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Dec 31, 2023

Atlassian Q2 2024 Earnings Report

Atlassian's Q2 2024 financial results were released, marking the first-ever $1 billion revenue quarter.

Key Takeaways

Atlassian reported a strong Q2 2024, achieving its first $1 billion revenue quarter. Revenue reached $1,060 million, a 21% increase year-over-year, driven by a 31% increase in subscription revenue. The company surpassed 300,000 customers and saw Jira Software cross $1 billion in Cloud ARR.

Total revenue reached $1,060 million, up 21% year-over-year.

Subscription revenue grew to $932 million, a 31% year-over-year increase.

GAAP operating margin was (5%), while non-GAAP operating margin was 24%.

Free cash flow was $284 million, representing a 27% free cash flow margin.

Total Revenue
$1.06B
Previous year: $873M
+21.5%
EPS
$0.73
Previous year: $0.45
+62.2%
Customers >$10K Cloud ARR
42.86K
Previous year: 36.16K
+18.5%
Gross Profit
$866M
Previous year: $717M
+20.8%
Cash and Equivalents
$1.46B
Previous year: $1.64B
-10.8%
Free Cash Flow
$284M
Previous year: $146M
+94.1%
Total Assets
$4.45B
Previous year: $3.61B
+23.1%

Atlassian

Atlassian

Atlassian Revenue by Segment

Forward Guidance

Atlassian provided financial targets for Q3 2024 and fiscal year 2024, including the impact of the Loom acquisition.

Positive Outlook

  • Total revenue is expected to be in the range of $1,085 million to $1,105 million for Q3 2024.
  • Cloud revenue growth year-over-year is expected to be in the range of 30.0% to 32.0% for Q3 2024.
  • Data Center revenue growth year-over-year is expected to be approximately 35.0% for Q3 2024.
  • Gross margin is expected to be approximately 81.0% on a GAAP basis and approximately 83.5% on a non-GAAP basis for Q3 2024.
  • Operating margin is expected to be approximately (7.5%) on a GAAP basis and approximately 19.5% on a non-GAAP basis for Q3 2024.

Revenue & Expenses

Visualization of income flow from segment revenue to net income