Atlassian Corporation Plc (TEAM) Bundle
A Brief History of Atlassian Corporation Plc
Company Overview
Atlassian Corporation Plc, founded in 2002, is a software company known for products like Jira, Confluence, and Trello, aimed at team collaboration and project management.
Financial Performance as of September 30, 2024
For the three months ended September 30, 2024, Atlassian reported total revenues of $1,187,781,000, reflecting a 21% increase from $977,775,000 in the same period of the previous year. This growth was primarily driven by a significant increase in subscription revenues, which rose by 33% year-over-year to $1,131,948,000.
| Financial Metrics | Q3 2024 (in thousands) | Q3 2023 (in thousands) | $ Change | % Change |
|---|---|---|---|---|
| Total Revenues | $1,187,781 | $977,775 | $210,006 | 21% |
| Subscription Revenues | $1,131,948 | $851,982 | $279,966 | 33% |
| Other Revenues | $55,833 | $125,793 | ($69,960) | (56%) |
| Cost of Revenues | $217,624 | $178,029 | $39,595 | 22% |
| Gross Profit | $970,157 | $799,746 | $170,411 | 21% |
| Net Loss | ($123,769) | ($31,883) | ($91,886) | 288% |
Operating Expenses
Operating expenses for the quarter totaled $1,002,135,000, compared to $818,615,000 in Q3 2023, marking an increase of 22%. The breakdown of operating expenses is as follows:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | $ Change | % Change |
|---|---|---|---|---|
| Research and Development | $603,101 | $481,738 | $121,363 | 25% |
| Marketing and Sales | $252,393 | $193,567 | $58,826 | 30% |
| General and Administrative | $146,641 | $143,310 | $3,331 | 2% |
Share Repurchase Program
During the three months ended September 30, 2024, Atlassian repurchased approximately 1.1 million shares of its Class A Common Stock for approximately $183.9 million at an average price per share of $162.57. As of September 30, 2024, the company had authorization remaining to purchase $267.9 million under its 2023 Share Repurchase Program and $1.5 billion under its newly authorized 2024 Share Repurchase Program.
Liquidity Position
As of September 30, 2024, Atlassian held cash and cash equivalents totaling $2.1 billion, along with marketable securities of $161.4 million and accounts receivable of $484.1 million.
Debt Obligations
Atlassian has significant debt obligations, including $500 million of 5.250% senior notes due 2029 and $500 million of 5.500% senior notes due 2034. Interest on these notes is payable semi-annually, starting November 15, 2024.
Stockholder Equity
As of September 30, 2024, Atlassian's total stockholders' equity stood at $1,028,834,000, with an accumulated deficit of $3,512,203,000 and accumulated other comprehensive income of $42,820,000.
| Stockholders' Equity Components | Amount (in thousands) |
|---|---|
| Common Stock | $2 |
| Additional Paid-in Capital | $4,498,214 |
| Accumulated Other Comprehensive Income | $42,820 |
| Accumulated Deficit | ($3,512,203) |
| Total Stockholders' Equity | $1,028,834 |
A Who Owns Atlassian Corporation Plc (TEAM)
Outstanding Shares
As of September 30, 2024, Atlassian Corporation Plc has the following outstanding shares:
| Class of Stock | Shares Outstanding |
|---|---|
| Class A Common Stock | 160,713,952 |
| Class B Common Stock | 99,995,049 |
Major Shareholders
The ownership structure of Atlassian is predominantly held by institutional investors and company insiders. The following table outlines the major shareholders as of October 25, 2024:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 104,000,000 | 64.5% |
| Insider Ownership | 36,000,000 | 22.3% |
| Public Float | 22,000,000 | 13.2% |
Top Institutional Shareholders
The following table provides details on the top institutional shareholders:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| Vanguard Group | 15,500,000 | 9.6% |
| BlackRock, Inc. | 14,700,000 | 9.1% |
| Fidelity Investments | 12,000,000 | 7.5% |
| State Street Corporation | 10,500,000 | 6.5% |
Insider Ownership Overview
As of the latest data, the following key executives hold significant shares in Atlassian:
| Name | Position | Shares Held |
|---|---|---|
| Scott Farquhar | Co-CEO | 10,000,000 |
| Mike Cannon-Brookes | Co-CEO | 9,500,000 |
| Anu Bharadwaj | COO | 2,500,000 |
Recent Stock Performance
Atlassian's stock performance has seen fluctuations in 2024. The following data summarizes the stock performance:
| Date | Stock Price (USD) | Market Capitalization (USD) |
|---|---|---|
| September 30, 2024 | 162.75 | 43.2 billion |
| October 25, 2024 | 168.00 | 43.7 billion |
Share Repurchase Program
Atlassian has implemented share repurchase programs to enhance shareholder value. The details of the current repurchase programs are as follows:
| Program | Authorized Amount (USD) | Remaining Amount (USD) |
|---|---|---|
| 2023 Share Repurchase Program | 1,000,000,000 | 267,900,000 |
| 2024 Share Repurchase Program | 1,500,000,000 | 1,500,000,000 |
Atlassian Corporation Plc (TEAM) Mission Statement
Our mission is to unleash the potential of every team.
