12 unchanged sentences
The Atlassian System of Work is our philosophy of how technology-driven organizations should work, connecting technology and business teams to accelerate progress and maximize team impact.
−Removed: Through a connected portfolio of products with discrete value propositions that are built on the Atlassian platform and data model, the Atlassian System of Work helps customers of any size align work to goals, plan and track work, and unleash their organization's collective knowledge.
+Added: Through a portfolio of interconnected products with discrete value propositions that are powered by the Atlassian platform and data model, the Atlassian System of Work helps customers of any size align work to goals, plan and track work, and unleash their organization's collective knowledge.
Our primary products include Jira for planning and project management, Confluence for content creation and sharing, and Jira Service Management for team service, management and support applications.
−Removed: Together, our connected portfolio of products form integrated solutions and, when deployed in the cloud, provide customers all the benefits of analytics, automation, and AI, along with integrations with thousands of third-party apps as a solution that is deeply entrenched in how teams collaborate and how organizations run.
+Added: Together, our connected portfolio of products form integrated solutions and, when deployed in the cloud, provide customers all the benefits of analytics, automation, and AI apps and agents with Rovo, along with integrations with thousands of third-party apps as a solution that is deeply entrenched in how teams collaborate and how organizations run.
The Atlassian platform is the common technology foundation for our products that drives connection between teams, information, and workflows.
5 unchanged sentences
To land new customers, we’ve engineered a low-friction flywheel with an emphasis on self-service, making it easy to try and get value first and foremost.
−Removed: This allows us to operate at an unusual scale for an enterprise software company, with customers across virtually every industry sector in approximately 200 countries and territories as of December 31, 2024.
+Added: This allows us to operate at an unusual scale for an enterprise software company, with customers across virtually every industry sector in approximately 200 countries and territories as of March 31, 2025.
Our customers range from small organizations that have adopted one of our products for a small group of users, to over eighty percent of the Fortune 500, many of which use a combination of our products across thousands of users.
1 unchanged sentence
Our high-velocity, low-friction distribution model is designed to drive exceptional customer scale by making products that are free to try and affordable to purchase online.
−Removed: We prioritize product quality, automated distribution, transparent pricing, and customer service to land new customers and expand to new teams.
+Added: W e prioritize product quality, automated distribution, transparent pricing, and customer service to land new customers and expand to new teams.
We also have a sales team focused primarily on expanding and deepening strategic relationships with existing customers, particularly large enterprises.
10 unchanged sentences
Subscription revenues also include subscription-based agreements for our premier support services.
−Removed: From time to time, we make changes to our product offerings, prices, and pricing plans for our products which may impact the growth rate of our revenue, our deferred revenue balances, and customer retention.
+Added: From time to time, we make changes to our product offerings, prices, and pricing plans for our products w hich may impact the growth rate of our revenue, our deferred revenue balances, and customer retention.
Subscription revenue, through our Cloud and Data Center offerings, results in a large recurring revenue base.
2 unchanged sentences
Our business depends on demand for business software applications generally and for collaboration software solutions in particular.
−Removed: We are subject to risks and exposures from the evolving macroeconomic environment, inflationary pressures, interest rate policy, political instability, and geopolitical tensions.
+Added: We are subject to risks and exposures from the evolving macroeconomic environment, inflationary pressures, interest rate policy, changes in trade policies, political instability, and geopolitical tensions.
We monitor the direct and indirect impacts of these circumstances on our business and financial results.
16 unchanged sentences
While a single customer may have distinct departments, operating segments, or subsidiaries with multiple active licenses or subscriptions of our products, if the product deployments share a unique domain name, we only include the customer once for purposes of calculating a customer.
−Removed: As of December 31, 2024, we had more than 300,000 customers.
+Added: As of March 31, 2025, we had more than 300,000 customers.
If we include single user accounts and organizations who have only adopted our free or starter products, the active use of our products extends well beyond our total customer base.
2 unchanged sentences
The following table sets forth our number of customers with greater than $10,000 in Cloud ARR as of the dates presented:
−Removed: December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024
+Added: March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025
Number of customers with greater than $10,000 in Cloud ARR 44,336 45,842 46,844 49,449 50,715
−Removed: * Includes an increase of 326 customers as a result of our acquisition of Loom.
