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Atlassian Announces Third Quarter Fiscal Year 2021 Results

April 29, 2021

Quarterly revenue of $569 million, up 38% year-over-year

Quarterly subscription revenue of $350 million, up 43% year-over-year

Quarterly IFRS operating margin of 12% and non-IFRS operating margin of 31%

Quarterly cash flow from operations of $377 million and free cash flow of $360 million

SAN FRANCISCO--(BUSINESS WIRE)-- Atlassian Corporation Plc (NASDAQ: TEAM), a leading provider of team collaboration and productivity software, today announced financial results for its third quarter of fiscal year 2021 ended March 31, 2021 and released a shareholder letter available on Atlassian’s Work Life blog at http://atlassian.com/blog/announcements/shareholder-letter-q3fy21. The shareholder letter was also posted to the Investor Relations section of Atlassian’s website at https://investors.atlassian.com.

“The Atlassian cloud platform allows us to innovate faster than ever for teams and organizations of all sizes, highlighted by our announcement of Point A,” said Mike Cannon-Brookes, Atlassian’s co-founder and co-CEO. “The Point A program fast-tracks our most promising ideas and vets early versions with our users, so customers can get value out of early products from day 1. Our new products are able to rapidly evolve thanks to our incredible R&D teams building on top of our multi-year cloud platform investment.”

“We continue to deliver innovation in the cloud in order to unleash the potential of every team,” said Scott Farquhar, Atlassian’s co-founder and co-CEO. “In Q3, we drove strong revenue growth and financial results, but we are most proud of how we continue to create lasting value for teams and customers in the cloud through initiatives like Open DevOps and the recent acquisitions of ThinkTilt and Chartio.”

Third Quarter Fiscal Year 2021 Financial Highlights:

On an IFRS basis, Atlassian reported:

  • Revenue: Total revenue was $568.7 million for the third quarter of fiscal year 2021, up 38% from $411.6 million for the third quarter of fiscal year 2020.
  • Operating Income (Loss) and Operating Margin: Operating income was $69.5 million for the third quarter of fiscal year 2021, compared with an operating loss of $19.9 million for the third quarter of fiscal year 2020. Operating margin was 12% for the third quarter of fiscal year 2021, compared with (5)% for the third quarter of fiscal year 2020.
  • Net Income (Loss) and Net Income (Loss) Per Diluted Share: Net income was $159.8 million for the third quarter of fiscal year 2021, compared with a net loss of $158.8 million for the third quarter of fiscal year 2020. Net income per diluted share was $0.63 for the third quarter of fiscal year 2021, compared with a net loss per diluted share of $0.65 for the third quarter of fiscal year 2020.

    Net income for the third quarter of fiscal year 2021 included a gain of $150.7 million recorded in “other non-operating income (expense), net,” compared with a charge of $141.8 million in the third quarter of fiscal year 2020 relating to Atlassian’s exchangeable senior notes and related capped calls. Of this amount, a gain of $161.3 million is related to marking to fair value the exchange feature of the notes and related capped calls that remain outstanding as of quarter end. In addition, a net loss of $10.6 million is related to the net impact of repurchasing a portion of the notes and unwinding of the related capped calls during this quarter.
  • Balance Sheet: Cash and cash equivalents, and short-term investments at the end of the third quarter of fiscal year 2021 totaled $1.6 billion.

    During the third quarter of fiscal year 2021, Atlassian used $591.6 million in cash to repurchase a portion of the notes in privately negotiated transactions and received $63.3 million in cash from the unwinding of the related capped calls. The net impact resulted in cash outflows of $528.2 million, which is reflected in cash used in financing activities on our statements of cash flows.

On a non-IFRS basis, Atlassian reported:

  • Operating Income and Operating Margin: Operating income was $175.7 million for the third quarter of fiscal year 2021, compared with operating income of $77.2 million for the third quarter of fiscal year 2020. Operating margin was 31% for the third quarter of fiscal year 2021, compared with 19% for the third quarter of fiscal year 2020.
  • Net Income and Net Income Per Diluted Share: Net income was $123.3 million for the third quarter of fiscal year 2021, compared with net income of $61.9 million for the third quarter of fiscal year 2020. Net income per diluted share was $0.48 for the third quarter of fiscal year 2021, compared with $0.25 for the third quarter of fiscal year 2020.
  • Free Cash Flow: Cash flow from operations was $377.0 million and free cash flow was $360.4 million for the third quarter of fiscal year 2021. Free cash flow margin for the third quarter of fiscal year 2021 was 63%.

