What changed in this filing

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Item 1. Financial Statements

2025-01-31 compared with 2024-11-01 · 160 added, 145 removed, 496 unchanged (38% of the section changed)

3 unchanged sentences

(in thousands, except par value and share data)

September 30, 2024 June 30, 2024

December 31, 2024 June 30, 2024

Current assets:

30 unchanged sentences

Class A Common Stock, $ 0.00001 par value;

750,000,000 shares authorized, 160,713,952 and 159,544,123 issued and outstanding at September 30, 2024 and June 30, 2024, respectively

750,000,000 shares authorized, 163,081,602 and 159,544,123 issued and outstanding at December 31, 2024 and June 30, 2024, respectively

Class B Common Stock, 0.00001 par value;

230,000,000 shares authorized, 99,995,049 and 101,012,393 issued and outstanding at September 30, 2024 and June 30, 2024, respectively

230,000,000 shares authorized, 98,977,705 and 101,012,393 issued and outstanding at December 31, 2024 and June 30, 2024, respectively

Additional paid-in capital 4,876,944 4,212,064

Accumulated other comprehensive income 42,820 25,300

Accumulated other comprehensive income (loss) ( 38,617 ) 25,300

Accumulated deficit ( 3,618,775 ) ( 3,204,516 )

5 unchanged sentences

(in thousands, except per share data)

Three Months Ended September 30,

Three Months Ended December 31, Six Months Ended December 31,

2024 2023 2024 2023

Subscription $ 1,213,248 $ 932,181 $ 2,345,196 $ 1,784,163

16 unchanged sentences

Interest expense ( 7,291 ) ( 9,001 ) ( 14,609 ) ( 17,977 )

Loss before provision for income taxes ( 30,164 ) ( 10,954 )

Provision for income taxes ( 93,605 ) ( 20,929 )

Loss before income taxes ( 47,183 ) ( 40,109 ) ( 77,347 ) ( 51,063 )

Provision for (benefit from) income taxes ( 8,975 ) 44,360 84,630 65,289

Net loss $ ( 38,208 ) $ ( 84,469 ) $ ( 161,977 ) $ ( 116,352 )

16 unchanged sentences

ATLASSIAN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

Three Months Ended September 30,

Three Months Ended December 31, Six Months Ended December 31,

2024 2023 2024 2023

Net loss $ ( 38,208 ) $ ( 84,469 ) $ ( 161,977 ) $ ( 116,352 )

6 unchanged sentences

Other comprehensive income (loss), net of tax ( 81,437 ) 23,066 ( 63,917 ) 4,662

Total comprehensive loss, net of tax $ ( 106,249 ) $ ( 50,287 )

Total comprehensive income (loss), net of tax $ ( 119,645 ) $ ( 61,403 ) $ ( 225,894 ) $ ( 111,690 )

The above condensed consolidated financial statements should be read in conjunction with the accompanying notes.

2 unchanged sentences

(in thousands)

Three Months Ended September 30, 2024

Common Stock Additional paid in capital Accumulated other comprehensive income Accumulated deficit Total stockholders’ equity

Three Months Ended December 31, 2024

Common Stock Additional paid in capital Accumulated other comprehensive income (loss) Accumulated deficit Total stockholders’ equity

Class A Class B

Shares Amount Shares Amount

Balance at June 30, 2024 159,388 $ 2 101,012 $ 1 $ 4,212,064 $ 25,300 $ ( 3,204,516 ) $ 1,032,851

Balance at September 30, 2024 160,558 $ 2 99,995 $ 1 $ 4,498,214 $ 42,820 $ ( 3,512,203 ) $ 1,028,834

Common stock issued 1,770 — — — — — — —

2 unchanged sentences

Repurchases of Class A Common Stock ( 368 ) — — — — — ( 68,364 ) ( 68,364 )

Other comprehensive income, net of tax — — — — — 17,520 — 17,520

Other comprehensive income (loss), net of tax — — — — — ( 81,437 ) — ( 81,437 )

Net loss — — — — — — ( 38,208 ) ( 38,208 )

Balance at December 31, 2024 162,978 $ 2 98,977 $ 1 $ 4,876,944 $ ( 38,617 ) $ ( 3,618,775 ) $ 1,219,555

Three Months Ended December 31, 2023

Common Stock Additional paid in capital Accumulated other comprehensive income (loss) Accumulated deficit Total stockholders’ equity

Class A Class B

Shares Amount Shares Amount

Balance at September 30, 2023 154,174 $ 2 104,086 $ 1 $ 3,366,212 $ 15,598 $ ( 2,607,188 ) $ 774,625

Three Months Ended September 30, 2023

Common Stock Additional paid in capital Accumulated other comprehensive income Accumulated deficit Total stockholders’ equity

Common stock issued 1,374 — — — — — — —

Conversion from Class B Common Stock to Class A Common Stock 1,039 — ( 1,039 ) — — — — —

Stock-based compensation — — — — 289,845 — — 289,845

Repurchases of Class A Common Stock ( 530 ) — — — — — ( 98,144 ) ( 98,144 )

Other comprehensive income (loss), net of tax — — — — — 23,066 — 23,066

Net loss — — — — — — ( 84,469 ) ( 84,469 )

