Company Announcements

Atlassian Announces First Quarter Fiscal Year 2022 Results

Quarterly revenue of $614 million, up 34% year-over-year

Quarterly subscription revenue of $435 million, up 57% year-over-year

Quarterly IFRS operating margin of 6% and non-IFRS operating margin of 27%

Quarterly cash flow from operations of $78 million and free cash flow of $59 million

TEAM, Anywhere/SAN FRANCISCO--(BUSINESS WIRE)--Oct. 28, 2021-- Atlassian Corporation Plc (NASDAQ: TEAM), a leading provider of team collaboration and productivity software, today announced financial results for its first quarter of fiscal year 2022 ended September 30, 2021 and released a shareholder letter available on Atlassian’s Work Life blog at http://atlassian.com/blog/announcements/shareholder-letter-q1fy22. The shareholder letter was also posted to the Investor Relations section of Atlassian’s website at https://investors.atlassian.com.

“When Scott and I started Atlassian almost 20 years ago, we wanted to create an amazing company where people love coming to work every day,” said Mike Cannon-Brookes, Atlassian’s co-founder and co-CEO. “We are beyond thrilled to be recognized amongst the top 25 companies in the World’s Best Workplaces 2021 by Great Place to Work. This is a testament to the true stewards of our culture — the many thousands of Atlassians we have around the world who live our values every day.”

“We continue to deliver value to our customers and innovate across all three of our core markets,” said Scott Farquhar, Atlassian’s co-founder and co-CEO. “One example we’re most proud of is Jira Service Management being named the sole visionary in Gartner’s 2021 Magic Quadrant for IT Service Management Tools in its inaugural year in market.”

First Quarter Fiscal Year 2022 Financial Highlights:

On an IFRS basis, Atlassian reported:

  • Revenue: Total revenue was $614.0 million for the first quarter of fiscal year 2022, up 34% from $459.5 million for the first quarter of fiscal year 2021.
  • Operating Income and Operating Margin: Operating income was $39.6 million for the first quarter of fiscal year 2022, compared with an operating income of $11.9 million for the first quarter of fiscal year 2021. Operating margin was 6% for the first quarter of fiscal year 2022, compared with 3% for the first quarter of fiscal year 2021.
  • Net Loss and Net Loss Per Diluted Share: Net loss was $400.1 million for the first quarter of fiscal year 2022, compared with a net loss of $21.6 million for the first quarter of fiscal year 2021. Net loss per diluted share was $1.59 for the first quarter of fiscal year 2022, compared with a net loss per diluted share of $0.09 for the first quarter of fiscal year 2021.

Net loss for the first quarter of fiscal year 2022 included a charge of $424.5 million recorded in “other non-operating expense, net,” compared with a charge of $27.5 million in the first quarter of fiscal year 2021 relating to Atlassian’s exchangeable senior notes and related capped calls. Of this amount, a loss of $370.4 million is related to marking to fair value the exchange feature of the notes and related capped calls that remain outstanding as of quarter end. In addition, a net loss of $54.1 million is related to the net impact of settling the early exchange requests of the notes and unwinding of the related capped calls during this quarter.

  • Balance Sheet: Cash and cash equivalents, and short-term investments at the end of the first quarter of fiscal year 2022 totaled $1.6 billion.

During the first quarter of fiscal year 2022, Atlassian drew $650.0 million from the term loan facility, used $314.3 million in cash to settle the early exchange requests of the notes and received $31.0 million in cash from the unwinding of the related capped calls. The net impact resulted in cash inflows of $366.7 million, which is reflected in cash provided by (used in) financing activities on our Consolidated Statements of Cash Flows.

On a non-IFRS basis, Atlassian reported:

  • Operating Income and Operating Margin: Operating income was $166.7 million for the first quarter of fiscal year 2022, compared with operating income of $105.4 million for the first quarter of fiscal year 2021. Operating margin was 27% for the first quarter of fiscal year 2022, compared with 23% for the first quarter of fiscal year 2021.
  • Net Income and Net Income Per Diluted Share: Net income was $118.3 million for the first quarter of fiscal year 2022, compared with net income of $76.8 million for the first quarter of fiscal year 2021. Net income per diluted share was $0.46 for the first quarter of fiscal year 2022, compared with $0.30 for the first quarter of fiscal year 2021.
  • Free Cash Flow: Cash flow from operations was $78.4 million and free cash flow was $59.3 million for the first quarter of fiscal year 2022. Free cash flow margin for the first quarter of fiscal year 2022 was 10%.

