove record free cash flow of $555 million, up
59% year-over-year.
“Today, Atlassian is a cloud-majority company. We have over
300,000 customers using our Cloud products and have seen a 3x
increase in paid seats in Cloud since we announced end-of-support
for Server three and a half years ago. We have a significant
opportunity to drive durable, long-term growth as we continue to
execute against our cloud roadmap and deliver innovation across our
cloud platform. We’re excited to share more at our flagship
customer event next week, Team ’24,” concluded Cannon-Brookes.
CEO Transition
After an incredible 23 years, Scott Farquhar has made the
decision to step down as co-CEO to spend more time with his young
family, improve the world via philanthropy, and help further the
technology industry globally.
“While it's a difficult decision to step away, I do so knowing
Atlassian is exceptionally positioned to take hold of the massive
opportunities at its feet. We have a strong leadership team, and
great momentum around cloud, enterprise, and now, AI,” said
Farquhar.
Cannon-Brookes added, “The contribution Scott has made at
Atlassian is impossible to quantify. Starting with just the two of
us in 2001, to a global company of over 11,000 employees and over
USD $4 billion in annual revenue, Atlassian would not be the
company it is today without Scott. I am truly grateful to have had
him by my side every day for the last 23 years.”
Scott’s last day as co-CEO will be August 31, 2024. He will
continue as an active Board member and assume a special advisor
role.
Mike will continue to lead as CEO as Atlassian pursues its
mission to unleash the potential of every team and capitalize on
its strengths in the AI era. To read Scott’s blog post, visit:
https://www.atlassian.com/blog/announcements/scott-farquhar-ceo-transition.
Third Quarter Fiscal Year 2024 Financial Highlights:
On a GAAP basis, Atlassian reported:
- Revenue: Total revenue was $1,189.1 million for the
third quarter of fiscal year 2024, up 30% from $915.5 million for
the third quarter of fiscal year 2023.
- Operating Income (Loss) and Operating Margin: Operating
income was $17.8 million for the third quarter of fiscal year 2024,
compared with operating loss of $161.6 million for the third
quarter of fiscal year 2023. Operating margin was 1% for the third
quarter of fiscal year 2024, compared with (18%) for the third
quarter of fiscal year 2023.
- Net Income (Loss) and Net Income (Loss) Per Diluted
Share: Net income was $12.8 million for the third quarter of
fiscal year 2024, compared with net loss of $209.0 million for the
third quarter of fiscal year 2023. Net income per diluted share was
$0.05 for the third quarter of fiscal year 2024, compared with net
loss per diluted share of $0.81 for the third quarter of fiscal
year 2023.
- Balance Sheet: Cash and cash equivalents plus marketable
securities at the end of the third quarter of fiscal year 2024
totaled $2.1 billion.
On a non-GAAP basis, Atlassian reported:
- Operating Income and Operating Margin: Operating income
was $316.5 million for the third quarter of fiscal year 2024,
compared with operating income of $197.1 million for the third
quarter of fiscal year 2023. Operating margin was 27% for the third
quarter of fiscal year 2024, compared with 22% for the third
quarter of fiscal year 2023.
- Net Income and Net Income Per Diluted Share: Net income
was $232.5 million for the third quarter of fiscal year 2024,
compared with net income of $138.0 million for the third quarter of
fiscal year 2023. Net income per diluted share was $0.89 for the
third quarter of fiscal year 2024, compared with net income per
diluted share of $0.54 for the third quarter of fiscal year
2023.
- Free Cash Flow: Cash flow from operations was $565.4
million and free cash flow was $554.9 million for the third quarter
of fiscal year 2024. Free cash flow margin for the third quarter of
fiscal year 2024 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 Marketplace Surpasses $4 Billion in Lifetime
Sales: The Atlassian Marketplace surpassed $4 billion in
lifetime sales since its inception in 2012. More than 1,800
Marketplace partners have created more than 5,700 apps and
integrations, delivering additional value and innovation to
customers.
- Loom Named to Fast Company’s List of World’s Most Innovative
Companies 2024: Loom was named to Fast Company’s List of
World’s Most Innovative Companies of 2024. In addition to
delivering a seamless asynchronous video communication experience,
the launch of advanced AI capabilities makes video creation easy
with the ability to edit the transcript to say what you want,
automatically share your message, and identify calls to action.
