Quarterly revenue of $1,060 million, up 21%
year-over-year
Quarterly subscription revenue of $932 million,
up 31% year-over-year
Quarterly GAAP operating margin of (5%) and
non-GAAP operating margin of 24%
Quarterly cash flow from operations of $290
million and free cash flow of $284 million
Atlassian Corporation (NASDAQ: TEAM), a leading provider of team
collaboration and productivity software, today announced financial
results for its second quarter ended December 31, 2023 and released
a shareholder letter available on Atlassian’s Work Life blog at
http://atlassian.com/blog/announcements/shareholder-letter-q2fy24.
The shareholder letter was also posted to the Investor Relations
section of Atlassian’s website at
https://investors.atlassian.com.
“Q2 was full of incredible milestones as we recorded our
first-ever $1 billion revenue quarter, Jira Software crossed $1
billion in Cloud ARR, and we surpassed 300,000 customers,” said
Scott Farquhar, Atlassian’s co-founder and co-CEO. “We continued to
execute well with quarterly revenue up 21% year-over-year, driven
by subscription revenue growth of 31% year-over-year. While we are
extremely proud of our accomplishments, we remain laser-focused on
executing against our top strategic priorities: cloud migrations,
serving enterprise customers, ITSM, and AI.”
“The steady drumbeat of delivering innovation across our cloud
platform continues as we rolled out our first wave of Atlassian
Intelligence capabilities into general availability accelerating
our customers' productivity,” said Mike Cannon-Brookes, Atlassian’s
co-founder and co-CEO. “With over 20 years of experience and
knowledge about how technical and non-technical teams plan, track,
deliver, and collaborate, we are uniquely positioned to supercharge
teams through the power of AI. We officially welcomed Loom to the
Atlassian family in Q2, and have been thrilled to see the team
deliver on their ambitious AI vision with a slew of new features
including an enhanced editing experience that makes updating a
video as easy as editing a text document. The addition of async
video to our toolbelt combined with its AI capabilities will help
our customers collaborate in deeper and more meaningful ways.”
Second Quarter Fiscal Year 2024 Financial Highlights:
The following financial results for the second quarter of fiscal
year 2024 include the impact from the acquisition of Loom which
closed on November 30, 2023.
On a GAAP basis, Atlassian reported:
- Revenue: Total revenue was $1,060.1 million for the
second quarter of fiscal year 2024, up 21% from $872.7 million for
the second quarter of fiscal year 2023.
- Operating Loss and Operating Margin: Operating loss was
$49.1 million for the second quarter of fiscal year 2024, compared
with operating loss of $99.2 million for the second quarter of
fiscal year 2023. Operating margin was (5%) for the second quarter
of fiscal year 2024, compared with (11%) for the second quarter of
fiscal year 2023.
- Net Loss and Net Loss Per Diluted Share: Net loss was
$84.5 million for the second quarter of fiscal year 2024, compared
with net loss of $205.0 million for the second quarter of fiscal
year 2023. Net loss per diluted share was $0.33 for the second
quarter of fiscal year 2024, compared with net loss per diluted
share of $0.80 for the second quarter of fiscal year 2023.
- Balance Sheet: Cash and cash equivalents plus marketable
securities at the end of the second quarter of fiscal year 2024
totaled $1.6 billion.
On a non-GAAP basis, Atlassian reported:
- Operating Income and Operating Margin: Operating income
was $250.6 million for the second quarter of fiscal year 2024,
compared with operating income of $174.8 million for the second
quarter of fiscal year 2023. Operating margin was 24% for the
second quarter of fiscal year 2024, compared with 20% for the
second quarter of fiscal year 2023.
- Net Income and Net Income Per Diluted Share: Net income
was $189.5 million for the second quarter of fiscal year 2024,
compared with net income of $114.7 million for the second quarter
of fiscal year 2023. Net income per diluted share was $0.73 for the
second quarter of fiscal year 2024, compared with net income per
diluted share of $0.45 for the second quarter of fiscal year
2023.