A reconciliation of IFRS to non-IFRS financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below, under the heading “About Non-IFRS Financial Measures.”

Recent Business Highlights:

  • Ranked Among the Top 25 Companies Globally by Great Place to Work: Atlassian was included in the list of the World’s Best Workplaces 2021 by Great Place to Work. Atlassian is proud to be recognized for its efforts in creating a culture in which, regardless of where employees are located across the globe, they feel connected to the company, its values, and their work.
  • Sustainability Annual Report: Atlassian released its fiscal year 2021 sustainability report, announcing another year of operating on 100% renewable energy and its ambitions to achieve net-zero emissions by 2050. Atlassian continues its commitment to protecting customer privacy, executing on its diversity, equity, and inclusion (DEI) strategy, and giving back through the philanthropic programs run by the Atlassian Foundation. Atlassian recently announced it had moved its climate ambitions forward and is now targeting net-zero emissions by 2040.
  • Recognized in Magic Quadrant for IT Service Management: Atlassian was named a Visionary in Gartner’s 2021 Magic Quadrant for IT Service Management (ITSM) Tools. Atlassian’s Jira Service Management solution focuses on the convergence of digital experiences for development, operational, and business teams. Over 35,000 customers rely on Jira Service Management for modern, high-velocity ITSM.
  • Partnership with Snyk: Atlassian deepened its partnership with Snyk, a leader in developer security and a vital part of the Atlassian ecosystem, with an investment in Snyk’s Series F financing. Snyk integrates with Jira Software and Bitbucket, infusing developers’ workflows with a security-first mindset and protecting their code against issues like open source vulnerabilities that may arise during the development process.
  • Trusted Cloud Principles Commitment: Atlassian joined other technology companies to establish the Trusted Cloud Principles - a commitment to protect the rights of its customers. With this initiative, Atlassian along with other tech leaders such as Amazon, Google, and Microsoft, commit to working with governments to ensure digital connectivity among nations, protect privacy and data security in the cloud, and promote public safety.
  • Customer Growth: Atlassian ended its first quarter of fiscal year 2022 with a total customer count, on an active subscription or maintenance agreement basis, of 216,500 customers, adding 11,746 net new customers during the quarter. It is important to note that the definition of a customer was updated during the quarter primarily to exclude single user customers.
  • Expanded Board of Directors: Atlassian appointed Michelle Zatlyn to its board of directors. Michelle is the co-Founder, COO, and President of Cloudflare, Inc., the security, performance, and reliability company helping to build a better Internet.
  • Executive Leadership Promotions: Anu Bharadwaj was named Atlassian’s Chief Operating Officer and Joff Redfern was named Atlassian’s Chief Product Officer. Anu joined Atlassian in January 2014 and was most recently Head of Enterprise and Cloud Platform. Joff joined Atlassian in June 2017 and was most recently Vice President of Product.
  • CFO Transition: Atlassian also announced that James Beer will retire as CFO at the end of June 2022. James joined as CFO in February 2018 and has played a critical role in helping the company scale. When James joined Atlassian, the company had 2,500 employees, 119,000 customers, and would generate revenue of $881 million in fiscal year 2018. As of the end of the first quarter of fiscal year 2022, the company had nearly 7,000 employees, over 216,000 customers, and is on pace for an annualized revenue run rate of $2.5 billion. Atlassian has already begun an external search for a CFO to succeed James.

“James has been invaluable in driving operational and financial rigor and helping Atlassian scale,” said Scott Farquhar. “Mike and I are both grateful for his valued leadership and friendship over the years. While we’re disappointed to see James leave us, we wish him the very best in his retirement.”

