Atlassian reports Q4 fiscal year 2024 revenue of $1.13 billion, showing 20% growth.

by MarketNewsData

August 1, 2024

Quarterly revenue of $1,132 million, up 20% year-over-year

Quarterly subscription revenue of $1,069 million, up 34% year-over-year

Quarterly GAAP operating margin of (6)% and non-GAAP operating margin of 20%

Quarterly cash flow from operations of $426 million and free cash flow of $413 million

Atlassian Corporation (NASDAQ: TEAM), a prominent provider of collaboration and productivity software for teams, today revealed its financial results for the fourth quarter and fiscal year 2024.

Fourth Quarter Fiscal Year 2024 Earnings Results

“This past year we’ve once again proved to ourselves that we can accomplish big things. We grew revenue to $4.4 billion, generated free cash flow of over $1.4 billion, and surged past 300,000 customers.

“We announced transformative innovations for our customers like Rovo, the latest human-AI technology reshaping the way we work. We achieved significant milestones like FedRAMP’s “In Process” status, a huge step towards supporting the U.S. public sector in the cloud, and we wound down support for Server,” said Mike Cannon-Brookes, Atlassian’s co-founder and co-CEO.

“With this setup, we feel tremendously optimistic about what is ahead of us. We’re excited to build on this momentum and get cracking on FY25,” concluded Cannon-Brookes.

“When I look back on the last 23 years, I am filled with pride at what two mates from Australia built,” said Scott Farquhar, Atlassian’s co-founder and co-CEO. “We created a global company with over 12,000 employees, tens of thousands of champions across the Atlassian ecosystem, and over 300,000 customers. We’ve helped companies big and small all over the world solve some of the most interesting and challenging problems – from the development of electric vehicles and life-saving medical advancements to space exploration. And yet our best days are still ahead.

“I leave the co-CEO role knowing Atlassian is incredibly well-positioned to capitalize on the huge opportunities ahead and live its mission of unleashing the potential of every team. I look forward to continuing along the journey, albeit from a slightly different seat,” concluded Farquhar.

Fourth Quarter Fiscal Year 2024 Financial Highlights:

On a GAAP basis, Atlassian reported:

  • Revenue: Total revenue was $1,131.6 million for the fourth quarter of fiscal year 2024, up 20% from $939.1 million for the fourth quarter of fiscal year 2023.
  • Operating Loss and Operating Margin: Operating loss was $67.0 million for the fourth quarter of fiscal year 2024, compared with operating loss of $50.4 million for the fourth quarter of fiscal year 2023. Operating margin was (6%) for the fourth quarter of fiscal year 2024, compared with (5%) for the fourth quarter of fiscal year 2023.
  • Net Loss and Net Loss Per Diluted Share: Net loss was $196.9 million for the fourth quarter of fiscal year 2024, compared with net loss of $59.0 million for the fourth quarter of fiscal year 2023. Net loss per diluted share was $0.76 for the fourth quarter of fiscal year 2024, compared with net loss per diluted share of $0.23 for the fourth quarter of fiscal year 2023.
  • Balance Sheet: Cash and cash equivalents plus marketable securities at the end of the fourth quarter of fiscal year 2024 totaled $2.3 billion.

On a non-GAAP basis, Atlassian reported:

  • Operating Income and Operating Margin: Operating income was $222.0 million for the fourth quarter of fiscal year 2024, compared with operating income of $202.8 million for the fourth quarter of fiscal year 2023. Operating margin was 20% for the fourth quarter of fiscal year 2024, compared with 22% for the fourth quarter of fiscal year 2023.
  • Net Income and Net Income Per Diluted Share: Net income was $171.4 million for the fourth quarter of fiscal year 2024, compared with net income of $147.0 million for the fourth quarter of fiscal year 2023. Net income per diluted share was $0.66 for the fourth quarter of fiscal year 2024, compared with net income per diluted share of $0.57 for the fourth quarter of fiscal year 2023.
  • Free Cash Flow: Cash flow from operations was $426.2 million and free cash flow was $413.2 million for the fourth quarter of fiscal year 2024. Free cash flow margin for the fourth quarter of fiscal year 2024 was 37%.

Fiscal Year 2024 Financial Highlights:

On a GAAP basis, Atlassian reported:

  • Revenue: Total revenue was $4.4 billion for fiscal year 2024, up 23% from $3.5 billion for fiscal year 2023.
  • Operating Loss and Operating Margin: Operating loss was $117.1 million for fiscal year 2024, compared with operating loss of $345.2 million for fiscal year 2023. Operating margin was (3)% for fiscal year 2024, compared with (10)% for fiscal year 2023.
  • Net Loss and Net Loss Per Diluted Share: Net loss was $300.5 million for fiscal year 2024, compared with net loss of $486.8 million for fiscal year 2023. Net loss per diluted share was $1.16 for fiscal year 2024, compared with net loss per diluted share of $1.90 for fiscal year 2023.

