Atlassian Corp 10-Q for FY2024 Q2

Atlassian Corp (TEAM)

10-Q 2024-02-02 For: 2023-12-31

Added on April 08, 2026

About this 10-Q

Atlassian Corp filed this 10-Q on February 2, 2024, covering the quarter ended December 31, 2023 (FY2024 Q2).

Headline figures

Quarter ended December 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.06B; up 21.5% from $872.7M a year earlier
Net loss: $84.47M; compared with a net loss of $205.03M a year earlier
Diluted EPS: -$0.33; compared with -$0.80 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Delaware						88-3940934
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Common Stock, par value $0.00001 per share	TEAM	Nasdaq Global Select Market


	PART I
Item 1.	Condensed Consolidated Balance Sheets (Unaudited)	3
	Condensed Consolidated Statements of Operations (Unaudited)	4
	Condensed Consolidated Statements of Comprehensive Loss (Unaudited)	5
	Condensed Consolidated Statements of Stockholders' Equity (Unaudited)	6
	Condensed Consolidated Statements of Cash Flows (Unaudited)	7
	Notes to Condensed Consolidated Financial Statements (Unaudited)	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	42
Item 4.	Controls and Procedures	43
	PART II
Item 1.	Legal Proceedings	43
Item 1A.	Risk Factors	44
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	74
Item 3.	Defaults Upon Senior Securities	75
Item 4.	Mine Safety Disclosures	75
Item 5.	Other Information	75
Item 6.	Exhibits	76
	SIGNATURES	77


	December 31, 2023		June 30, 2023
Assets
Current assets:
Cash and cash equivalents	$	1,460,497	$	2,102,550
Marketable securities	150,831		10,000
Accounts receivable, net	526,379		477,678


Prepaid expenses and other current assets	133,834		146,136
Total current assets	2,271,541		2,736,364
Non-current assets:
Property and equipment, net	78,095		81,402
Operating lease right-of-use assets	189,195		184,195
Strategic investments	223,405		225,538
Intangible assets, net	329,010		69,072
Goodwill	1,285,896		727,211
Deferred tax assets	3,859		9,945
Other non-current assets	68,497		73,052
Total assets	$	4,449,498	$	4,106,779
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	160,469	$	159,293
Accrued expenses and other current liabilities	410,377		423,131
Deferred revenue, current portion	1,451,023		1,362,736
Operating lease liabilities, current portion	46,230		44,930
Term loan facility, current portion	50,000		37,500


Total current liabilities	2,118,099		2,027,590
Non-current liabilities:
Deferred revenue, net of current portion	202,860		182,743
Operating lease liabilities, net of current portion	237,481		237,835
Term loan facility, net of current portion	937,180		962,093
Deferred tax liabilities	16,819		10,669
Other non-current liabilities	32,136		31,177
Total liabilities	3,544,575		3,452,107
Commitments and contingencies (Note 11)
Stockholders’ equity
Class A Common Stock, $0.00001 par value; 750,000,000 shares authorized, 156,359,427 and 152,442,673 issued and outstanding at December 31, 2023 and June 30, 2023, respectively	2		2
Class B Common Stock, 0.00001 par value; 230,000,000 shares authorized, 103,047,371 and 105,124,103 issued and outstanding at December 31, 2023 and June 30, 2023, respectively	1		1
Additional paid-in capital	3,656,057		3,130,631
Accumulated other comprehensive income	38,664		34,002
Accumulated deficit	(2,789,801)		(2,509,964)
Total stockholders’ equity	904,923		654,672
Total liabilities and stockholders’ equity	$	4,449,498	$	4,106,779


	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Revenues:
Subscription	$	932,181	$	711,199	$	1,784,163	$	1,362,183
Maintenance	69,102		106,023		147,700		219,588
Other	58,827		55,482		106,022		98,325
Total revenues	1,060,110		872,704		2,037,885		1,680,096
Cost of revenues (1) (2)	194,536		155,945		372,565		295,337
Gross profit	865,574		716,759		1,665,320		1,384,759
Operating expenses:
Research and development (1) (2)	536,779		473,676		1,018,517		872,682
Marketing and sales (1) (2)	220,513		186,191		414,080		346,319
General and administrative (1)	157,344		156,131		300,654		299,024
Total operating expenses	914,636		815,998		1,733,251		1,518,025
Operating loss	(49,062)		(99,239)		(67,931)		(133,266)
Other income (expense), net	(4,639)		(6,749)		(12,974)		22,540
Interest income	22,593		8,963		47,819		14,106
Interest expense	(9,001)		(7,508)		(17,977)		(13,629)
Loss before provision for income taxes	(40,109)		(104,533)		(51,063)		(110,249)
Provision for income taxes	(44,360)		(100,498)		(65,289)		(108,523)
Net loss	$	(84,469)	$	(205,031)	$	(116,352)	$	(218,772)