This recognition is a testament to the dedication of our new Loom
teammates, who continue to push the boundaries of the future of
work.
- Optic Acquisition: Atlassian announced the acquisition
of Optic, an Application Programming Interface (API) documentation
and management company. Optic provides engineering organizations
with native API documentation making it easier for developers to
publish accurate API docs, avoid breaking changes, and improve the
design of their APIs. Together with Compass, Optic will accelerate
our ability to empower engineering teams and improve productivity
by helping developers find the documentation they need and ship
faster.
- Confluence Whiteboards: Atlassian released Confluence
whiteboards into general availability. Confluence whiteboards are a
freeform way for teams to collaborate, brainstorm, draw, and
visualize in a simple, integrated way. Whiteboards allows teams to
seamlessly connect individual thoughts and ideas to workflows, by
moving from a whiteboard into Jira without even having to change
screens.
- New Data Residency Regions Unlocked in the Cloud:
Atlassian announced multiple new data residency regions available
to customers: India, Japan, South Korea, Switzerland, and the
United Kingdom. The expansion of data residency availability, now
offered in 12 geographies, provides customers with control and
flexibility on where they store their cloud data.
- Customers with >$10,000 in Cloud ARR: Atlassian ended
its third quarter of fiscal year 2024 with 44,336 customers with
greater than $10,000 in Cloud annualized recurring revenue (Cloud
ARR), an increase of 19% year-over-year.
- Achieved Recognition on Fortune’s List of 100 Best Companies
to Work For™ 2024: Atlassian was recognized, for the sixth
consecutive year, on Fortune’s list of 100 Best Companies to Work
For™. This remarkable accomplishment is a testament to the
dedication, innovative spirit, and collective effort of all
Atlassians who build upon our exceptional culture.
- Atlassian Team ’24: Atlassian will hold its flagship
Team ’24 conference in Las Vegas from April 30, 2024 through May 2,
2024. Thousands of customers, partners, and Atlassians will come
together to talk about teamwork innovation, and hear exciting
announcements that advance the way teammates work together through
deep human insights and breakthrough technologies. More information
on Team ’24 can be found at https://events.atlassian.com/team.
Financial Targets:
Atlassian is providing its financial targets as follows:
Fourth Quarter Fiscal Year 2024:
- Total revenue is expected to be in the range of $1,120 million
to $1,135 million.
- Cloud revenue growth year-over-year is expected to be
approximately 32%.
- Data Center revenue growth year-over-year is expected to be in
the range of 40% to 42%.
- Gross margin is expected to be approximately 81.0% on a GAAP
basis and approximately 83.5% on a non-GAAP basis.
- Operating margin is expected to be approximately (7.0%) on a
GAAP basis and approximately 18.5% on a non-GAAP basis.
For additional commentary regarding financial targets, please
see Atlassian’s third quarter fiscal year 2024 shareholder letter
dated April 25, 2024.
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-q3fy24,
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, April 25, 2024 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 agile &
DevOps, IT 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, Audi, 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 Software, 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,” 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 risks and uncertainties related to statements about our
products, product features, including AI capabilities, customers,
cloud migrations, macroeconomic environment, anticipated growth,
outlook, potential benefits and synergies from Loom and other
acquisitions, technology, and other key strategic areas, and our
financial targets such as total revenue, Cloud and Data Center
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 and non-GAAP gross margin, non-GAAP operating income
and 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, amortization of
acquired intangible assets, and restructuring charges.
- Non-GAAP operating income and non-GAAP operating margin.
Excludes expenses related to stock-based compensation, amortization
of acquired intangible assets, and restructuring charges.
- Non-GAAP net income and non-GAAP net income per diluted share.