Free Cash Flow
4 unchanged sentences
The following table presents a reconciliation of net cash provided by operating activities to free cash flow for the periods presented (in thousands):
−Removed: Three Months Ended December 31, Six Months Ended December 31,
+Added: Three Months Ended March 31, Nine Months Ended March 31,
2025 2024 2025 2024
2 unchanged sentences
Free cash flow $ 638,315 $ 554,870 $ 1,055,225 $ 1,002,418
−Removed: Free cash flow increased by $58.3 million during the three months ended December 31, 2024 as compared to the three months ended December 31, 2023.
−Removed: The increase in free cash flow was primarily attributable to an increase in net cash provided by operating activities.
−Removed: The increase in net cash provided by operating activities was primarily attributable to an increase in cash received from customers, partially offset by an increase in cash paid to employees.
−Removed: Free cash flow decreased by $30.6 million during the six months ended December 31, 2024 as compared to the six months ended December 31, 2023.
−Removed: The decrease in free cash flow was primarily attributable to a decrease in net cash provided by operating activities.
−Removed: The decrease in net cash provided by operating activities was primarily attributable to an increase in cash paid to employees and vendors, partially offset by an increase in cash received from customers.
+Added: Free cash flow increased by $83.4 million and $52.8 million during the three months and nine months ended March 31, 2025 as compared to the three months and nine months ended March 31, 2024, respectively.
+Added: In both periods the increase in free cash flow was primarily attributable to an increase in net cash provided by operating activities.
+Added: The increase in net cash provided by operating activities was primarily attributable to an increase in cash received from customers, a decrease in cash paid for income taxes, partially offset by an increase in cash paid to employees and vendors.
For more information about net cash provided by operating activities, please see “Liquidity and Capital Resources.”
44 unchanged sentences
General and administrative expenses consist primarily of compensation expenses for our employees, including stock-based compensation, for finance, legal, human resources and information technology personnel, facilities and related overhead costs, consulting and contractor costs, certain IT program expenses, and other corporate expenses.
−Removed: Provision for (benefit from) income taxes consists primarily of income taxes related to federal, state, and foreign jurisdictions where we conduct business.
+Added: Provision for income taxes consists primarily of income taxes related to federal, state, and foreign jurisdictions where we conduct business.
Critical Accounting Estimates
5 unchanged sentences
Actual results may differ from these estimates under different assumptions or conditions and such differences could be material.
−Removed: There have been no significant changes to our critical accounting policies and estimates during the three and six months ended December 31, 2024, as compared to the critical accounting estimates disclosed in Management’s Discussion and Analysis of Financial Results of Operations included in our Annual Report on Form 10-K for fiscal year 2024.
+Added: There have been no significant changes to our critical accounting policies and estimates during the three and nine months ended March 31, 2025, as compared to the critical accounting estimates disclosed in Management’s Discussion and Analysis of Financial Results of Operations included in our Annual Report on Form 10-K for fiscal year 2024.
