Atlassian (US:TEAM)2025-01-31 21:13Customer Growth - As of December 31, 2024, the company had more than 300,000 customers, with 49,449 customers generating over $10,000 in annualized recurring revenue from Cloud offerings[108][109]. - The number of customers with greater than $10,000 in Cloud ARR increased from 42,864 in December 2023 to 49,449 by December 2024[109]. Financial Performance - Total revenues increased by $226.4 million, or 21%, to $1,286.5 million for the three months ended December 31, 2024, compared to the same period in 2023[128]. - Subscription revenues rose by $281.1 million, or 30%, to $1,213.2 million, driven by paid seat expansion, price increases, and migrations[129]. - Total revenues increased by $436.4 million, or 21%, to $2,474,244 thousand for the six months ended December 31, 2024, compared to $2,037,885 thousand in the same period of 2023[144]. - Subscription revenues increased by $561.0 million, or 31%, to $2,345,196 thousand for the six months ended December 31, 2024, compared to $1,784,163 thousand in the same period of 2023[145]. Cash Flow - Free cash flow for the three months ended December 31, 2024, increased by $58.3 million to $342.6 million compared to the same period in 2023, primarily due to an increase in net cash provided by operating activities[110]. - Free cash flow decreased by $30.6 million during the six months ended December 31, 2024, compared to the same period in 2023, primarily due to increased cash paid to employees and vendors[111]. - Free cash flow for the six months ended December 31, 2024, was $416.9 million, compared to $447.5 million in 2023, indicating a decrease of 6.8%[173]. Operating Expenses - Research and development expenses increased by $143.4 million, or 27%, totaling $680.2 million, largely due to a $133.2 million rise in employee compensation expenses[132]. - Marketing and sales expenses rose by $51.4 million, or 23%, to $271.9 million, mainly from a $33.0 million increase in employee compensation and a $12.5 million rise in advertising expenses[133]. - General and administrative expenses increased by $11.4 million, or 7%, totaling $168.7 million, primarily due to a $13.6 million rise in employee compensation expenses[134]. Profitability - Operating loss for the three months ended December 31, 2024, was $57.5 million, compared to a loss of $49.1 million in the same period of 2023[127]. - Net loss for the three months ended December 31, 2024, was $38.2 million, representing a 3% decrease compared to a net loss of $84.5 million in the prior year[127]. - Non-GAAP net income for the six months ended December 31, 2024, was $455.3 million, compared to $358.5 million in 2023, reflecting a year-over-year increase of 27%[173]. Revenue Costs - Cost of revenues increased by $28.6 million, or 15%, totaling $223.1 million, driven by higher hosting fees and employee compensation expenses[131]. - Cost of revenues increased by $68.2 million, or 18%, to $440,751 thousand for the six months ended December 31, 2024, compared to $372,565 thousand in the same period of 2023[147]. Cash and Securities - As of December 31, 2024, the company had cash and cash equivalents totaling $2.2 billion, marketable securities totaling $251.6 million, and accounts receivables totaling $695.7 million[159]. - The company expects existing cash and cash equivalents, along with cash generated from operations and borrowing capacity, to be sufficient to meet anticipated cash needs for at least the next 12 months[169]. Debt and Financing - As of December 31, 2024, the company had $500.0 million in 5.250% senior notes due 2029 and $500.0 million in 5.500% senior notes due 2034[164]. - The company amended its credit facility in August 2024 to provide a $750 million senior unsecured revolving credit facility, replacing a previous $1 billion facility[165]. - The Board of Directors authorized a new share repurchase program in September 2024, allowing for the repurchase of up to $1.5 billion of Class A Common Stock, following the completion of a previous $1 billion program[166]. - Approximately 1.5 million shares of Class A Common Stock were repurchased for approximately $252.3 million at an average price of $168.30 per share during the six months ended December 31, 2024[167]. Market Risk - There have been no material changes to market risk as presented in the Annual Report on Form 10-K for the year ended June 30, 2024[176].