Net loss per share attributable to Class A and Class B common stockholders:
Basic	$	(0.33)	$	(0.80)	$	(0.45)	$	(0.86)
Diluted	$	(0.33)	$	(0.80)	$	(0.45)	$	(0.86)
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders:
Basic	258,601		255,874		258,254		255,520
Diluted	258,601		255,874		258,254		255,520


Cost of revenues	$	19,213	$	18,553	$	36,034	$	29,166
Research and development	187,819		169,342		338,265		279,471
Marketing and sales	38,168		38,156		70,449		61,351
General and administrative	44,645		39,734		80,678		69,428


Cost of revenues	$	7,056	$	5,697	$	12,828	$	11,394
Research and development	93		93		187		187
Marketing and sales	2,712		2,506		5,077		5,011


	Three Months Ended December 31, 2023
	Common Stock						Additional paid in capital		Accumulated other comprehensive income		Accumulated Deficit		Total stockholders’ equity
	Class A			Class B
	Shares	Amount		Shares	Amount
Balance at September 30, 2023	154,174	$	2	104,086	$	1	$	3,366,212	$	15,598	$	(2,607,188)	$	774,625
Common stock issued	1,374	—		—	—		—		—		—		—
Conversion from Class B Common Stock to Class A Common Stock	1,039	—		(1,039)	—		—		—		—		—
Stock-based compensation	—	—		—	—		289,845		—		—		289,845
Repurchases of Class A Common Stock	(530)	—		—	—		—		—		(98,144)		(98,144)
Other comprehensive income, net of tax	—	—		—	—		—		23,066		—		23,066
Net loss	—	—		—	—		—		—		(84,469)		(84,469)
Balance at December 31, 2023	156,057	$	2	103,047	$	1	$	3,656,057	$	38,664	$	(2,789,801)	$	904,923


	Three Months Ended December 31, 2022
	Common Stock						Additional paid in capital		Accumulated other comprehensive income		Accumulated Deficit		Total stockholders’ equity
	Class A			Class B
	Shares	Amount		Shares	Amount
Balance at September 30, 2022	148,232	$	1	107,248	$	1	$	2,355,991	$	7,391	$	(1,882,771)	$	480,613
Common stock issued	788	—		—	—		—		—		—		—

Stock-based compensation	—	—		—	—		265,785		—		—		265,785
Other comprehensive income, net of tax	—	—		—	—		—		36,125		—		36,125
Net loss	—	—		—	—		—		—		(205,031)		(205,031)
Balance at December 31, 2022	149,020	$	1	107,248	$	1	$	2,621,776	$	43,516	$	(2,087,802)	$	577,492


	Six Months Ended December 31, 2023
	Common Stock						Additional paid in capital		Accumulated other comprehensive income		Accumulated Deficit		Total stockholders’ equity
	Class A			Class B
	Shares	Amount		Shares	Amount
Balance at June 30, 2023	152,437	$	2	105,124	$	1	$	3,130,631	$	34,002	$	(2,509,964)	$	654,672
Common stock issued	2,422	—		—	—		—		—		—		—
Conversion from Class B Common Stock to Class A Common Stock	2,077	—		(2,077)	—		—		—		—		—
Stock-based compensation	—	—		—	—		525,426		—		—		525,426
Repurchases of Class A Common Stock	(879)	—		—	—		—		—		(163,485)		(163,485)
Other comprehensive income, net of tax	—	—		—	—		—		4,662		—		4,662
Net loss	—	—		—	—		—		—		(116,352)		(116,352)
Balance at December 31, 2023	156,057	$	2	103,047	$	1	$	3,656,057	$	38,664	$	(2,789,801)	$	904,923


	Six Months Ended December 31, 2022
	Common Stock						Additional paid in capital		Accumulated other comprehensive income		Accumulated Deficit		Total stockholders’ equity
	Class A			Class B
	Shares	Amount		Shares	Amount
Balance at June 30, 2022	144,820	$	1	110,036	$	1	$	2,182,536	$	13,864	$	(1,869,030)	$	327,372
Common stock issued	1,412	—		—	—		(176)		—		—		(176)
Conversion from Class B Common Stock to Class A Common Stock	2,788	—		(2,788)	—		—		—		—		—
Stock-based compensation	—	—		—	—		439,416		—		—		439,416
Other comprehensive income, net of tax	—	—		—	—		—		29,652		—		29,652
Net loss	—	—		—	—		—		—		(218,772)		(218,772)
Balance at December 31, 2022	149,020	$	1	107,248	$	1	$	2,621,776	$	43,516	$	(2,087,802)	$	577,492