“After 18 years as a public company CFO in three different industries and having celebrated my 60th birthday earlier this year, it is the right time for me to retire and pass the baton to the next leader,” said James Beer. “Atlassian has terrific momentum, including the contributions of a very strong finance team, and is exceptionally well positioned to continue executing on its mission. I’m excited about what’s happening across the company and the raft of opportunities ahead. I’m focused on creating a smooth and seamless transition to my successor and am looking forward to continuing to help drive the future of teamwork over the next few quarters.”

Financial Targets:

Atlassian is providing its financial targets for the second quarter of fiscal year 2022 as follows:

Second Quarter Fiscal Year 2022:

  • Total revenue is expected to be in the range of $630 million to $645 million.
  • Gross margin is expected to be approximately 82% on an IFRS basis and approximately 85% on a non-IFRS basis.
  • Operating margin is expected to be in the range of (15%) to (14%) on an IFRS basis and in the range of 22% to 23% on a non-IFRS basis.
  • Net loss per diluted share is expected to be in the range of ($0.42) to ($0.39) on an IFRS basis, and net income per diluted share is expected to be in the range of $0.35 to $0.38 on a non-IFRS basis.
  • Weighted average share count is expected to be in the range of 251 million to 253 million shares when calculating diluted IFRS net loss per share and in the range of 255 million to 257 million shares when calculating diluted non-IFRS net income per share.

For additional commentary regarding financial targets, please see Atlassian’s first quarter fiscal year 2022 shareholder letter dated October 28, 2021.

With respect to Atlassian’s expectations under “Financial Targets” above, a reconciliation of IFRS to non-IFRS gross margin, operating margin, and net income (loss) per diluted share, has been provided in the financial statement tables included in this press release.

Shareholder Letter and Webcast Details:

A detailed shareholder letter is available on Atlassian’s Work Life blog at http://atlassian.com/blog/announcements/shareholder-letter-q1fy22, and the Investor Relations section of Atlassian’s website at: https://investors.atlassian.com. Atlassian will host a webcast to answer questions today:

  • When: Thursday, October 28, 2021 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).
  • Webcast: A live webcast of the call can be accessed from the Investor Relations section of Atlassian’s website at: https://investors.atlassian.com. Following the call, a replay will be available on the same website.

Atlassian has used, and will continue to use, its Investor Relations website at https://investors.atlassian.com as a means of making material information public and for complying with its disclosure obligations.

About Atlassian

Atlassian unleashes the potential of every team. Our team collaboration and productivity software helps teams organize, discuss, and complete shared work. Teams at more than 200,000 customers, across large and small organizations - including Bank of America, Redfin, NASA, Verizon, and Dropbox - use Atlassian’s project tracking, content creation and sharing, and service management products to work better together and deliver quality results on time. Learn more about our products, including Jira Software, Confluence, Jira Service Management, Trello, Bitbucket, and Jira Align at https://atlassian.com/.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which statements involve substantial risks and uncertainties. All statements other than statements of historical fact could be deemed forward looking, including risks and uncertainties related to statements about our products, customers, anticipated growth, sustainability, partnerships, outlook, technology and other key strategic areas, and our financial targets such as revenue, share count, and IFRS and non-IFRS financial measures including gross margin, operating margin, and net income (loss) per diluted share.

We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

The achievement or success of the matters covered by such forward-looking statements involves known and unknown risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management’s beliefs and assumptions only as of the date such statements are made.

Further information on these and other factors that could affect our financial results is included in filings we make with the Securities and Exchange Commission from time to time, including the section titled “Risk Factors” in our most recent Forms 20-F and 6-K (reporting our quarterly results). These documents are available on the SEC Filings section of the Investor Relations section of our website at: https://investors.atlassian.com/.

About Non-IFRS Financial Measures

Our reported results and financial targets include certain non-IFRS financial measures, including non-IFRS gross profit, non-IFRS operating income, non-IFRS net income, non-IFRS net income per diluted share, and free cash flow. Management believes that the use of these non-IFRS financial measures provides consistency and comparability with our past financial performance, facilitates period-to-period comparisons of our results of operations, and also facilitates comparisons with peer companies, many of which use similar non-IFRS or non-GAAP financial measures to supplement their IFRS or GAAP results. Non-IFRS results are presented for supplemental informational purposes only to aid in understanding our results of operations. The non-IFRS results should not be considered a substitute for financial information presented in accordance with IFRS, and may be different from non-IFRS or non-GAAP measures used by other companies.