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

Recent Business Highlights:

  • Atlassian Team ’21: Atlassian is currently holding its premier virtual customer event from April 28th through April 30th. With approximately 30,000 registered attendees, Team ’21 is the ultimate digital experience for developers, creators, and innovators of every industry. Live and recorded sessions for Team ’21 can be found at https://events.atlassian.com/team21.
  • Point A: Atlassian introduced its Point A program focused on fast tracking its next generation of new products to drive the future of teamwork. Atlassian announced five Point A products, all built on its cloud platform, that it is developing in collaboration with customers:
    • Jira Work Management enables business teams to move forward by being the one place where they track, coordinate, and manage their work with structure and consistency.
    • Compass gives software development teams a bird’s eye view of the digital services across their organization, connecting engineering output with the teams that support it in a single, trusted place.
    • Halp is a modern ticketing help desk that seamlessly integrates with Slack and Microsoft Teams, making request management conversational and delightful for everyone throughout your organization.
    • Jira Product Discovery helps product managers build what matters by rallying teams around priorities, from discovery all the way through delivery.
    • Team Central serves as an organization’s connective tissue, helping any team connect and communicate progress as frequently and frictionlessly as modern work demands, and allowing any team the ability to track progress and provide real-time updates to anyone across an organization.
  • Continuous Investment in Leading-Edge Innovation: During the quarter,Trellolaunched several new tools to visualize work - dashboard, timeline, table, and map views, as well as enhanced smart cards. Also, at Team ‘21, Atlassian announced updates for both Jira Software and Jira Service Management. For Jira Software, Atlassian introduced Open DevOps, a pre-configured development toolchain of Atlassian and partner products.
  • ThinkTilt and Chartio Acquisitions: Atlassian recently announced the acquisition of ThinkTilt, maker of ProForma, a no-code/low-code form builder for Jira. Based in Brisbane, Australia and used by over 700 companies, ThinkTilt helps IT empower any team in an organization to quickly deliver great service and support to employees. During the quarter, Atlassian also announced the acquisition of Chartio, a cloud-based visualization and analytics solution. Chartio will become the analytics and data visualization engine for Atlassian’s cloud platform, starting with the Jira family.
  • Customer Growth: Atlassian ended its third quarter of fiscal year 2021 with a total customer count, on an active subscription or maintenance agreement basis, of 212,807 customers, adding 18,473 net new customers during the quarter. It is important to note that 5,658 of these net new customers were single-user Trello accounts. Atlassian saw strong Trello customer growth during the quarter driven by both the rollout of new product features and recent funnel optimization initiatives.

Financial Targets:

Atlassian is providing its financial targets for the fourth quarter of fiscal year 2021 as follows:

Fourth Quarter Fiscal Year 2021:

  • Total revenue is expected to be in the range of $513 million to $528 million.
  • Gross margin is expected to be in the range of 82% to 83% on an IFRS basis and in the range of 84% to 85% on a non-IFRS basis.
  • Operating margin is expected to be approximately (6%) on an IFRS basis and approximately 13% on a non-IFRS basis.
  • Net loss per diluted share is expected to be approximately ($0.08) on an IFRS basis, and net income per diluted share is expected to be approximately $0.17 on a non-IFRS basis.
  • Weighted average share count is expected to be in the range of 250 million to 252 million shares when calculating diluted IFRS net loss per share and in the range of 255 million to 257 million shares when calculating diluted non-IFRS net income per share.

For additional commentary regarding financial targets, please see Atlassian’s third quarter fiscal year 2021 shareholder letter dated April 29, 2021.

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

Shareholder Letter and Webcast Details:

A detailed shareholder letter is available on Atlassian’s Work Life blog at http://atlassian.com/blog/announcements/shareholder-letter-q3fy21, and the Investor Relations section of Atlassian’s website at: https://investors.atlassian.com. Atlassian will host a webcast to answer questions today:

  • When: Thursday, April 29, 2021 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).
  • Webcast: A live webcast of the call can be accessed from the Investor Relations section of Atlassian’s website at: https://investors.atlassian.com. Following the call, a replay will be available on the same website.
  • Audio replay: An audio replay of the call will be available via telephone for seven days, beginning two hours after the call. To listen to the replay in North America, please dial 1-800-585-8367 (access code 6576384). International callers, please dial 1-416-621-4642 (access code 6576384).