Balance at December 31, 2023 156,057 $ 2 103,047 $ 1 $ 3,656,057 $ 38,664 $ ( 2,789,801 ) $ 904,923

ATLASSIAN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (CONTINUED)

(in thousands)

Six Months Ended December 31, 2024

Common Stock Additional paid in capital Accumulated other comprehensive income (loss) Accumulated deficit Total stockholders’ equity

Class A Class B

5 unchanged sentences

Repurchases of Class A Common Stock ( 1,499 ) — — — — — ( 252,282 ) ( 252,282 )

Other comprehensive loss, net of tax — — — — — ( 18,404 ) — ( 18,404 )

Other comprehensive income (loss), net of tax — — — — — ( 63,917 ) — ( 63,917 )

Net loss — — — — — — ( 161,977 ) ( 161,977 )

Balance at September 30, 2023 154,174 $ 2 104,086 $ 1 $ 3,366,212 $ 15,598 $ ( 2,607,188 ) $ 774,625

Balance at December 31, 2024 162,978 $ 2 98,977 $ 1 $ 4,876,944 $ ( 38,617 ) $ ( 3,618,775 ) $ 1,219,555

Six Months Ended December 31, 2023

Common Stock Additional paid in capital Accumulated other comprehensive income (loss) Accumulated deficit Total stockholders’ equity

Class A Class B

Shares Amount Shares Amount

Balance at June 30, 2023 152,437 $ 2 105,124 $ 1 $ 3,130,631 $ 34,002 $ ( 2,509,964 ) $ 654,672

Common stock issued 2,422 — — — — — — —

Conversion from Class B Common Stock to Class A Common Stock 2,077 — ( 2,077 ) — — — — —

Stock-based compensation — — — — 525,426 — — 525,426

Repurchases of Class A Common Stock ( 879 ) — — — — — ( 163,485 ) ( 163,485 )

Other comprehensive income (loss), net of tax — — — — — 4,662 — 4,662

Net loss — — — — — — ( 116,352 ) ( 116,352 )

Balance at December 31, 2023 156,057 $ 2 103,047 $ 1 $ 3,656,057 $ 38,664 $ ( 2,789,801 ) $ 904,923

The above condensed consolidated financial statements should be read in conjunction with the accompanying notes.

2 unchanged sentences

(in thousands)

Three Months Ended September 30,

Three Months Ended December 31, Six Months Ended December 31,

2024 2023 2024 2023

Cash flows from operating activities:

6 unchanged sentences

Net loss on strategic investments 2,611 1,442 17,903 7,690

Net foreign currency loss 3,040 181

Net foreign currency loss (gain) ( 5,621 ) 2,237 ( 2,581 ) 2,418

Other ( 968 ) 154 23 ( 1,092 )

10 unchanged sentences

Purchases of strategic investments ( 11,500 ) ( 250 ) ( 25,550 ) ( 4,000 )

Purchases of marketable securities ( 43,704 ) ( 69,363 )

Purchases of marketable securities and other investments ( 116,619 ) ( 69,783 ) ( 160,323 ) ( 139,146 )

Proceeds from maturities of marketable securities 25,480 16,150 71,628 16,150

2 unchanged sentences

Cash flows from financing activities:

Principal payments of term loan facility — ( 12,500 ) — ( 12,500 )

Repurchases of Class A Common Stock ( 69,241 ) ( 101,773 ) ( 252,851 ) ( 167,652 )

19 unchanged sentences

Through a connected portfolio of products with discrete value propositions and built on the Atlassian platform and data model, Atlassian gives all teams the right teamwork foundations so they can plan and track work, align on goals, and unleash knowledge across the organization.

The Company’s primary products include Jira for planning and project management, Confluence for content creation and sharing, Jira Service Management for team service, management and support applications, Loom for asynchronous video collaboration, and Rovo for unlocking organizational knowledge.

The Company’s fiscal year ends on June 30 of each year.

5 unchanged sentences

These principles are established primarily by the Financial Accounting Standards Board (“FASB”).

The accompanying condensed consolidated financial statements contain all normal recurring adjustments which are necessary to fairly present the condensed consolidated balance sheets as of September 30, 2024 and June 30, 2024, the statements of operations, comprehensive loss, stockholders’ equity, and cash flows for the three months ended September 30, 2024 and 2023.

The accompanying condensed consolidated financial statements contain all normal recurring adjustments which are necessary to fairly present the condensed consolidated balance sheets as of December 31, 2024 and June 30, 2024, the statements of operations, comprehensive income (loss), stockholders’ equity, and cash flows for the three and six months ended December 31, 2024 and 2023.

Certain reclassifications have been made to prior period balances to conform to the current period presentation.

27 unchanged sentences

The Company continuously monitors outstanding receivables locally to assess whether there is objective evidence that outstanding accounts receivables and contract assets are credit-impaired.

As of September 30, 2024 and June 30, 2024, no customer represented more than 10% of the total accounts receivable balance.

For the three months ended September 30, 2024 and 2023, no customer represented more than 10% of total revenues.

As of December 31, 2024, one customer, a solution partner, represented more than 10 % of the total accounts receivable balance.

As of June 30, 2024, no customer represented more than 10% of the total accounts receivable balance.

