Company Announcements

Atlassian Announces Third Quarter Fiscal Year 2022 Results

Quarterly revenue of $740 million, up 30% year-over-year

Q uarterly subscription revenue of $555 million, up 59% year-over-year

Q uarterly IFRS operating margin of (2)% and non-IFRS operating margin of 24%

Q uarterly cash flow from operations of $353 million and free cash flow of $312 million

TEAM, Anywhere/SAN FRANCISCO--(BUSINESS WIRE)--Apr. 28, 2022-- Atlassian Corporation Plc (NASDAQ: TEAM), a leading provider of team collaboration and productivity software, today announced financial results for its third quarter of fiscal year 2022 ended March 31, 2022 and released a shareholder letter available on Atlassian’s Work Life blog at http://atlassian.com/blog/announcements/shareholder-letter-q3fy22. The shareholder letter was also posted to the Investor Relations section of Atlassian’s website at https://investors.atlassian.com.

“It was amazing to experience the enthusiasm of the Atlassian community in-person at Team ’22,” said Scott Farquhar, Atlassian’s co-founder and co-CEO. “It’s such an honor to hear from our passionate users and partners about the mission-critical work we power. We are incredibly motivated by the role we play in transforming how teams collaborate, power digital transformation, and drive cultural change.”

“We now have line of sight to $10 billion in annual revenue based on our current markets and products,” said Mike Cannon-Brookes, Atlassian’s co-founder and co-CEO. “Atlassian has a 20-year track record of growing our ambition and we’ve never been more excited about the opportunities in front of us.”

Third Quarter Fiscal Year 2022 Financial Highlights:

On an IFRS basis, Atlassian reported:

  • Revenue: Total revenue was $740.5 million for the third quarter of fiscal year 2022, up 30% from $568.7 million for the third quarter of fiscal year 2021.
  • Operating Income (Loss) and Operating Margin: Operating loss was $16.1 million for the third quarter of fiscal year 2022, compared with operating income of $69.5 million for the third quarter of fiscal year 2021. Operating margin was (2)% for the third quarter of fiscal year 2022, compared with 12% for the third quarter of fiscal year 2021.
  • Net Income (Loss) and Net Income (Loss) Per Diluted Share: Net loss was $31.1 million for the third quarter of fiscal year 2022, compared with net income of $159.8 million for the third quarter of fiscal year 2021. Net loss per diluted share was $0.12 for the third quarter of fiscal year 2022, compared with net income per diluted share of $0.63 for the third quarter of fiscal year 2021.
  • Balance Sheet: Cash and cash equivalents plus short-term investments at the end of the third quarter of fiscal year 2022 totaled $1.3 billion.

On a non-IFRS basis, Atlassian reported:

  • Operating Income and Operating Margin: Operating income was $179.2 million for the third quarter of fiscal year 2022, compared with operating income of $175.7 million for the third quarter of fiscal year 2021. Operating margin was 24% for the third quarter of fiscal year 2022, compared with 31% for the third quarter of fiscal year 2021.
  • Net Income and Net Income Per Diluted Share: Net income was $120.6 million for the third quarter of fiscal year 2022, compared with net income of $123.3 million for the third quarter of fiscal year 2021. Net income per diluted share was $0.47 for the third quarter of fiscal year 2022, compared with $0.48 for the third quarter of fiscal year 2021.
  • Free Cash Flow: Cash flow from operations was $353.0 million and free cash flow was $312.3 million for the third quarter of fiscal year 2022. Free cash flow margin for the third quarter of fiscal year 2022 was 42%.

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:

