TEAM, Anywhere/San Francisco--(BUSINESS WIRE)--Atlassian Corporation (NASDAQ: TEAM), a leading provider of team collaboration and productivity software, today announced financial results for its fourth quarter and fiscal year ended June 30, 2023 and released a shareholder letter available on Atlassian’s Work Life blog at http://atlassian.com/blog/announcements/shareholder-letter-q4fy23. The shareholder letter was also posted to the Investor Relations section of Atlassian’s website at https://investors.atlassian.com.
“We closed out a challenging year with strong momentum in cloud migrations, enterprise sales, and within the ITSM market, reinforcing our conviction in our strategy which has positioned us well for fiscal year 2024 and beyond,” said Scott Farquhar, Atlassian’s co-founder and co-CEO. “We generated over $3.5 billion in revenue this year, with more than 250,000 customers powering collaboration through our world-class cloud platform.”
“Our continued investment in R&D has ensured we’re able to deliver innovation that takes advantage of the next generation of AI,” said Mike Cannon-Brookes, Atlassian’s co-founder and co-CEO. “By leveraging the latest advancements in large language models, combined with each customer’s own data and two decades of our data-driven insights into how teams work, we’re able to help each of our customers unleash their potential.”
Fourth Quarter Fiscal Year 2023 Financial Highlights:
On a GAAP basis, Atlassian reported:
- Revenue: Total revenue was $939.1 million for the fourth quarter of fiscal year 2023, up 24% from $759.8 million for the fourth quarter of fiscal year 2022.
- Operating Loss and Operating Margin: Operating loss was $50.4 million for the fourth quarter of fiscal year 2023, compared with operating loss of $42.3 million for the fourth quarter of fiscal year 2022. Operating margin was (5)% for the fourth quarter of fiscal year 2023, compared with (6)% for the fourth quarter of fiscal year 2022.
- Net Loss and Net Loss Per Diluted Share: Net loss was $59.0 million for the fourth quarter of fiscal year 2023, compared with net loss of $90.6 million for the fourth quarter of fiscal year 2022. Net loss per diluted share was $0.23 for the fourth quarter of fiscal year 2023, compared with net loss per diluted share of $0.36 for the fourth quarter of fiscal year 2022.
- Balance Sheet: Cash and cash equivalents plus marketable securities at the end of the fourth quarter of fiscal year 2023 totaled $2.1 billion.
On a non-GAAP basis, Atlassian reported:
- Operating Income and Operating Margin: Operating income was $202.8 million for the fourth quarter of fiscal year 2023, compared with operating income of $107.6 million for the fourth quarter of fiscal year 2022. Operating margin was 22% for the fourth quarter of fiscal year 2023, compared with 14% for the fourth quarter of fiscal year 2022.
- Net Income and Net Income Per Diluted Share: Net income was $147.0 million for the fourth quarter of fiscal year 2023, compared with net income of $68.5 million for the fourth quarter of fiscal year 2022. Net income per diluted share was $0.57 for the fourth quarter of fiscal year 2023, compared with net income per diluted share of $0.27 for the fourth quarter of fiscal year 2022.
- Free Cash Flow: Cash flow from operations was $272.8 million and free cash flow was $270.4 million for the fourth quarter of fiscal year 2023. Free cash flow margin for the fourth quarter of fiscal year 2023 was 29%.
Fiscal Year 2023 Financial Highlights:
On a GAAP basis, Atlassian reported:
- Revenue: Total revenue was $3.5 billion for fiscal year 2023, up 26% from $2.8 billion for fiscal year 2022.
- Operating Income (Loss) and Operating Margin: Operating loss was $345.2 million for fiscal year 2023, compared with operating income of $70.1 million for fiscal year 2022. Operating margin was (10)% for fiscal year 2023, compared with 3% for fiscal year 2022.
- Net Loss and Net Loss Per Diluted Share: Net loss was $486.8 million for fiscal year 2023, compared with net loss of $519.5 million for fiscal year 2022. Net loss per diluted share was $1.90 for fiscal year 2023, compared with net loss per diluted share of $2.05 for fiscal year 2022.
On a non-GAAP basis, Atlassian reported:
- Operating Income and Operating Margin: Operating income was $722.6 million for fiscal year 2023, compared with operating income of $627.3 million for fiscal year 2022. Operating margin was 20% for fiscal year 2023, compared with 22% for fiscal year 2022.