Non-cash investing and financing activities:


Purchase of property and equipment included in accrued expenses and other current liabilities	2,597	1,385	2,597	1,385


	Level 1		Level 2		Total

Assets measured at fair value
Cash and cash equivalents:
Money market funds	$	782,695	$	—	$	782,695



Commercial paper	—		7,546		7,546
Corporate debt securities	—		2,995		2,995
Marketable securities:
U.S. treasury securities	—		38,835		38,835
Agency securities	—		2,972		2,972
Certificates of deposit and time deposits	—		10,000		10,000
Commercial paper	—		43,243		43,243
Corporate debt securities	—		55,781		55,781


Derivative financial instruments	—		57,992		57,992











Total assets measured at fair value	$	782,695	$	219,364	$	1,002,059

Liabilities measured at fair value
Derivative financial instruments	$	—	$	1,848	$	1,848



Total liabilities measured at fair value	$	—	$	1,848	$	1,848


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value

U.S. treasury securities	$	38,820	$	15	$	—	$	38,835
Agency securities	2,972		—		—		2,972
Certificates of deposit and time deposits	10,000		—		—		10,000
Commercial paper	43,243		—		—		43,243
Corporate debt securities	55,765		25		(9)		55,781


Total marketable securities	$	150,800	$	40	$	(9)	$	150,831


	December 31, 2023		June 30, 2023
Due in one year or less	$	150,831	$	10,000


	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022








Cash flows from operating activities:
Net loss	$	(84,469)	$	(205,031)	$	(116,352)	$	(218,772)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	17,012		15,476		32,096		30,096
Stock-based compensation	289,845		265,785		525,426		439,416

Deferred income taxes	(8,618)		3,291		(3,305)		4,813
Gain on a non-cash sale of a controlling interest of a subsidiary	—		(2,066)		(1,378)		(45,158)


Net loss on strategic investments	1,442		7,563		7,690		19,076
Net foreign currency loss (gain)	2,237		(2,203)		2,418		(5,828)
Other	154		112		286		230
Changes in operating assets and liabilities, net of business combinations:
Accounts receivable, net	(156,163)		(107,805)		(46,675)		(46,491)
Prepaid expenses and other assets	(486)		(2,690)		(23,542)		(25,367)
Accounts payable	33,648		18,587		623		49,734
Accrued expenses and other liabilities	59,140		58,260		(12,191)		(50,183)
Deferred revenue	135,852		101,246		91,454		91,401
Net cash provided by operating activities	289,594		150,525		456,550		242,967
Cash flows from investing activities:
Business combinations, net of cash acquired	(844,727)		—		(844,727)		(600)

Purchases of property and equipment	(5,333)		(4,040)		(9,002)		(20,536)
Purchases of strategic investments	(250)		(1,100)		(4,000)		(9,450)
Purchases of marketable securities and other investments	(69,783)		—		(139,146)		(10,000)
Proceeds from maturities of marketable securities	16,150		18,750		16,150		47,700

Proceeds from sales of marketable securities and strategic investments	41,513		363		61,392		621


	Privately held equity securities
Initial total cost	$	138,550
Cumulative net losses	(1,840)
Carrying value	$	136,710


	Publicly traded equity securities		Privately held equity securities		Total
Initial total cost	$	10,270	$	135,050	$	145,320
Cumulative net gains (losses)	9,095		(398)		8,697
Carrying value	$	19,365	$	134,652	$	154,017


	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Unrealized losses recognized on publicly traded equity securities	$	—	$	(1,669)	$	—	$	(11,477)
Unrealized gains recognized on privately held equity securities	—		260		—		260
Unrealized losses recognized on privately held equity securities including impairment	(1,442)		(5,927)		(1,442)		(7,642)

Unrealized losses, net	$	(1,442)	$	(7,336)	$	(1,442)	$	(18,859)
Realized gains recognized on sales of publicly traded equity securities	—		—		515		—
Realized losses on debt securities	—		(212)		—		(212)
Losses on strategic investments, net	$	(1,442)	$	(7,548)	$	(927)	$	(19,071)
Unrealized losses recognized during the reporting period on privately held equity securities still held at the reporting date	$	(1,442)	$	(5,667)	$	(1,442)	$	(7,382)


	Equity Method Investment
Balance as of June 30, 2023	$	85,436
Share of losses	(6,762)
Effect of change in exchange rates	2,071
Balance as of December 31, 2023	$	80,745