  • Atlassian Team ’22: Atlassian held its flagship Team ’22 conference on April 5th through April 7th both in-person and virtually. Thousands of customers, partners, and Atlassians gathered in-person in Las Vegas, and an additional 12,000+ people joined virtually from around the world. On-demand streaming content and recorded sessions for Team ’22 can be found at https://events.atlassian.com/team22.
  • Atlassian Analytics: At Team ’22, Atlassian introduced Atlassian Analytics to enable customers to build customized, interactive dashboards that offer cross-project and cross-product overviews of workflows. Atlassian Analytics is powered by the Atlassian Data Lake that will initially have data from Jira Software and Jira Service Management and will expand across other products in our portfolio over time. Now teams can bring in data around stories and bugs assigned to them from Jira Software and visualize this alongside any change requests or incidents from Jira Service Management to assess what they should prioritize first. No-code visualization with Visual SQL provides a no-code way to explore data and create charts for teams and users who want to build reports fast without using SQL. Atlassian Analytics will also allow users to incorporate data from other business intelligence systems to provide an even more comprehensive view of their organization.
  • Atlas: Atlassian’s latest offering in work management, Atlas, serves as a teamwork directory, connecting the dots between teams, their tools, and their work so that everyone in the company can find the information they need to keep their projects moving. Atlas surfaces project summaries alongside goals and progress, dependencies with other projects, and a rundown of who’s working on what.
  • Compass: Atlassian has developed Compass to provide an answer to the changing nature of software development and the growing number of tools that developers use, offering them a unified view of their components and the teams that collaborate on them. Its component catalog visualizes dependencies and puts information like ownership, documentation, and metrics right next to each component so everything developers need are in one place. Compass also surfaces a health scorecard for each component to ensure resiliency, performance, security, and compliance in real time.
  • Customer Growth: Atlassian ended its third quarter of fiscal year 2022 with a total customer count, on an active subscription or maintenance agreement basis, of 234,575 customers, adding 8,054 net new customers during the quarter. During the quarter, customer count was reduced by approximately 1,800 due primarily to Russia-based customers that were unable to pay, as a consequence of sanctions levied on their payment networks. Our public statement on Russia’s invasion of Ukraine can be found at: https://www.atlassian.com/blog/announcements/atlassian-stands-with-ukraine.

New Chief Technology Officer:

Atlassian announced that Rajeev Rajan will join the company as its new Chief Technology Officer (CTO) in May 2022. Rajeev brings a wealth of knowledge and experience in scaling global technology companies, having spent nearly five years at Meta, most recently as Vice President and Head of Engineering for Facebook and Head of Office for Meta in the Pacific Northwest Region. Prior to that, Rajeev spent over two decades at Microsoft across multiple products from Exchange to SQL Server to Active Directory, culminating in Office 365.

As previously announced last quarter, Sri Viswanath, Atlassian’s current CTO, will be leaving the company at the end of fiscal year 2022.

Financial Targets:

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

Fourth Quarter Fiscal Year 2022:

  • Total revenue is expected to be in the range of $710 million to $725 million.
  • Gross margin is expected to be in the range of 81% to 82% on an IFRS basis and in the range of 84% to 85% on a non-IFRS basis.
  • Operating margin is expected to be approximately (11%) on an IFRS basis and approximately 15% on a non-IFRS basis.
  • Net loss per diluted share is expected to be approximately ($0.40) on an IFRS basis, and net income per diluted share is expected to be approximately $0.24 on a non-IFRS basis.
  • Weighted average share count is expected to be in the range of 254 million to 255 million shares when calculating diluted IFRS net loss per share and in the range of 257 million to 258 million shares when calculating diluted non-IFRS net income per share.

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

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 https://atlassian.com/blog/announcements/shareholder-letter-q3fy22, 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, April 28, 2022 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 225,000 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, 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 March 31,

 

Nine Months Ended March 31,

 

2022

 

2021

 

2022

 

2021

Revenues:

 

 

 

 

 

 

 

Subscription

$

555,126

 

 

$

349,915

 

 

$

1,499,409

 

 

$

938,554

 

Maintenance

 

120,333

 

 

 

132,921

 

 

 

377,982

 

 

 

391,891

 

Other

 

65,032

 

 

 

85,892

 

 

 

165,650

 

 

 

199,148

 

Total revenues

 

740,491

 

 

 

568,728

 

 

 

2,043,041

 

 

 

1,529,593

 

Cost of revenues (1) (2)

 

119,374

 

 

 

84,888

 

 

 

332,553

 

 

 

238,054

 

Gross profit

 

621,117

 

 

 

483,840

 

 

 

1,710,488

 

 

 

1,291,539

 

Operating expenses:

 

 

 

 

 

 

 

Research and development (1) (2)

 

363,746

 

 

 

244,098

 

 

 

1,018,568

 

 

 

717,397

 

Marketing and sales (1) (2)

 

150,796

 

 

 

92,043

 

 

 

388,383

 

 

 

239,480

 

