Atlassian (US:TEAM)2025-01-30 21:10Financial Performance - Total revenue for Q2 FY 2025 was $1,286 million, representing a 21% increase year-over-year[1] - Subscription revenue reached $1,213 million, up 30% year-over-year[1] - Operating income for Q2 FY 2025 was $335.1 million, compared to $250.6 million in Q2 FY 2024[3] - Total revenues for the three months ended December 31, 2024, were $1,286,463, representing a 21.3% increase from $1,060,110 in the same period of 2023[23] - Subscription revenues for the six months ended December 31, 2024, reached $2,345,196, up 31.5% from $1,784,163 in the prior year[23] - Cloud revenue for the three months ended December 31, 2024, was $846,962 thousand, up 29.7% from $653,210 thousand in the prior year[29] - GAAP net loss for the three months ended December 31, 2024, was $(38,208) thousand, compared to a net loss of $(84,469) thousand for the same period in 2023, representing a 54.8% improvement[32] - Non-GAAP net income for the three months ended December 31, 2024, was $255,627 thousand, an increase of 35% from $189,506 thousand in the same period of 2023[32] Cash Flow and Margins - Cash flow from operations was $352 million, with free cash flow of $343 million[1] - Free cash flow for the three months ended December 31, 2024, was $342,569 thousand, compared to $284,261 thousand for the same period in 2023, reflecting a 20.5% increase[32] - The company reported a net cash provided by operating activities of $351,905 thousand for the three months ended December 31, 2024, compared to $289,594 thousand in the same period of 2023, a 21.5% increase[32] - Cash and cash equivalents as of December 31, 2024, were $2,217,604, an increase from $2,176,930 as of June 30, 2024[25] - Cash, cash equivalents, and restricted cash at the end of the period totaled $2,218,639 thousand, up from $1,461,763 thousand at the end of the same period in 2023[27] Customer Growth - Atlassian ended Q2 FY 2025 with 49,449 customers generating over $10,000 in Cloud annualized recurring revenue, a 15% increase year-over-year[4] - The number of customers with Cloud ARR greater than $10,000 is defined as organizations with unique domains having an active Cloud subscription for two or more seats[19] Future Projections - The company expects total revenue for Q3 FY 2025 to be in the range of $1,345 million to $1,353 million[11] - Cloud revenue growth year-over-year is projected to be approximately 23.5% for Q3 FY 2025[11] - Fiscal Year Ending June 30, 2025, GAAP gross margin is projected to be between 81.5% and 82.0%[35] - Fiscal Year Ending June 30, 2025, Non-GAAP gross margin is projected to be between 84.0% and 84.5%[35] - GAAP operating margin for the fiscal year is projected to be (4.0%) [35] - Non-GAAP operating margin for the fiscal year is expected to remain at 23.5%[35] Strategic Initiatives - Atlassian announced a strategic partnership with Amazon Web Services to enhance cloud services and AI capabilities[4] - The company was recognized as a leader in multiple industry reports, including The Forrester Wave and Gartner Magic Quadrant[4] Operational Metrics - GAAP operating margin was (4%) while non-GAAP operating margin was 26%[3] - Gross profit for the three months ended December 31, 2024, was $1,063,336, compared to $865,574 for the same period in 2023, indicating a gross margin improvement[23] - Non-GAAP gross margin improved to 85% for the three months ended December 31, 2024, compared to 84% in the same period of 2023[32] - GAAP gross margin for the three months ending March 31, 2025, is 82.0%[35] - Non-GAAP gross margin for the same period is 84.5%[35] Losses and Expenses - Operating loss for the three months ended December 31, 2024, was $(57,479), slightly higher than $(49,062) in the same period of 2023[23] - Net loss for the six months ended December 31, 2024, was $(161,977), compared to $(116,352) for the same period in 2023, reflecting increased operational costs[23] - Stock-based compensation for the three months ending March 31, 2025, is 1.5 million[35] - Amortization of acquired intangible assets for the same period is 1.0 million[35]