Excludes expenses related to stock-based compensation, amortization
of acquired intangible assets, restructuring charges, 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,
2024
2023
2024
2023
Revenues:
Subscription
$
1,071,355
$
760,680
$
2,855,518
$
2,122,863
Maintenance
29,530
94,225
177,230
313,813
Other
88,243
60,548
194,265
158,873
Total revenues
1,189,128
915,453
3,227,013
2,595,549
Cost of revenues (1) (2)
213,425
168,652
585,990
463,989
Gross profit
975,703
746,801
2,641,023
2,131,560
Operating expenses:
Research and development (1) (2)
576,490
522,344
1,595,007
1,395,026
Marketing and sales (1) (2)
223,814
220,921
637,894
567,240
General and administrative (1)
157,595
165,103
458,249
464,127
Total operating expenses
957,899
908,368
2,691,150
2,426,393
Operating income (loss)
17,804
(161,567
)
(50,127
)
(294,833
)
Other income (expense), net
(10,990
)
(943
)
(23,964
)
21,597
Interest income
21,414
15,047
69,233
29,153
Interest expense
(8,453
)
(7,978
)
(26,430
)
(21,607
)
Income (loss) before provision for income
taxes
19,775
(155,441
)
(31,288
)
(265,690
)
Provision for income taxes
(7,023
)
(53,596
)
(72,312
)
(162,119
)
Net income (loss)
$
12,752
$
(209,037
)
$
(103,600
)
$
(427,809
)
Net income (loss) per share attributable
to Class A and Class B common stockholders:
Basic
$
0.05
$
(0.81
)
$
(0.40
)
$
(1.67
)
Diluted
$
0.05
$
(0.81
)
$
(0.40
)
$
(1.67
)
Weighted-average shares used in computing
net income (loss) per share attributable to Class A and Class B
common stockholders:
Basic
259,717
256,825
258,738
255,949
Diluted
261,778
256,825
258,738
255,949
(1) Amounts include stock-based
compensation as follows:
Three Months Ended March
31,
Nine Months Ended March
31,
2024
2023
2024
2023
Cost of revenues
$
17,840
$
17,581
$
53,874
$
46,747
Research and development
190,322
167,994
528,587
447,465
Marketing and sales
33,383
36,571
103,832
97,922
General and administrative
40,974
41,281
121,652
110,709
(2) Amounts include amortization of
acquired intangible assets, as follows:
Three Months Ended March
31,
Nine Months Ended March
31,
2024
2023
2024
2023
Cost of revenues
$
12,454
$
5,696
$
25,282
$
17,090
Research and development
94
94
281
281
Marketing and sales
3,646
2,365
8,723
7,376
Atlassian Corporation
Condensed Consolidated Balance
Sheets
(U.S. $ in thousands)
(unaudited)
March 31, 2024
June 30, 2023
Assets
Current assets:
Cash and cash equivalents
$
1,948,978
$
2,102,550
Marketable securities
163,318
10,000
Accounts receivable, net
646,082
477,678
Prepaid expenses and other current
assets
155,551
146,136
Total current assets
2,913,929
2,736,364
Non-current assets:
Property and equipment, net
80,961
81,402
Operating lease right-of-use assets
180,967
184,195
Strategic investments
220,125
225,538
Intangible assets, net
312,816
69,072
Goodwill
1,285,745
727,211
Deferred tax assets
2,780
9,945
Other non-current assets
65,942
73,052
Total assets
$
5,063,265
$
4,106,779
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
188,241
$
159,293
Accrued expenses and other current
liabilities
484,896
423,131
Deferred revenue, current portion
1,698,639
1,362,736
Operating lease liabilities, current
portion
46,437
44,930
Term loan facility, current portion
50,000
37,500
Total current liabilities
2,468,213
2,027,590
Non-current liabilities:
Deferred revenue, net of current
portion
256,926
182,743
Operating lease liabilities, net of
current portion
225,208
237,835
Term loan facility, net of current
portion
924,724
962,093
Deferred tax liabilities
19,036
10,669
Other non-current liabilities
34,987
31,177
Total liabilities
3,929,094
3,452,107
Stockholders’ equity
Common stock
3
3
Additional paid-in capital
3,938,577
3,130,631
Accumulated other comprehensive income