For the three and six months ended December 31, 2024 and 2023, no customer represented more than 10% of total revenues.

New Accounting Standards Not Yet Adopted in Fiscal Year 2025

10 unchanged sentences

The Company is currently evaluating the impact of the new guidance and does not expect it to have a material impact on its consolidated financial statements.

In November 2024, the FASB issued ASU No.

2024-03 “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures.” This ASU requires disaggregated disclosure of income statement expenses for public entities.

The ASU does not change the expense captions an entity presents on the face of the income statement;

rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements.

This ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027.

The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

Recently Adopted Accounting Pronouncements

In June 2022, the FASB issues ASU No.

In June 2022, the FASB issued ASU No.

2022-03 “Fair Value Measurement (Topic 820):

4 unchanged sentences

Fair Value Measurements

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2024, by level within the fair value hierarchy (in thousands):

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2024, by level within the fair value hierarchy (in thousands):

Level 1 Level 2 Total

2 unchanged sentences

Money market funds $ 1,545,191 $ — $ 1,545,191

Commercial paper — 992 992

Corporate debt securities — 2,483 2,483

Marketable securities:

31 unchanged sentences

The Company’s investments in privately held companies are not included in the tables above and are discussed in Note 4, “Investments.” The carrying value of the Company’s privately held equity securities are adjusted on a non-recurring basis upon observable price changes in orderly transactions for identical or similar investments of the same issuer, or impairment (referred to as the measurement alternative).

Privately held equity

securities that have been remeasured during the period based on observable price changes in orderly transactions are classified within Level 2 or Level 3 in the fair value hierarchy because the Company estimates the value based on valuation methods which may include a combination of the observable transaction price at the transaction date and other unobservable inputs including volatility, rights and preferences of the investments, and obligations of the securities the Company holds.

Privately held equity securities that have been remeasured during the period based on observable price changes in orderly transactions are classified within Level 2 or Level 3 in the fair value hierarchy because the Company estimates the value based on valuation methods which may include a combination of the observable transaction price at the transaction date and other unobservable inputs including volatility, rights and preferences of the investments, and obligations of the securities the Company holds.

The fair value of privately held equity securities that have been remeasured due to impairment are classified within Level 3.

The Company’s privately held debt and equity securities amounted to $ 158.8 million and $ 148.7 million as of September 30, 2024 and June 30, 2024, respectively.

The Company’s privately held debt and equity securities amounted to $ 166.9 million and $ 148.7 million as of December 31, 2024 and June 30, 2024, respectively.

Marketable Securities

The Company’s investments of marketable securities as of September 30, 2024, consisted of the following (in thousands):

The Company’s investments of marketable securities as of December 31, 2024, consisted of the following (in thousands):

Amortized Cost Unrealized Gains Unrealized Losses Fair Value

14 unchanged sentences

The table below summarizes the Company’s marketable securities by remaining contractual maturity based on their effective maturity dates (in thousands):

September 30, 2024 June 30, 2024

December 31, 2024 June 30, 2024

Due in one year or less $ 95,456 $ 101,543

2 unchanged sentences

The Company regularly reviews the changes to the rating of its marketable securities by rating agencies and monitors the surrounding economic conditions to assess the risk of expected credit losses.

As of September 30, 2024, and June 30, 2024, unrealized losses and the related risk of expected credit losses were not material.

As of December 31, 2024, and June 30, 2024, unrealized losses and the related risk of expected credit losses were not material.

Strategic Investments

Carrying value of privately held debt securities

The Company’s investments of privately held debt securities as of September 30, 2024, consisted of the following (in thousands):

The Company’s investments of privately held debt securities as of December 31, 2024, consisted of the following (in thousands):

Amortized Cost Unrealized Gains Unrealized Losses Fair Value

6 unchanged sentences

The carrying value is measured as the total initial cost plus the cumulative net gain (loss).

The carrying values for privately held equity securities as of September 30, 2024 are summarized below (in thousands):

The carrying values for privately held equity securities as of December 31, 2024 are summarized below (in thousands):

Privately held equity securities

2 unchanged sentences

Carrying value $ 162,861

Privately held equity securities cumulative net losses are comprised of downward adjustments and impairment of $ 7.5 million and upward adjustments of $ 5.0 million as of September 30, 2024 .

T he carrying values for privately held equity securities as of June 30, 2024 are summarized below (in thousands):

The carrying values for privately held equity securities as of June 30, 2024 are summarized below (in thousands):

Privately held equity securities

Initial total cost $ 147,752

Cumulative net gains (losses) ( 2,491 )

Cumulative net losses ( 2,491 )

Carrying value $ 145,261

Privately held equity securities cumulative net losses are comprised of downward adjustments and impairment of $ 7.5 million and upward adjustments of $ 5.0 million as of June 30, 2024.

Privately held equity securities’ cumulative net losses are comprised of downward adjustments and impairment charges of $ 7.5 million and upward adjustments of $ 5.0 million as of December 31, 2024 and June 30, 2024.

