Atlassian Corp
For the period ended Mar 31, 2025. Filed May 2, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 2, 2025
TEAM$153.68-16.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-12-31; filed 2025-01-31.
0001650372-25-000009
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-02.
0001650372-25-000022
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 129 previous paragraphs and 127 current paragraphs.
89 unchanged; 34 reworded; 4 added; 6 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 27 previous and 27 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
Provision for Income Taxes
Current report
Nine Months Ended March 31, 2025 and 2024
Current report
General and administrative expenses increased $25.4 million, or 6%, in thenine months ended March 31, 2025 compared to thenine months ended March 31, 2024. The overall increase was primarily attributable to an increase of$25.1 million in compensation expenses for employees (which includes an increase of$10.9 million in stock-based compensation).
Current report
Provision for Income Taxes
Removed paragraphs (6)
Previous report
Includes an increase of 326 customers as a result of our acquisition of Loom.
Previous report
Free cash flow decreased by $30.6 million during the six months ended December 31, 2024 as compared to the six months ended December 31, 2023. The decrease in free cash flow was primarily attributable to a decrease in net cash provided by operating activities. The decrease in net cash provided by operating activities was primarily attributable to an increase in cash paid to employees and vendors, partially offset by an increase in cash received from customers.
Previous report
Provision for (Benefit from) Income Taxes
Previous report
Six Months Ended December 31, 2024 and 2023
Previous report
General and administrative expenses increased $14.7 million, or 5%, in thesix months ended December 31, 2024 compared to thesix months ended December 31, 2023. The overall increase was primarily attributable to an increase of$16.7 million in compensation expenses for employees (which includes an increase of$10.0 million in stock-based compensation).
Previous report
Provision for (Benefit from) Income Taxes
Reworded paragraphs (34)
Previous wording
The Atlassian System of Work is our philosophy of how technology-driven organizations should work, connecting technology and business teams to accelerate progress and maximize team impact. Through a connected portfolio of products with discrete value propositions that are built on the Atlassian platform and data model, the Atlassian System of Work helps customers of any size align work to goals, plan and track work, and unleash their organization's collective knowledge.
Current wording
The Atlassian System of Work is our philosophy of how technology-driven organizations should work, connecting technology and business teams to accelerate progress and maximize team impact. Through a portfolio of interconnected products with discrete value propositions that are powered by the Atlassian platform and data model, the Atlassian System of Work helps customers of any size align work to goals, plan and track work, and unleash their organization's collective knowledge.
Previous wording
Our primary products include Jira for planning and project management, Confluence for content creation and sharing, and Jira Service Management for team service, management and support applications. Together, our connected portfolio of products form integrated solutions and, when deployed in the cloud, provide customers all the benefits of analytics, automation, and AI, along with integrations with thousands of third-party apps as a solution that is deeply entrenched in how teams collaborate and how organizations run. The Atlassian platform is the common technology foundation for our products that drives connection between teams, information, and workflows. It allows work to flow seamlessly across tools, automates the mundane so teams can focus on what matters, and enables better decision-making based on the data customers choose to put into our products.
Current wording
Our primary products include Jira for planning and project management, Confluence for content creation and sharing, and Jira Service Management for team service, management and support applications. Together, our connected portfolio of products form integrated solutions and, when deployed in the cloud, provide customers all the benefits of analytics, automation, and AI apps and agents with Rovo, along with integrations with thousands of third-party apps as a solution that is deeply entrenched in how teams collaborate and how organizations run. The Atlassian platform is the common technology foundation for our products that drives connection between teams, information, and workflows. It allows work to flow seamlessly across tools, automates the mundane so teams can focus on what matters, and enables better decision-making based on the data customers choose to put into our products.
Previous wording
Our results of operations may vary based on the impact of changes in the global economy on us or our customers. Our business depends on demand for business software applications generally and for collaboration software solutions in particular. We are subject to risks and exposures from the evolving macroeconomic environment, inflationary pressures, interest rate policy, political instability, and geopolitical tensions. We monitor the direct and indirect impacts of these circumstances on our business and financial results. The extent to which these risks ultimately impact our business, results of operations, and financial position will depend on future developments, which are uncertain and cannot be predicted at this time.