13,767
34,002
Accumulated deficit
(2,818,176
)
(2,509,964
)
Total stockholders’ equity
1,134,171
654,672
Total liabilities and stockholders’
equity
$
5,063,265
$
4,106,779
Atlassian Corporation
Condensed Consolidated
Statements of Cash Flows
(U.S. $ in thousands)
(unaudited)
Three Months Ended March
31,
Nine Months Ended March
31,
2024
2023
2024
2023
Cash flows from operating
activities:
Net income (loss)
$
12,752
$
(209,037
)
$
(103,600
)
$
(427,809
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization
23,464
15,523
55,560
45,619
Stock-based compensation
282,519
263,427
807,945
702,843
Impairment charges for leases and
leasehold improvements
—
61,098
—
61,098
Deferred income taxes
3,207
1,495
(98
)
6,308
Gain on a non-cash sale of a controlling
interest of a subsidiary
—
—
(1,378
)
(45,158
)
Net loss (income) on strategic
investments
4,060
(1,812
)
11,750
17,264
Net foreign currency loss (gain)
(2,276
)
(177
)
142
(6,005
)
Other
412
1,381
698
1,611
Changes in operating assets and
liabilities, net of business combinations:
Accounts receivable, net
(119,819
)
8,460
(166,494
)
(38,031
)
Prepaid expenses and other assets
(35,986
)
(15,163
)
(59,528
)
(40,530
)
Accounts payable
28,227
(27,700
)
28,850
22,034
Accrued expenses and other liabilities
67,149
131,238
54,958
81,055
Deferred revenue
301,681
123,636
393,135
215,037
Net cash provided by operating
activities
565,390
352,369
1,021,940
595,336
Cash flows from investing
activities:
Business combinations, net of cash
acquired
—
—
(844,727
)
(600
)
Purchases of property and equipment
(10,520
)
(2,691
)
(19,522
)
(23,227
)
Purchases of strategic investments
(4,250
)
(9,000
)
(8,250
)
(18,450
)
Purchases of marketable securities
(74,544
)
—
(213,690
)
(10,000
)
Proceeds from maturities of marketable
securities
63,000
26,250
79,150
73,950
Proceeds from sales of marketable
securities and strategic investments
—
8
61,392
629
Net cash provided by (used in)
investing activities
(26,314
)
14,567
(945,647
)
22,302
Cash flows from financing
activities:
Principal payments of term loan
facility
(12,500
)
—
(25,000
)
—
Repurchases of Class A Common Stock
(35,377
)
(31,748
)
(203,029
)
(31,748
)
Proceeds from other financing
arrangements
—
2
—
1,398
Net cash used in financing
activities
(47,877
)
(31,746
)
(228,029
)
(30,350
)
Effect of foreign exchange rate changes on
cash, cash equivalents and restricted cash
(2,769
)
421
(1,986
)
(996
)
Net increase (decrease) in cash, cash
equivalents, and restricted cash
488,430
335,611
(153,722
)
586,292
Cash, cash equivalents, and restricted
cash at beginning of period
1,461,763
1,637,969
2,103,915
1,386,686
Net decrease in cash and cash equivalents
included in assets held for sale
—
—
—
602
Cash, cash equivalents, and restricted
cash at end of period
$
1,950,193
$
1,973,580
$
1,950,193
$
1,973,580
Atlassian Corporation
Revenues by Deployment
Options
(U.S. $ in thousands)
(unaudited)
Three Months Ended March
31,
Nine Months Ended March
31,
2024
2023
2024
2023
Cloud
$
703,036
$
534,891
$
1,960,893
$
1,522,269
Data Center
364,134
221,551
881,835
587,043
Server
29,720
94,389
177,645
314,370
Marketplace and other (1)
92,238
64,622
206,640
171,867
Total revenues
$
1,189,128
$
915,453
$
3,227,013
$
2,595,549
(1) Included in Marketplace and other is premier support
revenue. Premier support is a subscription-based arrangement 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,
2024
2023
2024
2023
Gross
profit
GAAP gross profit
$
975,703
$
746,801
$
2,641,023
$
2,131,560
Plus: Stock-based compensation
17,840
17,293
53,874
46,459
Plus: Amortization of acquired intangible
assets
12,454
5,696
25,282
17,090
Plus: Restructuring charges (1)
—
9,247
—
9,247
Non-GAAP gross profit
