Core Insights - Atlassian (TEAM) reported strong third-quarter fiscal 2025 results, with earnings and revenues exceeding Zacks Consensus Estimates, showcasing robust growth in cloud services and AI adoption [1][2]. Financial Performance - Non-GAAP earnings per share reached 97 cents, surpassing estimates by 7.8% and reflecting a 9% increase from the previous year's 89 cents [1]. - Revenues for the quarter climbed 21.4% year over year to $1.36 billion, beating estimates by 0.72% [2]. - Subscription revenues rose 18.8% year over year to $1.27 billion, aligning with estimates, while Other revenues declined 28.8% to $83.8 million [3]. - Cloud revenues increased 25.2% to $880.4 million, Data Center revenues grew 6.7% to $388.5 million, and Marketplace and Services revenues fell 4.8% to $87.8 million [4]. - Non-GAAP gross profit increased 16.1% to $1.17 billion, with a gross margin of 86%, up 100 basis points from the prior year [5]. - Non-GAAP operating income rose 10% year over year to $348.3 million, driven by cloud growth and cost control [5]. Balance Sheet and Cash Flow - At the end of Q3 fiscal 2025, the company held $3 billion in cash and short-term investments, up from $2.5 billion in the previous quarter [6]. - Operating cash flow was $652.7 million, and free cash flow was $638.3 million during the quarter [6]. Guidance - For Q4 fiscal 2025, Atlassian projects revenues between $1.349 billion and $1.359 billion, with a non-GAAP gross margin of 84.5% and an operating margin of 22.0% [7]. - For the full fiscal 2025, the company expects revenue growth of 19% year over year, an increase from the previously announced range of 18.5-19% [8].