What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-05-02 compared with 2025-01-31 · 116 added, 106 removed, 550 unchanged (29% of the section changed)

3 unchanged sentences

(in thousands, except par value and share data)

December 31, 2024 June 30, 2024

March 31, 2025 June 30, 2024

Current assets:

30 unchanged sentences

Class A Common Stock, $ 0.00001 par value;

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

750,000,000 shares authorized, 165,150,665 and 159,544,123 issued and outstanding at March 31, 2025 and June 30, 2024, respectively

Class B Common Stock, 0.00001 par value;

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

230,000,000 shares authorized, 98,008,049 and 101,012,393 issued and outstanding at March 31, 2025 and June 30, 2024, respectively

Additional paid-in capital 5,223,786 4,212,064

7 unchanged sentences

(in thousands, except per share data)

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

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

13 unchanged sentences

Total operating expenses 1,149,497 957,899 3,272,447 2,691,150

Operating loss ( 57,479 ) ( 49,062 ) ( 89,457 ) ( 67,931 )

Operating income (loss) ( 12,456 ) 17,804 ( 101,913 ) ( 50,127 )

Other expense, net ( 14,861 ) ( 10,990 ) ( 42,292 ) ( 23,964 )

1 unchanged sentence

Interest expense ( 7,804 ) ( 8,453 ) ( 22,413 ) ( 26,430 )

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 )

Net loss per share attributable to Class A and Class B common stockholders:

Income (loss) before income taxes ( 7,354 ) 19,775 ( 84,701 ) ( 31,288 )

Provision for income taxes ( 63,453 ) ( 7,023 ) ( 148,083 ) ( 72,312 )

Net income (loss) $ ( 70,807 ) $ 12,752 $ ( 232,784 ) $ ( 103,600 )

Net income (loss) per share attributable to Class A and Class B common stockholders:

Basic $ ( 0.27 ) $ 0.05 $ ( 0.89 ) $ ( 0.40 )

Diluted $ ( 0.27 ) $ 0.05 $ ( 0.89 ) $ ( 0.40 )

Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders:

Weighted-average shares used in computing net income (loss) per share attributable to Class A and Class B common stockholders:

Basic 262,671 259,717 261,423 258,738

13 unchanged sentences

(in thousands)

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

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

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

Net income (loss) $ ( 70,807 ) $ 12,752 $ ( 232,784 ) $ ( 103,600 )

Other comprehensive income (loss), net of reclassification adjustments:

10 unchanged sentences

(in thousands)

Three Months Ended December 31, 2024

Three Months Ended March 31, 2025

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

1 unchanged sentence

Shares Amount Shares Amount

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

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

Common stock issued 1,722 — — — — — — —

4 unchanged sentences

Net loss — — — — — — ( 70,807 ) ( 70,807 )

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

Balance at March 31, 2025 165,060 $ 2 98,008 $ 1 $ 5,223,786 $ ( 26,355 ) $ ( 3,828,512 ) $ 1,368,922

Three Months Ended March 31, 2024

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

1 unchanged sentence

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

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

Common stock issued 1,296 — — — 1 — — 1

3 unchanged sentences

Other comprehensive income (loss), net of tax — — — — — ( 24,897 ) — ( 24,897 )

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

Net income — — — — — — 12,752 12,752

Balance at March 31, 2024 159,182 $ 2 101,012 $ 1 $ 3,938,577 $ 13,767 $ ( 2,818,176 ) $ 1,134,171

ATLASSIAN CORPORATION

1 unchanged sentence

(in thousands)

Six Months Ended December 31, 2024

Nine Months Ended March 31, 2025

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

8 unchanged sentences

Net loss — — — — — — ( 232,784 ) ( 232,784 )

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

Balance at March 31, 2025 165,060 $ 2 98,008 $ 1 $ 5,223,786 $ ( 26,355 ) $ ( 3,828,512 ) $ 1,368,922

Nine Months Ended March 31, 2024

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

8 unchanged sentences

Net loss — — — — — — ( 103,600 ) ( 103,600 )

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

Balance at March 31, 2024 159,182 $ 2 101,012 $ 1 $ 3,938,577 $ 13,767 $ ( 2,818,176 ) $ 1,134,171

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

2 unchanged sentences

(in thousands)

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

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

Cash flows from operating activities:

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

Adjustments to reconcile net loss to net cash provided by operating activities:

Net income (loss) $ ( 70,807 ) $ 12,752 $ ( 232,784 ) $ ( 103,600 )

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

Depreciation and amortization 23,178 23,464 69,154 55,560

16 unchanged sentences

Purchases of strategic investments ( 1,100 ) ( 4,250 ) ( 26,650 ) ( 8,250 )

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

Purchases of marketable securities ( 116,716 ) ( 74,544 ) ( 277,039 ) ( 213,690 )

Proceeds from maturities of marketable securities 53,584 63,000 125,212 79,150

23 unchanged sentences

Atlassian Corporation (the “Company”) is a global technology company with a mission to unleash the potential of every team.