Gains and Losses on Strategic Investments

The components of gains and losses on strategic investments were as follows (in thousands):

Three Months Ended September 30,

Three Months Ended December 31, Six Months Ended December 31,

2024 2023 2024 2023

Unrealized losses recognized on privately held equity securities including impairment $ — $ ( 1,442 ) $ — $ ( 1,442 )

Unrealized losses, net $ — $ ( 1,442 ) $ — $ ( 1,442 )

Realized gains recognized on sales of publicly traded equity securities — — — 515

Realized losses recognized on privately held equity securities ( 2,611 ) — ( 2,645 ) —

Gains (losses) on strategic investments, net $ ( 34 ) $ 515

Realized gains recognized on sales of securities reflects the difference between the sale proceeds and the carrying value of the security at the beginning of the period or the purchase date, if later.

Losses on strategic investments, net $ ( 2,611 ) $ ( 1,442 ) $ ( 2,645 ) $ ( 927 )

Unrealized losses recognized during the reporting period on privately held equity securities still held at the reporting date $ — $ ( 1,442 ) $ — $ ( 1,442 )

Realized gains and losses recognized on sales of securities reflects the difference between the sale proceeds and the carrying value of the security at the beginning of the period or the purchase date, if later.

Unrealized gains recognized on privately held equity securities includes upward adjustments from equity securities accounted for under the measurement alternative while unrealized losses recognized on privately held equity securities includes downward adjustments and impairment.

5 unchanged sentences

Under the equity method, the Company records its proportionate share of VFT’s earnings or losses.

The following table sets forth the carrying amounts of the equity method investment and the movements during fiscal year 2024 and the three months ended September 30, 2024 (in thousands):

The following table sets forth the carrying amounts of the equity method investment and the movements during fiscal year 2024 and the six months ended December 31, 2024 (in thousands):

Equity Method Investment

5 unchanged sentences

Effect of change in exchange rates ( 3,814 )

Balance as of September 30, 2024

Balance as of December 31, 2024

The carrying amount of the Company’s investment in VFT was reported within strategic investments in the condensed consolidated balance sheets.

1 unchanged sentence

The Company has derivative instruments that are used for hedging activities as discussed below.

The following table sets forth the notional amounts of the Company’s hedging derivative instruments as of September 30, 2024 (in thousands):

The following table sets forth the notional amounts of the Company’s hedging derivative instruments as of December 31, 2024 (in thousands):

Notional Amounts of Derivative Instruments

8 unchanged sentences

The fair value of the Company’s derivative instruments were as follows (in thousands):

Balance Sheet Location September 30, 2024 June 30, 2024

Balance Sheet Location December 31, 2024 June 30, 2024

Derivative assets

13 unchanged sentences

The pre-tax effects of derivatives designated as cash flow hedging instruments on the condensed consolidated financial statements were as follows (in thousands):

Three Months Ended September 30,

Beginning balance of accumulated gains in accumulated other comprehensive loss $ 41,424 $ 48,170

Gross unrealized gains (losses) recognized in other comprehensive loss 18,015 ( 8,070 )

Net losses (gains) reclassified from cash flow hedge in accumulated other comprehensive income into profit or loss:

Three Months Ended December 31, Six Months Ended December 31,

2024 2023 2024 2023

Beginning balance of accumulated gains in accumulated other comprehensive income (loss) $ 51,930 $ 35,583 $ 41,424 $ 48,170

Gross unrealized gains (losses) recognized in other comprehensive income (loss) ( 57,867 ) 17,413 ( 39,852 ) 9,343

Net losses (gains) reclassified from cash flow hedge in accumulated other comprehensive income (loss) into profit or loss:

Recognized in cost of revenues 32 533 ( 11 ) 976

3 unchanged sentences

Recognized in interest expense ( 6,865 ) ( 7,571 ) ( 14,020 ) ( 15,065 )

Ending balance of accumulated gains in accumulated other comprehensive income $ 51,930 $ 35,583

Ending balance of accumulated gains (losses) in accumulated other comprehensive income (loss) $ ( 15,267 ) $ 51,306 $ ( 15,267 ) $ 51,306

Property and Equipment

Property and equipment, net consisted of the following (in thousands):

September 30, 2024 June 30, 2024

December 31, 2024 June 30, 2024

Equipment $ 13,010 $ 11,200

5 unchanged sentences

Property and equipment, net $ 85,443 $ 86,315

Depreciation expense was $ 8.9 million and $ 6.9 million for the three months ended September 30, 2024 and 2023, respectively.

Depreciation expense was $ 9.3 million and $ 7.2 million for the three months ended December 31, 2024 and 2023, respectively and $ 18.2 million and $ 14.0 million for the six months ended December 31, 2024 and 2023, respectively .

Goodwill and Intangible Assets

5 unchanged sentences

Effect of change in exchange rates ( 269 )

Balance as of September 30, 2024 $ 1,293,071

During the three months ended September 30, 2024, the Company completed an acquisition to expand the Company’s product and service offerings.

Balance as of December 31, 2024 $ 1,292,187

During the first quarter of fiscal year 2025 the Company completed an acquisition to expand the Company’s product and service offerings.

The transaction was accounted for as a business combination and was not significant to the condensed consolidated financial statements.

On November 30, 2023, the Company acquired Loom, Inc.

The fair values assigned to assets acquired and liabilities assumed are preliminary based on management’s estimates and assumptions and may be subject to change as additional information is received.

