01—Abstract
Summary
Summary of the 10-Q filed January 31, 2025. Cited figures are marked; the original filing is the authoritative source.
Atlassian Corporation's Form 10-Q for the quarter ended December 31, 2024 reports total revenues of $1,286.5 milliona for the three months ended December 31, 2024, up 21% from $1,060.1 million a year earlier, with subscription revenue rising 30% to $1,213.2 million.
Other revenue fell 43% to $73.2 millionb, driven by the end of support for Server offerings. Operating loss narrowed to $57.5 million from $49.1 million, and net loss was $38.2 million, compared with $84.5 million in the prior-year quarter. For the six months, total revenues were $2,474.2 million, up 21%, and net loss was $162.0 million.
Cash flow from operations was $351.9 millionc for the quarter, and free cash flow was $342.6 million, up from $284.3 million. Cash and cash equivalents totaled $2.2 billion at December 31, 2024, against $1,000 million of long-term debt carried at $986.8 million, comprised of $500.0 million of 5.250% notes due 2029 and $500.0 million of 5.500% notes due 2034. The company repurchased about 0.4 million Class A shares for $68.4 million in the quarter and had $1.5 billion remaining under its 2024 repurchase program.
Remaining performance obligations were approximately $2.7 billiond, with about 78% expected to be recognized over the next 12 months. The filing notes that Class B holders control approximately 86% of voting power, and that stock-based compensation was $378.7 million in the quarter, a major driver of the GAAP loss. Management states that existing cash and credit facility borrowing capacity should be sufficient for at least the next 12 months.
02—Key points
Key Highlights
- Total revenues of $1,286.5 million for the quarter, up 21% year over year, led by subscription revenue growth of 30% to $1,213.2 million.
- Other revenues declined 43% to $73.2 million, mainly due to a $66.2 million decrease in Server maintenance revenue after Server support ended.
- Net loss narrowed to $38.2 million from $84.5 million a year earlier; stock-based compensation of $378.7 million was a major non-cash expense.
- Free cash flow of $342.6 million for the quarter, versus $284.3 million in the prior-year quarter; operating cash flow was $351.9 million.
- Cash and cash equivalents of $2.2 billion at December 31, 2024, against long-term debt of $986.8 million from $1.0 billion of senior notes.
- Repurchased approximately 0.4 million Class A shares for $68.4 million in the quarter, with $1.5 billion remaining under the 2024 Repurchase Program.
- Remaining performance obligations of approximately $2.7 billion, with about 78% expected to be recognized over the next 12 months.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2025, Atlassian lost $0.03.
- Revenue$1.29B100.0%
- Cost of revenue−$223.1M17.3%
- Gross profit$1.06B82.7%
- Operating costs−$1.12B87.1%
- Operating income−$57.5M4.5%
- Interest, other & tax$19.3M1.5%
- Net income−$38.2M3.0%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed January 31, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $1.29B$1.06B | +21.4% |
| Cost of Revenue | $223.13M$194.54M | +14.7% |
| Gross Profit | $1.06B$865.57M | +22.8% |
| R&D Expenses | $680.21M$536.78M | +26.7% |
| Operating Expenses | $1.12B$914.64M | +22.5% |
| Operating Income | -$57.48M-$49.06M | −17.2% |
| Net Income | -$38.21M-$84.47M | +54.8% |
| EPS (Basic) | $-0.15$-0.33 | +54.5% |
| EPS (Diluted) | $-0.15$-0.33 | +54.5% |
| Shares Outstanding (Basic) | 261.15M258.60M | +1.0% |
| Shares Outstanding (Diluted) | 261.15M258.60M | +1.0% |
05—Questions
Frequently Asked Questions
How did Atlassian's revenue perform in the quarter ended December 31, 2024?
Total revenues were $1,286.5 million, up 21% from $1,060.1 million. Subscription revenues rose 30%, primarily from paid seat expansion, price increases, and migrations, while other revenues fell 43% due to the end of Server support.
Is Atlassian still reporting net losses?
Yes. The company reported a net loss of $38.2 million for the quarter and $162.0 million for the six months ended December 31, 2024. The filing attributes much of the GAAP loss to stock-based compensation of $378.7 million in the quarter.
How is the company funding its operations and capital returns?
The company cites operating cash flow of $432.4 million for the six months, cash and equivalents of $2.2 billion, and $750 million of revolving credit capacity under the 2024 Credit Facility. It repurchased $252.3 million of Class A stock in the six months ended December 31, 2024.
What debt does Atlassian carry?
Atlassian has $500.0 million of 5.250% senior notes due 2029 and $500.0 million of 5.500% senior notes due 2034, with long-term debt carried at $986.8 million net of unamortized discount and issuance costs. The 2024 Credit Facility had no outstanding revolving loans as of December 31, 2024.
Who controls voting power at Atlassian?
Holders of Class B Common Stock, which has ten votes per share, hold approximately 86% of the voting power. Entities affiliated with Co-Founders Michael Cannon-Brookes and Scott Farquhar collectively hold approximately 86% of voting power.
06—Continue