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

About Atlassian

Atlassian unleashes the potential of every team. Our team collaboration and productivity software helps teams organize, discuss, and complete shared work. Teams at more than 212,000 customers, across large and small organizations - including Bank of America, Redfin, NASA, Verizon, and Dropbox - use Atlassian’s project tracking, content creation and sharing, and service management products to work better together and deliver quality results on time. Learn more about our products, including Jira Software, Confluence, Jira Service Management, Trello, Bitbucket, and Jira Align at https://atlassian.com/.

Forward-Looking Statements

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

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

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

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

About Non-IFRS Financial Measures

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

Our non-IFRS financial measures include:

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

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

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

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

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

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

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

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

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

 

Atlassian Corporation Plc

Consolidated Statements of Operations

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

(unaudited)

 

 

Three Months Ended March 31,

 

Nine Months Ended March 31,

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Revenues:

 

 

 

 

 

 

 

Subscription

$

349,915

 

 

$

244,155

 

 

$

938,554

 

 

$

673,934

 

Maintenance

 

132,921

 

 

 

119,628

 

 

 

391,891

 

 

 

346,576

 

Perpetual license

 

31,308

 

 

 

21,002

 

 

 

75,569

 

 

 

74,797

 

Other

 

54,584

 

 

 

26,797

 

 

 

123,579

 

 

 

88,390

 

Total revenues

 

568,728

 

 

 

411,582

 

 

 

1,529,593

 

 

 

1,183,697

 

Cost of revenues (1) (2)

 

84,888

 

 

 

70,655

 

 

 

238,054

 

 

 

198,695

 

Gross profit

 

483,840

 

 

 

340,927

 

 

 

1,291,539

 

 

 

985,002

 

Operating expenses:

 

 

 

 

 

 

 

Research and development (1) (2)

 

244,098

 

 

 

204,148

 

 

 

717,397

 

 

 

552,450

 

Marketing and sales (1) (2)

 

92,043

 

 

 

84,485

 

 

 

239,480

 

 

 

221,791

 

General and administrative (1)

 

78,184

 

 

 

72,214

 

 

 

225,502

 

 

 

193,395

 

Total operating expenses

 

414,325

 

 

 

360,847

 

 

 

1,182,379

 

 

 

967,636

 

Operating income (loss)

 

69,515

 

 

 

(19,920

)

 

 

109,160

 

 

 

17,366

 

Other non-operating income (expense), net

 

150,662

 

 

 

(141,701

)

 

 

(421,358

)

 

 

44,748

 

Finance income

 

1,464

 

 

 

7,199

 

 

 

6,166

 

 

 

24,411

 

Finance costs

 

(10,591

)

 

 

(12,435

)

 

 

(114,614

)

 

 

(37,126

)

Income (loss) before income tax benefit (expense)

 

211,050

 

 

 

(166,857

)

 

 

(420,646

)

 

 

49,399

 

Income tax benefit (expense)

 

(51,210

)

 

 

8,032

 

 

 

(62,596

)

 

 

(14,830

)

Net income (loss)

$

159,840

 

 

$

(158,825

)

 

$

(483,242

)

 

$

34,569

 

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

 

 

 

 

 

 

 

Basic

$

0.64

 

 

$

(0.65

)

 

$

(1.94

)

 

$

0.14

 

Diluted

$

0.63

 

 

$

(0.65

)

 

$

(1.94

)

 

$

0.14

 

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

 

 

 

 

 

 

 

Basic

 

250,279

 

 

 

245,504

 

 

 

249,152

 

 

 

244,161

 

Diluted

 

255,128

 

 

 

245,504

 

 

 

249,152

 

 

 

251,255

 

 

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

 

Three Months Ended March 31,

 

Nine Months Ended March 31,

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Cost of revenues

$

6,495

 

 

$

5,535

 

 

$

18,552

 

 

$

14,654

 

Research and development

 

63,699

 

 

 

57,071

 

 

 

198,235

 

 

 

151,988

 

Marketing and sales

 

11,774

 

 

 

11,397

 

 

 

30,224

 

 

 

32,902

 

General and administrative

 

16,296

 

 

 

13,519

 

 

 

44,676

 

 

 

35,712

 

 

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

 

Three Months Ended March 31,

 

