Atlassian (TEAM) - 2025 Q1 - Quarterly Results

Revenue and Growth - Revenue of $1,188 million, up 21$1,132 million, up 33% year-over-year[1] - Total revenue expected to be $1,233 million to$1,241 million in Q2 FY2025[8] - Total revenue growth expected to be 16.5% to 17.0% year-over-year for FY2025[10] - Total revenues for Q3 2024 were $1,187,781 thousand, a 21.5$977,775 thousand in Q3 2023[20] - Cloud revenues for Q3 2024 were $792,306 thousand, a 31$604,647 thousand in Q3 2023[27] - Data Center revenues for Q3 2024 were $335,594 thousand, a 38.1$242,943 thousand in Q3 2023[27] Profitability and Margins - GAAP operating margin of (3)% and non-GAAP operating margin of 23%[1] - GAAP gross profit for Q3 2024 was $970.157 million, compared to$799.746 million in Q3 2023[29] - Non-GAAP gross margin remained stable at 84% for both Q3 2024 and Q3 2023[29] - GAAP operating loss increased to $(31.978) million in Q3 2024 from$(18.869) million in Q3 2023[29] - Non-GAAP operating income rose to $268.050 million in Q3 2024 from$224.943 million in Q3 2023[29] - Non-GAAP gross margin for Q4 2024 is expected to be 84%[30] - Non-GAAP operating margin for fiscal year 2025 is forecasted to be between 22.0% and 22.5%[31] Cash Flow and Financial Position - Cash flow from operations of $80 million and free cash flow of$74 million[1] - Cash and cash equivalents decreased to $2,055,597 thousand as of September 30, 2024, from$2,176,930 thousand as of June 30, 2024[23] - Free cash flow decreased to $74.341 million in Q3 2024 from$163.287 million in Q3 2023[29] Expenses - Total operating expenses for Q3 2024 were $1,002,135 thousand, a 22.4$818,615 thousand in Q3 2023[20] - Research and development expenses for Q3 2024 were $603,101 thousand, a 25.2$481,738 thousand in Q3 2023[20] - Marketing and sales expenses for Q3 2024 were $252,393 thousand, a 30.4$193,567 thousand in Q3 2023[20] - General and administrative expenses for Q3 2024 were $146,641 thousand, a 2.3$143,310 thousand in Q3 2023[20] Net Income and Loss - Net loss for Q3 2024 was $123,769 thousand, compared to a net loss of$31,883 thousand in Q3 2023[20] - GAAP net loss widened to $(123.769) million in Q3 2024 from$(31.883) million in Q3 2023[29] - Non-GAAP net income increased to $199.700 million in Q3 2024 from$168.980 million in Q3 2023[29] Cloud and Data Center Performance - 46,844 customers with >$10,000 in Cloud ARR, up 17% year-over-year[4] - Cloud revenue growth expected to be 25.5% year-over-year in Q2 FY2025[8] - Data Center revenue growth expected to be 27.5% year-over-year in Q2 FY2025[8] - Cloud ARR is defined as the annualized recurring revenue run-rate of Cloud subscription agreements, calculated by multiplying Cloud MRR by 12[18] Product Launches and Innovations - Launch of Rovo, an AI-powered product for organizational knowledge[4] Tax Rate Projections - Projected Non-GAAP tax rate for fiscal year 2025 is 26%[29]