Current wording
Our results of operations may vary based on the impact of changes in the global economy on us or our customers. Our business depends on demand for business software applications generally and for collaboration software solutions in particular. We are subject to risks and exposures from the evolving macroeconomic environment, inflationary pressures, interest rate policy, changes in trade policies, political instability, and geopolitical tensions. We monitor the direct and indirect impacts of these circumstances on our business and financial results. The extent to which these risks ultimately impact our business, results of operations, and financial position will depend on future developments, which are uncertain and cannot be predicted at this time.
Previous wording
Free cash flow increased by $58.3 million during the three months ended December 31, 2024 as compared to the three months ended December 31, 2023. The increase in free cash flow was primarily attributable to an increase in net cash provided by operating activities. The increase in net cash provided by operating activities was primarily attributable to an increase in cash received from customers, partially offset by an increase in cash paid to employees.
Current wording
Free cash flow increased by $83.4 million and $52.8 million during the three months and nine months ended March 31, 2025 as compared to the three months and nine months ended March 31, 2024, respectively. In both periods the increase in free cash flow was primarily attributable to an increase in net cash provided by operating activities. The increase in net cash provided by operating activities was primarily attributable to an increase in cash received from customers, a decrease in cash paid for income taxes, partially offset by an increase in cash paid to employees and vendors.
Previous wording
Provision for (benefit from) income taxes consists primarily of income taxes related to federal, state, and foreign jurisdictions where we conduct business.
Current wording
Provision for income taxes consists primarily of income taxes related to federal, state, and foreign jurisdictions where we conduct business.
Previous wording
There have been no significant changes to our critical accounting policies and estimates during the three and six months ended December 31, 2024, as compared to the critical accounting estimates disclosed in Management’s Discussion and Analysis of Financial Results of Operations included in our Annual Report on Form 10-K for fiscal year 2024.
Current wording
There have been no significant changes to our critical accounting policies and estimates during the three and nine months ended March 31, 2025, as compared to the critical accounting estimates disclosed in Management’s Discussion and Analysis of Financial Results of Operations included in our Annual Report on Form 10-K for fiscal year 2024.
Previous wording
Total revenues increased $226.4 million, or 21%, in the three months ended December 31, 2024 compared to the three months ended December 31, 2023. Growth in total revenues was primarily attributable to increased demand for our products from existing customers. Of total revenues recognized in the three months ended December 31, 2024, over 90% were attributable to sales to customer accounts existing on or before September 30, 2024.
Current wording
Total revenues increased $167.6 million, or 14%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Growth in total revenues was primarily attributable to increased demand for our products from existing customers. Of total revenues recognized in the three months ended March 31, 2025, over 90% were attributable to sales to customer accounts existing on or before December 31, 2024.
Previous wording
Subscription revenues increased $281.1 million, or 30%, in the three months ended December 31, 2024 compared to the three months ended December 31, 2023. The increase in subscription revenues was primarily attributable to paid seat expansion from our existing customers, price increases, and migrations.
Current wording
Subscription revenues increased $201.5 million, or 19%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase in subscription revenues was primarily attributable to paid seat expansion from our existing customers and price increases.
Previous wording
Other revenues decreased $54.7 million, or 43%, in the three months ended December 31, 2024 compared to the three months ended December 31, 2023. The decrease in other revenues was primarily attributable to a decrease of $66.2 million in maintenance revenue due to the end of support for our Server offerings.
Current wording
Other revenues decreased $33.9 million, or 29%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The decrease in other revenues was primarily attributable to a decrease of $27.8 million in maintenance revenue due to the end of support for our Server offerings.
Previous wording
Cost of revenues increased $28.6 million, or 15%, in the three months ended December 31, 2024 compared to the three months ended December 31, 2023. The overall increase was primarily attributable to an increase of $11.1 million in hosting fees paid to third-party providers, an increase of $7.4 million in compensation expense for employees (which includes an increase of $3.8 million in stock-based compensation), an increase of $4.0 million in software subscription costs and an increase of $3.1 million in amortization from acquired intangible assets.
Current wording
Cost of revenues increased $6.3 million, or 3%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The overall increase was primarily attributable to an increase of $6.0 million in compensation expense for employees (which includes an increase of $3.1 million in stock-based compensation).
Previous wording
Research and development expenses increased $143.4 million, or 27%, in the three months ended December 31, 2024 compared to the three months ended December 31, 2023. The overall increase was primarily attributable to an increase of$133.2 million in compensation expenses for employees (which includes an increase of$72.5 million instock-based compensation).
