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Sep 30, 2023

Atlassian Q1 2024 Earnings Report

Atlassian's first quarter of fiscal year 2024 showed strong revenue growth, driven by subscription revenue.

Key Takeaways

Atlassian reported a solid start to fiscal year 2024, with revenue reaching $978 million, a 21% increase year-over-year. Subscription revenue was a key driver, growing by 31% year-over-year. The company is focused on innovation, including AI-powered features and the acquisition of Loom, to enhance team collaboration.

Total revenue was $978 million, up 21% year-over-year.

Subscription revenue increased by 31% year-over-year, reaching $852 million.

GAAP operating margin was (2)%, while non-GAAP operating margin was 23%.

Cash flow from operations was $167 million, and free cash flow was $163 million.

Total Revenue
$978M
Previous year: $807M
+21.1%
EPS
$0.65
Previous year: $0.36
+80.6%
Customers >$10k Cloud ARR
40.1K
Previous year: 18
+222694.4%
Gross Profit
$800M
Previous year: $668M
+19.7%
Cash and Equivalents
$2.14B
Previous year: $1.47B
+46.0%
Free Cash Flow
$163M
Previous year: $75.9M
+115.0%
Total Assets
$4.08B
Previous year: $3.37B
+21.0%

Atlassian

Atlassian

Atlassian Revenue by Segment

Forward Guidance

Atlassian is providing the following financial targets that do not include any impact from the Loom acquisition, which is expected to close in the third quarter of its fiscal year 2024, subject to customary closing conditions and required regulatory approval

Positive Outlook

  • Total revenue is expected to be in the range of $1,010 million to $1,030 million.
  • Cloud revenue growth year-over-year is expected to be in the range of 25.5% to 27.5%.
  • Data Center revenue growth year-over-year is expected to be approximately 33%.
  • Gross margin is expected to be approximately 81.0% on a GAAP basis and approximately 83.5% on a non-GAAP basis.
  • Operating margin is expected to be approximately (7.5%) on a GAAP basis and approximately 21.0% on a non-GAAP basis.

Revenue & Expenses

Visualization of income flow from segment revenue to net income