- Net Income and Net Income Per Diluted Share: Net income was $492.3 million for fiscal year 2023, compared with net income of $383.5 million for fiscal year 2022. Net income per diluted share was $1.92 for fiscal year 2023, compared with net income per diluted share of $1.50 for fiscal year 2022.
- Free Cash Flow: Cash flow from operations was $868.1 million and free cash flow was $842.5 million for fiscal year 2023. Free cash flow margin for fiscal year 2023 was 24%.
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:
- A Leader in the 2023 Gartner® Magic Quadrant™ for DevOps Platforms: Atlassian was named a Leader in the 2023 Gartner Magic Quadrant for DevOps Platforms1. Atlassian provides a single, extensible DevOps platform, powered by Jira Software, that connects engineering, ITOps, and business teams to accelerate engineering velocity, improve application health, increase reliability, and deliver value faster. Today, Jira Software powers workflows at nearly 125,000 customers.
- Recognized in The Forrester Wave™: Integrated Software Delivery Platforms: Atlassian was recognized as a Strong Performer in The Forrester Wave™: Integrated Software Delivery Platforms, Q2, 2023. Atlassian’s Open DevOps solutions enable teams to create and manage software using both Atlassian and other partner tools that development teams choose to use. The features of products like Jira Software and Confluence, along with the capability to integrate with other products, provide an enhanced developer experience.
- Security Tab in Jira Software: Atlassian introduced new security integration capabilities in Jira Software Cloud, bringing security vendors together into one place to help organizations better prioritize security. In partnership with Snyk, Mend, Lacework, StackHawk, and JFrog, the Security tab in Jira Software brings DevSecOps practices into software development allowing teams to address security issues earlier and more effectively.
- Jira Product Discovery: Atlassian released Jira Product Discovery into general availability. Jira Product Discovery is a dedicated tool for product teams to capture and prioritize ideas, connect business and tech teams, and align everyone across the product journey. Built on the Jira platform, Jira Product Discovery empowers product teams to collaborate behind a shared vision without the need to switch tools.
- Data Residency in Singapore: Atlassian announced added support for Singapore as a new data residency region available to customers. Atlassian now offers customers the ability to store data in the U.S.A., EU, Australia, Germany, and Singapore. Data residency allows customers flexibility and control to design the data strategy that makes the most sense for them.
- Enterprise Momentum: The number of Atlassian customers who spend more than $1 million annually grew by 52% year-over-year, underscoring Atlassian’s momentum in serving enterprise customers while maintaining its uniquely efficient go-to-market model.
CRO departure:
Atlassian announced that its Chief Revenue Officer, Cameron Deatsch, will leave Atlassian at the end of December 2023. Cameron joined Atlassian almost 11 years ago, and during that time has built out its customer-facing teams, served as Head of Server & Data Center product teams, and led Atlassian’s go-to-market functions as Chief Revenue Officer over the past three years. Cameron will leave behind a team that has helped shape one of the most unique enterprise software business models with a customer-oriented flywheel built for scale, complemented by higher-touch motions to deepen relationships with enterprise customers.
“Cameron has made an immeasurable contribution to the business,” said Scott Farquhar. “His impact is widespread and will live on through the teams and leaders he’s developed, the customer obsession he’s championed, and the culture he’s instilled. Mike and I thank him for an incredible decade, and wish him the very best.”
“The opportunity ahead for Atlassian is massive,” said Deatsch. “While I’m ready to dial back after 11 years of charging ahead, this company is still just getting started.”
Financial Targets:
Atlassian is providing its financial targets as follows:
First Quarter Fiscal Year 2024:
- Total revenue is expected to be in the range of $950 million to $970 million.
- Cloud revenue growth year-over-year is expected to be in the range of 25% to 27%.
- 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 (8.5%) 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 25% to 30%.
- 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 (8.0%) on a GAAP basis and approximately 18.5% on a non-GAAP basis
For additional commentary regarding financial targets, please see Atlassian’s fourth quarter fiscal year 2023 shareholder letter dated August 3, 2023.
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-q4fy23, 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, August 3, 2023 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.