- Free Cash Flow: Cash flow from operations was $289.6
million and free cash flow was $284.3 million for the second
quarter of fiscal year 2024. Free cash flow margin for the second
quarter of fiscal year 2024 was 27%.
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:
- AI on the Atlassian Platform: Atlassian announced the
general availability of Atlassian Intelligence, bringing AI
capabilities to the Premium and Enterprise editions of Jira
Software, Confluence, and Jira Service Management. Developed with
20 years of insights from how millions of teams work and interact,
these Atlassian Intelligence features - from gathering actionable
insights from data through natural language querying in Jira
Software, to text generation and summarization in Confluence - will
help teams do their best work with speed, efficiency, and
excellence.
- Enterprise Platform Enhancements: Atlassian expanded the
enterprise-grade capabilities of the Atlassian cloud platform with
the launch of Data Residency in Canada, Bring-Your-Own-Key
encryption in Jira Software, HIPAA compliance availability in all
paid plans of Jira Software, Confluence, and Jira Service
Management, and enhanced API token controls for admins. These
capabilities enable even more enterprise customers to move to the
Atlassian cloud platform.
- A Leader in The Forrester Wave™: Enterprise Service
Management: Atlassian was recognized as a Leader in The
Forrester Wave™: Enterprise Service Management, Q4 2023, with Jira
Service Management receiving the highest possible score in the
strategy category. Jira Service Management is a comprehensive and
integrated suite of tools that seamlessly connects development, IT,
and business teams to foster enhanced collaboration and workflow
efficiency across the entire service delivery lifecycle.
- Customers with >$10,000 in Cloud ARR: Atlassian ended
its second quarter of fiscal year 2024 with 42,864 customers with
greater than $10,000 in Cloud ARR, an increase of 18%
year-over-year. The acquisition of Loom increased the number of
customers with greater than $10,000 in Cloud ARR by 326.
- Achieved Global Recognition as a Great Place to Work:
Atlassian was ranked 16th on Great Place to Work's World's Best
Workplaces™ list and ranked 7th on Fortune's list of 100 Best
Companies to Work For in North America. These achievements are a
testament to the unwavering commitment, tireless dedication, and
everyday efforts of the invaluable TEAM members who make Atlassian
a top destination to do one’s best work.
Financial Targets:
The following financial targets for the third quarter of fiscal
year 2024 and fiscal year 2024 include the impact from the
acquisition of Loom.
Atlassian is providing its financial targets as follows:
Third Quarter Fiscal Year 2024:
- Total revenue is expected to be in the range of $1,085 million
to $1,105 million.
- Cloud revenue growth year-over-year is expected to be in the
range of 30.0% to 32.0%.
- Data Center revenue growth year-over-year is expected to be
approximately 35.0%.
- 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 (7.5%) on a
GAAP basis and approximately 19.5% on a non-GAAP basis.
Fiscal Year 2024:
- Cloud revenue growth year-over-year is expected to be in the
range of 28.5% to 30.5%.
- Data Center revenue growth year-over-year is expected to be
approximately 36.0%.
- 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 in the range of (6.5%) to
(6.0%) on a GAAP basis and in the range of 20.5% to 21.0% on a
non-GAAP basis.
For additional commentary regarding financial targets, please
see Atlassian’s second quarter fiscal year 2024 shareholder letter
dated February 1, 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-q2fy24,
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, February 1, 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 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.
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 on a
single product basis is defined as Cloud ARR from subscriptions for
that specific product. 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.
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
and greater than $10,000 in Cloud ARR.