On a non-GAAP basis, Atlassian reported:

  • Operating Income and Operating Margin: Operating income was $1,014.1 million for fiscal year 2024, compared with operating income of $722.6 million for fiscal year 2023. Operating margin was 23% for fiscal year 2024, compared with 20% for fiscal year 2023.
  • Net Income and Net Income Per Diluted Share: Net income was $762.4 million for fiscal year 2024, compared with net income of $492.3 million for fiscal year 2023. Net income per diluted share was $2.93 for fiscal year 2024, compared with net income per diluted share of $1.92 for fiscal year 2023.
  • Free Cash Flow: Cash flow from operations was $1,448.2 million and free cash flow was $1,415.6 million for fiscal year 2024. Free cash flow margin for fiscal year 2024 was 32%.

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:

  • Atlassian Team ’24 Recap: Atlassian held its flagship Team ’24 conference in Las Vegas from April 30, 2024, through May 2, 2024. Thousands of customers and partners gathered in person, as thousands more joined virtually from around the world to hear announcements on new product innovation. A replay of the breakout sessions can be found at https://events.atlassian.com/team-digital/sessions . Some of the significant announcements at Team ’24 included:
    • Rovo , an AI-powered teammate designed to assist in finding, learning, and acting on data-driven insights derived from both first and third-party applications. With Rovo, teams will be able to find information through comprehensive enterprise search capabilities, learn in context with AI-driven insights and conversational chat, and take action through agents that bring deep knowledge and skills to a wide variety of workflows.
    • A unified Jira , the combination of Jira Software and Jira Work Management into one Jira, to streamline collaboration across teams, increase flexibility, and provide a cohesive experience across an organization’s workflows. This evolution of Jira is designed to provide a shared place for every team to align on goals and priorities, track and collaborate on work, and get the insights they need to build something incredible, together.
    • Guard , an advanced security solution designed to enhance user and data protection, visibility, and auditing across Atlassian cloud products.
    • 30+ New Atlassian Intelligence Capabilities that deliver game-changing innovation to customers in the cloud, with features such as natural language input for rule creation in Automation, AI issue smart summaries in Jira, and sentiment analysis for Jira Service Management.
  • Achieved FedRAMP ® “In Process” Designation: Atlassian achieved FedRAMP “In Process” designation and is now listed on the FedRAMP marketplace, an important milestone that brings the company one step closer to achieving FedRAMP Moderate Authority to Operate. The company also announced, Atlassian Government Cloud, its FedRAMP moderate offering which will initially include Jira, Confluence, and Jira Service Management and will empower government customers to adopt the innovative features in Atlassian’s cloud products.
  • Customers with >$10,000 in Cloud ARR: Atlassian ended its fourth quarter and fiscal year 2024 with 45,842 customers with greater than $10,000 in Cloud annualized recurring revenue (Cloud ARR), an increase of 18% year-over-year.
  • Enterprise Momentum: The number of Atlassian customers who spend more than $1 million annually grew by 48% year-over-year, underscoring Atlassian’s momentum in serving enterprise customers while maintaining its uniquely efficient go-to-market model.
  • Expanded Board of Directors : Atlassian appointed Scott Belsky to its board of directors. Scott is the Chief Strategy Officer and Executive Vice President, Design & Emerging Products at Adobe Inc. Prior to this, Scott founded his own company, Behance. Scott has deep experience in strategy and product across companies at different scale – from start-up, to enterprise – which we believe will be extremely valuable in helping Atlassian accelerate in key areas like Enterprise and AI as it enters this next phase of growth.

Leadership Changes:

Atlassian has line of sight to surpass $10 billion in annual revenue within the next five years. To help accelerate this journey and unlock the massive opportunity with enterprise customers, Atlassian announced today that a search is underway for a Chief Revenue Officer with a strong track record of leading enterprise sales transformations.

In conjunction with this announcement, Kevin Egan, Atlassian’s Chief Sales Officer, has decided to leave the company and pursue other opportunities. Kevin will remain in his role through the end of August.

“Scott and I thank Kevin for his leadership of the Sales team, and his many contributions to Atlassian over the last three years,” said Mike Cannon-Brookes.

Financial Targets:

Atlassian is providing its financial targets as follows:

First Quarter Fiscal Year 2025:

  • Total revenue is expected to be in the range of $1,149 million to $1,157 million.
  • Cloud revenue growth year-over-year is expected to be approximately 27.0%.
  • Data Center revenue growth year-over-year is expected to be approximately 35.0%.
  • Other revenue growth year-over-year is expected to be approximately 13.0%.
  • 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 (7.0%) on a GAAP basis and approximately 19.0% on a non-GAAP basis.

Fiscal Year 2025:

  • Total revenue growth year-over-year is expected to be approximately 16.0%.
  • Cloud revenue growth year-over-year is expected to be approximately 23.0%.
  • Data Center revenue growth year-over-year is expected to be approximately 20.0%.
  • Other revenue growth year-over-year is expected to be approximately 5.0%.
  • 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 (6.0%) on a GAAP basis and approximately 21.5% on a non-GAAP basis.

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