Atlassian Q3 FY2024 Earnings Release [Financial Highlights (Q3 FY2024)](index=1&type=section&id=Third%20Quarter%20Fiscal%20Year%202024%20Financial%20Highlights%3A) The company reported strong Q3 revenue growth to $1.19 billion, improved profitability, and record free cash flow Q3 FY2024 Key Financial Metrics (YoY Comparison) | Metric | Q3 FY2024 | Q3 FY2023 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $1,189.1M | $915.5M | +30% | | **Subscription Revenue** | $1,071.0M | $760.7M | +41% | | **GAAP Operating Margin** | 1% | (18%) | +19 pts | | **Non-GAAP Operating Margin** | 27% | 22% | +5 pts | | **GAAP Net Income (Loss)** | $12.8M | ($209.0M) | N/A | | **Non-GAAP Net Income** | $232.5M | $138.0M | +68% | | **GAAP EPS (Diluted)** | $0.05 | ($0.81) | N/A | | **Non-GAAP EPS (Diluted)** | $0.89 | $0.54 | +65% | | **Free Cash Flow** | $554.9M | $349.7M | +59% | - The company has successfully transitioned to a cloud-majority business, with **over 300,000 customers** on its Cloud products and a **3x increase in paid cloud seats** since announcing the end-of-support for Server[2](index=2&type=chunk) - Cash, cash equivalents, and marketable securities totaled **$2.1 billion** at the end of the quarter[4](index=4&type=chunk) [CEO Transition](index=1&type=section&id=CEO%20Transition) Co-founder Scott Farquhar will step down as co-CEO, with Mike Cannon-Brookes becoming the sole CEO - Scott Farquhar will step down as co-CEO to spend more time with his family, engage in philanthropy, and support the global technology industry[3](index=3&type=chunk) - The transition is effective **August 31, 2024**, and Farquhar will continue as a Board member and special advisor[3](index=3&type=chunk) - Mike Cannon-Brookes will become the sole CEO, leading the company's mission and capitalizing on opportunities in the AI era[3](index=3&type=chunk) [Recent Business Highlights](index=3&type=section&id=Recent%20Business%20Highlights%3A) The company achieved key milestones including Marketplace sales growth, the acquisition of Optic, and product expansion - The Atlassian Marketplace surpassed **$4 billion in lifetime sales** since its 2012 inception, with over 1,800 partners and 5,700 apps[6](index=6&type=chunk) - Acquired **Optic**, an API documentation and management company, to enhance Compass and improve developer productivity[6](index=6&type=chunk) - Released **Confluence whiteboards** into general availability, offering a freeform collaboration tool integrated with Jira[6](index=6&type=chunk) - Expanded data residency to 12 geographies with the addition of India, Japan, South Korea, Switzerland, and the UK[6](index=6&type=chunk) - The number of customers with over **$10,000 in Cloud Annualized Recurring Revenue (ARR)** grew to 44,336, a **19% increase** year-over-year[6](index=6&type=chunk) [Financial Outlook (Q4 FY2024)](index=4&type=section&id=Financial%20Targets%3A) The company projects Q4 revenue between $1.12B and $1.135B with continued strong cloud and data center growth Q4 FY2024 Financial Targets | Metric | Target | | :--- | :--- | | **Total Revenue** | $1,120M - $1,135M | | **Cloud Revenue Growth (YoY)** | ~32% | | **Data Center Revenue Growth (YoY)** | 40% - 42% | | **GAAP Gross Margin** | ~81.0% | | **Non-GAAP Gross Margin** | ~83.5% | | **GAAP Operating