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.

Through a portfolio of interconnected products with discrete value propositions that are powered by 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.

6 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 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.

The accompanying condensed consolidated financial statements contain all normal recurring adjustments which are necessary to fairly present the condensed consolidated balance sheets as of March 31, 2025 and June 30, 2024, the statements of operations, comprehensive income (loss), stockholders’ equity, and cash flows for the three and nine months ended March 31, 2025 and 2024.

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 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.

As of March 31, 2025 and June 30, 2024, no customer represented more than 10% of the total accounts receivable balance.

For the three and nine months ended March 31, 2025 and 2024, no customer represented more than 10% of total revenues.

New Accounting Standards Not Yet Adopted in Fiscal Year 2025

24 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 December 31, 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 March 31, 2025, by level within the fair value hierarchy (in thousands):

Level 1 Level 2 Total

2 unchanged sentences

Money market funds $ 1,983,133 $ — $ 1,983,133

Commercial paper — 992 992

Corporate debt securities — 2,483 2,483

treasury securities — 9,975 9,975

Marketable securities:

33 unchanged sentences

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 $ 166.9 million and $ 148.7 million as of December 31, 2024 and June 30, 2024, respectively.

The Company’s privately held debt and equity securities amounted to $ 166.5 million and $ 148.7 million as of March 31, 2025 and June 30, 2024, respectively.

Marketable Securities

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

The Company’s investments of marketable securities as of March 31, 2025, consisted of the following (in thousands):

Amortized Cost Unrealized Gains Unrealized Losses Fair Value

13 unchanged sentences

Total marketable securities $ 162,160 $ 42 $ ( 229 ) $ 161,973

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

December 31, 2024 June 30, 2024

The table below summarizes the Company’s marketable securities by remaining contractual maturity (in thousands):

March 31, 2025 June 30, 2024

Due in one year or less $ 149,532 $ 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 December 31, 2024, and June 30, 2024, unrealized losses and the related risk of expected credit losses were not material.

As of March 31, 2025, 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 December 31, 2024, consisted of the following (in thousands):

The Company’s investments of privately held debt securities as of March 31, 2025, 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 December 31, 2024 are summarized below (in thousands):

The carrying values for privately held equity securities as of March 31, 2025 are summarized below (in thousands):

Privately held equity securities

2 unchanged sentences

Carrying value $ 162,494

Privately held equity securities’ cumulative net losses are comprised of downward adjustments and impairment charges of $ 8.5 million and upward adjustments of $ 5.0 million as of March 31, 2025.

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

3 unchanged sentences

Carrying value $ 145,261

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.

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 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 December 31, Six Months Ended December 31,

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

Unrealized gains recognized on privately held equity securities — 940 — 940

Unrealized losses recognized on privately held equity securities including impairment $ ( 967 ) $ — $ ( 967 ) $ ( 1,442 )

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

Unrealized losses on privately held debt securities — ( 500 ) — ( 500 )

Unrealized gains (losses), net $ ( 967 ) $ 440 $ ( 967 ) $ ( 1,002 )

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

Realized losses recognized on privately held equity securities ( 500 ) — ( 3,145 ) —

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 )

Gains (losses) on strategic investments, net $ ( 1,467 ) $ 440 $ ( 4,112 ) $ ( 487 )

Unrealized gains (losses) recognized during the reporting period on privately held equity securities still held at the reporting date $ ( 967 ) $ 940 $ ( 967 ) $ ( 502 )

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.

6 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 six months ended December 31, 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 nine months ended March 31, 2025 (in thousands):

Equity Method Investment

5 unchanged sentences

Effect of change in exchange rates ( 3,266 )

Balance as of December 31, 2024

Balance as of March 31, 2025

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 December 31, 2024 (in thousands):

The following table sets forth the notional amounts of the Company’s hedging derivative instruments as of March 31, 2025 (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 December 31, 2024 June 30, 2024

Balance Sheet Location March 31, 2025 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 December 31, Six Months Ended December 31,

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

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

Beginning balance of accumulated gains (losses) in accumulated other comprehensive income (loss) $ ( 15,267 ) $ 51,306 $ 41,424 $ 48,170

Gross unrealized gains (losses) recognized in other comprehensive income (loss) 5,676 ( 12,979 ) ( 34,176 ) ( 3,636 )

8 unchanged sentences

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

December 31, 2024 June 30, 2024

March 31, 2025 June 30, 2024

Equipment $ 13,306 $ 11,200

5 unchanged sentences

Property and equipment, net $ 93,003 $ 86,315

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 .