Atlassian Corporation
Condensed Consolidated
Statements of Operations
(U.S. $ and shares in
thousands, except per share data)
(unaudited)
Three Months Ended December
31,
Six Months Ended December
31,
2023
2022
2023
2022
Revenues:
Subscription
$
932,181
$
711,199
$
1,784,163
$
1,362,183
Maintenance
69,102
106,023
147,700
219,588
Other
58,827
55,482
106,022
98,325
Total revenues
1,060,110
872,704
2,037,885
1,680,096
Cost of revenues (1) (2)
194,536
155,945
372,565
295,337
Gross profit
865,574
716,759
1,665,320
1,384,759
Operating expenses:
Research and development (1) (2)
536,779
473,676
1,018,517
872,682
Marketing and sales (1) (2)
220,513
186,191
414,080
346,319
General and administrative (1)
157,344
156,131
300,654
299,024
Total operating expenses
914,636
815,998
1,733,251
1,518,025
Operating loss
(49,062
)
(99,239
)
(67,931
)
(133,266
)
Other income (expense), net
(4,639
)
(6,749
)
(12,974
)
22,540
Interest income
22,593
8,963
47,819
14,106
Interest expense
(9,001
)
(7,508
)
(17,977
)
(13,629
)
Loss before provision for income taxes
(40,109
)
(104,533
)
(51,063
)
(110,249
)
Provision for income taxes
(44,360
)
(100,498
)
(65,289
)
(108,523
)
Net loss
$
(84,469
)
$
(205,031
)
$
(116,352
)
$
(218,772
)
Net loss per share attributable to Class A
and Class B common stockholders:
Basic
$
(0.33
)
$
(0.80
)
$
(0.45
)
$
(0.86
)
Diluted
$
(0.33
)
$
(0.80
)
$
(0.45
)
$
(0.86
)
Weighted-average shares used in computing
net loss per share attributable to Class A and Class B common
stockholders:
Basic
258,601
255,874
258,254
255,520
Diluted
258,601
255,874
258,254
255,520
(1)
Amounts include stock-based compensation
as follows:
Three Months Ended December
31,
Six Months Ended December
31,
2023
2022
2023
2022
Cost of revenues
$
19,213
$
18,553
$
36,034
$
29,166
Research and development
187,819
169,342
338,265
279,471
Marketing and sales
38,168
38,156
70,449
61,351
General and administrative
44,645
39,734
80,678
69,428
(2)
Amounts include amortization of acquired
intangible assets, as follows:
Three Months Ended December
31,
Six Months Ended December
31,
2023
2022
2023
2022
Cost of revenues
$
7,056
$
5,697
$
12,828
$
11,394
Research and development
93
93
187
187
Marketing and sales
2,712
2,506
5,077
5,011
Atlassian Corporation
Condensed Consolidated Balance
Sheets
(U.S. $ in thousands)
(unaudited)
December 31, 2023
June 30, 2023
Assets
Current assets:
Cash and cash equivalents
$
1,460,497
$
2,102,550
Marketable securities
150,831
10,000
Accounts receivable, net
526,379
477,678
Prepaid expenses and other current
assets
133,834
146,136
Total current assets
2,271,541
2,736,364
Non-current assets:
Property and equipment, net
78,095
81,402
Operating lease right-of-use assets
189,195
184,195
Strategic investments
223,405
225,538
Intangible assets, net
329,010
69,072
Goodwill
1,285,896
727,211
Deferred tax assets
3,859
9,945
Other non-current assets
68,497
73,052
Total assets
$
4,449,498
$
4,106,779
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
160,469
$
159,293
Accrued expenses and other current
liabilities
410,377
423,131
Deferred revenue, current portion
1,451,023
1,362,736
Operating lease liabilities, current
portion
46,230
44,930
Term loan facility, current portion
50,000
37,500
Total current liabilities
2,118,099
2,027,590
Non-current liabilities:
Deferred revenue, net of current
portion
202,860
182,743
Operating lease liabilities, net of
current portion
237,481
237,835
