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Atlassian (TEAM) - 2025 Q4 - Earnings Call Transcript
2025-08-07 22:00
Financial Data and Key Metrics Changes - Atlassian reported over $5.2 billion in revenue and over $1.4 billion in free cash flow for FY 2025, achieving a balanced rule of 40 plus performance [6][10] - Free cash flow for the quarter was $360 million, down 13% year over year, primarily due to strong collections in the prior year [24][25] - The company achieved a cloud net revenue retention rate of 120% [7] Business Line Data and Key Metrics Changes - The Teamwork platform now serves over 300,000 customers, with significant growth in AI usage, reaching 2.3 million AI users, a 50% increase from the previous quarter [6][7] - Core applications such as Jira, Confluence, and Jira Service Management are growing in line or faster than total company revenue [10] - The Teamwork collection has exceeded expectations since its launch, contributing to strong revenue growth [10] Market Data and Key Metrics Changes - Atlassian's enterprise sales teams executed a record number of deals greater than $1 million in annual contract value (ACV), more than doubling year over year [6][10] - Data center to cloud migrations increased by 60% year over year, indicating strong customer commitment to the cloud platform [42][69] Company Strategy and Development Direction - The company is focusing on serving the enterprise, delivering AI innovations, and connecting teams through the Atlassian system of work [7][10] - A partnership with Google Cloud aims to enhance the AI-powered Teamwork platform and accelerate cloud transformation [8][10] - Atlassian is committed to a long-term growth strategy, targeting a compounded annual growth rate of 20% from FY 2024 to FY 2027 [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve long-term growth targets despite macroeconomic uncertainties [33][34] - The company sees AI as a significant tailwind for business growth, with expectations of increased software creation and collaboration [20][21] - Management highlighted the importance of customer-centric processes and partnerships to drive enterprise growth [71][72] Other Important Information - Anu, the President of Atlassian, will transition away from her role in December after nearly twelve years [10][11] - The company is investing heavily in R&D and sales to support its strategic priorities [101][102] Q&A Session Summary Question: Concerns about tool generation tools and developer roles - Management stated that they are not seeing any negative impact on growth rates or adoption from the integration of code-generating AI tools, and user growth remains healthy [15][16] Question: Free cash flow trajectory for 2026 - Free cash flow for FY 2025 was flat at $1.4 billion, with expectations that cash flow will correlate with non-GAAP operating income trends moving forward [24][25][26] Question: Potential inflection points for revenue growth - Management highlighted multiple growth levers, including paid seat expansion, cross-sell, upsell, and new customer growth, with AI opening up additional opportunities [33][34] Question: Guidance for data center segment growth - Management explained that Q1 guidance reflects a smaller expiration base and headwinds from prior programmatic changes, leading to a cautious outlook [78][79] Question: Driving wall-to-wall deployments in enterprises - Management emphasized ongoing consolidation efforts and the growth of business user segments, indicating strong momentum in expanding usage across non-technical roles [81][84]
Atlassian (TEAM) Q4 Revenue Jumps 22%
The Motley Fool· 2025-08-07 21:24