New Accounting Pronouncements Pending Adoption
2 unchanged sentences
The following table sets forth our results of operations for the periods indicated (in thousands, except for percentages of total revenues):
−Removed: Three Months Ended December 31, Six Months Ended December 31,
+Added: Three Months Ended March 31, Nine Months Ended March 31,
2025 % of Total Revenues 2024 % of Total Revenues 2025 % of Total Revenues 2024 % of Total Revenues
9 unchanged sentences
Total operating expenses 1,149,497 85 957,899 81 3,272,447 85 2,691,150 83
−Removed: Operating loss (57,479) (4) (49,062) (5) (89,457) (4) (67,931) (3)
+Added: Operating income (loss) (12,456) (1) 17,804 1 (101,913) (2) (50,127) (1)
Other expense, net (14,861) (1) (10,990) (1) (42,292) (1) (23,964) (1)
1 unchanged sentence
Interest expense (7,804) (1) (8,453) — (22,413) (1) (26,430) (1)
−Removed: Loss before income taxes (47,183) (4) (40,109) (4) (77,347) (4) (51,063) (3)
−Removed: Provision for (benefit from) income taxes (8,975) (1) 44,360 4 84,630 3 65,289 3
−Removed: Net loss $ (38,208) (3) % $ (84,469) (8) % $ (161,977) (7) % $ (116,352) (6) %
−Removed: Three Months Ended December 31, 2024 and 2023
−Removed: Three Months Ended December 31,
+Added: Income (loss) before income taxes (7,354) (1) 19,775 2 (84,701) (2) (31,288) (1)
+Added: Provision for income taxes (63,453) (4) (7,023) (1) (148,083) (4) (72,312) (2)
+Added: Net income (loss) $ (70,807) (5) % $ 12,752 1 % $ (232,784) (6) % $ (103,600) (3) %
+Added: Three Months Ended March 31, 2025 and 2024
+Added: Three Months Ended March 31,
(in thousands, except percentage data) 2025 2024 $ Change % Change
2 unchanged sentences
Total revenues $ 1,356,716 $ 1,189,128 $ 167,588 14 %
−Removed: Total revenues increased $226.4 million, or 21%, in the three months ended December 31, 2024 compared to the three months ended December 31, 2023.
+Added: Total revenues increased $167.6 million, or 14%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024.
Growth in total revenues was primarily attributable to increased demand for our products from existing customers.
−Removed: Of total revenues recognized in the three months ended December 31, 2024, over 90% were attributable to sales to customer accounts existing on or before September 30, 2024.
−Removed: Subscription revenues increased $281.1 million, or 30%, in the three months ended December 31, 2024 compared to the three months ended December 31, 2023.
−Removed: The increase in subscription revenues was primarily attributable to paid seat expansion from our existing customers, price increases, and migrations.
−Removed: Other revenues decreased $54.7 million, or 43%, in the three months ended December 31, 2024 compared to the three months ended December 31, 2023.
+Added: Of total revenues recognized in the three months ended March 31, 2025, over 90% were attributable to sales to customer accounts existing on or before December 31, 2024.
+Added: Subscription revenues increased $201.5 million, or 19%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024.
+Added: The increase in subscription revenues was primarily attributable to paid seat expansion from our existing customers and price increases.
+Added: Other revenues decreased $33.9 million, or 29%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024.
The decrease in other revenues was primarily attributable to a decrease of $27.8 million in maintenance revenue due to the end of support for our Server offerings.
Total revenues by deployment options were as follows:
−Removed: Three Months Ended December 31,
+Added: Three Months Ended March 31,
(in thousands, except percentage data) 2025 2024 $ Change % Change
5 unchanged sentences
Total revenues by geography were as follows:
−Removed: Three Months Ended December 31,
+Added: Three Months Ended March 31,
(in thousands, except percentage data) 2025 2024 $ Change % Change
4 unchanged sentences
Cost of Revenues
−Removed: Three Months Ended December 31,
+Added: Three Months Ended March 31,
(in thousands, except percentage data) 2025 2024 $ Change % Change
1 unchanged sentence
Gross margin 84 % 82 %
−Removed: Cost of revenues increased $28.6 million, or 15%, in the three months ended December 31, 2024 compared to the three months ended December 31, 2023.
−Removed: The overall increase was primarily attributable to an increase of $11.1 million in hosting fees paid to third-party providers, an increase of $7.4 million in compensation expense for employees (which includes an increase of $3.8 million in stock-based compensation), an increase of $4.0 million in software subscription costs and an increase of $3.1 million in amortization from acquired intangible assets.
+Added: Cost of revenues increased $6.3 million, or 3%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024.
+Added: The overall increase was primarily attributable to an increase of $6.0 million in compensation expense for employees (which includes an increase of $3.1 million in stock-based compensation).
Operating Expenses
Research and Development
−Removed: Three Months Ended December 31,
+Added: Three Months Ended March 31,
(in thousands, except percentage data) 2025 2024 $ Change % Change
Research and development $ 685,320 $ 576,490 $ 108,830 19 %
−Removed: Research and development expenses increased $143.4 million, or 27%, in the three months ended December 31, 2024 compared to the three months ended December 31, 2023.