Current wording
Research and development expenses increased $108.8 million, or 19%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The overall increase was primarily attributable to anincrease of$112.8 million in compensation expenses for employees (which includes anincrease of$50.5 million instock-based compensation).
Previous wording
Marketing and sales expenses increased $51.4 million, or 23%, for thethree months ended December 31, 2024 compared to thethree months ended December 31, 2023. The overall increase was primarily attributable to an increase of $33.0 million in compensation expenses for employees (which includes an increase of $5.1 million in stock-based compensation), and an increase of$12.5 million in advertising and marketing event expenses.
Current wording
Marketing and sales expenses increased $72.0 million, or 32%, for thethree months ended March 31, 2025 compared to thethree months ended March 31, 2024. The overall increase was primarily attributable to an increase of $45.4 million in compensation expenses for employees (which includes an increase of $9.7 million in stock-based compensation), and anincrease of$24.4 million in advertising and marketing event expenses.
Previous wording
General and administrative expenses increased $11.4 million, or 7%, in thethree months ended December 31, 2024 compared to thethree months ended December 31, 2023. The overall increase was primarily attributable to an increase of $13.6 million in compensation expense for employees (which includes an increase of $7.5 million in stock-based compensation).
Current wording
General and administrative expenses increased $10.8 million, or 7%, in thethree months ended March 31, 2025 compared to thethree months ended March 31, 2024. The overall increase was primarily attributable to an increase of $8.4 million in compensation expense for employees (which includes an increase of $1.0 million in stock-based compensation).
Previous wording
Other expense, net increased $3.4 million, or 72%, in the three months ended December 31, 2024, compared to the three months ended December 31, 2023. The increase in other expense was primarily attributable to an increase of $2.0 million in contributions to the Atlassian Foundation, and an increase of $1.2 million in net loss related to strategic investments.
Current wording
Other expense, net increased $3.9 million, or 35%, in the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The overall increase in other expense was primarily attributable to an increase of $1.9 million in net loss related to strategic investments and an increase of $1.8 million in contributions to the Atlassian Foundation.
Previous wording
Interest income increased $3.0 million, or 13% in the three months ended December 31, 2024 compared to the three months ended December 31, 2023. The increase was primarily attributable to an increase in investment income as a result of increased investment balances.
Current wording
Interest income increased $6.4 million, or 30% in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase was primarily attributable to an increase in investment income as a result of increased investment balances.
Previous wording
Interest expense decreased $1.7 million, or 19% in the three months ended December 31, 2024 compared to the three months ended December 31, 2023. The decrease was primarily attributable to a decrease in interest expense on our outstanding debt as a result of the issuance of the Notes (as defined below) and repayment of the Term Loan (as defined below) in the fourth quarter of fiscal year 2024.
Current wording
Interest expense decreased $0.6 million, or 8% in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The decrease was primarily attributable to a decrease in interest expense on our outstanding debt as a result of the issuance of the Notes (as defined below) and repayment of the Term Loan (as defined below) in the fourth quarter of fiscal year 2024.
Previous wording
Provision for income taxes decreased $53.3 million for the three months ended December 31, 2024, as compared to the three months ended December 31, 2023. The decrease was primarily attributable to the change in the mix of earnings and losses in foreign jurisdictions. See Note 14, “Income Taxes,” of the notes to our condensed consolidated financial statements for additional information.
Current wording
Provision for income taxes increased $56.4 million for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. The increase was primarily attributable to the change in the mix of earnings and losses in foreign jurisdictions. See Note 14, “Income Taxes,” of the notes to our condensed consolidated financial statements for additional information.
Previous wording
Total revenues increased $436.4 million, or 21%, in the six months ended December 31, 2024 compared to the six months ended December 31, 2023. Growth in total revenues was primarily attributable to increased demand for our products from existing customers. Of total revenues recognized in the six months ended December 31, 2024, over 90% was attributable to sales to customer accounts existing on or before June 30, 2024.
Current wording
Total revenues increased $603.9 million, or 19%, in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024. Growth in total revenues was primarily attributable to increased demand for our products from existing customers. Of total revenues recognized in the nine months ended March 31, 2025, over 90% was attributable to sales to customer accounts existing on or before June 30, 2024.
Previous wording
Subscription revenues increased $561.0 million, or 31%, in the six months ended December 31, 2024 compared to the six months ended December 31, 2023. The increase in subscription revenues was primarily attributable to paid seat expansion from our existing customers, migrations, and price increases.