Margin** | ~(7.0%) | | **Non-GAAP Operating Margin** | ~18.5% | Financial Statements and Reconciliations [Condensed Consolidated Statements of Operations](index=6&type=section&id=Atlassian%20Corporation%20Condensed%20Consolidated%20Statements%20of%20Operations) Q3 revenues grew 30% YoY to $1.19 billion, with a significant turnaround to positive GAAP net income Statement of Operations Highlights (Q3 FY2024 vs Q3 FY2023) | Metric (in thousands) | Q3 FY2024 | Q3 FY2023 | | :--- | :--- | :--- | | **Total Revenues** | $1,189,128 | $915,453 | | **Gross Profit** | $975,703 | $746,801 | | **Operating Income (Loss)** | $17,804 | ($161,567) | | **Net Income (Loss)** | $12,752 | ($209,037) | | **Diluted Net Income (Loss) per Share** | $0.05 | ($0.81) | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Atlassian%20Corporation%20Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $5.06 billion, driven by increased goodwill, while liabilities and equity also increased Balance Sheet Highlights (in thousands) | Metric | March 31, 2024 | June 30, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $1,948,978 | $2,102,550 | | **Goodwill** | $1,285,745 | $727,211 | | **Total Assets** | $5,063,265 | $4,106,779 | | **Deferred Revenue (Current)** | $1,698,639 | $1,362,736 | | **Total Liabilities** | $3,929,094 | $3,452,107 | | **Total Stockholders' Equity** | $1,134,171 | $654,672 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Atlassian%20Corporation%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company generated $565.4 million in net cash from operations, a significant increase from the prior year Cash Flow Summary (Q3, in thousands) | Activity | Q3 FY2024 | Q3 FY2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $565,390 | $352,369 | | **Net cash provided by (used in) investing activities** | ($26,314) | $14,567 | | **Net cash used in financing activities** | ($47,877) | ($31,746) | | **Net increase in cash** | $488,430 | $335,611 | [Revenues by Deployment Options](index=9&type=section&id=Revenues%20by%20Deployment%20Options) Q3 revenue growth was driven by Cloud and Data Center segments, offsetting the planned decline in Server revenue Revenue by Deployment (Q3, in thousands) | Deployment | Q3 FY2024 | Q3 FY2023 | YoY Change | | :--- | :--- | :--- | :--- | | **Cloud** | $703,036 | $534,891 | +31.4% | | **Data Center** | $364,134 | $221,551 | +64.3% | | **Server** | $29,720 | $94,389 | -68.5% | | **Marketplace and other** | $92,238 | $64,622 | +42.7% | [Reconciliation of GAAP to Non-GAAP Results](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Results) Non-GAAP results primarily exclude stock-based compensation and amortization of acquired intangible assets - The main reconciling items between GAAP and non-GAAP figures are **stock-based compensation, amortization of acquired intangible assets, and restructuring charges**[12](index=12&type=chunk)[24](index=24&type=chunk) GAAP to Non-GAAP Reconciliation (Q3 FY2024, in thousands) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | **Operating Income** | $17,804 | $298,713 | $316,517 | | **Net Income** | $12,752 | $219,744 | $232,496 | - For fiscal year 2024, the company began using a **fixed long-term projected non-GAAP tax rate of 27%** to provide better consistency across reporting periods[25](index=25&type=chunk)