General and administrative (1)

 

122,707

 

 

 

78,184

 

 

 

346,741

 

 

 

225,502

 

Total operating expenses

 

637,249

 

 

 

414,325

 

 

 

1,753,692

 

 

 

1,182,379

 

Operating income (loss)

 

(16,132

)

 

 

69,515

 

 

 

(43,204

)

 

 

109,160

 

Other non-operating income (expense), net

 

(9,009

)

 

 

150,662

 

 

 

(434,261

)

 

 

(421,358

)

Finance income

 

608

 

 

 

1,464

 

 

 

965

 

 

 

6,166

 

Finance costs

 

(6,024

)

 

 

(10,591

)

 

 

(19,213

)

 

 

(114,614

)

Income (loss) before income tax expense

 

(30,557

)

 

 

211,050

 

 

 

(495,713

)

 

 

(420,646

)

Income tax expense

 

(530

)

 

 

(51,210

)

 

 

(12,948

)

 

 

(62,596

)

Net income (loss)

$

(31,087

)

 

$

159,840

 

 

$

(508,661

)

 

$

(483,242

)

Net income (loss) per share attributable to ordinary shareholders:

 

 

 

 

 

 

 

Basic

$

(0.12

)

 

$

0.64

 

 

$

(2.01

)

 

$

(1.94

)

Diluted

$

(0.12

)

 

$

0.63

 

 

$

(2.01

)

 

$

(1.94

)

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

 

 

 

 

 

 

 

Basic

 

253,723

 

 

 

250,279

 

 

 

252,924

 

 

 

249,152

 

Diluted

 

253,723

 

 

 

255,128

 

 

 

252,924

 

 

 

249,152

 

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

 

Three Months Ended March 31,

 

Nine Months Ended March 31,

 

2022

 

2021

 

2022

 

2021

Cost of revenues

$

11,731

 

$

6,495

 

$

33,207

 

$

18,552

Research and development

 

115,397

 

 

63,699

 

 

335,232

 

 

198,235

Marketing and sales

 

28,794

 

 

11,774

 

 

82,982

 

 

30,224

General and administrative

 

31,289

 

 

16,296

 

 

91,775

 

 

44,676

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

Three Months Ended March 31,

 

Nine Months Ended March 31,

 

2022

 

2021

 

2022

 

2021

Cost of revenues

$

5,709

 

$

5,554

 

$

16,997

 

$

16,386

Research and development

 

94

 

 

41

 

 

281

 

 

124

Marketing and sales

 

2,302

 

 

2,278

 

 

6,839

 

 

6,894

Atlassian Corporation Plc

Consolidated Statements of Financial Position

(U.S. $ in thousands)

 

March 31, 2022

 

June 30, 2021

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

1,194,803

 

 

$

919,227

 

Short-term investments

 

86,215

 

 

 

313,001

 

Trade receivables

 

256,570

 

 

 

173,473

 

Tax receivables

 

7,666

 

 

 

2,332

 

Derivative assets

 

15,406

 

 

 

127,486

 

Prepaid expenses and other current assets

 

64,987

 

 

 

48,322

 

 

 

1,625,647

 

 

 

1,583,841

 

Assets held for sale

 

58,964

 

 

 

43,665

 

Total current assets

 

1,684,611

 

 

 

1,627,506

 

Non-current assets:

 

 

 

Property and equipment, net

 

83,687

 

 

 

66,221

 

Deferred tax assets

 

37,153

 

 

 

36,174

 

Goodwill

 

733,799

 

 

 

725,758

 

Intangible assets, net

 

105,103

 

 

 

124,590

 

Right-of-use assets, net

 

265,092

 

 

 

205,300

 

Strategic investments

 

150,756

 

 

 

122,159

 

Other non-current assets

 

64,377

 

 

 

37,636

 

Total non-current assets

 

1,439,967

 

 

 

1,317,838

 

Total assets

$

3,124,578

 

 

$

2,945,344

 

Liabilities

 

 

 

Current liabilities:

 

 

 

Trade and other payables

$

333,490

 

 

$

266,497

 

Tax liabilities

 

3,617

 

 

 

42,051

 

Provisions

 

34,817

 

 

 

25,148

 

Deferred revenue

 

1,002,791

 

 

 

812,943

 

Lease obligations

 

