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) Q4 Revenue Jumps 22%