$
1,005,997
$
779,037
$
2,720,179
$
2,204,356
Gross
margin
GAAP gross margin
82
%
82
%
82
%
82
%
Plus: Stock-based compensation
2
2
1
2
Plus: Amortization of acquired intangible
assets
1
—
1
1
Plus: Restructuring charges (1)
—
%
1
%
—
%
—
%
Non-GAAP gross margin
85
%
85
%
84
%
85
%
Operating
income
GAAP operating income (loss)
$
17,804
$
(161,567
)
$
(50,127
)
$
(294,833
)
Plus: Stock-based compensation
282,519
252,678
807,945
692,094
Plus: Amortization of acquired intangible
assets
16,194
8,155
34,286
24,747
Plus: Restructuring charges (1)
—
97,848
—
97,848
Non-GAAP operating income
$
316,517
$
197,114
$
792,104
$
519,856
Operating
margin
GAAP operating margin
1
%
(18
%)
(2
%)
(11
%)
Plus: Stock-based compensation
25
28
26
26
Plus: Amortization of acquired intangible
assets
1
1
1
1
Plus: Restructuring charges (1)
—
11
—
4
Non-GAAP operating margin
27
%
22
%
25
%
20
%
Net
income
GAAP net income (loss)
$
12,752
$
(209,037
)
$
(103,600
)
$
(427,809
)
Plus: Stock-based compensation
282,519
252,678
807,945
692,094
Plus: Amortization of acquired intangible
assets
16,194
8,155
34,286
24,747
Plus: Restructuring charges (1)
—
97,848
—
97,848
Less: Gain on a non-cash sale of a
controlling interest of a subsidiary
—
—
(1,378
)
(45,158
)
Less: Income tax adjustments (2)
(78,969
)
(11,689
)
(146,271
)
3,513
Non-GAAP net income
$
232,496
$
137,955
$
590,982
$
345,235
Net income per
share
GAAP net income (loss) per share -
diluted
$
0.05
$
(0.81
)
$
(0.40
)
$
(1.67
)
Plus: Stock-based compensation
1.08
0.98
3.11
2.70
Plus: Amortization of acquired intangible
assets
0.06
0.03
0.13
0.10
Plus: Restructuring charges (1)
—
0.39
—
0.39
Less: Gain on a non-cash sale of a
controlling interest of a subsidiary
—
—
(0.01
)
(0.18
)
Less: Income tax adjustments (2)
(0.30
)
(0.05
)
(0.56
)
0.01
Non-GAAP net income per share -
diluted
$
0.89
$
0.54
$
2.27
$
1.35
Weighted-average
diluted shares outstanding
Weighted-average shares used in computing
diluted GAAP net income (loss) per share
261,778
256,825
258,738
255,949
Plus: Dilution from dilutive securities
(3)
—
425
1,273
590
Weighted-average shares used in computing
diluted non-GAAP net income per share
261,778
257,250
260,011
256,539
Free cash
flow
GAAP net cash provided by operating
activities
$
565,390
$
352,369
$
1,021,940
$
595,336
Less: Capital expenditures
(10,520
)
(2,691
)
(19,522
)
(23,227
)
Free cash flow
$
554,870
$
349,678
$
1,002,418
$
572,109
(1) Restructuring charges include stock-based compensation
expense related to the rebalancing of resources for the three and
nine months ended March 31, 2023.
(2) In fiscal year 2024, we began to 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
year 2024, we determined the projected non-GAAP tax rate to be 27%.
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 the company operates.
(3) The effects of these dilutive securities were not included
in the GAAP calculation of diluted net loss per share for the nine
months ended March 31, 2024 and three and nine months ended March
31, 2023, respectively, because the effect would have been
anti-dilutive.
Atlassian Corporation
Reconciliation of GAAP to
Non-GAAP Financial Targets
Three Months Ending
June 30, 2024
GAAP gross margin
81.0
%
Plus: Stock-based compensation
1.5
Plus: Amortization of acquired intangible
assets
1.0
Non-GAAP gross margin
83.5
%
GAAP operating margin
(7.0
%)
Plus: Stock-based compensation
24.0
Plus: Amortization of acquired intangible
assets
1.5
Non-GAAP operating margin
18.5
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240425458116/en/
Investor Relations Contact Martin Lam
IR@atlassian.com
Media Contact Marie-Claire Maple press@atlassian.com
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