Current wording
Subscription revenues increased $762.6 million, or 27%, in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024. The increase in subscription revenues was primarily attributable to paid seat expansion from our existing customers, price increases, and migrations.
Previous wording
Other revenues decreased $124.7 million, or 49%, in the six months ended December 31, 2024 compared to the six months ended December 31, 2023. The decrease in other revenues was primarily attributable to a decrease of $141.7 million in maintenance revenue due to the end of support for our Server offerings.
Current wording
Other revenues decreased $158.6 million, or 43%, in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024. The decrease in other revenues was primarily attributable to a decrease of $169.5 million in maintenance revenue due to the end of support for our Server offerings.
Previous wording
Cost of revenues increased $68.2 million, or 18%, in the six months ended December 31, 2024 compared to the six months ended December 31, 2023. The overall increase was primarily attributable to an increase of $33.6 million in hosting fees paid to third-party providers, an increase of $13.5 million in compensation expense for employees (which includes an increase of $5.2 million in stock-based compensation), and an increase of $7.4 million in amortization from acquired intangible assets.
Current wording
Cost of revenues increased $74.4 million, or 13%, in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024. The overall increase was primarily attributable to an increase of $31.5 million in hosting fees paid to third-party providers, an increase of $19.5 million in compensation expense for employees (which includes an increase of $8.4 million in stock-based compensation), and an increase of $11.6 million in software subscription costs.
Previous wording
Research and development expenses increased $264.8 million, or 26%, in the six months ended December 31, 2024 compared to the six months ended December 31, 2023. The overall increase was primarily attributable to an increase of $239.0 million in compensation expenses for employees (which includes an increase of $115.5 million instock-based compensation).
Current wording
Research and development expenses increased $373.6 million, or 23%, in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024. The overall increase was primarily attributable to anincrease of $351.8 million in compensation expenses for employees (which includes anincrease of $166.0 million instock-based compensation).
Previous wording
Marketing and sales expenses increased $110.2 million, or 27%, for thesix months ended December 31, 2024, compared to thesix months ended December 31, 2023. The overall increase was primarily attributable to an increase of$67.9 million in compensation expenses for employees(which includes an increase of $8.8 million in stock-based compensation), and an increase of $30.4 million in advertising and marketing event expenses.
Current wording
Marketing and sales expenses increased $182.2 million, or 29%, for thenine months ended March 31, 2025, compared to thenine months ended March 31, 2024. The overall increase was primarily attributable to an increase of$113.3 million in compensation expenses for employees(which includes anincrease of $18.5 million in stock-based compensation), and anincrease of $54.7 million in advertising and marketing event expenses.
Previous wording
Other expense, net increased $14.5 million, or 111% in the six months ended December 31, 2024 compared to the six months ended December 31, 2023. The increase was primarily attributable to an increase of $8.5 million in expense related to our share of loss from an equity method investment and an increase of $3.8 million in contributions to the Atlassian Foundation.
Current wording
Other expense, net increased $18.3 million, or 76% in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024. The overall increase was primarily attributable to an increase of $9.2 million in expense related to our share of loss from an equity method investment and an increase of $5.6 million in contributions to the Atlassian Foundation.
Previous wording
Interest income increased$6.3 million, or 13% in the six months ended December 31, 2024 compared to the six months ended December 31, 2023. The increase was primarily attributable to an increase in investment income as a result of increased investment balances.
Current wording
Interest income increased$12.7 million, or 18% in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024. The increase was primarily attributable to an increase in investment income as a result of increased investment balances.
Previous wording
Interest expense decreased$3.4 million, or 19%, in the six months ended December 31, 2024 compared to the six months ended December 31, 2023. The decreasewas primarily attributable to a decrease in interest expense on our outstanding debt as a result of the issuance of the Notes (as defined below), and repayment of the Term Loan (as defined below) in the fourth quarter of fiscal year 2024.
Current wording
Interest expense decreased$4.0 million, or 15%, in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024. The decreasewas primarily attributable to a decrease in interest expense on our outstanding debt as a result of the issuance of the Notes (as defined below), and repayment of the Term Loan (as defined below) in the fourth quarter of fiscal year 2024.