Our non-IFRS financial measures include:

  • Non-IFRS gross profit. Excludes expenses related to share-based compensation and amortization of acquired intangible assets.
  • Non-IFRS operating income. Excludes expenses related to share-based compensation and amortization of acquired intangible assets.
  • Non-IFRS net income and non-IFRS net income per diluted share. Excludes expenses related to share- based compensation, amortization of acquired intangible assets, non-coupon impact related to exchangeable senior notes and capped calls, the related income tax effects on these items, and discrete tax impact resulting from a non-recurring transaction.
  • Free cash flow. Free cash flow is defined as net cash provided by operating activities less capital expenditures, which consists of purchases of property and equipment, and payments of lease obligations.

Our non-IFRS financial measures reflect adjustments based on the items below:

  • Share-based compensation.
  • Amortization of acquired intangible assets.
  • Non-coupon impact related to exchangeable senior notes and capped calls:
    • Amortization of notes discount and issuance costs.
    • Mark to fair value of the exchangeable senior notes exchange feature.
    • Mark to fair value of the related capped call transactions.
    • Net loss on settlements of exchangeable senior notes and capped call transactions.
  • The related income tax effects on these items, and discrete tax impact resulting from a non-recurring transaction.
  • Purchases of property and equipment and payments of lease obligations.

We exclude expenses related to share-based compensation, amortization of acquired intangible assets, non-coupon impact related to exchangeable senior notes and capped calls, the related income tax effects on these items, and discrete tax impact resulting from a non-recurring transaction from certain of our non-IFRS financial measures as we believe this helps investors understand our operational performance. In addition, share-based compensation expense can be difficult to predict and varies from period to period and company to company due to differing valuation methodologies, subjective assumptions, and the variety of equity instruments, as well as changes in stock price. Management believes that providing non-IFRS financial measures that exclude share-based compensation expense, amortization of acquired intangible assets, non-coupon impact related to exchangeable senior notes and capped calls, the related income tax effects on these items, and discrete tax impact resulting from a non-recurring transaction allow for more meaningful comparisons between our results of operations from period to period.

Management considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic opportunities, including investing in our business, making strategic acquisitions, and strengthening our statement of financial position.

Management uses non-IFRS gross profit, non-IFRS operating income, non-IFRS net income, non-IFRS net income per diluted share, and free cash flow:

  • As measures of operating performance, because these financial measures do not include the impact of items not directly resulting from our core operations.
  • For planning purposes, including the preparation of our annual operating budget.
  • To allocate resources to enhance the financial performance of our business.
  • To evaluate the effectiveness of our business strategies.
  • In communications with our Board of Directors and investors concerning our financial performance.

The tables in this press release titled “Reconciliation of IFRS to Non-IFRS Results” and “Reconciliation of IFRS to Non-IFRS Financial Targets” provide reconciliations of non-IFRS financial measures to the most recent directly comparable financial measures calculated and presented in accordance with IFRS.

We understand that although non-IFRS gross profit, non-IFRS operating income, non-IFRS net income, non-IFRS net income per diluted share, and free cash flow are frequently used by investors and securities analysts in their evaluation of companies, these measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results of operations as reported under IFRS.