	Notional Amounts of Derivative Instruments
	Notional Amount by Term to Maturity								Classification by Notional Amount
	Under 12 months		Over 12 months			Total			Cash Flow Hedge			Non Hedge		Total
Forward contracts	$	702,637	$	55,443		$	758,080		$	542,871		$	215,209	$	758,080
Interest rate swaps:
Notional amount	$	—	$	650,000		$	650,000		$	650,000		$	—	$	650,000
Average fixed interest rate			0.77		%	0.77		%	0.77		%			0.77		%


	Balance Sheet Location	December 31, 2023		June 30, 2023
Derivative assets
Derivatives designated as hedging instruments:
Foreign exchange forward contracts	Prepaid expenses and other current assets	$	12,393	$	3,177
Foreign exchange forward contracts	Other non-current assets	2,069		—
Interest rate swaps	Prepaid expenses and other current assets	26,097		28,926
Interest rate swaps	Other non-current assets	14,887		28,215
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Prepaid expenses and other current assets	2,546		3,892
Total derivative assets		$	57,992	$	64,210

Derivative liabilities
Derivatives designated as hedging instruments:
Foreign exchange forward contracts	Accrued expenses and other current liabilities	$	1,599	$	9,657
Foreign exchange forward contracts	Other non-current liabilities	62		209

Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Accrued expenses and other current liabilities	187		248
Total derivative liabilities		$	1,848	$	10,114


	December 31, 2023		June 30, 2023
Equipment	$	10,582	$	9,298
Computer hardware and software	35,279		29,801
Furniture and fittings	25,660		24,773
Leasehold improvements and other	126,217		123,125

Property and equipment, gross	197,738		186,997
Less: accumulated depreciation and impairment	(119,643)		(105,595)
Property and equipment, net	$	78,095	$	81,402


	Fair Value
Cash and cash equivalents	$	59,265
Marketable securities	43,494




Intangible assets, net	272,300
Goodwill	544,828
Other assets	3,941

Deferred revenue, current portion	(16,145)


Deferred tax liabilities	(15,668)
Other liabilities	(6,391)
Net assets acquired	$	885,624


	Fair Value		Useful Life
Developed technology	$	230,000	7
Trade name	37,000		8
Other purchased intangible assets	5,300		5


	December 31, 2023		June 30, 2023		Weighted-Average Remaining Useful Lives (Years)
Acquired developed technology	$	470,662	$	235,818	7
Patents, trade names, and other rights	70,393		33,393		7
Customer relationships	135,687		129,502		4
Intangible assets, gross	676,742		398,713
Less: accumulated amortization	(347,732)		(329,641)
Intangible assets, net	$	329,010	$	69,072


Fiscal Years:
Remainder of 2024	$	31,581
2025	54,903
2026	52,365
2027	47,534
2028	44,968
Thereafter	97,659
Total future amortization expense	$	329,010


	December 31, 2023		June 30, 2023
Accrued expenses	$	143,909	$	107,479
Employee benefits	210,815		191,801
Tax liabilities	25,891		88,748

Customer deposits	15,494		11,784
Derivative liabilities	1,786		9,905

Other payables	12,482		13,414
Total accrued expenses and other current liabilities	$	410,377	$	423,131


	Number of Shares	Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
Balance as of June 30, 2023	9,562,918	$	235.16	$	1,604,753
Granted	7,772,723	201.65		—
Vested	(2,419,302)	226.22		448,159
Forfeited or cancelled	(890,628)	229.75		—
Balance as of December 31, 2023	14,025,711	$	218.47	$	3,336,156


	Three Months Ended December 31,
(in thousands, except percentage data)	2023		2022		$ Change		% Change
Subscription	$	932,181	$	711,199	$	220,982	31	%
Maintenance	69,102		106,023		(36,921)		(35)
Other	58,827		55,482		3,345		6
Total revenues	$	1,060,110	$	872,704	$	187,406	21	%


	Total Number of Shares Purchased (1)	Average Price Paid Per Share (2)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
October 2023	242	$	189.29	242	$	734,744
November 2023	262	181.18		262	687,367
December 2023	26	190.36		26	682,370
Total	530			530


Date: February 2, 2024			/s/ Michael Cannon-Brookes
			Michael Cannon-Brookes
			Co-Chief Executive Officer (Co-Principal Executive Officer)


Date: February 2, 2024			/s/ Scott Farquhar
			Scott Farquhar
			Co-Chief Executive Officer (Co-Principal Executive Officer)


Date: February 2, 2024			/s/ Joseph Binz
			Joseph Binz
			Chief Financial Officer
			(Principal Financial Officer)