There were no measurement period adjustments recorded during the three months ended September 30, 2024.

The fair values assigned to assets acquired and liabilities assumed have been finalized and there were no measurement period adjustments recorded during the six months ended December 31, 2024.

Intangible Assets

Intangible assets consisted of the following (in thousands):

September 30, 2024 June 30, 2024 Weighted-Average Remaining Useful Lives

December 31, 2024 June 30, 2024 Weighted-Average Remaining Useful Lives

Acquired developed technology $ 466,932 $ 469,752 6

4 unchanged sentences

Intangible assets, net $ 272,578 $ 299,057

Amortization expense for intangible assets was approximately $ 13.9 million and $ 8.2 million for the three months ended September 30, 2024 and 2023, respectively.

The following table presents the estimated future amortization expense related to intangible assets held as of September 30, 2024 (in thousands):

Amortization expense for intangible assets was approximately $ 13.9 million and $ 9.9 million for the three months ended December 31, 2024 and 2023, respectively and $ 27.8 million and $ 18.1 million for the six months ended December 31, 2024 and 2023, respectively.

The following table presents the estimated future amortization expense related to intangible assets held as of December 31, 2024 (in thousands):

Fiscal Years:

4 unchanged sentences

Accrued expenses and other current liabilities consist of the following (in thousands):

September 30, 2024 June 30, 2024

December 31, 2024 June 30, 2024

Accrued expenses $ 164,390 $ 149,046

2 unchanged sentences

Customer deposits 15,328 19,279

Derivative liabilities 37,310 1,694

Other payables 18,976 19,619

2 unchanged sentences

In August 2024, the Company’s principal U.S.

operating subsidiary, Atlassian US, Inc., entered into an amended and restated credit agreement (the "2024 Credit Agreement") which eliminated the term loan facility and provides for a $ 750 million senior unsecured revolving credit facility (the “2024 Credit Facility”).

operating subsidiary, Atlassian US, Inc., entered into an amended and restated credit agreement (the "2024 Credit Agreement") which eliminated a term loan facility and provides for a $ 750 million senior unsecured revolving credit facility (the “2024 Credit Facility”).

The 2024 Credit Agreement replaced the Company's prior credit agreement entered into in October 2020 (“2020 Credit Agreement”) which provided for a $ 1 billion senior unsecured delayed-draw term loan facility and a $ 500 million senior unsecured revolving credit facility.

6 unchanged sentences

The financial covenants include a maximum consolidated leverage ratio of 3.5 x, which increases to 4.5 x during the period of four fiscal quarters immediately following a material acquisition.

As of September 30, 2024, the Company was in compliance with all covenants associated with the 2024 Credit Facility.

As of December 31, 2024, the Company was in compliance with all covenants associated with the 2024 Credit Facility.

On May 15, 2024, the Company issued $ 500.0 million aggregate principal amount of 5.250 % senior notes due 2029 (the “2029 Notes”) and $ 500.0 million aggregate principal amount of 5.500 % senior notes due 2034 (the “2034 Notes,” and together with the 2029 Notes, the “Notes”).

5 unchanged sentences

The indenture governing the Notes also includes covenants (including certain limited covenants restricting the Company’s ability to incur certain liens and enter into certain sale and leaseback transactions), events of default, and other customary provisions.

As of September 30, 2024, the Company was in compliance with all covenants associated with the Notes.

As of December 31, 2024, the Company was in compliance with all covenants associated with the Notes.

The Company incurred debt discount and issuance costs of approximately $ 14.3 million in connection with the Notes offering, which were allocated on a pro rata basis to the 2029 Notes and 2034 Notes.

1 unchanged sentence

The proceeds from this offering, net of debt discounts and issuance costs, was $ 985.7 million.

The components of the Notes were as follows (in thousands):

Instrument Expected Remaining Term (years) Contractual Interest Rate Effective Interest Rate September 30, 2024 June 30, 2024

The components of the Notes were as follows (in thousands, except percentage data):

Instrument Expected Remaining Term (years) Contractual Interest Rate Effective Interest Rate December 31, 2024 June 30, 2024

2029 Notes 4.4 5.250 % 5.55 % $ 500,000 $ 500,000

2 unchanged sentences

Long-term debt $ 986,785 $ 985,911

The total estimated fair value of the Notes was $ 1.1 billion and $ 1.0 billion as of September 30, 2024 and June 30, 2024, respectively.

The estimated fair values of the Notes, which the Company deems Level 2 financial instruments, were determined based on quoted bid prices in an over-the-counter market on the last trading day of the reporting period.

The total estimated fair value of the Notes was approximately $ 1.0 billion as of December 31, 2024 and June 30, 2024.

The estimated fair value of the Notes, which the Company deems Level 2 financial instruments, was determined based on quoted bid prices in an over-the-counter market on the last trading day of the reporting period.

Commitments and Contingencies

Noncancellable Purchase Obligations

The Company has contractual commitments for services with third-parties related to its cloud services platform and other infrastructure services.

These commitments are non-cancellable and expire within one to four years .

During the three months ended September 30, 2024, there were no material changes outside the ordinary course of business to the Company’s non-cancelable purchase obligations disclosed in its Annual Report on Form 10-K for fiscal year 2024.