Atlassian Corporation Plc

Consolidated Statements of Operations

(U.S. $ and shares in thousands, except per share data)

(unaudited)

 

 

Three Months Ended September 30,

 

2021

 

2020

Revenues:

 

 

 

Subscription

$

435,296

 

 

$

277,964

 

Maintenance

130,590

 

 

127,694

 

Other

48,138

 

 

53,848

 

Total revenues

614,024

 

 

459,506

 

Cost of revenues (1) (2)

98,018

 

 

73,684

 

Gross profit

516,006

 

 

385,822

 

Operating expenses:

 

 

 

Research and development (1) (2)

279,846

 

 

232,235

 

Marketing and sales (1) (2)

102,928

 

 

70,286

 

General and administrative (1)

93,586

 

 

71,369

 

Total operating expenses

476,360

 

 

373,890

 

Operating income

39,646

 

 

11,932

 

Other non-operating expense, net

(424,933

)

 

(26,271

)

Finance income

280

 

 

2,590

 

Finance costs

(7,111

)

 

(12,575

)

Loss before income tax benefit (expense)

(392,118

)

 

(24,324

)

Income tax benefit (expense)

(7,984

)

 

2,770

 

Net loss

$

(400,102

)

 

$

(21,554

)

Net loss per share attributable to ordinary shareholders:

 

 

 

Basic

$

(1.59

)

 

$

(0.09

)

Diluted

$

(1.59

)

 

$

(0.09

)

Weighted-average shares outstanding used to compute net loss per share attributable to ordinary shareholders:

 

 

 

Basic

252,106

 

 

248,015

 

Diluted

252,106

 

 

248,015

 

 

(1) Amounts include share-based payment expense, as follows:

 

Three Months Ended September 30,

 

2021

 

2020

Cost of revenues

$

7,845

 

 

$

5,256

 

Research and development

72,602

 

 

61,451

 

Marketing and sales

18,376

 

 

6,784

 

General and administrative

20,152

 

 

12,240

 

 

(2) Amounts include amortization of acquired intangible assets, as follows:

 

Three Months Ended September 30,

 

2021

 

2020

Cost of revenues

$

5,689

 

 

$

5,419

 

Research and development

94

 

 

41

 

Marketing and sales

2,271

 

 

2,299

 

Atlassian Corporation Plc

Consolidated Statements of Financial Position

(U.S. $ in thousands)

 

 

September 30, 2021

 

June 30, 2021

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

1,507,418

 

 

$

919,227

 

Short-term investments

94,415

 

 

313,001

 

Trade receivables

186,637

 

 

173,473

 

Derivative assets

105,211

 

 

127,486

 

Prepaid expenses and other current assets

69,197

 

 

50,654

 

 

1,962,878

 

 

1,583,841

 

Assets held for sale

47,098

 

 

43,665

 

Total current assets

2,009,976

 

 

1,627,506

 

Non-current assets:

 

 

 

Property and equipment, net

66,604

 

 

66,221

 

Deferred tax assets

30,394

 

 

36,174

 

Goodwill

725,039

 

 

725,758

 

Intangible assets, net

116,537

 

 

124,590

 

Right-of-use assets, net

287,186

 

 

205,300

 

Other non-current assets

181,388

 

 

159,795

 

Total non-current assets

1,407,148

 

 

1,317,838

 

Total assets

$

3,417,124

 

 

$

2,945,344

 

Liabilities

 

 

 

Current liabilities:

 

 

 

Trade and other payables

$

202,330

 

 

$

266,497

 

Tax liabilities

32,107

 

 

42,051

 

Provisions

25,190

 

 

25,148

 

Deferred revenue

839,952

 

 

812,943

 

Lease obligations

41,834

 

 

42,446

 

Derivative liabilities

985,634

 

 

772,127

 

Exchangeable senior notes, net

270,515

 

 

348,799

 

Total current liabilities

2,397,562

 

 

2,310,011

 

Non-current liabilities:

 

 

 

Deferred tax liabilities

19,471

 

 

26,625

 

Provisions

12,172

 

 

12,435

 

Deferred revenue

71,098

 

 

84,652

 

Term loan facility, net

649,288

 

 

 

Lease obligations

293,183

 

 

214,103

 

Other non-current liabilities

1,586

 

 

2,604

 

Total non-current liabilities

1,046,798

 

 

340,419

 

Total liabilities

3,444,360

 

 

2,650,430

 

Equity (deficit)

 

 

 

Share capital

25,256

 

 

25,164

 

Share premium

461,017

 

 

461,016

 

Other capital reserves

1,635,529

 

 

1,516,609

 

Other components of equity

63,771

 

 

104,832

 