____________________
1 Gartner, Magic Quadrant for DevOps Platforms, Manjunath Bhat, Thomas Murphy, Joachim Herschmann, et al, 5 June 2023. Gartner Disclaimer - Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner research organization and should not be construed as statements of fact. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved. |
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 260,000 companies of all sizes worldwide - including NASA, Kiva, Deutsche Bank, and Salesforce - 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, Jira Service Management, Trello, Bitbucket, and Jira Align 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 and large language models, customers, cloud migration, macroeconomic environment, anticipated growth, outlook, technology and other key strategic areas, and our financial targets such as total revenue and cloud 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 20-F 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 consolidated financial statements, we regularly review other measures that are not presented in accordance with 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, 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. Excludes expenses related to stock-based compensation, amortization of acquired intangible assets, and restructuring charges.
- Non-GAAP operating income and non-GAAP operating margin. Excludes expenses related to stock-based compensation, amortization of acquired intangible assets, and restructuring charges.
- Non-GAAP net income and non-GAAP net income per diluted share. Excludes expenses related to stock-based compensation, amortization of acquired intangible assets, restructuring charges, non-coupon impact related to exchangeable senior notes and capped calls, gain on a non-cash sale of a controlling interest of a subsidiary and the related income tax effects on these items, and a non-recurring income tax adjustment.
- 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.
Atlassian Corporation Consolidated Statements of Operations (U.S. $ and shares in thousands, except per share data) (unaudited) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Fiscal Year Ended June 30, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues: |
|
|
|
|
|
|
|
||||||||
Subscription |
$ |
799,713 |
|
|
$ |
597,297 |
|
|
$ |
2,922,576 |
|
|
$ |
2,096,706 |
|
Maintenance |
|
85,925 |
|
|
|
117,095 |
|
|
|
399,738 |
|
|
|
495,077 |
|
Other |
|
53,460 |
|
|
|
45,449 |
|
|
|
212,333 |
|
|
|
211,099 |
|
Total revenues |
|
939,098 |
|
|
|
759,841 |
|
|
|
3,534,647 |
|
|
|
2,802,882 |
|
Cost of revenues (1) (2) |
|
169,776 |
|
|
|
130,404 |
|
|
|
633,765 |
|
|
|
452,914 |
|
Gross profit |
|
769,322 |
|
|
|
629,437 |
|
|
|
2,900,882 |
|
|
|
2,349,968 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development (1) (2) |
|
474,855 |
|
|
|
367,007 |
|
|
|
1,869,881 |
|
|
|
1,291,877 |
|
Marketing and sales (1) (2) |
|
202,621 |
|
|
|
173,054 |
|
|
|
769,861 |
|
|
|
535,815 |
|
General and administrative (1) |
|
142,235 |
|
|
|
131,709 |
|
|
|
606,362 |
|
|
|
452,193 |
|
Total operating expenses |
|
819,711 |
|
|
|
671,770 |
|
|
|
3,246,104 |
|
|
|
2,279,885 |
|
Operating income (loss) |
|
(50,389 |
) |
|
|
(42,333 |
) |
|
|
(345,222 |
) |
|
|
70,083 |
|
Other income (expense), net |
|
(7,096 |
) |
|
|
(608 |
) |
|
|
14,501 |
|
|
|
(501,839 |
) |
Interest income |
|
20,579 |
|
|
|
1,328 |
|
|
|
49,732 |
|
|
|
2,284 |
|
Interest expense |
|
(8,540 |
) |
|
|
(4,767 |
) |
|
