Atlassian Corporation has recently released its 10-Q report, providing a detailed look into the company's financials and operations. Atlassian, headquartered in Sydney, Australia, is a global software company that designs, develops, licenses, and maintains various software products. Its product portfolio includes Jira, Confluence, Loom, Trello, Jira Service Management, Jira Align, Bitbucket, Atlassian Access, Jira Product Discovery, Compass, Bamboo, Crowd, Crucible, Fisheye, Opsgenie, Sourcetree, Statuspage, and Atlassian cloud apps.
The 10-Q report covers ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, outlining the company's approach to technology-driven organizations and its mission to unleash the potential of every team. Atlassian's primary products, including Jira for planning and project management, Confluence for content creation and sharing, and Jira Service Management for team service, management, and support applications, are interconnected and form integrated solutions. The report also highlights the company's distribution model, focusing on word-of-mouth and low-touch demand generation to drive trial, adoption, and initial expansion of its products.
Key Business Metrics:
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Customer Base: As of March 31, 2025, Atlassian had more than 300,000 customers. The company is focused on growing its total customer base, specifically the number of customers with more than $10,000 in annualized recurring revenue from its Cloud offerings. The number of customers with greater than $10,000 in Cloud ARR increased from 44,336 as of March 31, 2024, to 50,715 as of March 31, 2025.
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Free Cash Flow: Atlassian's free cash flow, a measure of liquidity, increased by $83.4 million and $52.8 million during the three months and nine months ended March 31, 2025, compared to the same periods in 2024. The increase was primarily attributable to an increase in net cash provided by operating activities.
Components of Results of Operations:
- Sources of Revenues: Atlassian generates revenues primarily from subscription fees. Subscription revenues consist of fees earned from subscription-based arrangements for providing customers the right to use its software in a cloud-based infrastructure, as well as on-premises term license agreements for its Data Center products. The company also earns revenue from the sale of third-party apps in the Atlassian Marketplace, advisory services, and training services.
The 10-Q report provides a comprehensive overview of Atlassian's financial performance and operational strategies, offering valuable insights for investors and stakeholders. As a result of these announcements, the company's shares have moved -9.0% on the market, and are now trading at a price of $208.48. For the full picture, make sure to review Atlassian's 10-Q report.