Core Insights - Atlassian reported strong Q4 FY2025 earnings with revenue growth, a significant non-GAAP earnings beat, and expanding margins [1] - The company continues to focus on cloud services and artificial intelligence (AI) initiatives to drive growth and innovation [4][5] Financial Performance - Q4 FY2025 GAAP revenue reached $1,384 million, surpassing analyst expectations of $1,356 million [1] - Non-GAAP earnings per share (EPS) was $0.98, exceeding the $0.83 estimate, marking a 48.5% increase from $0.66 in Q4 FY2024 [2] - Operating margin (Non-GAAP) improved to 24%, up 4 percentage points from 20% in the previous year [2] - Free cash flow (Non-GAAP) was $360 million, down 12.8% from $413 million in Q4 FY2024 [2] Revenue Breakdown - Subscription revenue grew by 22.9% year over year to $1,313 million, driven by cloud and Data Center services [2][5] - Cloud revenue reached $927.7 million, a 25.7% increase year over year, contributing 67% of overall GAAP revenue [5][7] - The customer base expanded to over 300,000 organizations, with more than 80% of the Fortune 500 as clients [6] Strategic Focus - Atlassian's growth strategy emphasizes product-led initiatives, R&D investment, and AI integration [4] - AI features, particularly the Rovo AI assistant, gained traction with 2.3 million monthly active users, up from 1.5 million in the previous quarter [9] - The company is focusing on product bundling and strategic partnerships, including an expanded relationship with Google Cloud [10][11] Future Outlook - For Q1 FY2026, Atlassian expects total revenue between $1,395 million and $1,403 million, with cloud revenue projected to grow about 22.5% year over year [12] - For FY2026, overall revenue growth is anticipated at approximately 18%, with cloud revenue expected to increase around 21% [12]
Atlassian (TEAM) - 2025 Q4 - Annual Results
2025-08-07 20:14
[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Atlassian reported strong financial performance for both the fourth quarter and the full fiscal year 2025, with total revenue reaching **$1.38 billion** for the quarter (up **22% YoY**) and **$5.2 billion** for the full year (up **20% YoY**), demonstrating improved non-GAAP profitability and generating over **$1.4 billion** in free cash flow [Fourth Quarter Fiscal Year 2025 Financial Highlights](index=1&type=section&id=Fourth%20Quarter%20Fiscal%20Year%202025%20Financial%20Highlights) Q4 FY2025 Key Financial Metrics | Metric | Q4 FY2025 | Q4 FY2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $1,384.3M | $1,131.6M | +22% | | Subscription Revenue | $1,312.5M | $1,068.9M | +23% | | **GAAP Operating Margin** | (2%) | (6%) | +4 p.p. | | **Non-GAAP Operating Margin** | 24% | 20% | +4 p.p. | | **GAAP Net Loss per Share** | $(0.09) | $(0.76) | Improved | | **Non-GAAP Net Income per Share** | $0.98 | $0.66 | +48% | | **Free Cash Flow** | $360.3M | $413.2M | -13% | [Fiscal Year 2025 Financial Highlights](index=2&type=section&id=Fiscal%20Year%202025%20Financial%20Highlights) Full Year FY2025 Key Financial Metrics | Metric | FY2025 | FY2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $5.2B | $4.4B | +20% | | **GAAP Operating Margin** | (3%) | (3%) | Flat | | **Non-GAAP Operating Margin** | 25% | 23% | +2 p.p. | | **GAAP Net Loss per Share** | $(0.98) | $(1.16) | Improved | | **Non-GAAP Net Income per Share** | $3.68 | $2.93 | +26% | | **Free Cash Flow** | $1,415.5M | $1,415.6M | Flat | [Business and Operational Highlights](index=2&type=section&id=Recent%20Business%20Highlights) Atlassian achieved significant operational milestones, including expanding its strategic partnership with Google Cloud to enhance AI capabilities and cloud transformation, receiving leadership recognition from Forrester, and introducing new AI-powered tools like 'Talent' and 'Rovo Dev Agent', while growing customers with over **$10,000** in Cloud ARR by **13%** year-over-year - Expanded strategic partnership with Google Cloud to integrate Atlassian's AI-powered platform with Google's AI-optimized infrastructure, advancing its multi-cloud strategy[6](index=6&type=chunk) - Recognized as a Leader in 'The Forrester Wave™' for both Value Stream Management Solutions and DevOps Platforms in Q2 