+Added: Research and development expenses increased $108.8 million, or 19%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024.
The overall increase was primarily attributable to an increase of $112.8 million in compensation expenses for employees (which includes an increase of $50.5 million in stock-based compensation ).
Marketing and Sales
−Removed: Three Months Ended December 31,
+Added: Three Months Ended March 31,
(in thousands, except percentage data) 2025 2024 $ Change % Change
Marketing and sales $ 295,832 223,814 $ 72,018 32 %
−Removed: Marketing and sales expenses increased $51.4 million , or 23%, for the three months ended December 31, 2024 compared to the three months ended December 31, 2023 .
+Added: Marketing and sales expenses increased $72.0 million , or 32%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 .
The overall increase was primarily attributable to an increase of $45.4 million in compensation expenses for employees (which includes an increase of $9.7 million in stock-based compensation) , and an increase of $24.4 million in advertising and marketing event expenses.
General and Administrative
−Removed: Three Months Ended December 31,
+Added: Three Months Ended March 31,
(in thousands, except percentage data) 2025 2024 $ Change % Change
General and administrative $ 168,345 157,595 $ 10,750 7 %
−Removed: General and administrative expenses increased $11.4 million, or 7%, in the three months ended December 31, 2024 compared to the three months ended December 31, 2023 .
+Added: General and administrative expenses increased $10.8 million, or 7%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024 .
The overall increase was primarily attributable to an increase of $8.4 million in compensation expense for employees (which includes an increase of $1.0 million in stock-based compensation).
Other Expense, net
−Removed: Three Months Ended December 31,
+Added: Three Months Ended March 31,
(in thousands, except percentage data) 2025 2024 $ Change % Change
Other expense, net $ (14,861) $ (10,990) $ (3,871) 35 %
−Removed: Other expense, net increased $3.4 million, or 72%, in the three months ended December 31, 2024, compared to the three months ended December 31, 2023.
−Removed: The increase in other expense was primarily attributable to an increase of $2.0 million in contributions to the Atlassian Foundation, and an increase of $1.2 million in net loss related to strategic investments.
+Added: Other expense, net increased $3.9 million, or 35%, in the three months ended March 31, 2025, compared to the three months ended March 31, 2024.
+Added: The overall increase in other expense was primarily attributable to an increase of $1.9 million in net loss related to strategic investments and an increase of $1.8 million in contributions to the Atlassian Foundation.
Interest Income
−Removed: Three Months Ended December 31,
+Added: Three Months Ended March 31,
(in thousands, except percentage data) 2025 2024 $ Change % Change
Interest income 27,767 21,414 $ 6,353 30 %
−Removed: Interest income increased $3.0 million, or 13% in the three months ended December 31, 2024 compared to the three months ended December 31, 2023 .
+Added: Interest income increased $6.4 million, or 30% in the three months ended March 31, 2025 compared to the three months ended March 31, 2024 .
The increase was primarily attributable to an increase in investment income as a result of increased investment balances.
Interest Expense
−Removed: Three Months Ended December 31,
+Added: Three Months Ended March 31,
(in thousands, except percentage data) 2025 2024 $ Change % Change
Interest expense $ (7,804) $ (8,453) $ 649 (8) %
−Removed: Interest expense decreased $1.7 million, or 19% in the three months ended December 31, 2024 compared to the three months ended December 31, 2023 .
+Added: Interest expense decreased $0.6 million, or 8% in the three months ended March 31, 2025 compared to the three months ended March 31, 2024 .
The decrease was primarily attributable to a decrease in interest expense on our outstanding debt as a result of the issuance of the Notes (as defined below) and repayment of the Term Loan (as defined below) in the fourth quarter of fiscal year 2024.
−Removed: Provision for (Benefit from) Income Taxes
−Removed: Three Months Ended December 31,
+Added: Provision for Income Taxes
+Added: Three Months Ended March 31,
(in thousands, except percentage data) 2025 2024 $ Change % Change
−Removed: Provision for (benefit from) income taxes $ (8,975) $ 44,360 $ (53,335) (120) %
+Added: Provision for income taxes $ (63,453) $ (7,023) $ (56,430) *
Effective tax rate * *
* Not meaningful
−Removed: Provision for income taxes decreased $53.3 million for the three months ended December 31, 2024, as compared to the three months ended December 31, 2023.