39,558

 

 

 

42,446

 

Derivative liabilities

 

3,017

 

 

 

772,127

 

Exchangeable senior notes, net

 

 

 

 

348,799

 

Total current liabilities

 

1,417,290

 

 

 

2,310,011

 

Non-current liabilities:

 

 

 

Deferred tax liabilities

 

23,844

 

 

 

26,625

 

Provisions

 

14,441

 

 

 

12,435

 

Deferred revenue

 

89,294

 

 

 

84,652

 

Term loan facility, net

 

999,375

 

 

 

 

Lease obligations

 

276,287

 

 

 

214,103

 

Other non-current liabilities

 

1,087

 

 

 

2,604

 

Total non-current liabilities

 

1,404,328

 

 

 

340,419

 

Total liabilities

 

2,821,618

 

 

 

2,650,430

 

Equity

 

 

 

Share capital

 

25,412

 

 

 

25,164

 

Share premium

 

461,029

 

 

 

461,016

 

Other capital reserves

 

2,059,852

 

 

 

1,516,609

 

Other components of equity

 

79,875

 

 

 

104,832

 

Accumulated deficit

 

(2,323,208

)

 

 

(1,812,707

)

Total equity

 

302,960

 

 

 

294,914

 

Total liabilities and equity

$

3,124,578

 

 

$

2,945,344

 

Atlassian Corporation Plc

Consolidated Statements of Cash Flows

(U.S. $ in thousands)

(unaudited)

 

Three Months Ended March 31,

 

Nine Months Ended March 31,

 

2022

 

2021

 

2022

 

2021

Operating activities

 

 

 

 

 

 

 

Income (loss) before income tax expense

$

(30,557

)

 

$

211,050

 

 

$

(495,713

)

 

$

(420,646

)

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

 

 

 

 

 

 

 

Depreciation and amortization

 

12,093

 

 

 

13,906

 

 

 

37,410

 

 

 

41,124

 

Depreciation of right-of-use assets

 

10,806

 

 

 

9,418

 

 

 

31,938

 

 

 

28,010

 

Share-based payment expense

 

187,211

 

 

 

98,264

 

 

 

543,196

 

 

 

291,687

 

Net loss (gain) on exchange derivative and capped call transactions

 

 

 

 

(150,665

)

 

 

424,482

 

 

 

415,933

 

Amortization of debt discount and issuance cost

 

117

 

 

 

7,275

 

 

 

3,957

 

 

 

104,302

 

Interest income

 

(608

)

 

 

(1,464

)

 

 

(965

)

 

 

(6,166

)

Interest expense

 

5,907

 

 

 

3,316

 

 

 

15,256

 

 

 

10,312

 

Net foreign currency loss (gain)

 

3,623

 

 

 

(266

)

 

 

(8,033

)

 

 

10,175

 

Net unrealized loss on investments

 

1,600

 

 

 

1,250

 

 

 

2,100

 

 

 

2,000

 

Net loss on sale of investments, disposal of assets and other

 

2,485

 

 

 

836

 

 

 

2,168

 

 

 

1,135

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

Trade receivables

 

(14,980

)

 

 

(35,420

)

 

 

(83,183

)

 

 

(80,943

)

Prepaid expenses and other assets

 

(9,109

)

 

 

(3,691

)

 

 

(24,822

)

 

 

(11,052

)

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

 

72,658

 

 

 

47,784

 

 

 

68,496

 

 

 

33,223

 

Deferred revenue

 

116,459

 

 

 

186,880

 

 

 

194,343

 

 

 

270,813

 

Interest received

 

633

 

 

 

3,018

 

 

 

1,719

 

 

 

10,472

 

Income tax paid, net

 

(5,309

)

 

 

(14,455

)

 

 

(59,250

)

 

 

(43,416

)

Net cash provided by operating activities

 

353,029

 

 

 

377,036

 

 

 

653,099

 

 

 

656,963

 

Investing activities

 

 

 

 

 

 

 

Business combinations, net of cash acquired

 

(12,377

)

 

 

(41,460

)

 

 

(12,377

)

 

 

(83,624

)

Purchases of intangible assets

 

(4,018

)

 

 

 

 

 

(4,018

)

 

 

 

Purchases of property and equipment

 

(26,473

)

 

 

(5,365

)