2025[6](index=6&type=chunk) - Introduced new AI-powered tools, including the general availability of the 'Talent' workforce planning app and 'Rovo Dev Agent' in the Command Line Interface (CLI) to accelerate developer workflows[6](index=6&type=chunk) - The number of customers with over **$10,000** in Cloud Annualized Recurring Revenue (ARR) grew to **51,978**, a **13%** increase year-over-year[6](index=6&type=chunk) [Management Changes](index=3&type=section&id=President%20Departure) Atlassian announced the departure of President Anu Bharadwaj, effective December 31, 2025, after nearly **12 years** of instrumental leadership in the company's cloud and platform strategy - President Anu Bharadwaj will be departing Atlassian on December 31, 2025, after a nearly **12-year** tenure where she held key leadership positions including Head of Product and COO[8](index=8&type=chunk) [Financial Outlook (Fiscal Year 2026)](index=3&type=section&id=Financial%20Targets) Atlassian projects a positive fiscal year 2026 outlook with total revenue growth of approximately **18.0%** and Cloud revenue growth of around **21.0%**, anticipating a non-GAAP operating margin of **24.0%** [First Quarter Fiscal Year 2026 Targets](index=3&type=section&id=First%20Quarter%20Fiscal%20Year%202026) Q1 FY2026 Guidance | Metric | Guidance Range / Value | | :--- | :--- | | **Total Revenue** | $1,395M - $1,403M | | Cloud Revenue Growth (YoY) | ~22.5% | | Data Center Revenue Growth (YoY) | ~8.0% | | **GAAP Gross Margin** | ~82.5% | | **Non-GAAP Gross Margin** | ~84.5% | | **GAAP Operating Margin** | ~(5.5%) | | **Non-GAAP Operating Margin** | ~20.5% | [Full Fiscal Year 2026 Targets](index=3&type=section&id=Fiscal%20Year%202026) Full Year FY2026 Guidance | Metric | Guidance Value | | :--- | :--- | | **Total Revenue Growth (YoY)** | ~18.0% | | Cloud Revenue Growth (YoY) | ~21.0% | | Data Center Revenue Growth (YoY) | ~12.5% | | **GAAP Gross Margin** | ~83.5% | | **Non-GAAP Gross Margin** | ~85.5% | | **GAAP Operating Margin** | ~(2.5%) | | **Non-GAAP Operating Margin** | ~24.0% | [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents Atlassian's detailed unaudited consolidated financial statements, including Statements of Operations, Balance Sheets, and Cash Flows for the fourth quarter and full fiscal year ended June 30, 2025, along with comparative data and revenue breakdown by deployment option [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) FY2025 vs. FY2024 Statement of Operations Summary (GAAP) | Metric (in thousands) | Fiscal Year 2025 | Fiscal Year 2024 | | :--- | :--- | :--- | | **Total Revenues** | $5,215,304 | $4,358,603 | | **Gross Profit** | $4,320,453 | $3,555,108 | | **Operating Loss** | $(130,392) | $(117,077) | | **Net Loss** | $(256,687) | $(300,519) | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) Balance Sheet Summary (as of June 30) | Metric (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Cash and Marketable Securities** | $2,937,142 | $2,338,903 | | **Total Assets** | $6,041,970 | $5,212,133 | | **Total Liabilities** | $4,696,316 | $4,179,282 | | **Total Stockholders' Equity** | $1,345,654 | $1,032,851 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) FY2025 vs. FY2024 Cash Flow Summary | Metric (in thousands) | Fiscal Year 2025 | Fiscal Year 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $1,460,393 | $1,448,159 | | **Net cash used in investing activities** | $(342,322) | $(963,746) | | **Net cash used in financing activities** | $(782,582) | $(408,217) | | **Net increase in cash** | $335,640 | $74,207 | [Revenues by Deployment Options](index=10&type=section&id=Revenues%20by%20Deployment%20Options) FY2025 Revenue by Deployment Option (in thousands) | Deployment Option | Fiscal Year 2025 | Fiscal Year 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Cloud** | $3,447,427 | $2,698,899 | +27.7% | | **Data Center** | $1,467,167 | $1,208,498 | +21.4% | | **Marketplace and other** | $300,710 | $273,561 | +9.9% | | **Server** | $0 | $177,645 | -100% | | **Total Revenues** | **$5,215,304** | **$4,358,603** | **+19.7%** | [Reconciliation of GAAP to Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section details reconciliations of GAAP to non-GAAP financial measures, highlighting adjustments for stock-based compensation and amortization of acquired intangible assets, to clarify performance evaluation metrics for both historical results and future targets [Reconciliation of Historical GAAP to Non-GAAP Results](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Results) FY2025 GAAP to Non-GAAP Reconciliation Summary | Metric (in thousands) | GAAP | Non-GAAP | Key Adjustments (Stock-Based Comp, Amortization) | | :--- | :--- | :--- | :--- | | **Gross Profit** | $4,320,453 | $4,443,978 | +$123,525 | | **Operating (Loss)/Income** | $(130,392) | $1,287,347 | +$1,417,739 | | **Net (Loss)/Income** | $(256,687) | $975,945 | +$1,232,632 (net of tax adjustments) | [Reconciliation of GAAP to Non-GAAP Financial Targets](index=12&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Targets) Q1 FY2026 Margin Guidance Reconciliation | Metric | GAAP Target | Adjustments | Non-GAAP Target | | :--- | :--- | :--- | :--- | | **Gross Margin** | 82.5% | +2.0% | 84.5% | | **Operating Margin** | (5.5%) | +26.0% | 20.5% | Full Year FY2026 Margin Guidance Reconciliation | Metric | GAAP Target | Adjustments | Non-GAAP Target | | :--- | :--- | :--- | :--- | | **Gross Margin** | 83.5% | +2.0% | 85.5% | | **Operating Margin** | (2.5%) | +26.5% | 24.0% |
TEAM LED BY MDA SPACE SELECTED FOR CANADA'S LUNAR UTILITY VEHICLE STUDY
Prnewswire· 2025-07-29 12:20
Core Insights - MDA Space Ltd. has been selected by the Canadian Space Agency to conduct an early-phase study for Canada's proposed Lunar Utility Vehicle (LUV) [1][3] Group 1: Project Overview - The study aims to define the LUV mission concept and technology development plan, focusing on mission architecture, technology options, and risk assessments [3] - This initiative follows a successful autonomous lunar surface demonstration by MDA Space at the Canadian Space Agency in December 2024 [3] Group 2: Collaborative Efforts - The project involves collaboration with the Centre de Technologies Avancées BRP – Université de Sherbrooke and the University of Toronto Institute for Aerospace Studies, combining expertise in space systems, vehicle development, and advanced autonomy algorithms [2][5] - MDA Space will integrate MDA SKYMAKER™, a suite of scalable and modular space robotics, to enable autonomous mobility solutions on the lunar surface [4] Group 3: Leadership Statements - The CEO of MDA Space emphasized the importance of this study in shaping Canada's role in lunar exploration and supporting long-term human presence on the Moon [5] - The General Manager of CTA highlighted their expertise in designing rugged vehicles for extreme environments, applicable to lunar mobility challenges [5] - A representative from UTIAS noted the necessity of technical ingenuity and collaboration for developing advanced autonomy in lunar vehicles [5] Group 4: Company Background - MDA Space is a leader in the global space industry with over 55 years of experience, involved in more than 450 missions, and specializes in robotics, satellite systems, and geointelligence [6]
13只看涨+2只看跌!大摩揭秘二季度机会,标普每股盈利或增5%
贝塔投资智库· 2025-07-23 04:15