Depreciation expense was $ 9.3 million and $ 7.3 million for the three months ended March 31, 2025 and 2024, respectively and $ 27.5 million and $ 21.3 million for the nine months ended March 31, 2025 and 2024, respectively .

Goodwill and Intangible Assets

5 unchanged sentences

Effect of change in exchange rates 486

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

Balance as of March 31, 2025 $ 1,292,942

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

1 unchanged sentence

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

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.

The fair values assigned to assets acquired and liabilities assumed have been finalized and there were no measurement period adjustments recorded during the nine months ended March 31, 2025.

Intangible Assets

Intangible assets consisted of the following (in thousands):

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

March 31, 2025 June 30, 2024 Weighted-Average Remaining Useful Lives

Acquired developed technology $ 466,932 $ 469,752 5

4 unchanged sentences

Intangible assets, net $ 258,682 $ 299,057

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):

Amortization expense for intangible assets was approximately $ 13.9 million and $ 16.2 million for the three months ended March 31, 2025 and 2024, respectively and $ 41.7 million and $ 34.3 million for the nine months ended March 31, 2025 and 2024, respectively.

The following table presents the estimated future amortization expense related to intangible assets held as of March 31, 2025 (in thousands):

Fiscal Years:

4 unchanged sentences

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

December 31, 2024 June 30, 2024

March 31, 2025 June 30, 2024

Accrued expenses $ 194,581 $ 149,046

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

As of March 31, 2025, 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 December 31, 2024, the Company was in compliance with all covenants associated with the Notes.

As of March 31, 2025, 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.

2 unchanged sentences

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

Instrument Expected Remaining Term (years) Contractual Interest Rate Effective Interest Rate March 31, 2025 June 30, 2024

2029 Notes 4.1 5.250 % 5.55 % $ 500,000 $ 500,000

2 unchanged sentences

Long-term debt $ 987,232 $ 985,911

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

The total estimated fair value of the Notes was approximately $ 1.0 billion as of March 31, 2025 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.

3 unchanged sentences

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 .

During the nine months ended March 31, 2025, 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 December 31, Six Months Ended December 31,

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

4 unchanged sentences

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.

8 unchanged sentences

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

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.

As of March 31, 2025, approximately $ 2.9 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.

1 unchanged sentence

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 December 31, Six Months Ended December 31,

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

8 unchanged sentences

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

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

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

9 unchanged sentences

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 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 revenues from Server offerings for the three and nine months ended March 31, 2024 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.

3 unchanged sentences

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

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

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

3 unchanged sentences

Balance, end of period $ 2,368,203 $ 1,955,565 $ 2,368,203 $ 1,955,565

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.

For the three months ended March 31, 2025 and 2024, approximately 25 % and 21 % of revenue recognized was from the deferred revenue balances at the beginning of each fiscal year, respectively.

For the nine months ended March 31, 2025 and 2024, approximately 42 % and 38 % 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 December 31, Six Months Ended December 31,

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

11 unchanged sentences

Stock-based Compensation

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):

A summary of restricted stock unit (“RSU”) activity for the nine months ended March 31, 2025 was as follows (in thousands except share and per share data):

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

3 unchanged sentences

Forfeited or cancelled ( 1,700,378 ) 198.30 —

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.

Balance as of March 31, 2025 17,689,910 $ 191.87 $ 3,753,976

As of March 31, 2025, total compensation cost not yet recognized in the condensed consolidated financial statements related to employee and director RSU awards was $ 2.6 billion.

During the nine months ended March 31, 2025, the Company did not grant any shares of restricted stock awards (“RSA”).

During the nine months ended March 31, 2024, the Company granted 301,751 shares of RSA.

As of March 31, 2025 and June 30, 2024, there were 91,178 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 $ 25.4 million and $ 27.7 million as of December 31, 2024 and June 30, 2024, respectively.

The total aggregate intrinsic value of outstanding shares of RSA were $ 19.3 million and $ 27.7 million as of March 31, 2025 and June 30, 2024, respectively.

Share Repurchase Programs

2 unchanged sentences

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

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 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.

During the three and nine months ended March 31, 2025, the Company repurchased and subsequently retired approximately 0.6 million and 2.1 million shares of its Class A Common Stock for approximately $ 138.9 million and $ 391.2 million at an average price per share of $ 228.05 and $ 185.57 , respectively.

All repurchases were made in open market transactions.

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

The Company computes net loss per share of Class A and Class B Common Stock using the two-class method.

As the liquidation and dividend rights for both Class A and Class B Common Stock are identical, the net loss is allocated on a proportionate basis to the weighted-average number of shares of common stock outstanding for the period.