 

 

(45,935

)

 

 

(22,730

)

Purchases of investments

 

(7,918

)

 

 

(24,254

)

 

 

(123,921

)

 

 

(93,519

)

Proceeds from maturities of investments

 

2,600

 

 

 

135,245

 

 

 

64,087

 

 

 

330,549

 

Proceeds from sales of investments

 

 

 

 

1,092

 

 

 

186,262

 

 

 

48,786

 

Change in restricted cash

 

 

 

 

 

 

 

11,119

 

 

 

(2,162

)

Payment of deferred consideration

 

(645

)

 

 

 

 

 

(4,484

)

 

 

(185

)

Net cash provided by (used in) investing activities

 

(48,831

)

 

 

65,258

 

 

 

70,733

 

 

 

177,115

 

Financing activities

 

 

 

 

 

 

 

Proceeds from exercise of share options

 

10

 

 

 

11

 

 

 

15

 

 

 

1,158

 

Payments of lease obligations

 

(14,278

)

 

 

(11,303

)

 

 

(38,090

)

 

 

(33,538

)

Payment of issuance costs for debt

 

 

 

 

 

 

 

 

 

 

(4,445

)

Interest paid

 

(4,042

)

 

 

(922

)

 

 

(8,844

)

 

 

(4,216

)

Repayment of exchangeable senior notes

 

 

 

 

(591,550

)

 

 

(1,548,686

)

 

 

(1,263,047

)

Proceeds from settlement of capped call transactions

 

 

 

 

63,305

 

 

 

135,497

 

 

 

136,081

 

Proceeds from term loan facility

 

 

 

 

 

 

 

1,000,000

 

 

 

 

Proceeds from other financing arrangements

 

9,515

 

 

 

 

 

 

9,515

 

 

 

 

Net cash used in financing activities

 

(8,795

)

 

 

(540,459

)

 

 

(450,593

)

 

 

(1,168,007

)

Effect of exchange rate changes on cash and cash equivalents

 

(270

)

 

 

(2,100

)

 

 

(2,623

)

 

 

5,410

 

Net increase (decrease) in cash and cash equivalents

 

295,133

 

 

 

(100,265

)

 

 

270,616

 

 

 

(328,519

)

Cash and cash equivalents at beginning of period

 

899,394

 

 

 

1,251,715

 

 

 

919,227

 

 

 

1,479,969

 

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

 

276

 

 

 

 

 

 

4,960

 

 

 

 

Cash and cash equivalents at end of period

$

1,194,803

 

 

$

1,151,450

 

 

$

1,194,803

 

 

$

1,151,450

 

Atlassian Corporation Plc

Revenues by Deployment Options

(U.S. $ in thousands)

(unaudited)

 

 

Three Months Ended March 31,

 

Nine Months Ended March 31,

 

2022

 

2021

 

2022

 

2021

Cloud

$

399,453

 

$

249,879

 

$

1,081,455

 

$

687,611

Data Center

 

151,095

 

 

94,739

 

 

401,398

 

 

237,149

Server (1)

 

132,333

 

 

164,229

 

 

407,399

 

 

467,460

Marketplace and services (2)

 

57,610

 

 

59,881

 

 

152,789

 

 

137,373

Total revenues

$

740,491

 

$

568,728

 

$

2,043,041

 

$

1,529,593

(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 March 31,

 

Nine Months Ended March 31,

 

2022

 

2021

 

2022

 

2021

Gross profit

 

 

 

 

 

 

 

IFRS gross profit

$

621,117

 

 

$

483,840

 

 

$

1,710,488

 

 

$

1,291,539

 

Plus: Share-based payment expense

 

11,731

 

 

 

6,495

 

 

 

33,207

 

 

 

18,552

 

Plus: Amortization of acquired intangible assets

 

5,709

 

 

 

5,554

 

 

 

16,997

 

 

 

16,386

 

Non-IFRS gross profit

$

638,557

 

 

$

495,889

 

 

$

1,760,692

 

 

$

1,326,477

 

Operating income

 

 

 

 

 

 

 

IFRS operating income (loss)

$

(16,132

)

 

$

69,515

 

 

$

(43,204

)

 

$

109,160

 

Plus: Share-based payment expense

 

187,211

 

 

 

98,264

 

 

 

