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Atlassian Announces Fourth Quarter and Fiscal Year 2024 Results

Atlassian Corporation, a leading provider of team collaboration and productivity software, has released its financial results for the fourth quarter and fiscal year 2024. The company reported significant growth in revenue and other key financial metrics, reflecting its strong market position and operational efficiency.

Financial Highlights

For the fourth quarter of fiscal year 2024, Atlassian reported:

  • Total revenue of $1.132 billion, a 20% increase year-over-year.
  • Subscription revenue of $1.069 billion, up 34% year-over-year.
  • GAAP operating margin of (6)% and non-GAAP operating margin of 20%.
  • Net loss of $196.9 million, compared to a net loss of $59.0 million in the same period last year.
  • Free cash flow of $413 million, with a free cash flow margin of 37%.

For the full fiscal year 2024, Atlassian reported:

  • Total revenue of $4.4 billion, a 23% increase from fiscal year 2023.
  • GAAP operating loss of $117.1 million, compared to an operating loss of $345.2 million in fiscal year 2023.
  • Net loss of $300.5 million, compared to a net loss of $486.8 million in fiscal year 2023.
  • Free cash flow of $1.416 billion, with a free cash flow margin of 32%.

Business and Operational Highlights

Atlassian achieved several milestones during the quarter:

  • Launched Rovo, an AI-powered teammate designed to assist in finding, learning, and acting on data-driven insights.
  • Unified Jira Software and Jira Work Management into one Jira to streamline collaboration across teams.
  • Introduced Guard, an advanced security solution for enhanced user and data protection.
  • Achieved FedRAMP “In Process” designation, bringing the company closer to FedRAMP Moderate Authority to Operate.
  • Ended the quarter with 45,842 customers with greater than $10,000 in Cloud annualized recurring revenue, an 18% increase year-over-year.

Strategic Initiatives and Corporate Developments

Atlassian announced several strategic initiatives:

  • Appointed Scott Belsky to its board of directors, bringing valuable experience in strategy and product development.
  • Initiated a search for a Chief Revenue Officer to accelerate growth and unlock opportunities with enterprise customers.
  • Kevin Egan, Chief Sales Officer, will leave the company at the end of August.

Management's Perspective

Co-founder and co-CEO Mike Cannon-Brookes expressed optimism about the company's future, highlighting the significant milestones achieved and the transformative innovations introduced. Co-founder and co-CEO Scott Farquhar reflected on the company's journey and expressed confidence in Atlassian's ability to capitalize on future opportunities.

Future Outlook

Atlassian provided financial targets for the first quarter and fiscal year 2025:

  • First Quarter Fiscal Year 2025: Total revenue expected to be in the range of $1.149 billion to $1.157 billion, with cloud revenue growth of approximately 27% year-over-year.
  • Fiscal Year 2025: Total revenue growth expected to be approximately 16% year-over-year, with cloud revenue growth of approximately 23% year-over-year.

SEC Filing: Atlassian Corp [ TEAM ] - 8-K - Aug. 01, 2024


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