Accumulated deficit

(2,212,809

)

 

(1,812,707

)

Total equity (deficit)

(27,236

)

 

294,914

 

Total liabilities and equity (deficit)

$

3,417,124

 

 

$

2,945,344

 

Atlassian Corporation Plc

Consolidated Statements of Cash Flows

(U.S. $ in thousands)

(unaudited)

 

 

Three Months Ended September 30,

 

2021

 

2020

Operating activities

 

 

 

Loss before income tax benefit (expense)

$

(392,118

)

 

$

(24,324

)

Adjustments to reconcile loss before income tax benefit (expense) to net cash provided by operating activities:

 

 

 

Depreciation and amortization

13,164

 

 

13,411

 

Depreciation of right-of-use assets

10,079

 

 

9,214

 

Share-based payment expense

118,975

 

 

85,731

 

Net loss on exchange derivative and capped call transactions

424,482

 

 

27,496

 

Amortization of debt discount and issuance cost

3,722

 

 

9,173

 

Interest income

(280

)

 

(2,590

)

Interest expense

3,389

 

 

3,402

 

Net unrealized foreign currency loss (gain)

(6,398

)

 

5,567

 

Net unrealized loss on investments

500

 

 

 

Loss (gain) on sale of investments, disposal of assets and other

(615

)

 

248

 

Changes in assets and liabilities:

 

 

 

Trade receivables

(13,211

)

 

(8,378

)

Prepaid expenses and other assets

(20,298

)

 

(11,418

)

Trade and other payables, provisions and other non-current liabilities

(66,025

)

 

(47,384

)

Deferred revenue

13,455

 

 

22,636

 

Interest received

895

 

 

4,156

 

Income tax paid, net

(11,330

)

 

(7,475

)

Net cash provided by operating activities

78,386

 

 

79,465

 

Investing activities

 

 

 

Business combinations, net of cash acquired

 

 

(32,464

)

Purchases of property and equipment

(6,881

)

 

(7,817

)

Purchases of investments

(74,003

)

 

(33,252

)

Proceeds from maturities of investments

53,887

 

 

74,677

 

Proceeds from sales of investments

186,262

 

 

7,087

 

Payment of deferred consideration

(1,138

)

 

(185

)

Net cash provided by investing activities

158,127

 

 

8,046

 

Financing activities

 

 

 

Proceeds from exercise of share options

1

 

 

922

 

Proceeds from term loan facility

650,000

 

 

 

Payments of lease obligations

(12,186

)

 

(11,096

)

Interest paid

(1,199

)

 

 

Repayment of exchangeable senior notes

(314,310

)

 

(8

)

Proceeds from settlement of capped call transactions

30,978

 

 

 

Net cash provided by (used in) financing activities

353,284

 

 

(10,182

)

Effect of exchange rate changes on cash and cash equivalents

(2,108

)

 

2,964

 

Net increase in cash and cash equivalents

587,689

 

 

80,293

 

Cash and cash equivalents at beginning of period

919,227

 

 

1,479,969

 

Net decrease in cash and cash equivalents included in assets held for sale

502

 

 

 

Cash and cash equivalents at end of period

$

1,507,418

 

 

$

1,560,262

 

Atlassian Corporation Plc

Revenues by Deployment Options

(U.S. $ in thousands)

(unaudited)

 

 

Three Months Ended September 30,

 

2021

 

2020

Cloud

$

317,903

 

 

$

207,320

 

Data Center

111,195

 

 

66,349

 

Server (1)

139,547

 

 

149,831

 

Marketplace and services (2)

45,379

 

 

36,006

 

Total revenues

$

614,024

 

 

$

459,506

 

(1) Included in Server is perpetual license revenue. Perpetual license revenue is captured as other revenue on the Consolidated Statements of Operations.

(2) Included in Marketplace and services is premier support revenue. Premier support is a subscription-based arrangement for a higher level of support across different deployment options. Premier support is recognized as subscription revenue on the Consolidated Statements of Operations as the services are delivered over the term of the arrangement.