−Removed: The decrease was primarily attributable to the change in the mix of earnings and losses in foreign jurisdictions.
+Added: Provision for income taxes increased $56.4 million for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024.
+Added: The increase was primarily attributable to the change in the mix of earnings and losses in foreign jurisdictions.
See Note 14, “ Income Taxes ,” of the notes to our condensed consolidated financial statements for additional information.
9 unchanged sentences
This legislation has been enacted in certain jurisdictions where we operate and is effective for our fiscal year 2025.
−Removed: As of December 31, 2024, the global minimum tax does not have a significant impact on our financial statements.
+Added: As of March 31, 2025, the global minimum tax does not have a significant impact on our financial statements.
As additional jurisdictions enact legislation, transitional rules lapse, and other provisions of the global minimum tax legislation become effective, our effective tax rate and cash tax payments may increase in future years.
−Removed: Six Months Ended December 31, 2024 and 2023
−Removed: Six Months Ended December 31,
+Added: Nine Months Ended March 31, 2025 and 2024
+Added: Nine Months Ended March 31,
(in thousands, except percentage data) 2025 2024 $ Change % Change
2 unchanged sentences
Total revenues $ 3,830,960 $ 3,227,013 $ 603,947 19 %
−Removed: Total revenues increased $436.4 million, or 21%, in the six months ended December 31, 2024 compared to the six months ended December 31, 2023.
+Added: Total revenues increased $603.9 million, or 19%, in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024.
Growth in total revenues was primarily attributable to increased demand for our products from existing customers.
−Removed: Of total revenues recognized in the six months ended December 31, 2024, over 90% was attributable to sales to customer accounts existing on or before June 30, 2024.
−Removed: Subscription revenues increased $561.0 million, or 31%, in the six months ended December 31, 2024 compared to the six months ended December 31, 2023.
−Removed: The increase in subscription revenues was primarily attributable to paid seat expansion from our existing customers, migrations, and price increases.
−Removed: Other revenues decreased $124.7 million, or 49%, in the six months ended December 31, 2024 compared to the six months ended December 31, 2023.
+Added: Of total revenues recognized in the nine months ended March 31, 2025, over 90% was attributable to sales to customer accounts existing on or before June 30, 2024.
+Added: Subscription revenues increased $762.6 million, or 27%, in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024.
+Added: The increase in subscription revenues was primarily attributable to paid seat expansion from our existing customers, price increases, and migrations.
+Added: Other revenues decreased $158.6 million, or 43%, in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024.
The decrease in other revenues was primarily attributable to a decrease of $169.5 million in maintenance revenue due to the end of support for our Server offerings.
Total revenues by deployment options were as follows:
−Removed: Six Months Ended December 31,
+Added: Nine Months Ended March 31,
(in thousands, except percentage data) 2025 2024 $ Change % Change
5 unchanged sentences
Total revenues by geography were as follows:
−Removed: Six Months Ended December 31,
+Added: Nine Months Ended March 31,
(in thousands, except percentage data) 2025 2024 $ Change % Change
4 unchanged sentences
Cost of Revenues
−Removed: Six Months Ended December 31,
+Added: Nine Months Ended March 31,
(in thousands, except percentage data) 2025 2024 $ Change % Change
1 unchanged sentence
Gross margin 83 % 82 %
−Removed: Cost of revenues increased $68.2 million, or 18%, in the six months ended December 31, 2024 compared to the six months ended December 31, 2023.
−Removed: The overall increase was primarily attributable to an increase of $33.6 million in hosting fees paid to third-party providers, an increase of $13.5 million in compensation expense for employees (which includes an increase of $5.2 million in stock-based compensation), and an increase of $7.4 million in amortization from acquired intangible assets.
+Added: Cost of revenues increased $74.4 million, or 13%, in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024.