Nine Months Ended March 31,

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Cost of revenues

$

5,554

 

 

$

6,645

 

 

$

16,386

 

 

$

24,306

 

Research and development

 

41

 

 

 

41

 

 

 

124

 

 

 

124

 

Marketing and sales

 

2,278

 

 

 

2,900

 

 

 

6,894

 

 

 

10,511

 

 

 

 

 

 

 

 

Atlassian Corporation Plc

Consolidated Statements of Financial Position

(U.S. $ in thousands)

 

 

March 31, 2021

 

June 30, 2020

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

1,151,450

 

 

$

1,479,969

 

Short-term investments

412,872

 

 

676,072

 

Trade receivables

193,155

 

 

112,019

 

Tax receivables

3,161

 

 

1,509

 

Derivative assets

189,776

 

 

327,487

 

Prepaid expenses and other current assets

54,341

 

 

46,730

 

Total current assets

2,004,755

 

 

2,643,786

 

Non-current assets:

 

 

 

Property and equipment, net

100,707

 

 

97,648

 

Deferred tax assets

44,652

 

 

35,351

 

Goodwill

719,160

 

 

645,140

 

Intangible assets, net

128,285

 

 

129,690

 

Right-of-use assets, net

194,476

 

 

217,683

 

Other non-current assets

130,983

 

 

124,774

 

Total non-current assets

1,318,263

 

 

1,250,286

 

Total assets

$

3,323,018

 

 

$

3,894,072

 

Liabilities

 

 

 

Current liabilities:

 

 

 

Trade and other payables

$

233,458

 

 

$

202,570

 

Tax liabilities

54,087

 

 

19,583

 

Provisions

25,041

 

 

14,291

 

Deferred revenue

779,987

 

 

573,813

 

Lease obligations

39,218

 

 

34,743

 

Derivative liabilities

884,883

 

 

1,284,596

 

Exchangeable senior notes, net

542,055

 

 

889,183

 

Total current liabilities

2,558,729

 

 

3,018,779

 

Non-current liabilities:

 

 

 

Deferred tax liabilities

37,049

 

 

31,304

 

Provisions

10,906

 

 

9,493

 

Deferred revenue

93,831

 

 

27,192

 

Lease obligations

205,565

 

 

229,825

 

Other non-current liabilities

4,270

 

 

2,173

 

Total non-current liabilities

351,621

 

 

299,987

 

Total liabilities

2,910,350

 

 

3,318,766

 

Equity

 

 

 

Share capital

25,088

 

 

24,744

 

Share premium

461,012

 

 

459,892

 

Other capital reserves

1,423,220

 

 

1,130,918

 

Other components of equity

102,982

 

 

76,144

 

Accumulated deficit

(1,599,634)

 

 

(1,116,392)

 

Total equity

412,668

 

 

575,306

 

Total liabilities and equity

$

3,323,018

 

 

$

3,894,072

 

 

Atlassian Corporation Plc

Consolidated Statements of Cash Flows

(U.S. $ in thousands)

(unaudited)

 

 

Three Months Ended March 31,

 

Nine Months Ended March 31,

 

2021

 

2020

 

2021

 

2020

Operating activities

 

 

 

 

 

 

 

Income (loss) before income tax benefit (expense)

$

211,050

 

 

 

$

(166,857

)

 

 

$

(420,646

)

 

 

$

49,399

 

 

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

 

 

 

 

 

 

 

Depreciation and amortization

13,906

 

 

 

14,738

 

 

 

41,124

 

 

 

49,148

 

 

Depreciation of right-of-use assets

9,418

 

 

 

8,945

 

 

 

28,010

 

 

 

26,172

 

 

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

836

 

 

 

(591

)

 

 

1,135

 

 

 

(855

)

 

Net unrealized loss on investments

1,250

 

 

 

 

 

 

2,000

 

 

 

 

 

Interest expense

3,316

 

 

 

3,482

 

 

 

10,312

 

 

 

10,581

 

 

Net unrealized foreign currency loss (gain)

(266

)

 

 

(4,119

)

 

 

10,175

 

 

 

(3,173

)

 

Share-based payment expense

98,264

 

 

 

87,522

 

 

 

291,687

 

 

 

235,256

 

 

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

(150,665

)

 

 

141,783

 

 

 

415,933

 

 

 

(46,743

)

 

Amortization of debt discount and issuance cost

7,275

 