Atlassian Corporation (TEAM) , a leading provider of collaboration and productivity software, is set to report third-quarter fiscal 2024 results on Apr 25.Atlassian has a history of delivering solid financial performance and consistent revenue growth. The company's focus on providing innovative solutions has driven its success. With a proven track record of execution, TEAM has earned the trust of its customers.Factors at PlayAtlassian has exhibited impressive growth momentum, driven by robust demand for its ...

An analyst upgrade gave the software stock a boost.Shares of the collaboration-focused software company Atlassian (TEAM 4.84%) were moving higher on an analyst rating upgrade this morning and broader tailwinds in the tech sector, as a weaker-than-expected producer price index reading cooled inflationary fears after the hot CPI report on Wednesday.As a result, the stock finished Thursday's session up 4.8%. This cloud has a silver liningBarclays raised its rating on Atlassian from equal weight to overweight, ...

Atlassian (TEAM) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Shares of this company have returned -1.4% over the past month versus the Zacks S&P 500 composite's +0.8% change. The Zacks Internet - Software industry, to which Atlassian belongs, has gained 0.2% over this period. Now the key question is: Where could the stock be headed in the near term?While media releases or rumors ab ...

Core Insights - Atlassian has a strong track record of beating earnings estimates, with an average surprise of 20.19% over the last two quarters [1] - The company reported earnings of $0.73 per share for the last quarter, exceeding the Zacks Consensus Estimate of $0.62 per share by 17.74% [1] - The positive trend in earnings estimates for Atlassian is supported by its Earnings ESP of +4.31%, indicating bullish sentiment among analysts [3] Earnings Performance - In the previous quarter, Atlassian's earnings were $0.65 per share against an expected $0.53, resulting in a surprise of 22.64% [1] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high probability of future earnings beats, with nearly 70% success rate for stocks with this profile [2] Earnings ESP Analysis - The Earnings ESP metric compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [3] - A positive Earnings ESP indicates that analysts are optimistic about the company's earnings prospects, which could lead to another earnings beat [3] - The next earnings report for Atlassian is anticipated to be released on April 25, 2024 [3]

Atlassian Corporation (NASDAQ:TEAM) Morgan Stanley Technology, Media & Telecom Conference March 7, 2024 12:30 PM ET Company Participants Anu Bharadwaj - President Conference Call Participants Keith Weiss - Morgan Stanley Keith Weiss Good morning. Thank you, everyone for joining us. My name is Keith Weiss. I run the US software research franchise here at Morgan Stanley. And very pleased to have with us, this morning from Atlassian, President, Anu Bharadwaj. Anu, thank you for joining us again at the Morgan S ...

The Nasdaq Composite soared 43% last year as recession fears diminished and investors piled into artificial intelligence (AI) stocks. That momentum has spilled into 2024, with the index advancing another 5% year to date. However, Morgan Stanley analysts led by Keith Weiss still see substantial upside in certain Nasdaq stocks.For instance, the analyst team has given Atlassian (TEAM -0.33%) a bull-case price target of $441 per share, implying a 113% upside over the next year. Investors should never anchor the ...

NEW YORK, Feb. 21, 2024 /PRNewswire/ -- ActionIQ, the leading Composable Customer Data Platform (CDP), announced today it has been named a Visionary on the inaugural Gartner® Magic Quadrant™ for CDPs, identifying those solutions that help connect a brands' customer data with personalized experiences. Gartner recognized ActionIQ on its ability to execute and completeness of vision. "Being recognized as a Visionary in this inaugural Magic Quadrant by Gartner is, we feel, a significant validation of our strate ...

Core Viewpoint - Artificial intelligence (AI) is projected to significantly impact the global economy, with estimates suggesting it could add between $7 trillion and $200 trillion by 2030, leading technology companies, including Atlassian, to integrate AI into their platforms to enhance productivity and capture market opportunities [1][8] Company Overview - Atlassian has a 20-year history of providing collaborative software solutions, primarily through its flagship products, Jira and Confluence, which are now enhanced with AI capabilities [1][2] - The company has embedded Atlassian Intelligence into its platforms, allowing for features such as content drafting, text summarization, and advanced search functionalities [2][3] Recent Developments - In the fiscal 2024 second quarter, Atlassian Intelligence was made available to 302,000 customers after moving out of beta [3] - Atlassian acquired Loom to enhance its platforms, enabling video messaging capabilities that complement its existing tools [3][4] Financial Performance - Atlassian achieved over $1 billion in revenue for the first time in its history during the fiscal 2024 second quarter, marking a 21.5% year-over-year growth [5] - The company managed to limit its operating expense growth to 12.1%, resulting in a reduced net loss of $84 million, down 58.8% from the previous year [5][6] Growth Strategy - The company is currently trading at a 54% discount from its all-time high, presenting a potential buying opportunity for long-term investors [7] - Atlassian is expected to find new monetization strategies for its AI features, similar to how Microsoft has increased pricing for its productivity software with AI integrations [8]

Key PointsAtlassian shares have been rallying since the end of 2022, but last week's report threatens that. While revenue and profit hit an all-time high, the company's outlook scared investors.All things considered, though, it's looking like the dip might be an overreaction and that the upside potential remains intact. 5 stocks we like better than AtlassianWhile the S&P 500 index was notching a fresh record last week, shares of software giant Atlassian Corporation NASDAQ: TEAM were reeling from a 15% drop. ...