+Added: The overall increase was primarily attributable to an increase of $31.5 million in hosting fees paid to third-party providers, an increase of $19.5 million in compensation expense for employees (which includes an increase of $8.4 million in stock-based compensation), and an increase of $11.6 million in software subscription costs.
Operating Expenses
Research and Development
−Removed: Six Months Ended December 31,
+Added: Nine Months Ended March 31,
(in thousands, except percentage data) 2025 2024 $ Change % Change
Research and development $ 1,968,634 $ 1,595,007 $ 373,627 23 %
−Removed: Research and development expenses increased $264.8 million, or 26%, in the six months ended December 31, 2024 compared to the six months ended December 31, 2023.
+Added: Research and development expenses increased $373.6 million, or 23%, in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024.
The overall increase was primarily attributable to an increase of $351.8 million in compensation expenses for employees (which includes an increase of $166.0 million in stock-based compensation ).
Marketing and Sales
−Removed: Six Months Ended December 31,
+Added: Nine Months Ended March 31,
(in thousands, except percentage data) 2025 2024 $ Change % Change
Marketing and sales $ 820,119 $ 637,894 $ 182,225 29 %
−Removed: Marketing and sales expenses increased $110.2 million, or 27%, for the six months ended December 31, 2024 , compared to the six months ended December 31, 2023 .
+Added: Marketing and sales expenses increased $182.2 million, or 29%, for the nine months ended March 31, 2025 , compared to the nine months ended March 31, 2024 .
The overall increase was primarily attributable to an increase of $113.3 million in compensation expenses for employees (which includes an increase of $18.5 million in stock-based compensation), and an increase of $54.7 million in advertising and marketing event expenses.
General and Administrative
−Removed: Six Months Ended December 31,
+Added: Nine Months Ended March 31,
(in thousands, except percentage data) 2025 2024 $ Change % Change
General and administrative $ 483,694 $ 458,249 $ 25,445 6 %
−Removed: General and administrative expenses increased $14.7 million, or 5%, in the six months ended December 31, 2024 compared to the six months ended December 31, 2023 .
+Added: General and administrative expenses increased $25.4 million, or 6%, in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024 .
The overall increase was primarily attributable to an increase of $25.1 million in compensation expenses for employees (which includes an increase of $10.9 million in stock-based compensation).
Other Expense, net
−Removed: Six Months Ended December 31,
+Added: Nine Months Ended March 31,
(in thousands, except percentage data) 2025 2024 $ Change % Change
Other expense, net $ (42,292) $ (23,964) $ (18,328) 76 %
−Removed: Other expense, net increased $14.5 million, or 111% in the six months ended December 31, 2024 compared to the six months ended December 31, 2023.
−Removed: The increase was primarily attributable to an increase of $8.5 million in expense related to our share of loss from an equity method investment and an increase of $3.8 million in contributions to the Atlassian Foundation.
+Added: Other expense, net increased $18.3 million, or 76% in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024.
+Added: The overall increase was primarily attributable to an increase of $9.2 million in expense related to our share of loss from an equity method investment and an increase of $5.6 million in contributions to the Atlassian Foundation.
Interest Income
−Removed: Six Months Ended December 31,
+Added: Nine Months Ended March 31,
(in thousands, except percentage data) 2025 2024 $ Change % Change
Interest Income $ 81,917 $ 69,233 $ 12,684 18 %
−Removed: Interest income increased $6.3 million , or 13% in the six months ended December 31, 2024 compared to the six months ended December 31, 2023 .
+Added: Interest income increased $12.7 million , or 18% in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024 .
The increase was primarily attributable to an increase in investment income as a result of increased investment balances.
Interest Expense
−Removed: Six Months Ended December 31,
+Added: Nine Months Ended March 31,
(in thousands, except percentage data) 2025 2024 $ Change % Change
Interest expense $ (22,413) $ (26,430) $ 4,017 (15) %
−Removed: Interest expense decreased $3.4 million, or 19%, in the six months ended December 31, 2024 compared to the six months ended December 31, 2023 .
+Added: Interest expense decreased $4.0 million, or 15%, in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024 .
The decrease was primarily attributable to a decrease in interest expense on our outstanding debt as a result of the issuance of the Notes (as defined below), and repayment of the Term Loan (as defined below) in the fourth quarter of fiscal year 2024.
−Removed: Provision for (Benefit from) Income Taxes
−Removed: Six Months Ended December 31,
+Added: Provision for Income Taxes
+Added: Nine Months Ended March 31,
(in thousands, except percentage data) 2025 2024 $ Change % Change
−Removed: Provision for (benefit from) income taxes $ 84,630 $ 65,289 $ 19,341 30 %
+Added: Provision for income taxes $ (148,083) $ (72,312) $ (75,771) *
Effective tax rate * *
* Not meaningful
−Removed: Provision for income taxes increased $19.3 million for the six months ended December 31, 2024, as compared to the six months ended December 31, 2023.
+Added: Provision for income taxes increased $75.8 million for the nine months ended March 31, 2025, as compared to the nine months ended March 31, 2024.
The increase was primarily attributable to the change in the mix of earnings and losses in foreign jurisdictions.
10 unchanged sentences
This legislation has been enacted in certain jurisdictions where we operate and is effective for our fiscal year 2025.
−Removed: As of December 31, 2024, the global minimum tax does not have a significant impact on our financial statements.
+Added: As of March 31, 2025, the global minimum tax does not have a significant impact on our financial statements.
As additional jurisdictions enact legislation, transitional rules lapse, and other provisions of the global minimum tax legislation become effective, our effective tax rate and cash tax payments may increase in future years.
Liquidity and Capital Resources
−Removed: As of December 31, 2024, we had cash and cash equivalents totaling $2.2 billion, marketable securities totaling $251.6 million and accounts receivables totaling $695.7 million.
+Added: As of March 31, 2025, we had cash and cash equivalents totaling $2.7 billion, marketable securities totaling $313.6 million and accounts receivables totaling $642.0 million.
Since our inception, we have primarily financed our operations through cash flows generated by operations and corporate debt.
Our cash flows from operating activities, investing activities, and financing activities for the periods presented were as follows (in thousands):
−Removed: Six Months Ended December 31,
+Added: Nine Months Ended March 31,
Net cash provided by operating activities $ 1,085,078 $ 1,021,940
5 unchanged sentences
Our primary uses of cash from operating activities are general business expenses including employment expenses, cloud platform and other infrastructure services, income taxes, professional services fees, marketing expenses, software expenses, and facility expenses.
−Removed: Net cash provided by operating activities decreased by $24.2 million for the six months ended December 31, 2024, compared to the six months ended December 31, 2023.
−Removed: The net decrease was primarily attributable to an increase in cash paid to employees and vendors, partially offset by an increase in cash received from customers.
−Removed: Net cash used in investing activities decreased by $788.9 million during the six months ended December 31, 2024, compared to the six months ended December 31, 2023.
−Removed: The net decrease was primarily attributable to a decrease in cash consideration paid for acquisitions, net of cash acquired of approximately $839.8 million, partially offset by an increase in net outflows of $37.1 million related to strategic investment activity.
−Removed: Net cash used in financing activities increased by $75.8 million for the six months ended December 31, 2024, compared to the six months ended December 31, 2023.
−Removed: The net increase was primarily attributable to an increase in repurchases of Class A Common Stock of $85.2 million.
+Added: Net cash provided by operating activities increased by $63.1 million for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024.
+Added: The net increase was primarily attributable to an increase in cash received from customers, a decrease in cash paid for income taxes, partially offset by an increase in cash paid to employees and vendors.
+Added: Net cash used in investing activities decreased by $738.3 million during the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024.
+Added: The net decrease was primarily attributable to a decrease in cash consideration paid for acquisitions, net of cash acquired of approximately $838.8 million, partially offset by an increase in net outflows of $90.2 million related to our strategic investment and marketable security activity.
+Added: Net cash used in financing activities increased by $162.3 million for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024.
+Added: The net increase was primarily attributable to an increase in repurchases of Class A Common Stock of $184.1 million, partially offset by a decrease in principal payments for the Term Loan (defined below) of $25.0 million.
Material Cash Requirements
−Removed: As of December 31, 2024 , we had $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”).
+Added: As of March 31, 2025 , we had $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”).
