Atlassian Corp (TEAM, Financial) announced its first quarter fiscal year 2024 financial results on November 2, 2023. The company reported a quarterly revenue of $978 million, marking a 21% increase year-over-year. The growth was primarily driven by a 31% year-over-year increase in subscription revenue, which totaled $852 million.
Financial Highlights
Atlassian reported a GAAP operating margin of -2%, an improvement from -4% in the same quarter of the previous year. The non-GAAP operating margin stood at 23%, up from 18% year-over-year. The company's net loss was $31.9 million for the first quarter of fiscal year 2024, compared with a net loss of $13.7 million for the first quarter of fiscal year 2023. The net loss per diluted share was $0.12 for the first quarter of fiscal year 2024, compared with a net loss per diluted share of $0.05 for the same period last year.
On a non-GAAP basis, Atlassian reported an operating income of $224.9 million for the first quarter of fiscal year 2024, compared with an operating income of $147.9 million for the same period in the previous year. The company's net income was $169.0 million for the first quarter of fiscal year 2024, compared with a net income of $92.5 million for the same period in the previous year. The net income per diluted share was $0.65 for the first quarter of fiscal year 2024, compared with a net income per diluted share of $0.36 for the same period last year.
Recent Business Highlights
Atlassian recently entered into a definitive agreement to acquire Loom, a video messaging platform with over 25 million users. The company also announced the acquisition of AirTrack, a leading IT data quality management technology provider. Atlassian launched Compass, a new developer experience platform, and AI-powered virtual agent capabilities in Jira Service Management. The company ended its first quarter of fiscal year 2024 with 40,103 customers with greater than $10,000 in Cloud annualized recurring revenue (Cloud ARR), an increase of 18% year-over-year.
Financial Targets
For the second quarter of fiscal year 2024, Atlassian expects total revenue to be in the range of $1,010 million to $1,030 million. The company anticipates a year-over-year Cloud revenue growth in the range of 25.5% to 27.5% and a Data Center revenue growth of approximately 33%. The expected GAAP gross margin is approximately 81.0% and the non-GAAP gross margin is approximately 83.5%. The expected GAAP operating margin is approximately -7.5% and the non-GAAP operating margin is approximately 21.0%.
For the full fiscal year 2024, Atlassian expects a year-over-year Cloud revenue growth in the range of 25% to 30% and a Data Center revenue growth of approximately 31%. The expected GAAP gross margin is approximately 81.0% and the non-GAAP gross margin is approximately 83.5%. The expected GAAP operating margin is approximately -5.5% and the non-GAAP operating margin is approximately 20.0%.
Explore the complete 8-K earnings release (here) from Atlassian Corp for further details.