The Company has contractual commitments for services with third-parties related to its cloud services platform and other services.

These commitments are non-cancellable and expire within one to four years as disclosed in Note 12, “Commitments and Contingencie s” of its Annual Report on Form 10-K for fiscal year 2024.

During the three and six months ended December 31, 2024, the Company entered into additional non-cancelable purchase commitments of approximately $ 157.3 million which expire within two to three years .

Operating Leases

1 unchanged sentence

Supplemental information related to operating leases were as follows (in thousands):

Three Months Ended September 30,

Three Months Ended December 31, Six Months Ended December 31,

2024 2023 2024 2023

Operating lease costs

2 unchanged sentences

Legal Proceedings

On February 3, 2023, a putative securities class action (the “Putative Class Action”) was filed in the U.S.

District Court for the Northern District of California, captioned City of Hollywood Firefighters’ Pension Fund vs.

Atlassian Corporation , Case No.

3:23-cv-00519, naming the Company and certain of its officers as defendants.

The lawsuit was purportedly brought on behalf of purchasers of the Company’s securities between August 5, 2022 and November 3, 2022 (the “Class Period”).

The complaint alleged claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 promulgated thereunder, based on allegedly false and misleading statements about the Company’s business and prospects during the Class Period.

The lawsuit sought unspecified damages.

On January 22, 2024, the court granted the defendants’ motion to dismiss plaintiffs’ complaint with leave to amend.

Plaintiffs filed a second amended complaint on March 1, 2024 and the defendants filed a motion to dismiss on April 19, 2024.

On August 13, 2024, the court issued a ruling granting the defendants’ motion to dismiss plaintiffs’ second amended complaint.

Plaintiffs did not file a third amended complaint or an appeal.

In March, April and August 2023, three stockholder derivative lawsuits were filed in the U.S.

District Court for the District of Delaware against the members of the Company’s board of directors and certain of its officers, captioned Silva v.

Cannon-Brookes , Case No.

1:23-cv-00283;

Cannon-Brookes , Case No.

1:23-cv-00399;

and Azzawi v.

Cannon-Brookes , Case No.

1:23-cv-00884.

The Company is named as a nominal defendant.

These stockholder derivative lawsuits are based largely on the same allegations as the Putative Class Action, including allegations relating to the Company’s disclosures during the Class Period as well as, in certain instances, alleged insider trading.

The lawsuits purport to assert claims for, among other things, breach of fiduciary duty, corporate waste, unjust enrichment, and violations of Section 10(b) of the Exchange Act, and Rule 10b-5 promulgated thereunder.

The complaints seek unspecified damages and other relief purportedly on the Company’s behalf.

In May and August 2023, the Court consolidated the Silva, Keane, and Azzawi actions into In re Atlassian Corporation Stockholder Derivative Litigation , Case No.

1:23-cv-00283-GBW (the “Consolidated Action”), and stayed the Consolidated Action pending resolution of any motion(s) to dismiss in the Putative Class Action.

Following the dismissal of the Putative Class Action, the Consolidated Action was voluntarily dismissed without prejudice on October 18, 2024.

On September 6, 2023, a stockholder derivative lawsuit was filed in the U.S.

District Court for the Northern District of California against the members of the Company’s board of directors and certain of its officers, captioned Capistrano v.

Cannon-Brookes , Case No.

4:23-cv-04584 (the “Capistrano Action”).

The Company is named as a nominal defendant.

The complaint is based largely on the same allegations as the Putative Class Action and the Consolidated Action, including allegations relating to the Company’s disclosures during the Class Period as well as, in certain instances, alleged insider trading.

The lawsuits purport to assert claims for, among other things, breach of fiduciary duty, corporate waste, unjust enrichment, and violations of Section 10(b) of the Exchange Act, and Rule

10b-5 promulgated thereunder.

The complaints seek unspecified damages and other relief purportedly on the Company’s behalf.

On October 31, 2023, the Court stayed the Capistrano Action pending resolution of any motion(s) to dismiss in the Putative Class Action.

Following the dismissal of the Putative Class Action, the Capistrano Action was voluntarily dismissed without prejudice on October 17, 2024.

In addition to the matters discussed above, from time to time, the Company is party to litigation and other legal proceedings in the ordinary course of business.

While the Company does not believe the ultimate resolutions of these other pending legal matters not described above are likely to have a material adverse effect on the Company’s financial position, the results of any litigation or other legal proceedings are uncertain and as such the resolution of such legal proceedings, either individually or in the aggregate, could have a material adverse effect on its business, results of operations, financial condition or cash flows.

From time to time, the Company is party to litigation and other legal proceedings in the ordinary course of business.

While the Company does not believe the ultimate resolutions of these pending legal matters are likely to have a material adverse effect on the Company’s financial position, the results of any litigation or other legal proceedings are uncertain and as such the resolution of such legal proceedings, either individually or in the aggregate, could have a material adverse effect on its business, results of operations, financial condition or cash

The Company accrues for loss contingencies when it is both probable that it will incur the loss and when it can reasonably estimate the amount of the loss or range of loss.

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Unbilled portions of the remaining performance obligations are subject to future economic risks including bankruptcies, regulatory changes and other market factors.