The 2029 Notes and the 2034 Notes will mature on May 15, 2029 and May 15, 2034, respectively.
9 unchanged sentences
The Share Repurchase Programs do not have a fixed expiration date, may be suspended or discontinued at any time, and do not obligate us to repurchase any specific dollar amount or to acquire any specific number of shares.
−Removed: During the three and six months ended December 31, 2024, we repurchased and subsequently retired approximately 0.4 million and 1.5 million shares of our 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.
+Added: During the three and nine months ended March 31, 2025, we repurchased and subsequently retired approximately 0.6 million and 2.1 million shares of our 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.
−Removed: As of December 31, 2024, we were 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.
+Added: As of March 31, 2025, we were 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.
Contractual Obligations
4 unchanged sentences
Our other future cash requirements will depend on many factors including our growth rate, the timing and extent of spend on research and development efforts, employee headcount, marketing and sales activities, payments to tax authorities, acquisitions of additional businesses and technologies, the introduction of new software and services offerings, enhancements to our existing software and services offerings and the continued market acceptance of our products.
−Removed: As of December 31, 2024, we are not party to any off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our financial condition, results of operations, liquidity, capital expenditures, or capital resources.
+Added: As of March 31, 2025, we are not party to any off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our financial condition, results of operations, liquidity, capital expenditures, or capital resources.
Non-GAAP Financial Measures
17 unchanged sentences
We compensate for such limitations by reconciling these Non-GAAP Financial Measures to the most comparable GAAP financial measures.
−Removed: The following table presents a reconciliation of our Non-GAAP Financial Measures to the most comparable GAAP financial measure for the three and six months ended December 31, 2024 and 2023 (in thousands, except percentage and per share data):
−Removed: Three Months Ended December 31, Six Months Ended December 31,
+Added: The following table presents a reconciliation of our Non-GAAP Financial Measures to the most comparable GAAP financial measure for the three and nine months ended March 31, 2025 and 2024 (in thousands, except percentage and per share data):
+Added: Three Months Ended March 31, Nine Months Ended March 31,
2025 2024 2025 2024
8 unchanged sentences
Operating income
−Removed: GAAP operating loss $ (57,479) $ (49,062) $ (89,457) $ (67,931)
+Added: GAAP operating income (loss) $ (12,456) $ 17,804 $ (101,913) $ (50,127)
Stock-based compensation 346,842 282,519 1,011,718 807,945
6 unchanged sentences
Non-GAAP operating margin 26% 27% 25% 25%
−Removed: GAAP net loss $ (38,208) $ (84,469) $ (161,977) $ (116,352)
+Added: GAAP net income (loss) $ (70,807) $ 12,752 $ (232,784) $ (103,600)
Stock-based compensation 346,842 282,519 1,011,718 807,945
6 unchanged sentences
Net income per share
−Removed: GAAP net loss per share - diluted $ (0.15) $ (0.33) $ (0.62) $ (0.45)
+Added: GAAP net income (loss) per share - diluted $ (0.27) $ 0.05 $ (0.89) $ (0.40)
Stock-based compensation 1.29 1.08 3.82 3.11
5 unchanged sentences
Weighted-average diluted shares outstanding
−Removed: Weighted-average shares used in computing diluted GAAP net loss per share 261,147 258,601 260,812 258,254
+Added: Weighted-average shares used in computing diluted GAAP net income (loss) per share 262,671 261,778 261,423 258,738
Dilution from dilutive securities (2) 5,959 — 3,601 1,273
12 unchanged sentences
The rate could be subject to change for a variety of reasons, for example, significant changes in the geographic earnings mix or fundamental tax law changes in major jurisdictions where we operate.
−Removed: (2) The effects of these dilutive securities were not included in the GAAP calculation of diluted net loss per share for the three and six months ended December 31, 2024 and 2023 because the effect would have been anti-dilutive.
+Added: (2) The effects of these dilutive securities were not included in the GAAP calculation of diluted net loss per share for the three and nine months ended March 31, 2025 and nine months ended March 31, 2024 because the effect would have been anti-dilutive.
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
1 unchanged sentence
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.