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Atlassian 8-K Report, Financial Results (Jan 30, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed January 30, 2025
Period End
January 30, 2025
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 January 30, 2025. Cited figures are marked; the original filing is the authoritative source.

Atlassian Corporation (NASDAQ: TEAM) reported results for its second quarter of fiscal year 2025, ended December 31, 2024, in a press release and shareholder letter furnished as Exhibits 99.1 and 99.2.

Total revenue was $1,286.5 milliona, up 21% year-over-year, and subscription revenue was $1,213.2 million, up 30%. GAAP operating loss was $57.5 million (operating margin of (4%)), while non-GAAP operating income was $335.1 million (26% margin). GAAP net loss was $38.2 million, or $0.15 per diluted share, compared with a net loss of $84.5 million a year earlier.

Non-GAAP net income was $255.6 millionb, or $0.96 per diluted share. Cash flow from operations was $351.9 million and free cash flow was $342.6 million, with a free cash flow margin of 27%. Cash and cash equivalents plus marketable securities totaled $2.5 billion at quarter end.

Cloud revenue was $846.96 millionc, up from $653.21 million, and Data Center revenue was $362.28 million, up from $274.76 million. Server revenue was zero after end-of-support. The company also reported 49,449 customers with more than $10,000 in Cloud ARR, an increase of 15% year-over-year.

For the third quarter of fiscal 2025, Atlassian expects total revenue of $1,345 million to $1,353 milliond, a GAAP operating margin of approximately (3.0%), and a non-GAAP operating margin of approximately 23.5%. For fiscal 2025, it raised its total revenue growth outlook to 18.5% to 19.0%, with Cloud revenue growth of approximately 26.5%, Data Center growth of approximately 21.5%, and Marketplace and other growth of approximately 8.5%. The GAAP operating margin outlook is approximately (4.0%), and the non-GAAP operating margin outlook is approximately 23.5%.

02—Key points

Key Highlights

  1. Total revenue of $1,286.5 million rose 21% year-over-year, with subscription revenue up 30% to $1,213.2 million.
  2. GAAP operating loss of $57.5 million (margin of (4%)) compares with a non-GAAP operating income of $335.1 million (margin of 26%), a gap driven largely by $378.7 million of stock-based compensation.
  3. GAAP net loss narrowed to $38.2 million ($0.15 per diluted share) from $84.5 million a year earlier; non-GAAP net income was $255.6 million ($0.96 per diluted share).
  4. Free cash flow of $342.6 million, with a 27% free cash flow margin, and cash plus marketable securities of $2.5 billion at quarter end.
  5. Cloud revenue rose to $846.96 million from $653.21 million, and Cloud ARR customers above $10,000 grew 15% year-over-year to 49,449.
  6. Fiscal 2025 guidance raised: total revenue growth of 18.5% to 19.0% and Cloud revenue growth of approximately 26.5%; Q3 revenue guided to $1,345 million to $1,353 million.
  7. Christian Smith was appointed to the Board of Directors; the company also announced a multi-year strategic collaboration agreement with Amazon Web Services.

03—Questions

Frequently Asked Questions

  1. How did Atlassian's revenue perform in the second quarter of fiscal 2025?

    Total revenue was $1,286.5 million, up 21% from $1,060.1 million a year earlier. Subscription revenue reached $1,213.2 million, up 30% from $932.2 million, and Cloud revenue was $846.96 million versus $653.21 million.

  2. Is Atlassian profitable?

    On a GAAP basis, Atlassian reported an operating loss of $57.5 million and a net loss of $38.2 million, or $0.15 per diluted share. On a non-GAAP basis, which excludes stock-based compensation and amortization of acquired intangible assets, operating income was $335.1 million and net income was $255.6 million, or $0.96 per diluted share.

  3. How much cash did Atlassian generate and hold?

    Cash flow from operations was $351.9 million and free cash flow was $342.6 million in the quarter. Cash and cash equivalents plus marketable securities totaled $2.5 billion at December 31, 2024.

  4. What is the company's outlook for fiscal 2025?

    Atlassian raised its fiscal 2025 total revenue growth outlook to 18.5% to 19.0%. It expects Cloud revenue growth of approximately 26.5%, Data Center growth of approximately 21.5%, and Marketplace and other growth of approximately 8.5%. The GAAP operating margin is expected to be approximately (4.0%) and the non-GAAP operating margin approximately 23.5%.

  5. What drove the quarter's results and what is the company's strategic focus?

    Management cited strong enterprise sales execution and growth across Cloud and Data Center offerings. The company said its strategic priorities are serving enterprise customers, AI, and the System of Work, and it reported over 1 million monthly active users of AI across its platform and 49,449 customers with more than $10,000 in Cloud ARR.

04—Continue

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