 

 

8,955

 

 

 

104,302

 

 

 

26,545

 

 

Interest income

(1,464

)

 

 

(7,200

)

 

 

(6,166

)

 

 

(24,411

)

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

Trade receivables

(35,420

)

 

 

29,902

 

 

 

(80,943

)

 

 

(11,211

)

 

Prepaid expenses and other assets

(3,691

)

 

 

(1,224

)

 

 

(11,052

)

 

 

(7,594

)

 

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

47,784

 

 

 

30,961

 

 

 

33,223

 

 

 

25,452

 

 

Deferred revenue

186,880

 

 

 

4,958

 

 

 

270,813

 

 

 

113,737

 

 

Interest received

3,018

 

 

 

8,146

 

 

 

10,472

 

 

 

24,416

 

 

Income tax paid, net

(14,455

)

 

 

(3,088

)

 

 

(43,416

)

 

 

(15,850

)

 

Net cash provided by operating activities

377,036

 

 

 

156,313

 

 

 

656,963

 

 

 

450,869

 

 

Investing activities

 

 

 

 

 

 

 

Business combinations, net of cash acquired

(41,460

)

 

 

 

 

 

(83,624

)

 

 

(37,983

)

 

Purchases of property and equipment

(5,365

)

 

 

(6,742

)

 

 

(22,730

)

 

 

(19,865

)

 

Purchases of investments

(24,254

)

 

 

(364,603

)

 

 

(93,519

)

 

 

(951,481

)

 

Proceeds from maturities of investments

135,245

 

 

 

232,239

 

 

 

330,549

 

 

 

425,257

 

 

Proceeds from sales of investments

1,092

 

 

 

95,680

 

 

 

48,786

 

 

 

237,641

 

 

Increase in restricted cash

 

 

 

 

 

 

(2,162

)

 

 

 

 

Payment of deferred consideration

 

 

 

 

 

 

(185

)

 

 

 

 

Net cash provided by (used in) investing activities

65,258

 

 

 

(43,426

)

 

 

177,115

 

 

 

(346,431

)

 

Financing activities

 

 

 

 

 

 

 

Proceeds from exercise of share options

11

 

 

 

499

 

 

 

1,158

 

 

 

1,485

 

 

Payments of lease obligations

(11,303

)

 

 

(9,308

)

 

 

(33,538

)

 

 

(26,335

)

 

Payment of issuance costs for credit facility

 

 

 

 

 

 

(4,445

)

 

 

 

 

Interest paid

(922

)

 

 

 

 

 

(4,216

)

 

 

(3,125

)

 

Repayment of exchangeable senior notes

(591,550

)

 

 

(2

)

 

 

(1,263,047

)

 

 

(2

)

 

Proceeds from settlement of capped call transactions

63,305

 

 

 

 

 

 

136,081

 

 

 

 

 

Net cash used in financing activities

(540,459

)

 

 

(8,811

)

 

 

(1,168,007

)

 

 

(27,977

)

 

Effect of exchange rate changes on cash and cash equivalents

(2,100

)

 

 

(5,608

)

 

 

5,410

 

 

 

(6,709

)

 

Net increase (decrease) in cash and cash equivalents

(100,265

)

 

 

98,468

 

 

 

(328,519

)

 

 

69,752

 

 

Cash and cash equivalents at beginning of period

1,251,715

 

 

 

1,239,725

 

 

 

1,479,969

 

 

 

1,268,441

 

 

Cash and cash equivalents at end of period

$

1,151,450

 

 

 

$

1,338,193

 

 

 

$

1,151,450

 

 

 

$

1,338,193

 

 

 

Atlassian Corporation Plc

Reconciliation of IFRS to Non-IFRS Results

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

(unaudited)

 

 

Three Months Ended March 31,

 

Nine Months Ended March 31,

 

2021

 

2020

 

2021

 

2020

Gross profit

 

 

 

 

 

 

 

IFRS gross profit

$

483,840

 

 

$

340,927

 

 

$

1,291,539

 

 

$

985,002

 

Plus: Share-based payment expense

6,495

 

 

5,535

 

 

18,552

 

 

14,654

 

Plus: Amortization of acquired intangible assets

5,554

 

 

6,645

 

 

16,386

 

 

24,306

 

Non-IFRS gross profit

$

495,889

 

 

$

353,107

 

 

$

1,326,477

 

 

$

1,023,962

 