Basic net loss per share attributable to Class A and Class B stockholders is computed by dividing the net loss by the weighted-average number of Class A and Class B Common Stock outstanding during the period.

For the calculation of diluted net loss per share, net loss for basic earnings per share is adjusted by the effect of dilutive securities, including awards under the Company’s equity compensation plans.

As of March 31, 2025, the Company was authorized to purchase a remaining $ 60.7 million and $ 1.5 billion of its Class A Common Stock under the 2023 Share Repurchase Program and 2024 Share Repurchase Program, respectively.

Net Income (Loss) Per Share

The Company computes net income (loss) per share of Class A and Class B Common Stock using the two-class method.

As the liquidation and dividend rights for both Class A and Class B Common Stock are identical, the net income (loss) is allocated on a proportionate basis to the weighted-average number of shares of common stock outstanding for the period.

Basic net income (loss) per share attributable to Class A and Class B stockholders is computed by dividing the net income (loss) by the weighted-average number of Class A and Class B Common Stock outstanding during the period.

For the calculation of diluted net income per share, basic earnings per share is adjusted by the effect of dilutive securities, including awards under the Company’s equity compensation plans.

The dilutive potential shares of common stock are computed using the treasury stock method or the as-if converted method, as applicable.

Since the Company is in a loss position for all periods reported, basic and diluted net loss per share are the same for all periods as the inclusion of potential dilutive shares would have been anti-dilutive.

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 December 31, Six Months Ended December 31,

For the report periods that the Company is in a loss position, basic net loss per share are the same as diluted net loss per share as the inclusion of potential dilutive shares would have been anti-dilutive.

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

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 )

Weighted-average shares outstanding, basic and diluted 162,158 98,989 155,543 103,058 161,321 99,491 154,672 103,582

Net loss per share, basic and diluted $ ( 0.15 ) $ ( 0.15 ) $ ( 0.33 ) $ ( 0.33 ) $ ( 0.62 ) $ ( 0.62 ) $ ( 0.45 ) $ ( 0.45 )

Net income (loss) per share, basic:

Net income (loss) $ ( 44,384 ) $ ( 26,423 ) $ 7,743 $ 5,009 $ ( 144,622 ) $ ( 88,162 ) $ ( 62,334 ) $ ( 41,266 )

Weighted-average shares outstanding 164,652 98,019 157,710 102,007 162,415 99,008 155,676 103,062

Net income (loss) per share, basic $ ( 0.27 ) $ ( 0.27 ) $ 0.05 $ 0.05 $ ( 0.89 ) $ ( 0.89 ) $ ( 0.40 ) $ ( 0.40 )

Net income (loss) per share, diluted

Net income (loss) $ ( 44,384 ) $ ( 26,423 ) $ 7,743 $ 5,009 $ ( 144,622 ) $ ( 88,162 ) $ ( 62,334 ) $ ( 41,266 )

Reallocation of undistributed earnings as a result of conversion of shares of Class B Common Stock to Class A Common Stock — 5,009 — — — — —

Reallocation of undistributed earnings — — — ( 40 ) — — — —

Net income (loss) for net income (loss) per share, diluted $ ( 44,384 ) $ ( 26,423 ) $ 12,752 $ 4,969 $ ( 144,622 ) $ ( 88,162 ) $ ( 62,334 ) $ ( 41,266 )

Weighted-average shares used in computing net income (loss) per share, basic 164,652 98,019 157,710 102,007 162,415 99,008 155,676 103,062

Conversion of shares of Class B Common Stock to Class A Common Stock outstanding — 102,007 — — — — —

RSA — — 300 — — — — —

Dilution from dilutive securities — — 1,761 — — — — —

Weighted-average shares used in computation net income (loss) per share, diluted 164,652 98,019 261,778 102,007 162,415 99,008 155,676 103,062

Net income (loss) per share, diluted $ ( 0.27 ) $ ( 0.27 ) $ 0.05 $ 0.05 $ ( 0.89 ) $ ( 0.89 ) $ ( 0.40 ) $ ( 0.40 )

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 December 31, Six Months Ended December 31,

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

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Total 6,554 4,285 7,939 7,563

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 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 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 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.

The Company reported an income tax provision of $ 63.5 million and $ 148.1 million for the three and nine months ended March 31, 2025, respectively, as compared to an income tax provision of $ 7.0 million and $ 72.3 million for the three and nine months ended March 31, 2024, respectively.

The income tax provision for the three and nine months ended March 31, 2025 was primarily attributable to the mix of earnings 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 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.

The income tax provision for the three and nine months ended March 31, 2024 was primarily attributable to the mix of earnings 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.

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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 December 31, 2024, the Company will continue to maintain a valuation allowance against U.S.

Based on available evidence as of March 31, 2025, 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