As of September 30, 2024, approximately $ 2.3 billion of revenue is expected to be recognized from the transaction price allocated to remaining performance obligations.

As of December 31, 2024, approximately $ 2.7 billion of revenue is expected to be recognized from the transaction price allocated to remaining performance obligations.

The Company expects to recognize revenue on approximately 78 % of these remaining performance obligations over the next 12 months with the balance recognized thereafter.

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The Company’s revenues by geographic region based on end-users who purchased the Company’s products or services are as follows (in thousands):

Three Months Ended September 30,

Three Months Ended December 31, Six Months Ended December 31,

2024 2023 2024 2023

United States $ 537,396 $ 445,622 $ 1,043,623 $ 871,813

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Total revenues $ 1,286,463 $ 1,060,110 $ 2,474,244 $ 2,037,885

The Company’s revenues by deployment options are as follows (in thousands):

Three Months Ended December 31, Six Months Ended December 31,

2024 2023 2024 2023

Cloud $ 846,962 $ 653,210 $ 1,639,268 $ 1,257,857

Data Center 362,281 274,758 697,875 517,701

Server — 69,173 — 147,925

Marketplace and other 77,220 62,969 137,101 114,402

Total revenues $ 1,286,463 $ 1,060,110 $ 2,474,244 $ 2,037,885

The Company provides different deployment options for its product offerings.

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Premier support consists of subscription-based arrangements for a higher level of support across different deployment options, and revenues from this offering are included in Subscription revenues within the Company’s condensed consolidated statements of operations.

The revenues from Server offerings for the three months ended September 30, 2023 consisted of only revenue from maintenance services for the Company’s Server offerings as the Company was no longer selling perpetual licenses for its Server offerings.

The revenues from Server offerings for the three and six months ended December 31, 2023 consisted of only revenue from maintenance services for the Company’s Server offerings as the Company was no longer selling perpetual licenses for its Server offerings.

The Company generally ended maintenance for Server offerings in February 2024.

Revenue related to Server offerings is included in Other revenues within the Company’s condensed consolidated statements of operations.

The Company’s revenues by deployment options are as follows (in thousands):

Three Months Ended September 30,

Cloud $ 792,306 $ 604,647

Data Center 335,594 242,943

Server — 78,752

Marketplace and other 59,881 51,433

Total revenues $ 1,187,781 $ 977,775

Deferred Revenue

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The changes in the balances of deferred revenue are as follows (in thousands):

Three Months Ended September 30,

Three Months Ended December 31, Six Months Ended December 31,

2024 2023 2024 2023

Balance, beginning of period $ 2,012,820 $ 1,501,081 $ 2,114,736 $ 1,545,479

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Balance, end of period $ 2,196,245 $ 1,653,883 $ 2,196,245 $ 1,653,883

For the three months ended September 30, 2024 and 2023, approximately 61 % and 58 % of revenue recognized was from the deferred revenue balances at the beginning of each fiscal year, respectively.

For the three months ended December 31, 2024 and 2023, approximately 41 % and 38 % of revenue recognized was from the deferred revenue balances at the beginning of each fiscal year, respectively.

For the six months ended December 31, 2024 and 2023, approximately 51 % and 48 % of revenue recognized was from the deferred revenue balances at the beginning of each fiscal year, respectively.

Deferred Contract Acquisition Costs

The changes in the balances of deferred contract acquisition costs are as follows (in thousands):

Three Months Ended September 30,

Three Months Ended December 31, Six Months Ended December 31,

2024 2023 2024 2023

Balance, beginning of period $ 83,444 $ 54,530 $ 79,711 $ 53,604

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Stock-based Compensation

A summary of restricted stock unit (“RSU”) activity for the three months ended September 30, 2024 was as follows (in thousands except share and per share data):

A summary of restricted stock unit (“RSU”) activity for the six months ended December 31, 2024 was as follows (in thousands except share and per share data):

Number of Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value

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Forfeited or cancelled ( 1,150,693 ) 199.73 —

Balance as of September 30, 2024 20,230,688 $ 189.00 $ 3,212,836

As of September 30, 2024, total compensation cost not yet recognized in the condensed consolidated financial statements related to employee and director RSU awards was $ 2.9 billion.

During the three months ended September 30, 2024 and 2023, the Company did not grant any shares of restricted stock awards (“RSA”).

As of September 30, 2024 and June 30, 2024, there were 156,349 and 156,856 shares of RSA outstanding, respectively.

Balance as of December 31, 2024 18,996,415 $ 189.33 $ 4,623,347

As of December 31, 2024, total compensation cost not yet recognized in the condensed consolidated financial statements related to employee and director RSU awards was $ 2.7 billion.

During the six months ended December 31, 2024, the Company did not grant any shares of restricted stock awards (“RSA”).

During the six months ended December 31, 2023, the Company granted 301,751 shares of RSA.

As of December 31, 2024 and June 30, 2024, there were 104,202 and 156,856 shares of RSA outstanding, respectively.

These outstanding shares of RSA are subject to forfeiture or repurchase at the original exercise price during the repurchase period following employee termination, as applicable.

The total aggregate intrinsic value of outstanding shares of RSA were $ 24.8 million and $ 27.7 million as of September 30, 2024 and June 30, 2024, respectively.

