Atlassian Q1 2025 Earnings Report
Key Takeaways
Atlassian reported a solid start to fiscal year 2025, with revenue reaching $1,188 million, a 21% increase year-over-year. Subscription revenue grew by 33% year-over-year. The company continues to invest in key strategic priorities, including serving the enterprise, delivering AI innovation, and integrating technology and business teams.
Total revenue reached $1,188 million, up 21% year-over-year.
Subscription revenue increased to $1,132 million, a 33% year-over-year growth.
GAAP operating margin was (3)%, while non-GAAP operating margin was 23%.
Atlassian announced the general availability of Rovo, its newest AI-powered product.
Atlassian
Atlassian
Atlassian Revenue by Segment
Forward Guidance
Atlassian provided financial targets for the second quarter of fiscal year 2025 and the full fiscal year 2025.
Positive Outlook
- Total revenue is expected to be in the range of $1,233 million to $1,241 million for Q2 2025.
- Cloud revenue growth year-over-year is expected to be approximately 25.5% for Q2 2025.
- Data Center revenue growth year-over-year is expected to be approximately 27.5% for Q2 2025.
- Marketplace and other revenue growth year-over-year is expected to be approximately 8.0% for Q2 2025.
- Non-GAAP operating margin is expected to be approximately 21.0% for Q2 2025.
Challenges Ahead
- GAAP operating margin is expected to be approximately (10.0%) for Q2 2025.
- Total revenue growth year-over-year is expected to be in the range of 16.5% to 17.0% for fiscal year 2025.
- Cloud revenue growth year-over-year is expected to be approximately 24.0% for fiscal year 2025.
- Data Center revenue growth year-over-year is expected to be approximately 20.5% for fiscal year 2025.
- Marketplace and other revenue growth year-over-year is expected to be approximately 5.0% for fiscal year 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income