|
(30,147 |
) |
|
|
(41,466 |
) |
Loss before provision for income taxes |
|
(45,446 |
) |
|
|
(46,380 |
) |
|
|
(311,136 |
) |
|
|
(470,938 |
) |
Provision for income taxes |
|
(13,506 |
) |
|
|
(44,259 |
) |
|
|
(175,625 |
) |
|
|
(48,572 |
) |
Net loss |
$ |
(58,952 |
) |
|
$ |
(90,639 |
) |
|
$ |
(486,761 |
) |
|
$ |
(519,510 |
) |
Net loss per share attributable to Class A and Class B common stockholders: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.23 |
) |
|
$ |
(0.36 |
) |
|
$ |
(1.90 |
) |
|
$ |
(2.05 |
) |
Diluted |
$ |
(0.23 |
) |
|
$ |
(0.36 |
) |
|
$ |
(1.90 |
) |
|
$ |
(2.05 |
) |
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders: |
|
|
|
|
|
|
|
||||||||
Basic |
|
257,389 |
|
|
|
254,482 |
|
|
|
256,307 |
|
|
|
253,312 |
|
Diluted |
|
257,389 |
|
|
|
254,482 |
|
|
|
256,307 |
|
|
|
253,312 |
|
(1) Amounts include stock-based compensation as follows:
|
Three Months Ended June 30, |
|
|
Fiscal Year Ended June 30, |
|||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Cost of revenues |
$ |
17,166 |
|
$ |
8,719 |
|
$ |
63,913 |
|
$ |
31,358 |
||||
Research and development |
|
156,836 |
|
|
89,798 |
|
|
604,301 |
|
|
328,978 |
||||
Marketing and sales |
|
33,817 |
|
|
19,789 |
|
|
131,739 |
|
|
76,209 |
||||
General and administrative |
|
37,425 |
|
|
23,368 |
|
|
148,134 |
|
|
88,258 |
||||
(2) Amounts include amortization of acquired intangible assets, as follows:
|
Three Months Ended June 30, |
|
|
Fiscal Year Ended June 30, |
|||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Cost of revenues |
$ |
5,763 |
|
$ |
5,697 |
|
$ |
22,853 |
|
$ |
22,694 |
||||
Research and development |
|
93 |
|
|
93 |
|
|
374 |
|
|
374 |
||||
Marketing and sales |
|
2,524 |
|
|
2,491 |
|
|
9,900 |
|
|
9,330 |
||||
Atlassian Corporation Consolidated Balance Sheets (U.S. $ in thousands) (unaudited) |
|||||||
|
June 30, 2023 |
|
June 30, 2022 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
2,102,550 |
|
|
$ |
1,385,265 |
|
Marketable securities |
|
10,000 |
|
|
|
73,294 |
|
Accounts receivable, net |
|
477,678 |
|
|
|
308,127 |
|
Assets held for sale |
|
— |
|
|
|
60,265 |
|
Prepaid expenses and other current assets |
|
146,136 |
|
|
|
70,002 |
|
Total current assets |
|
2,736,364 |
|
|
|
1,896,953 |
|
Non-current assets: |
|
|
|
||||
Property and equipment, net |
|
81,402 |
|
|
|
100,662 |
|
Operating lease right-of-use assets |
|
184,195 |
|
|
|
277,276 |
|
Strategic investments |
|
225,538 |
|
|
|
159,064 |
|
Intangible assets, net |
|
69,072 |
|
|
|
100,840 |
|
Goodwill |
|
727,211 |
|
|
|
722,838 |
|
Deferred tax assets |
|
9,945 |
|
|
|
10,335 |
|
Other non-current assets |
|
73,052 |
|
|
|
58,862 |
|
Total assets |
$ |
4,106,779 |
|
|
$ |
3,326,830 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
159,293 |
|
|
$ |
81,220 |
|
Accrued expenses and other current liabilities |
|
423,131 |
|
|
|
406,139 |
|
Deferred revenue, current portion |
|
1,362,736 |
|
|
|
1,066,059 |
|
Operating lease liabilities, current portion |
|
44,930 |
|
|
|
40,638 |
|
Term loan facility, current portion |
|
37,500 |
|
|
|
— |
|
Total current liabilities |
|
2,027,590 |
|
|
|
1,594,056 |
|
Non-current liabilities: |
|
|
|
||||
Deferred revenue, net of current portion |
|
182,743 |
|
|
|
116,621 |
|
Operating lease liabilities, net of current portion |
|
237,835 |
|
|
|
274,434 |
|
Term loan facility, net of current portion |
|
962,093 |
|
|
|
999,419 |
|
Deferred tax liabilities |
|
10,669 |
|
|
|
312 |
|
Other non-current liabilities |
|
31,177 |
|
|
|
14,616 |
|
Total liabilities |
|
3,452,107 |
|
|
|
2,999,458 |
|
Stockholders’ equity |
|
|
|
||||
Common stock |
|
3 |
|
|
|
2 |
|
Additional paid-in capital |
|
3,130,631 |
|
|
|
2,182,536 |
|
Accumulated other comprehensive income |
|
34,002 |
|
|
|
13,864 |
|
Accumulated deficit |
|
(2,509,964 |
) |
|
|
(1,869,030 |
) |
Total stockholders’ equity |
|
654,672 |
|
|
|
327,372 |
|
Total liabilities and stockholders’ equity |
$ |
4,106,779 |
|
|
$ |
3,326,830 |
|
Atlassian Corporation Consolidated Statements of Cash Flows (U.S. $ in thousands) (unaudited) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Fiscal Year Ended June 30, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(58,952 |
) |
|
$ |
(90,639 |
) |
|
$ |
(486,761 |
) |
|
$ |
(519,510 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
15,304 |
|
|
|
13,898 |
|
|
|
60,923 |
|
|
|
51,739 |
|
Stock-based compensation |
|
245,244 |
|
|
|
141,674 |
|
|
|
948,087 |
|
|
|
524,803 |
|
Impairment charges for leases and leasehold improvements |
|
— |
|
|
|
— |
|
|
|
61,098 |
|
|
|
— |
|
Deferred income taxes |
|
4,305 |
|
|
|
918 |
|
|
|
10,613 |
|
|
|
(2,002 |
) |
Net loss on exchange derivative and capped call transactions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
424,482 |
|
Amortization of debt discount and issuance cost |
|
118 |
|
|
|
118 |
|
|
|
471 |
|
|
|
27,051 |
|
Net loss on strategic investments |
|
2,143 |
|
|
|
441 |
|
|
|
19,407 |
|
|
|
72,663 |
|
Net foreign currency gain |
|
(4,608 |
) |
|
|
(4,032 |
) |
|
|
(10,613 |
) |
|
|
(12,065 |
) |
Gain on a non-cash sale of a controlling interest of a subsidiary |
|
— |
|
|
|
— |
|
|
|
(45,158 |
) |
|
|
— |
|
Other |
|
230 |
|
|
|
870 |
|
|
|
1,488 |
|
|
|
646 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Accounts receivable, net |
|
(131,495 |
) |
|
|
(51,581 |
) |
|
|
(169,526 |
) |
|
|
(134,764 |
) |
Prepaid expenses and other assets |
|
2,300 |
|
|
|
14,528 |
|
|
|
(38,230 |
) |
|
|
(21,927 |
) |
Accounts payable |
|
56,868 |
|
|
|
6,086 |
|
|
|
78,902 |
|
|
|
31,741 |
|
Accrued expenses and other liabilities |
|
(6,444 |
) |
|
|
92,004 |
|
|
|
74,611 |
|
|
|
93,250 |
|
Deferred revenue |
|
147,762 |
|
|
|
90,594 |
|
|
|
362,799 |
|
|
|
284,937 |
|
Net cash provided by operating activities |
|
272,775 |
|
|
|
214,879 |
|
|
|
868,111 |
|
|
|
821,044 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||||
Business combinations, net of cash acquired |
|
(5,175 |
) |
|
|
(2,550 |
) |
|
|
(5,775 |
) |
|
|
(19,411 |
) |
Purchases of intangible assets |
|
(160 |
) |
|
|
— |
|
|
|
(160 |
) |
|
|
(4,018 |
) |
Purchases of property and equipment |
|
(2,425 |
) |
|
|
(24,648 |
) |
|
|
(25,652 |
) |
|
|
(70,583 |
) |
Purchases of strategic investments |
|
(1,000 |
) |
|
|
(8,750 |
) |
|
|
(19,450 |
) |
|
|
(111,668 |
) |
Purchases of marketable securities and other investments |
|
(14,800 |
) |
|
|
— |
|
|
|
(24,800 |
) |
|
|
(21,003 |
) |
Proceeds from maturities of marketable securities |
|
— |
|
|
|
12,850 |
|
|
|
73,950 |
|
|
|
76,937 |
|
Proceeds from sales of marketable securities and strategic investments |
|
— |
|
|
|
— |
|
|
|
629 |
|
|
|
186,262 |
|
Net cash provided by (used in) investing activities |
|
(23,560 |
) |
|
|
(23,098 |
) |
|
|
(1,258 |
) |
|
|
36,516 |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
||||||||
Proceeds from term loan facility |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,000,000 |
|
Repayment of exchangeable senior notes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,548,686 |
