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Dec 31, 2024

Atlassian Q2 2025 Earnings Report

Atlassian's second quarter of fiscal year 2025 demonstrated strong financial performance with significant revenue growth and advancements in cloud adoption.

Key Takeaways

Atlassian reported a total revenue of $1,286.5 million, a 21% increase year-over-year, with subscription revenue growing by 30%. The company's GAAP operating margin was (4)%, while the non-GAAP operating margin was 26%. Atlassian ended the quarter with $2.5 billion in cash and cash equivalents plus marketable securities.

Total revenue reached $1,286.5 million, up 21% year-over-year.

Subscription revenue grew to $1,213 million, a 30% increase year-over-year.

GAAP operating margin was (4)%, and non-GAAP operating margin was 26%.

Ended the quarter with 49,449 customers with greater than $10,000 in Cloud ARR, a 15% year-over-year increase.

Total Revenue
$1.29B
Previous year: $1.06B
+21.3%
EPS
$0.96
Previous year: $0.73
+31.5%
Customers >$10k Cloud ARR
49.45K
Previous year: 42.86K
+15.4%
Gross Profit
$1.06B
Previous year: $866M
+22.8%
Cash and Equivalents
$2.22B
Previous year: $1.46B
+51.8%
Free Cash Flow
$343M
Previous year: $284M
+20.5%
Total Assets
$5.45B
Previous year: $4.45B
+22.4%

Atlassian

Atlassian

Atlassian Revenue by Segment

Forward Guidance

Atlassian is providing financial targets for the third quarter of fiscal year 2025 and fiscal year 2025.

Positive Outlook

  • Total revenue is expected to be in the range of $1,345 million to $1,353 million for Q3 2025.
  • Cloud revenue growth year-over-year is expected to be approximately 23.5% for Q3 2025.
  • Data Center revenue growth year-over-year is expected to be approximately 7.0% for Q3 2025.
  • Marketplace and other revenue growth year-over-year is expected to be approximately flat for Q3 2025.
  • Total revenue growth year-over-year is expected to be in the range of 18.5% to 19.0% for fiscal year 2025.

Challenges Ahead

  • Operating margin is expected to be approximately (3.0%) on a GAAP basis for Q3 2025.
  • Operating margin is expected to be approximately 23.5% on a non-GAAP basis for Q3 2025.
  • Cloud revenue growth year-over-year is expected to be approximately 26.5% for fiscal year 2025.
  • Data Center revenue growth year-over-year is expected to be approximately 21.5% for fiscal year 2025.
  • Marketplace and other revenue growth year-over-year is expected to be approximately 8.5% for fiscal year 2025.

Revenue & Expenses

Visualization of income flow from segment revenue to net income