Term loan facility, net of current
portion
937,180
962,093
Deferred tax liabilities
16,819
10,669
Other non-current liabilities
32,136
31,177
Total liabilities
3,544,575
3,452,107
Stockholders’ equity
Common stock
3
3
Additional paid-in capital
3,656,057
3,130,631
Accumulated other comprehensive income
38,664
34,002
Accumulated deficit
(2,789,801
)
(2,509,964
)
Total stockholders’ equity
904,923
654,672
Total liabilities and stockholders’
equity
$
4,449,498
$
4,106,779
Atlassian Corporation
Condensed Consolidated
Statements of Cash Flows
(U.S. $ in thousands)
(unaudited)
Three Months Ended December
31,
Six Months Ended December
31,
2023
2022
2023
2022
Cash flows from operating
activities:
Net loss
$
(84,469
)
$
(205,031
)
$
(116,352
)
$
(218,772
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
17,012
15,476
32,096
30,096
Stock-based compensation
289,845
265,785
525,426
439,416
Deferred income taxes
(8,618
)
3,291
(3,305
)
4,813
Gain on a non-cash sale of a controlling
interest of a subsidiary
—
(2,066
)
(1,378
)
(45,158
)
Net loss on strategic investments
1,442
7,563
7,690
19,076
Net foreign currency loss (gain)
2,237
(2,203
)
2,418
(5,828
)
Other
154
112
286
230
Changes in operating assets and
liabilities, net of business combinations:
Accounts receivable, net
(156,163
)
(107,805
)
(46,675
)
(46,491
)
Prepaid expenses and other assets
(486
)
(2,690
)
(23,542
)
(25,367
)
Accounts payable
33,648
18,587
623
49,734
Accrued expenses and other liabilities
59,140
58,260
(12,191
)
(50,183
)
Deferred revenue
135,852
101,246
91,454
91,401
Net cash provided by operating
activities
289,594
150,525
456,550
242,967
Cash flows from investing
activities:
Business combinations, net of cash
acquired
(844,727
)
—
(844,727
)
(600
)
Purchases of property and equipment
(5,333
)
(4,040
)
(9,002
)
(20,536
)
Purchases of strategic investments
(250
)
(1,100
)
(4,000
)
(9,450
)
Purchases of marketable securities and
other investments
(69,783
)
—
(139,146
)
(10,000
)
Proceeds from maturities of marketable
securities
16,150
18,750
16,150
47,700
Proceeds from sales of marketable
securities and strategic investments
41,513
363
61,392
621
Net cash provided by (used in)
investing activities
(862,430
)
13,973
(919,333
)
7,735
Cash flows from financing
activities:
Principal payments of term loan
facility
(12,500
)
—
(12,500
)
—
Repurchases of Class A Common Stock
(101,773
)
—
(167,652
)
—
Proceeds from other financing
arrangements
—
—
—
1,396
Net cash provided by (used in)
financing activities
(114,273
)
—
(180,152
)
1,396
Effect of foreign exchange rate changes on
cash, cash equivalents and restricted cash
4,063
3,522
783
(1,417
)
Net increase (decrease) in cash, cash
equivalents, and restricted cash
(683,046
)
168,020
(642,152
)
250,681
Cash, cash equivalents, and restricted
cash at beginning of period
2,144,809
1,469,949
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
$
1,461,763
$
1,637,969
$
1,461,763
$
1,637,969
Atlassian Corporation
Revenues by Deployment
Options
(U.S. $ in thousands)
(unaudited)
Three Months Ended December
31,
Six Months Ended December
31,
2023
2022
2023
2022
Cloud
$
653,210
$
512,335
$
1,257,857
$
987,378
Data Center
274,758
194,264
517,701
365,492
Server
69,173
106,168
147,925
219,981
Marketplace and other (1)
62,969
59,937
114,402
107,245
Total revenues
$
1,060,110
$
872,704
$
2,037,885
$
1,680,096
(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 December
31,
Six Months Ended December