) |
Proceeds from settlement of capped call transactions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
135,497 |
|
Repurchases of Class A Common Stock |
|
(118,258 |
) |
|
|
— |
|
|
|
(150,006 |
) |
|
|
— |
|
Proceeds from other financing arrangements |
|
187 |
|
|
|
4,379 |
|
|
|
1,585 |
|
|
|
13,909 |
|
Net cash provided by (used in) financing activities |
|
(118,071 |
) |
|
|
4,379 |
|
|
|
(148,421 |
) |
|
|
(399,280 |
) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash |
|
(809 |
) |
|
|
(6,595 |
) |
|
|
(1,805 |
) |
|
|
(9,233 |
) |
Net increase in cash, cash equivalents, and restricted cash |
|
130,335 |
|
|
|
189,565 |
|
|
|
716,627 |
|
|
|
449,047 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
1,973,580 |
|
|
|
1,195,465 |
|
|
|
1,386,686 |
|
|
|
931,023 |
|
Net decrease in cash and cash equivalents included in assets held for sale |
|
— |
|
|
|
1,656 |
|
|
|
602 |
|
|
|
6,616 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
2,103,915 |
|
|
$ |
1,386,686 |
|
|
$ |
2,103,915 |
|
|
$ |
1,386,686 |
|
Atlassian Corporation Revenues by Deployment Options (U.S. $ in thousands) (unaudited) |
|||||||||||||||
|
Three Months Ended June 30, |
|
|
Fiscal Year Ended June 30, |
|||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Cloud |
$ |
563,229 |
|
$ |
433,969 |
|
$ |
2,085,498 |
|
$ |
1,515,424 |
||||
Data Center |
|
232,208 |
|
|
158,921 |
|
|
819,251 |
|
|
560,319 |
||||
Server (1) |
|
86,149 |
|
|
117,629 |
|
|
400,519 |
|
|
525,028 |
||||
Marketplace and services (2) |
|
57,512 |
|
|
49,322 |
|
|
229,379 |
|
|
202,111 |
||||
Total revenues |
$ |
939,098 |
|
$ |
759,841 |
|
$ |
3,534,647 |
|
$ |
2,802,882 |
||||
(1) Included in Server is perpetual license revenue. Perpetual license revenue is captured as other revenue on the Consolidated Statements of Operations. |
|||||||||||||||
(2) Included in Marketplace and services 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 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 June 30, |
|
Fiscal Year Ended June 30, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Gross profit |
|
|
|
|
|
|
|
||||||||
GAAP gross profit |
$ |
769,322 |
|
|
$ |
629,437 |
|
|
$ |
2,900,882 |
|
|
$ |
2,349,968 |
|
Plus: Stock-based compensation |
|
17,166 |
|
|
|
8,719 |
|
|
|
63,625 |
|
|
|
31,358 |
|
Plus: Amortization of acquired intangible assets |
|
5,763 |
|
|
|
5,697 |
|
|
|
22,853 |
|
|
|
22,694 |
|
Plus (less): Restructuring charges (1) |
|
(55 |
) |
|
|
— |
|
|
|
9,192 |
|
|
|
— |
|
Non-GAAP gross profit |
$ |
792,196 |
|
|
$ |
643,853 |
|
|
$ |
2,996,552 |
|
|
$ |
2,404,020 |
|
Operating income |
|
|
|
|
|
|
|
||||||||
GAAP operating income (loss) |
$ |
(50,389 |
) |
|
$ |
(42,333 |
) |
|
$ |
(345,222 |
) |
|
$ |
70,083 |
|
Plus: Stock-based compensation |
|
245,718 |
|
|
|
141,674 |
|
|
|
937,812 |
|
|
|
524,803 |
|
Plus: Amortization of acquired intangible assets |
|
8,380 |
|
|
|
8,281 |
|
|
|
33,127 |
|
|
|
32,398 |
|
Plus (less): Restructuring charges (1) |
|
(954 |
) |
|
|
— |
|
|
|
96,894 |
|
|
|
— |
|
Non-GAAP operating income |
$ |
202,755 |
|
|
$ |
107,622 |
|
|
$ |
722,611 |
|
|
$ |
627,284 |
|
Operating margin |
|
|
|
|
|
|
|
||||||||
GAAP operating margin |
|
(5 |
)% |
|
|
(6 |
)% |
|
|
(10 |
)% |
|
|
3 |
% |
Plus: Stock-based compensation |
|
26 |
|
|
|
19 |
|
|
|
26 |
|
|
|
18 |
|
Plus: Amortization of acquired intangible assets |
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
Plus (less): Restructuring charges (1) |