The total aggregate intrinsic value of outstanding shares of RSA were $ 25.4 million and $ 27.7 million as of December 31, 2024 and June 30, 2024, respectively.

Share Repurchase Programs

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The 2024 Repurchase Program will commence following completion of the 2023 Repurchase Program.

The Repurchase Programs do not have a fixed expiration date, may be suspended or discontinued at any time, and do not obligate the Company to repurchase any specific dollar amount or to acquire any specific number of shares.

intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions.

The Company may repurchase shares of Class A Common Stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions.

The timing, manner, price, and amount of any repurchases will be determined by the Company at its discretion and will depend on a variety of factors, including business, economic and market conditions, prevailing stock prices, corporate and regulatory requirements, and other considerations.

During the three months ended September 30, 2024, the Company repurchased and subsequently retired 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 .

During the three and six months ended December 31, 2024, the Company repurchased and subsequently retired approximately 0.4 million and 1.5 million shares of its Class A Common Stock for approximately $ 68.4 million and $ 252.3 million at an average price per share of $ 185.95 and $ 168.30 , respectively.

All repurchases were made in open market transactions.

As of September 30, 2024, the Company was authorized to purchase a remaining $ 267.9 million and $ 1.5 billion of its Class A Common Stock under the 2023 Share Repurchase Program and 2024 Share Repurchase Program, respectively.

As of December 31, 2024, the Company was authorized to purchase a remaining $ 199.6 million and $ 1.5 billion of its Class A Common Stock under the 2023 Share Repurchase Program and 2024 Share Repurchase Program, respectively.

Net Loss Per Share

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The following tables present the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data):

Three Months Ended September 30,

Class A Class B Class A Class B

Three Months Ended December 31, Six Months Ended December 31,

2024 2023 2024 2023

Class A Class B Class A Class B Class A Class B Class A Class B

Net loss $ ( 23,725 ) $ ( 14,483 ) $ ( 50,806 ) $ ( 33,663 ) $ ( 100,188 ) $ ( 61,789 ) $ ( 69,685 ) $ ( 46,667 )

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The potential weighted average dilutive securities that were not included in the dilutive earnings per share calculation because the effect would be anti-dilutive are as follows (shares in thousands):

Three Months Ended September 30,

Three Months Ended December 31, Six Months Ended December 31,

2024 2023 2024 2023

Class A Common Stock restricted stock units 6,805 9,806 8,598 8,317

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Total 6,853 9,811 8,631 8,322

The Company computes its provision for income taxes by applying the estimated annual effective tax rate to year-to-date ordinary income and adjusts the provision for discrete tax items recorded in the period.

In each quarter, the Company updates the estimated annual effective tax rate and makes a year-to-date adjustment to the provision.

The Company computes its provision for (benefit from) income taxes by applying the estimated annual effective tax rate to year-to-date ordinary income and adjusts the provision for (benefit from) income taxes for discrete tax items recorded in the period.

In each quarter, the Company updates the estimated annual effective tax

rate and makes a year-to-date adjustment to the provision.

The estimated annual effective tax rate is subject to volatility due to several factors, including changes in the Company’s relative proportion of domestic and foreign earnings, current cash taxes in jurisdictions with valuation allowances, material discrete tax items, or a combination of these factors as a result of certain transactions or events.

The Company reported an income tax provision of $ 93.6 million for the three months ended September 30, 2024, as compared to an income tax provision of $ 20.9 million for the three months ended September 30, 2023.

The income tax provision for the three months ended September 30, 2024 was primarily attributable to the mix of earning and losses at various jurisdictions, non-deductible stock-based compensation in certain foreign jurisdictions, and valuation allowances in the U.S.

The Company reported an income tax benefit of $ 9.0 million and an income tax provision of $ 84.6 million for the three and six months ended December 31, 2024, respectively, as compared to an income tax provision of $ 44.4 million and $ 65.3 million for the three and six months ended December 31, 2023, respectively.

The income tax benefit for the three months ended December 31, 2024 was primarily attributable to the mix of earning and losses at various jurisdictions.

The income tax provision for the six months ended December 31, 2024 was primarily attributable to the mix of earning and losses at various jurisdictions, non-deductible stock-based compensation in certain foreign jurisdictions, and valuation allowances in the U.S.

and Australia, offset by research and development tax credits and incentives.

The income tax provision for the three months ended September 30, 2023 was primarily attributable to the mix of earnings and losses at various jurisdictions, non-deductible stock-based compensation in certain foreign jurisdictions, the recognition of reserves for uncertain tax positions, and valuation allowances in the U.S.

The income tax provision for the three and six months ended December 31, 2023 was primarily attributable to the mix of earnings and losses at various jurisdictions, non-deductible stock-based compensation in certain foreign jurisdictions, the recognition of reserves for uncertain tax positions, and valuation allowances in the U.S.

and Australia, offset by research and development tax credits and incentives.

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In making that assessment, the Company considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized.

Based on available evidence as of September 30, 2024, the Company will continue to maintain a valuation allowance against U.S.

Based on available evidence as of December 31, 2024, the Company will continue to maintain a valuation allowance against U.S.

federal, U.S.

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements