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Atlassian 8-K Report, Financial Results (Feb 1, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 1, 2024
Period End
February 1, 2024
Security
TEAM
In the record · 2016–202610-K1110-Q128-K121

TEAM filed 11 annual reports (10-K), 12 quarterly reports (10-Q) and 121 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Mar ’26Mar ’26

01—Abstract

Summary

Summary of the 8-K filed February 1, 2024. Cited figures are marked; the original filing is the authoritative source.

Atlassian Corporation (NASDAQ: TEAM) furnished this Form 8-K under Item 2.02 to report results for its second quarter fiscal year 2024, ended December 31, 2023.

Total revenue was $1,060.1 milliona, up 21% from $872.7 million a year earlier, and subscription revenue was $932.2 million, up 31% year-over-year. The company reported a GAAP operating loss of $49.1 million (GAAP operating margin of (5%)), compared with an operating loss of $99.2 million in the prior-year quarter, and a GAAP net loss of $84.5 million, or $0.33 per diluted share. On a non-GAAP basis, operating income was $250.6 million (24% margin) and net income was $189.5 million, or $0.73 per diluted share.

Operating cash flow was $289.6 millionb and free cash flow was $284.3 million. Cash and cash equivalents plus marketable securities totaled $1.6 billion at quarter end. The results include the acquisition of Loom, which closed on November 30, 2023.

Cloud revenue was $653.2 millionc in the quarter, and Data Center revenue was $274.8 million, while Server revenue declined to $69.2 million. Management highlighted the first $1 billion revenue quarter, more than 300,000 customers, and 42,864 customers with greater than $10,000 in Cloud ARR, an increase of 18% year-over-year. The company also described the general availability of Atlassian Intelligence capabilities and continued migrations from Server and Data Center to Cloud.

For fiscal year 2024, the company provided targets including total Cloud revenue growth of 28.5% to 30.5%, Data Center revenue growth of approximately 36%, GAAP operating margin of (6.5%) to (6.0%), and non-GAAP operating margin of 20.5% to 21.0%. For the third quarter of fiscal 2024, it expects total revenue of $1,085 million to $1,105 milliond and a GAAP operating margin of approximately (7.5%).

02—Key points

Key Highlights

  1. Total revenue of $1,060.1 million, up 21% year-over-year, the company's first $1 billion revenue quarter
  2. Subscription revenue of $932.2 million, up 31% year-over-year
  3. GAAP operating loss of $49.1 million (operating margin of (5%)), improved from a $99.2 million loss a year earlier
  4. Non-GAAP operating income of $250.6 million with a 24% margin, compared with 20% in the prior-year quarter
  5. Operating cash flow of $289.6 million and free cash flow of $284.3 million; cash and marketable securities of $1.6 billion
  6. Cloud revenue of $653.2 million and Data Center revenue of $274.8 million; Server revenue declined to $69.2 million
  7. FY2024 guidance: Cloud revenue growth of 28.5% to 30.5%, Data Center growth of about 36%, and non-GAAP operating margin of 20.5% to 21.0%

03—Questions

Frequently Asked Questions

  1. How did Atlassian's revenue and profitability perform in the second quarter of fiscal 2024?

    Total revenue rose 21% year-over-year to $1,060.1 million, with subscription revenue up 31% to $932.2 million. GAAP net loss was $84.5 million ($0.33 per diluted share), while non-GAAP net income was $189.5 million ($0.73 per diluted share). The GAAP operating loss narrowed to $49.1 million from $99.2 million a year earlier.

  2. What is the financial impact of the Loom acquisition?

    Loom closed on November 30, 2023, and its results are included in the second quarter. The shareholder letter states Loom contributed approximately $5 million of revenue and was slightly dilutive to GAAP and non-GAAP operating margin in the quarter. The company also expects Loom to be slightly dilutive in FY24 and FY25, and the acquisition added approximately 33,000 customers.

  3. What guidance did Atlassian give for the third quarter and full fiscal year 2024?

    For Q3 FY24, total revenue is expected to be $1,085 million to $1,105 million, with a GAAP operating margin of approximately (7.5%) and a non-GAAP operating margin of approximately 19.5%. For FY24, Cloud revenue growth is expected at 28.5% to 30.5%, Data Center growth at approximately 36%, GAAP operating margin at (6.5%) to (6.0%), and non-GAAP operating margin at 20.5% to 21.0%.

  4. How is Atlassian's cloud migration progressing?

    The shareholder letter states that Cloud revenue grew 27% in the quarter and that migrations from Server and Data Center to Cloud drove growth. Migrations from Data Center accounted for more than 60% of cloud migrations, and the company stated that migrations to Cloud in Q2 increased more than 2x year-on-year. The company also said it has more seats on Cloud than on Server and Data Center combined.

  5. What is the status of Atlassian's AI product offerings?

    The company announced general availability of the first wave of Atlassian Intelligence capabilities in the Premium and Enterprise editions of Jira Software, Confluence, and Jira Service Management, along with Virtual Agents in Jira Service Management. The shareholder letter states that over 20,000 customers used Atlassian Intelligence in the Beta program.

04—Continue

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