Atlassian (US:TEAM)2025-10-30 20:09Financial Performance - Total revenue for Q1 FY26 was $1,433 million, representing a 21% increase year-over-year[1] - The company reported a net loss of $51.9 million, with a net loss per diluted share of $0.20, which includes restructuring charges of $55.7 million[3] - Total revenues for the three months ended September 30, 2025, were $1,432,553, a 20.6% increase from $1,187,781 in the same period of 2024[27] - Subscription revenue reached $1,374,502, up from $1,131,948, reflecting a growth of 21.4% year-over-year[27] - The net loss for the quarter was $51,870, an improvement from a net loss of $123,769 in the same quarter of 2024[27] - Operating loss for the quarter was $96,337, compared to an operating loss of $31,978 in the same period last year[27] - Non-GAAP net income for Q3 2025 was $275,651, compared to $199,700 in Q3 2024, marking a 38% increase[38] - GAAP net loss per share for Q3 2025 improved to $(0.20) from $(0.48) in Q3 2024[38] - Non-GAAP net income per share for Q3 2025 was $1.04, up from $0.77 in Q3 2024, representing a 35% increase[38] Cloud Revenue - Cloud revenue reached $998 million, up 26% year-over-year, with over 3.5 million monthly active users of AI capabilities, a 50% increase quarter-over-quarter[2] - Cloud revenue was $997,708, representing a 25.9% increase compared to $792,306 in the prior year[34] - Atlassian ended Q1 FY26 with 53,017 customers generating over $10,000 in Cloud annualized recurring revenue, a 13% increase year-over-year[6] - Financial targets for Q2 FY26 include total revenue expected between $1,535 million and $1,543 million, with Cloud revenue growth projected at approximately 22.5%[10] Cash Flow and Margins - Cash flow from operations was $129 million, and free cash flow was $115 million, with a free cash flow margin of 8%[3] - Free cash flow for the quarter was $128,715, compared to $80,492 in the same quarter of 2024, indicating a significant increase[32] - Free cash flow for Q3 2025 was $114,603, significantly higher than $74,341 in Q3 2024, indicating a 54% rise[38] - Non-GAAP gross margin for Q3 2025 was 86%, up from 84% in Q3 2024[38] Acquisitions and Product Development - Atlassian announced the acquisition of The Browser Company of New York to enhance its AI capabilities and reimagine the browser for knowledge work[6] - The company launched Atlassian Ascend to support customers' transition to the Cloud and plans to phase out Data Center products[6] Restructuring and Liabilities - The company incurred restructuring charges totaling $55,678 during the quarter, primarily related to severance and lease consolidation[36] - Total current assets decreased to $3,627,120 from $3,891,237 as of June 30, 2025[30] - Total liabilities decreased to $4,341,564 from $4,696,316 as of June 30, 2025[30] Operating Margins - GAAP operating margin was (7%), while non-GAAP operating margin stood at 23%[3] - GAAP operating loss for Q3 2025 was $(96,337), compared to $(31,978) in Q3 2024[38] - Non-GAAP operating income for Q3 2025 was $322,686, an increase from $268,050 in Q3 2024, reflecting a 20% growth[38]