Atlassian Corporation (NASDAQ: TEAM), a leading provider of team collaboration and productivity software, today announced that it will release financial results for its third quarter of fiscal year 2025 ended March 31, 2025 after market close on Thursday, May 1, 2025. Atlassian will host a conference call to discuss the financial results at 2:00 P.M. Pacific Time. In conjunction with its earnings press release, Atlassian will post a shareholder letter to the Investor Relations section of its website at https://investors.atlassian.com/.

Atlassian Corporation announced strong financial results for the second quarter of fiscal year 2025, highlighting significant revenue growth and continued investment in enterprise solutions and AI.

Q2 FY 2025 Financial Highlights (Year-over-Year)

Revenue increased 21% to $1.29 billion, driven by strong enterprise demand.
Subscription revenue grew 30% to $1.21 billion.
GAAP operating margin was -4%, while non-GAAP operating margin was 26%.
Net loss improved to $38.2 million from $84.5 million in Q2 FY24.
Non-GAAP net income increased to $255.6 million from $189.5 million.
Diluted EPS was $0.96 on a non-GAAP basis, compared to $0.73 in Q2 FY24.
Free cash flow was $343 million, with a free cash flow margin of 27%.

Balance Sheet

Cash and marketable securities totaled $2.5 billion.
Deferred revenue increased to $2.2 billion.
Long-term debt remained stable at approximately $987 million.

Key Business Developments

Atlassian was named a leader in several industry reports, including The Forrester Wave for Knowledge Management and the Gartner Magic Quadrant for Marketing Work Management Platforms.
Expansion of Confluence Cloud to support up to 150,000 users on a single site, enhancing enterprise scalability.
New multi-year strategic partnership with Amazon Web Services to integrate generative AI and cloud migration services.
15% growth in customers with more than $10,000 in Cloud annual recurring revenue (ARR), totaling 49,449.

Updated Financial Outlook

For Q3 FY 2025:
Revenue expected between $1.345 billion and $1.353 billion.
Cloud revenue growth projected at 23.5%, with Data Center growth at 7.0%.
GAAP operating margin expected at -3.0%, with non-GAAP margin at 23.5%.

For FY 2025:
Total revenue growth expected between 18.5% and 19.0%.
Cloud revenue growth forecasted at 26.5%, with Data Center revenue up 21.5%.
GAAP operating margin expected at -4.0%, with non-GAAP margin at 23.5%.

Management Commentary

CEO Mike Cannon-Brookes emphasized the strong adoption of Atlassian's cloud and AI solutions, noting that enterprises are increasingly relying on its platform to enhance collaboration and productivity. CFO Joe Binz highlighted the momentum in enterprise sales and reaffirmed the company’s focus on long-term strategic investments in AI, enterprise expansion, and operational efficiency.