Core Viewpoint - Morgan Stanley's strategy team highlights 15 stocks with short-term catalytic potential, indicating that S&P 500 index earnings growth in Q2 may exceed expectations [1] Earnings Expectations - The market anticipates a 5% year-over-year increase in S&P 500 Q2 earnings per share and over 4% revenue growth, but actual growth may be stronger [1] - The seven major tech companies are expected to see a 14% increase in net profit, while the remaining 493 constituents may experience a 3% decline [1] - Despite analysts lowering earnings expectations from April to May, the earnings revision has rebounded from -25% to approximately 1%, suggesting Q2 earnings will likely exceed expectations, aligning with the historical average of 4%-5% [1] Recommended Stocks - **argenx SE (ARGX.US)**: undervalued R&D pipeline, target price $700 [2] - **Atlassian (TEAM.US)**: continuous revenue growth potential over 20% and expected margin expansion, target price $320 [3] - **Chewy (CHWY.US)**: benefits from marketing and product optimization, expected revenue to maintain or exceed Q1 levels, target price $50 [4] - **CVS Health (CVS.US)**: advantages from competitor store closures and growth in pharmacy benefit management, target price $80 [4] - **DraftKings (DKNG.US)**: potential earnings inflection point in Q2, with actual licensing rates offsetting tax and regulatory pressures, target price $52 [4] - **Eaton Corporation (ETN.US)**: benefits from improved profit margins in U.S. electrical business, target price $375 [5] - **Eli Lilly (LLY.US)**: core products Mounjaro and Zepbound expected to contribute $8.2 billion in revenue, exceeding expectations may lead to 2025 guidance upgrades, target price $1,135 [5] - **F5 (FFIV.US)**: positive outlook due to demand growth in cloud and load balancing products, target price $305 [6] - **NVIDIA (NVDA.US)**: strong end-user demand and accelerated shipments of rack-level products supporting supply-side growth, target price $170 [7] - **Omada Health (OMDA.US)**: operational leverage through technology empowerment and multi-disease sales, target price $25 [8] - **Southwest Airlines (LUV.US)**: potential stock rebound if internal guidance is met and baggage fee impacts are confirmed as limited, target price $38 [9] - **Valley National Bank (VLY.US)**: expected net interest income growth of 3% quarter-over-quarter, target price $11 [10] - **Western Digital (WDC.US)**: undervalued gross margin expansion prospects, target price $85 [11] Cautious Outlook - **National Storage Affiliates Trust (NSA.US)**: cautious due to expected funds from operations (FFO) per share being below market and company guidance, target price $30 [12] - **Teradyne (TER.US)**: revenue and earnings per share forecasts for FY2026 are 7% and 14% below Wall Street expectations, target price $74 [13] Summary - Overall, Morgan Stanley's recommendations combine company fundamentals, industry trends, and market sentiment, providing diversified options for investors [14]
金十图示:2025年07月14日(周一)全球主要科技与互联网公司市值变化
news flash· 2025-07-14 03:00
Core Insights - The article provides a snapshot of the market capitalization changes of major global technology and internet companies as of July 14, 2025, highlighting both increases and decreases in value across various firms [1]. Market Capitalization Changes - Tesla's market cap increased by 1.17%, reaching $100.98 billion [3]. - Alibaba saw a slight increase of 0.08%, with a market cap of $255.2 billion [3]. - AMD experienced a rise of 1.57%, bringing its market cap to $23.74 billion [3]. - Companies like Oracle and SAP reported declines of 1.89% and 1.75%, respectively, with market caps of $64.76 billion and $35.31 billion [3]. - Notable declines included Adobe, which fell by 2.18%, with a market cap of $15.41 billion [4]. Noteworthy Performers - PayPal showed a significant increase of 5.73%, with a market cap of $6.3 billion [6]. - SMIC reported a rise of 2.07%, reaching a market cap of $607 million [6]. - Circle Internet PNG Group had a notable increase of 7.67%, with a market cap of $463 million [7]. Overall Trends - The overall trend indicates mixed performance among technology companies, with some experiencing growth while others face declines in market capitalization [1][3].
X @Investopedia
Investopedia· 2025-07-11 07:00
Atlassian shares plunged 9% Thursday as a regulatory filing showed the company’s CEO sold over $1.6 million of company stock earlier in the week. https://t.co/T5AGHz5IFl ...