Atlassian Corporation Plc

Reconciliation of IFRS to Non-IFRS Results

(U.S. $ and shares in thousands, except per share data)

(unaudited)

 

 

Three Months Ended September 30,

 

2021

 

2020

Gross profit

 

 

 

IFRS gross profit

$

516,006

 

 

$

385,822

 

Plus: Share-based payment expense

7,845

 

 

5,256

 

Plus: Amortization of acquired intangible assets

5,689

 

 

5,419

 

Non-IFRS gross profit

$

529,540

 

 

$

396,497

 

Operating income

 

 

 

IFRS operating income

$

39,646

 

 

$

11,932

 

Plus: Share-based payment expense

118,975

 

 

85,731

 

Plus: Amortization of acquired intangible assets

8,054

 

 

7,759

 

Non-IFRS operating income

$

166,675

 

 

$

105,422

 

Net income

 

 

 

IFRS net loss

$

(400,102

)

 

$

(21,554

)

Plus: Share-based payment expense

118,975

 

 

85,731

 

Plus: Amortization of acquired intangible assets

8,054

 

 

7,759

 

Plus: Non-coupon impact related to exchangeable senior notes and capped calls

427,853

 

 

36,669

 

Less: Income tax effects and adjustments

(36,467

)

 

(31,834

)

Non-IFRS net income

$

118,313

 

 

$

76,771

 

Net income per share

 

 

 

IFRS net loss per share - diluted

$

(1.59

)

 

$

(0.09

)

Plus: Share-based payment expense

0.47

 

 

0.34

 

Plus: Amortization of acquired intangible assets

0.03

 

 

0.03

 

Plus: Non-coupon impact related to exchangeable senior notes and capped calls

1.69

 

 

0.15

 

Less: Income tax effects and adjustments

(0.14

)

 

(0.13

)

Non-IFRS net income per share - diluted

$

0.46

 

 

$

0.30

 

Weighted-average diluted shares outstanding

 

 

 

Weighted-average shares used in computing diluted IFRS net loss per share

252,106

 

 

248,015

 

Plus: Dilution from share options and RSUs (1)

4,198

 

 

5,521

 

Weighted-average shares used in computing diluted non-IFRS net income per share

256,304

 

 

253,536

 

Free cash flow

 

 

 

IFRS net cash provided by operating activities

$

78,386

 

 

$

79,465

 

Less: Capital expenditures

(6,881

)

 

(7,817

)

Less: Payments of lease obligations

(12,186

)

 

(11,096

)

Free cash flow

$

59,319

 

 

$

60,552

 

(1) The effects of these dilutive securities were not included in the IFRS calculation of diluted net loss per share for the three months ended September 30, 2021 and 2020 because the effect would have been anti-dilutive.

Atlassian Corporation Plc

Reconciliation of IFRS to Non-IFRS Financial Targets

(U.S. $)

 

 

Three Months Ending

December 31, 2021

Revenue

$630 million to $645 million

 

 

IFRS gross margin

82%

Plus: Share-based payment expense

2

Plus: Amortization of acquired intangible assets

1

Non-IFRS gross margin

85%

 

 

IFRS operating margin

(15%) to (14%)

Plus: Share-based payment expense

36

Plus: Amortization of acquired intangible assets

1

Non-IFRS operating margin

22% to 23%

 

 

IFRS net loss per share - diluted

($0.42) to ($0.39)

Plus: Share-based payment expense

0.89

Plus: Amortization of acquired intangible assets

0.03

Less: Income tax effects and adjustments

(0.15)

Non-IFRS net income per share - diluted

$0.35 to $0.38

 

 

Weighted-average shares used in computing diluted IFRS net loss per share

251 million to 253 million

Dilution from share options and RSUs (1)

4 million

Weighted-average shares used in computing diluted non-IFRS net income per share

255 million to 257 million

(1) The effects of these dilutive securities are not included in the IFRS calculation of diluted net loss per share for the three months ending December 31, 2021 because the effect would be anti-dilutive.

 

Investor Relations Contact
Martin Lam
IR@atlassian.com

Media Contact
Kelsey Castellow
press@atlassian.com

Source: Atlassian Corporation Plc