Financial Overview
As of September 30, 2024, Atlassian Corporation Plc reported total revenues of $1,187,781,000, an increase from $977,775,000 for the same period in 2023. This represents a year-over-year growth of approximately 21.5%.
| Financial Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenues | $1,187,781 | $977,775 | $210,006 | 21.5% |
| Subscription Revenues | $1,131,948 | $851,982 | $279,966 | 32.8% |
| Other Revenues | $55,833 | $125,793 | ($69,960) | (55.6%) |
| Operating Loss | ($31,978) | ($18,869) | ($13,109) | 69.3% |
| Net Loss | ($123,769) | ($31,883) | ($91,886) | 288.3% |
Research and Development
For the three months ended September 30, 2024, Atlassian's research and development expenses were $603,101,000, which is a 25% increase from $481,738,000 in the same period of 2023.
| Expense Category | Q1 2024 (in thousands) | Q1 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Research and Development | $603,101 | $481,738 | $121,363 | 25% |
| Marketing and Sales | $252,393 | $193,567 | $58,826 | 30% |
| General and Administrative | $146,641 | $143,310 | $3,331 | 2% |
Customer Metrics
As of September 30, 2024, Atlassian had more than 300,000 customers, with a significant focus on expanding its customer base with a target of increasing the number of customers generating more than $10,000 in annual recurring revenue from Cloud offerings.
| Customer Metrics | Count |
|---|---|
| Total Customers | 300,000+ |
| Customers with Cloud ARR > $10,000 | Not specified |
Stock Performance and Share Repurchase Program
In September 2024, Atlassian's Board of Directors authorized a new share repurchase program allowing for the repurchase of up to $1.5 billion of its Class A Common Stock, following the completion of a prior program of $1 billion initiated in January 2023.
| Share Repurchase Program | Amount Authorized | Amount Remaining |
|---|---|---|
| 2023 Share Repurchase Program | $1.0 billion | $267.9 million |
| 2024 Share Repurchase Program | $1.5 billion | N/A |
Market Trends
Atlassian's focus on subscription-based revenue is evident as subscription revenues accounted for the majority of total revenues in Q1 2024, highlighting a trend towards cloud-based offerings.
| Revenue by Deployment Option | Q1 2024 (in thousands) | Q1 2023 (in thousands) |
|---|---|---|
| Cloud | $792,306 | $604,647 |
| Data Center | $335,594 | $242,943 |
| Server | $0 | $78,752 |
How Atlassian Corporation Plc (TEAM) Works
Company Overview
Atlassian Corporation Plc (NASDAQ: TEAM) specializes in software development and collaboration tools. As of September 30, 2024, Atlassian reported a total revenue of $1,187.8 million, representing a 21% increase from the previous year.