543,196

 

 

 

291,687

 

Plus: Amortization of acquired intangible assets

 

8,105

 

 

 

7,873

 

 

 

24,117

 

 

 

23,404

 

Non-IFRS operating income

$

179,184

 

 

$

175,652

 

 

$

524,109

 

 

$

424,251

 

Net income

 

 

 

 

 

 

 

IFRS net income (loss)

$

(31,087

)

 

$

159,840

 

 

$

(508,661

)

 

$

(483,242

)

Plus: Share-based payment expense

 

187,211

 

 

 

98,264

 

 

 

543,196

 

 

 

291,687

 

Plus: Amortization of acquired intangible assets

 

8,105

 

 

 

7,873

 

 

 

24,117

 

 

 

23,404

 

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

 

 

 

 

(143,390

)

 

 

427,853

 

 

 

520,235

 

Less: Income tax effects and adjustments

 

(43,646

)

 

 

670

 

 

 

(120,285

)

 

 

(56,745

)

Non-IFRS net income

$

120,583

 

 

$

123,257

 

 

$

366,220

 

 

$

295,339

 

Net income per share

 

 

 

 

 

 

 

IFRS net income (loss) per share - diluted

$

(0.12

)

 

$

0.63

 

 

$

(2.01

)

 

$

(1.94

)

Plus: Share-based payment expense

 

0.73

 

 

 

0.39

 

 

 

2.13

 

 

 

1.16

 

Plus: Amortization of acquired intangible assets

 

0.03

 

 

 

0.03

 

 

 

0.09

 

 

 

0.09

 

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

 

 

 

 

(0.57

)

 

 

1.69

 

 

 

2.06

 

Less: Income tax effects and adjustments

 

(0.17

)

 

 

 

 

 

(0.47

)

 

 

(0.21

)

Non-IFRS net income per share - diluted

$

0.47

 

 

$

0.48

 

 

$

1.43

 

 

$

1.16

 

Weighted-average diluted shares outstanding

 

 

 

 

 

 

 

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

 

253,723

 

 

 

255,128

 

 

 

252,924

 

 

 

249,152

 

Plus: Dilution from share options and RSUs (1)

 

3,007

 

 

 

 

 

 

3,729

 

 

 

5,301

 

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

 

256,730

 

 

 

255,128

 

 

 

256,653

 

 

 

254,453

 

Free cash flow

 

 

 

 

 

 

 

IFRS net cash provided by operating activities

$

353,029

 

 

$

377,036

 

 

$

653,099

 

 

$

656,963

 

Less: Capital expenditures

 

(26,473

)

 

 

(5,365

)

 

 

(45,935

)

 

 

(22,730

)

Less: Payments of lease obligations

 

(14,278

)

 

 

(11,303

)

 

 

(38,090

)

 

 

(33,538

)

Free cash flow

$

312,278

 

 

$

360,368

 

 

$

569,074

 

 

$

600,695

 

(1) The effects of these dilutive securities were not included in the IFRS calculation of diluted net loss per share for the three and nine months ended March 31, 2022 and nine months ended March 31, 2021 because the effect would have been anti-dilutive.

Atlassian Corporation Plc

Reconciliation of IFRS to Non-IFRS Financial Targets

(U.S. $)

 

Three Months Ending

June 30, 2022

Revenue

$710 million to $725 million

 

 

IFRS gross margin

81% to 82%

Plus: Share-based payment expense

2

Plus: Amortization of acquired intangible assets

1

Non-IFRS gross margin

84% to 85%

 

 

IFRS operating margin

(11%)

Plus: Share-based payment expense

25

Plus: Amortization of acquired intangible assets

1

Non-IFRS operating margin

15%

 

 

IFRS net loss per share - diluted

($0.40)

Plus: Share-based payment expense

0.68

Plus: Amortization of acquired intangible assets

0.03

Less: Income tax effects and adjustments

(0.07)

Non-IFRS net income per share - diluted

0.24

 

 

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

254 million to 255 million

Dilution from share options and RSUs (1)

3 million

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

257 million to 258 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 June 30, 2022 because the effect would be anti-dilutive.

Investor Relations Contact
Martin Lam
IR@atlassian.com

Media Contact
Marie-Claire Maple
press@atlassian.com

Source: Atlassian Corporation Plc