SNAPCHAT AND RWS GLOBAL TEAM UP ON IN-STADIUM AUGMENTED REALITY EXPERIENCES AT GLOBAL SPORTING EVENTS
Prnewswire· 2025-07-09 14:00
Core Insights - Snap Inc. and RWS Global have announced a partnership aimed at enhancing fan engagement at sporting events globally, starting with the World Aquatics Championships and the British & Irish Lions Tour [1][2] - The partnership will integrate Snap's augmented reality (AR) lenses with RWS Global's PV4 software, which is designed for centralized video and graphics playback, to create a seamless fan experience [1][3] Event Details - The collaboration will debut at two major sporting events: the World Aquatics Championships in Singapore from July 11 to August 3, 2025, and the British & Irish Lions Tour in Australia on July 19, July 26, and August 2 [2] - The "Snapchat Cam" will be utilized at these events, allowing for unique lens effects that enhance fan interaction and create branded experiences for sponsors, potentially increasing revenue for event hosts [2] Company Background - RWS Global is recognized as a leader in creating live moments across sports and entertainment, producing over one million engaging experiences daily [3][7] - Snap Inc. focuses on leveraging technology, particularly through its camera capabilities, to improve communication and enhance user experiences [5] Future Prospects - The partnership aims to revolutionize fan engagement by utilizing AR technology to create immersive experiences at sports venues, building on previous collaborations at the Paris 2024 Olympic and Paralympic Games [3][4]
The David And Goliath Faceoff Between Gitlab And Atlassian
Seeking Alpha· 2025-07-05 05:08
Core Insights - The article presents a comparison between Atlassian (NASDAQ: TEAM) and GitLab (NASDAQ: GTLB), highlighting their strong positions in the SaaS sector and similar verticals [1]. Group 1: Company Comparison - Both Atlassian and GitLab are ranked highly in the SaaS scorecard, indicating their competitive performance in the software as a service market [1]. - The analysis focuses on the strengths and weaknesses of each company, providing insights into their market strategies and potential growth [1]. Group 2: Analyst Background - The author has an MBA in Management and a B.S. in Finance, with additional training in credit at New York University, showcasing a strong educational background in finance [1]. - The author holds the Financial Risk Manager (FRM) designation, indicating expertise in risk management within financial contexts [1].
3 Tremendous Growth Stocks to Buy With $500 Right Now
The Motley Fool· 2025-07-02 08:40
Core Viewpoint - Despite the stock market reaching an all-time high, there are still attractively priced growth stocks available for investment [1][2]. Group 1: Market Overview - The S&P 500 has rebounded significantly since early April, closing the second quarter at an all-time high [1]. - Investor uncertainty from early April persists, leading to concerns about potential overvaluation in growth stocks [2]. Group 2: Investment Opportunities - There are three companies identified as having strong operating results and reasonably priced stocks, suitable for building a starter portfolio with an investment of $500 [3]. Group 3: Company Analysis - Taiwan Semiconductor Manufacturing (TSMC) - TSMC is the largest contract chip manufacturer globally, holding a two-thirds market share due to superior production processes [5]. - The company plans to invest approximately $40 billion in capital expenditures this year to expand its facilities and equipment [6]. - TSMC's technology leadership allows it to command high prices for its chips, with a reported price of $30,000 per wafer, a 50% increase from previous pricing [7]. - The company anticipates an average annual growth rate of 20% through the end of the decade, with its stock trading at about 24 times forward earnings estimates [9]. Group 4: Company Analysis - Hubspot - Hubspot focuses on marketing and sales automation for small and mid-sized businesses, utilizing a freemium model to grow its user base [10]. - The company aims for a long-term operating margin target of 25%, up from 17.5% last year, driven by expanding capabilities and higher average revenue per user [11]. - Hubspot's retention rate is around 88%, which is lower than competitors like Salesforce, but is improving as the company expands its offerings [12]. - The stock is priced attractively at less than 10 times sales, with a current share price of about $550 [13]. Group 5: Company Analysis - Atlassian - Atlassian provides project management software for enterprise customers, with significant growth in its customer base [14]. - The company is investing in artificial intelligence to enhance its software offerings, which is expected to attract more customers over time [15]. - Atlassian's gross margin has improved, but operating expenses have increased, leading to a non-GAAP operating margin of 25.7% [16]. - The stock is trading at 10.7 times sales, making it a good value at around $200 per share [17].