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
Non-GAAP operating margin |
|
22 |
% |
|
|
14 |
% |
|
|
20 |
% |
|
|
22 |
% |
Net income |
|
|
|
|
|
|
|
||||||||
GAAP net loss |
$ |
(58,952 |
) |
|
$ |
(90,639 |
) |
|
$ |
(486,761 |
) |
|
$ |
(519,510 |
) |
Plus: Stock-based compensation |
|
245,718 |
|
|
|
141,674 |
|
|
|
937,812 |
|
|
|
524,803 |
|
Plus: Amortization of acquired intangible assets |
|
8,380 |
|
|
|
8,281 |
|
|
|
33,127 |
|
|
|
32,398 |
|
Plus (less): Restructuring charges (1) |
|
(954 |
) |
|
|
— |
|
|
|
96,894 |
|
|
|
— |
|
Plus: Non-coupon impact related to exchangeable senior notes and capped calls |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
450,829 |
|
Less: Gain on a non-cash sale of a controlling interest of a subsidiary |
|
— |
|
|
|
— |
|
|
|
(45,158 |
) |
|
|
— |
|
Plus (less): Income tax adjustments |
|
(47,172 |
) |
|
|
9,136 |
|
|
|
(43,659 |
) |
|
|
(105,064 |
) |
Non-GAAP net income |
$ |
147,020 |
|
|
$ |
68,452 |
|
|
$ |
492,255 |
|
|
$ |
383,456 |
|
Net income per share |
|
|
|
|
|
|
|
||||||||
GAAP net loss per share - diluted |
$ |
(0.23 |
) |
|
$ |
(0.36 |
) |
|
$ |
(1.90 |
) |
|
$ |
(2.05 |
) |
Plus: Stock-based compensation |
|
0.95 |
|
|
|
0.56 |
|
|
|
3.66 |
|
|
|
2.05 |
|
Plus: Amortization of acquired intangible assets |
|
0.03 |
|
|
|
0.03 |
|
|
|
0.13 |
|
|
|
0.13 |
|
Plus (less): Restructuring charges (1) |
|
— |
|
|
|
— |
|
|
|
0.38 |
|
|
|
— |
|
Plus: Non-coupon impact related to exchangeable senior notes and capped calls |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.78 |
|
Less: Gain on a non-cash sale of a controlling interest of a subsidiary |
|
— |
|
|
|
— |
|
|
|
(0.18 |
) |
|
|
— |
|
Plus (less): Income tax adjustments |
|
(0.18 |
) |
|
|
0.04 |
|
|
|
(0.17 |
) |
|
|
(0.41 |
) |
Non-GAAP net income per share - diluted |
$ |
0.57 |
|
|
$ |
0.27 |
|
|
$ |
1.92 |
|
|
$ |
1.50 |
|
Weighted-average diluted shares outstanding |
|
|
|
|
|
|
|
||||||||
Weighted-average shares used in computing diluted GAAP net loss per share |
|
257,389 |
|
|
|
254,482 |
|
|
|
256,307 |
|
|
|
253,312 |
|
Plus: Dilution from dilutive securities (2) |
|
447 |
|
|
|
1,006 |
|
|
|
554 |
|
|
|
2,345 |
|
Weighted-average shares used in computing diluted non-GAAP net income per share |
|
257,836 |
|
|
|
255,488 |
|
|
|
256,861 |
|
|
|
255,657 |
|
Free cash flow |
|
|
|
|
|
|
|
||||||||
GAAP net cash provided by operating activities |
$ |
272,775 |
|
|
$ |
214,879 |
|
|
$ |
868,111 |
|
|
$ |
821,044 |
|
Less: Capital expenditures |
|
(2,425 |
) |
|
|
(24,648 |
) |
|
|
(25,652 |
) |
|
|
(70,583 |
) |
Free cash flow |
$ |
270,350 |
|
|
$ |
190,231 |
|
|
$ |
842,459 |
|
|
$ |
750,461 |
|
(1) Restructuring charges include stock-based compensation expense related to the rebalancing of resources for the three months and fiscal year ended June 30, 2023. |
|||||||||||||||
(2) The effects of these dilutive securities were not included in the GAAP calculation of diluted net loss per share for the three months and fiscal years ended June 30, 2023 and 2022 because the effect would have been anti-dilutive. |
|||||||||||||||
Atlassian Corporation Reconciliation of GAAP to Non-GAAP Financial Targets |
|||||
|
Three Months Ending
|
|
Fiscal Year Ending
|
||
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 |
(8.5 |
%) |
|
(8.0 |
%) |
Plus: Stock-based compensation |
27.0 |
|
|
26.0 |
|
Plus: Amortization of acquired intangible assets |
1.0 |
|
|
0.5 |
|
Non-GAAP operating margin |
19.5 |
% |
|
18.5 |
% |