31,
2023
2022
2023
2022
Gross
profit
GAAP gross profit
$
865,574
$
716,759
$
1,665,320
$
1,384,759
Plus: Stock-based compensation
19,213
18,553
36,034
29,166
Plus: Amortization of acquired intangible
assets
7,056
5,697
12,828
11,394
Non-GAAP gross profit
$
891,843
$
741,009
$
1,714,182
$
1,425,319
Gross
margin
GAAP gross margin
82
%
82
%
82
%
82
%
Plus: Stock-based compensation
2
2
2
2
Plus: Amortization of acquired intangible
assets
—
1
—
1
Non-GAAP gross margin
84
%
85
%
84
%
85
%
Operating
income
GAAP operating loss
$
(49,062
)
$
(99,239
)
$
(67,931
)
$
(133,266
)
Plus: Stock-based compensation
289,845
265,785
525,426
439,416
Plus: Amortization of acquired intangible
assets
9,861
8,296
18,092
16,592
Non-GAAP operating income
$
250,644
$
174,842
$
475,587
$
322,742
Operating
margin
GAAP operating margin
(5
%)
(11
%)
(3
%)
(8
%)
Plus: Stock-based compensation
28
30
25
26
Plus: Amortization of acquired intangible
assets
1
1
1
1
Non-GAAP operating margin
24
%
20
%
23
%
19
%
Net
income
GAAP net loss
$
(84,469
)
$
(205,031
)
$
(116,352
)
$
(218,772
)
Plus: Stock-based compensation
289,845
265,785
525,426
439,416
Plus: Amortization of acquired intangible
assets
9,861
8,296
18,092
16,592
Less: Gain on a non-cash sale of a
controlling interest of a subsidiary
—
(2,067
)
(1,378
)
(45,158
)
Less: Income tax adjustments (1)
(25,731
)
47,750
(67,302
)
15,202
Non-GAAP net income
$
189,506
$
114,733
$
358,486
$
207,280
Net income per
share
GAAP net loss per share - diluted
$
(0.33
)
$
(0.80
)
$
(0.45
)
$
(0.86
)
Plus: Stock-based compensation
1.12
1.04
2.03
1.72
Plus: Amortization of acquired intangible
assets
0.04
0.03
0.07
0.06
Less: Gain on a non-cash sale of a
controlling interest of a subsidiary
—
(0.01
)
(0.01
)
(0.17
)
Less: Income tax adjustments (1)
(0.10
)
0.19
(0.26
)
0.06
Non-GAAP net income per share -
diluted
$
0.73
$
0.45
$
1.38
$
0.81
Weighted-average
diluted shares outstanding
Weighted-average shares used in computing
diluted GAAP net loss per share
258,601
255,874
258,254
255,520
Plus: Dilution from dilutive securities
(2)
1,051
304
1,030
673
Weighted-average shares used in computing
diluted non-GAAP net income per share
259,652
256,178
259,284
256,193
Free cash
flow
GAAP net cash provided by operating
activities
$
289,594
$
150,525
$
456,550
$
242,967
Less: Capital expenditures
(5,333
)
(4,040
)
(9,002
)
(20,536
)
Free cash flow
$
284,261
$
146,485
$
447,548
$
222,431
(1) 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.
(2) The effects of these dilutive
securities were not included in the GAAP calculation of diluted net
loss per share for the three and six months ended December 31, 2023
and 2022, respectively, because the effect would have been
anti-dilutive.
Atlassian Corporation
Reconciliation of GAAP to
Non-GAAP Financial Targets
Three Months Ending
March 31, 2024
Fiscal Year Ending June
30, 2024
GAAP gross margin
81.0%
81.0%
Plus: Stock-based compensation
2.0
2.0
Plus: Amortization of acquired intangible
assets
0.5
0.5
Non-GAAP gross margin
83.5%
83.5%
GAAP operating margin
(7.5%)
(6.5%) to (6.0%)
Plus: Stock-based compensation
26.0
26.0
Plus: Amortization of acquired intangible
assets
1.0
1.0
Non-GAAP operating margin
19.5%
20.5% to 21.0%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240201718713/en/
Investor Relations Contact Martin Lam
IR@atlassian.com
Media Contact Marie-Claire Maple press@atlassian.com
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