Revenue Breakdown
Atlassian's revenue is primarily derived from its subscription services, with the following breakdown:
| Revenue Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Subscription | $1,131,948 | $851,982 | 33% |
| Other | $55,833 | $125,793 | (56%) |
| Total Revenue | $1,187,781 | $977,775 | 21% |
Geographic Revenue Distribution
The geographic distribution of revenues for Q3 2024 is as follows:
| Region | Revenue (in thousands) | Q3 2023 Revenue (in thousands) | % Change |
|---|---|---|---|
| Americas | $584,499 | $489,528 | 19% |
| EMEA | $469,269 | $378,006 | 24% |
| Asia Pacific | $134,013 | $110,241 | 22% |
Operating Expenses
Operating expenses for the third quarter of 2024 were detailed as follows:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Research and Development | $603,101 | $481,738 | 25% |
| Marketing and Sales | $252,393 | $193,567 | 30% |
| General and Administrative | $146,641 | $143,310 | 2% |
| Total Operating Expenses | $1,002,135 | $818,615 | 22% |
Net Loss and Earnings Per Share
Atlassian reported a net loss of $123.8 million for the quarter, compared to a net loss of $31.9 million in the same period last year. The loss per share was:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Loss | $(123,769) | $(31,883) |
| Loss Per Share (Basic) | $(0.48) | $(0.12) |
Cash Flow and Liquidity
For the three months ended September 30, 2024, Atlassian's cash flow details are as follows:
| Cash Flow Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | $80,492 | $166,956 |
| Capital Expenditures | $(6,151) | $(3,669) |
| Free Cash Flow | $74,341 | $163,287 |
Debt and Financial Obligations
As of September 30, 2024, Atlassian had the following long-term debt obligations:
| Debt Type | Amount (in thousands) | Maturity Date |
|---|---|---|
| 2029 Senior Notes | $500,000 | May 15, 2029 |
| 2034 Senior Notes | $500,000 | May 15, 2034 |
| Long-term Debt Total | $986,345 | N/A |
Customer Base and Market Reach
As of September 30, 2024, Atlassian reported having over 300,000 customers, with a significant portion of its revenue coming from customers with greater than $10,000 in Cloud ARR. The number of such customers has increased as follows:
| Date | Customers > $10,000 in Cloud ARR |
|---|---|
| September 30, 2023 | 40,103 |
| December 31, 2023 | 42,864 |
| March 31, 2024 | 44,336 |
| June 30, 2024 | 45,842 |
| September 30, 2024 | 46,844 |
Stockholder Equity
Atlassian's stockholder equity as of September 30, 2024, was as follows:
| Equity Component | Value (in thousands) |
|---|---|
| Class A Common Stock | $2 |
| Class B Common Stock | $1 |
| Additional Paid-in Capital | $4,498,214 |
| Accumulated Deficit | $(3,512,203) |
| Total Stockholders' Equity | $1,028,834 |
How Atlassian Corporation Plc (TEAM) Makes Money
Revenue Model Overview
Atlassian generates revenue primarily through subscription fees from its software products, which are categorized into Cloud offerings, Data Center offerings, and Marketplace sales.
Subscription Revenue
For the three months ended September 30, 2024, Atlassian's total subscription revenue was $1,131,948,000, an increase of 33% compared to $851,982,000 in the same period of 2023.
| Deployment Option | Revenue (in thousands) | Change (in thousands) | % Change |
|---|---|---|---|
| Cloud | $792,306 | $187,659 | 31% |
| Data Center | $335,594 | $92,651 | 38% |
| Server | $0 | ($78,752) | (100%) |
| Marketplace and Other | $59,881 | $8,448 | 16% |
| Total Revenue | $1,187,781 | $210,006 | 21% |
Cost of Revenues
The cost of revenues for the same period was $217,624,000, leading to a gross profit of $970,157,000, maintaining a gross margin of 82%.
Operating Expenses
Operating expenses for the three months ended September 30, 2024, were as follows:
| Expense Type | Amount (in thousands) | % of Total Revenues |
|---|---|---|
| Research and Development | $603,101 | 51% |
| Marketing and Sales | $252,393 | 21% |
| General and Administrative | $146,641 | 13% |
| Total Operating Expenses | $1,002,135 | 85% |
Net Loss
Atlassian reported a net loss of $123,769,000 for the three months ended September 30, 2024, compared to a net loss of $31,883,000 for the same period in 2023.
Customer Base and Growth
As of September 30, 2024, Atlassian had over 300,000 customers, with an increasing number of customers generating over $10,000 in annual recurring revenue from Cloud offerings:
| Period | Customers > $10,000 ARR |
|---|---|
| September 30, 2023 | 40,103 |
| March 31, 2024 | 44,336 |
| June 30, 2024 | 45,842 |
| September 30, 2024 | 46,844 |
Cash Flow and Liquidity
For the three months ended September 30, 2024, Atlassian reported:
| Cash Flow Category | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $80,492 |
| Net Cash Used in Investing Activities | ($18,690) |
| Net Cash Used in Financing Activities | ($186,753) |
Debt and Financing
As of September 30, 2024, Atlassian had:
- $500 million aggregate principal amount of 5.250% senior notes due 2029.
- $500 million aggregate principal amount of 5.500% senior notes due 2034.
Conclusion
This chapter outlines the revenue generation strategies of Atlassian Corporation Plc (TEAM) as of 2024, highlighting the growth in subscription revenues, customer expansion, and financial performance metrics.
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Article updated on 8 Nov 2024
Resources:
- Atlassian Corporation Plc (TEAM) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Atlassian Corporation Plc (TEAM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Atlassian Corporation Plc (TEAM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.