Operating income

 

 

 

 

 

 

 

IFRS operating income (loss)

$

69,515

 

 

$

(19,920

)

 

$

109,160

 

 

$

17,366

 

Plus: Share-based payment expense

98,264

 

 

87,522

 

 

291,687

 

 

235,256

 

Plus: Amortization of acquired intangible assets

7,873

 

 

9,586

 

 

23,404

 

 

34,941

 

Non-IFRS operating income

$

175,652

 

 

$

77,188

 

 

$

424,251

 

 

$

287,563

 

Net income

 

 

 

 

 

 

 

IFRS net income (loss)

$

159,840

 

 

$

(158,825

)

 

$

(483,242

)

 

$

34,569

 

Plus: Share-based payment expense

98,264

 

 

87,522

 

 

291,687

 

 

235,256

 

Plus: Amortization of acquired intangible assets

7,873

 

 

9,586

 

 

23,404

 

 

34,941

 

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

(143,390

)

 

150,738

 

 

520,235

 

 

(20,198

)

Less: Income tax effects and adjustments

670

 

 

(27,129

)

 

(56,745

)

 

(58,774

)

Non-IFRS net income

$

123,257

 

 

$

61,892

 

 

$

295,339

 

 

$

225,794

 

Net income per share

 

 

 

 

 

 

 

IFRS net income (loss) per share - diluted

$

0.63

 

 

$

(0.65

)

 

$

(1.94

)

 

$

0.14

 

Plus: Share-based payment expense

0.39

 

 

0.35

 

 

1.16

 

 

0.93

 

Plus: Amortization of acquired intangible assets

0.03

 

 

0.04

 

 

0.09

 

 

0.14

 

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

(0.57

)

 

0.61

 

 

2.06

 

 

(0.08

)

Less: Income tax effects and adjustments

 

 

(0.10

)

 

(0.21

)

 

(0.23

)

Non-IFRS net income per share - diluted

$

0.48

 

 

$

0.25

 

 

$

1.16

 

 

$

0.90

 

Weighted-average diluted shares outstanding

 

 

 

 

 

 

 

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

255,128

 

 

245,504

 

 

249,152

 

 

251,255

 

Plus: Dilution from share options and RSUs (1)

 

 

6,389

 

 

5,301

 

 

 

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

255,128

 

 

251,893

 

 

254,453

 

 

251,255

 

Free cash flow

 

 

 

 

 

 

 

IFRS net cash provided by operating activities

$

377,036

 

 

$

156,313

 

 

$

656,963

 

 

$

450,869

 

Less: Capital expenditures

(5,365

)

 

(6,742

)

 

(22,730

)

 

(19,865

)

Less: Payments of lease obligations

(11,303

)

 

(9,308

)

 

(33,538

)

 

(26,335

)

Free cash flow

$

360,368

 

 

$

140,263

 

 

$

600,695

 

 

$

404,669

 

(1) The effects of these dilutive securities were not included in the IFRS calculation of diluted net loss per share for the nine months ended March 31, 2021 and three months ended March 31, 2020 because the effect would have been anti-dilutive.

 

Atlassian Corporation Plc

Reconciliation of IFRS to Non-IFRS Financial Targets

(U.S. $)

 

 

Three Months Ending

June 30, 2021

Revenue

$513 million to $528 million

 

 

IFRS gross margin

82% to 83%

Plus: Share-based payment expense

1

Plus: Amortization of acquired intangible assets

1

Non-IFRS gross margin

84% to 85%

 

 

IFRS operating margin

(6%)

Plus: Share-based payment expense

17

Plus: Amortization of acquired intangible assets

2

Non-IFRS operating margin

13%

 

 

IFRS net loss per share - diluted

($0.08)

Plus: Share-based payment expense

0.35

Plus: Amortization of acquired intangible assets

0.03

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

0.02

Less: Income tax effects and adjustments

(0.15)

Non-IFRS net income per share - diluted

$0.17

 

 

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

250 million to 252 million

Dilution from share options and RSUs (1)

5 million

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

255 million to 257 million

(1) The effects of these dilutive securities are not included in the IFRS calculation of diluted net loss per share for the three months ending June 30, 2021 because the effect would be anti-dilutive.

Investor Relations Contact
Martin Lam
IR@atlassian.com

Media Contact
Jake Standish
press@atlassian.com

Source: Atlassian Corporation Plc