Previous wording
Provision for income taxes increased$19.3 million for the six months ended December 31, 2024, as compared to the six months ended December 31, 2023. The increase was primarily attributable to the change in the mix of earnings and losses in foreign jurisdictions. See Note 14, “Income Taxes,” of the notes to our condensed consolidated financial statements for additional information.
Current wording
Provision for income taxes increased$75.8 million for the nine months ended March 31, 2025, as compared to the nine months ended March 31, 2024. The increase was primarily attributable to the change in the mix of earnings and losses in foreign jurisdictions. See Note 14, “Income Taxes,” of the notes to our condensed consolidated financial statements for additional information.
Previous wording
As of December 31, 2024, we had cash and cash equivalents totaling $2.2 billion, marketable securities totaling $251.6 million andaccounts receivables totaling $695.7 million. Since our inception, we have primarily financed our operations through cash flows generated by operationsand corporate debt.
Current wording
As of March 31, 2025, we had cash and cash equivalents totaling $2.7 billion, marketable securities totaling $313.6 million andaccounts receivables totaling $642.0 million. Since our inception, we have primarily financed our operations through cash flows generated by operationsand corporate debt.
Previous wording
Net cash provided by operating activities decreased by $24.2 million for the six months ended December 31, 2024, compared to the six months ended December 31, 2023. The net decrease was primarily attributable to an increase in cash paid to employees and vendors, partially offset by an increase in cash received from customers.
Current wording
Net cash provided by operating activities increased by $63.1 million for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024. The net increase was primarily attributable to an increase in cash received from customers, a decrease in cash paid for income taxes, partially offset by an increase in cash paid to employees and vendors.
Previous wording
Net cash used in investing activities decreased by $788.9 million during the six months ended December 31, 2024, compared to the six months ended December 31, 2023. The net decrease was primarily attributable to a decrease in cash consideration paid for acquisitions, net of cash acquired of approximately $839.8 million, partially offset by an increase in net outflows of $37.1 million related to strategic investment activity.
Current wording
Net cash used in investing activities decreased by $738.3 million during the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024. The net decrease was primarily attributable to a decrease in cash consideration paid for acquisitions, net of cash acquired of approximately $838.8 million, partially offset by an increase in net outflows of $90.2 million related to our strategic investment and marketable security activity.
Previous wording
Net cash used in financing activities increased by $75.8 million for the six months ended December 31, 2024, compared to the six months ended December 31, 2023. The net increase was primarily attributable to an increase in repurchases of Class A Common Stock of $85.2 million.
Current wording
Net cash used in financing activities increased by $162.3 million for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024. The net increase was primarily attributable to an increase in repurchases of Class A Common Stock of $184.1 million, partially offset by a decrease in principal payments for the Term Loan (defined below) of $25.0 million.
Previous wording
During the three and six months ended December 31, 2024, we repurchased and subsequently retired approximately 0.4 million and 1.5 million shares of our Class A Common Stock for approximately $68.4 million and $252.3 million at an average price per share of $185.95 and $168.30, respectively. All repurchases were made in open market transactions. As of December 31, 2024, we were authorized to purchase a remaining $199.6 million and $1.5 billion of its Class A Common Stock under the 2023 Share Repurchase Program and 2024 Share Repurchase Program, respectively.
Current wording
During the three and nine months ended March 31, 2025, we repurchased and subsequently retired approximately 0.6 million and 2.1 million shares of our Class A Common Stock for approximately $138.9 million and $391.2 million at an average price per share of $228.05 and $185.57, respectively. All repurchases were made in open market transactions. As of March 31, 2025, we were authorized to purchase a remaining $60.7 million and $1.5 billion of its Class A Common Stock under the 2023 Share Repurchase Program and 2024 Share Repurchase Program, respectively.
Previous wording
The following table presents a reconciliation of our Non-GAAP Financial Measures to the most comparable GAAP financial measure for the three and six months ended December 31, 2024 and 2023 (in thousands, except percentage and per share data):
Current wording
The following table presents a reconciliation of our Non-GAAP Financial Measures to the most comparable GAAP financial measure for the three and nine months ended March 31, 2025 and 2024 (in thousands, except percentage and per share data):
Previous wording
(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, 2024 and 2023 because the effect would have been anti-dilutive.
Current wording
(2) The effects of these dilutive securities were not included in the GAAP calculation of diluted net loss per share for the three and nine months ended March 31, 2025 and nine months ended March 31, 2024 because the effect would have been anti-dilutive.