Summary
Atlassian closed fiscal 2024 with fourth quarter revenue of $1.13 billion, up 20.5% from the prior-year quarter, and full fiscal year revenue of $4.36 billion, up 23.3%. Gross profit was $914.08 million in the quarter, up 18.8%, while gross margin slipped to 80.8%, down 1.1 percentage points. For the full year, gross profit was $3.56 billion, up 22.6%, and gross margin was 81.6%, down 0.5 percentage points. The GAAP operating loss was $66.95 million in the quarter, a wider loss than the prior-year quarter, and operating margin was -5.9%, down 0.6 percentage points. For the full year, the operating loss was $117.08 million, a narrower loss than the prior year, and operating margin was -2.7%, up 7.1 percentage points. Net loss was $196.92 million in the quarter, a wider loss than the prior-year quarter. Full year net loss was $300.52 million, a narrower loss than the prior year, and diluted net loss per share was -$1.16, compared with -$1.90 for the prior year.
Cash generation was a clear bright spot. Fourth quarter operating cash flow was $426.22 million, up 56.3%, and capital expenditures were $13.06 million, up 438.4%. Free cash flow was $413.2 million and free cash flow margin was 37%. For the full year, operating cash flow was $1.45 billion, up 66.8%, and capital expenditures were $32.58 million, up 27.0%. Free cash flow was $1,415.6 million for fiscal 2024, with a free cash flow margin of 32%. Deferred revenue rose 36.8% to $2.11 billion, and remaining performance obligations rose 33.3% to $2.40 billion. Operating cash flow and free cash flow are separate measures, and the company reports both.
Operational momentum centered on enterprise and AI. Atlassian ended fiscal 2024 with 45,842 customers that have greater than $10,000 in Cloud annualized recurring revenue, up 18% year over year. Customers spending more than $1 million annually grew 48% to 524. The company has more than 300,000 customers, and 84% of the Fortune 500 are customers, though that group represents only 10% of its total business. Management sizes the total serviceable addressable market at $67 billion, growing 13% annually. At Team '24, Atlassian announced Rovo, an AI-powered teammate; a unified Jira; Guard, a security solution; and more than 30 new Atlassian Intelligence capabilities. The company achieved FedRAMP In Process designation and announced Atlassian Government Cloud. Headcount was 12,157 at quarter end, an increase of 255 from the prior quarter. Atlassian also completed the Loom acquisition in November 2023. Leadership changes include a search for a Chief Revenue Officer and the departure of Chief Sales Officer Kevin Egan, while co-founder Scott Farquhar is leaving the co-CEO role.
Guidance frames fiscal 2025 as a transition year. For the first quarter of fiscal 2025, Atlassian expects Cloud revenue growth of approximately 27.0%, Data Center revenue growth of approximately 35.0%, and Other revenue growth of approximately 13.0%. First quarter gross margin is expected to be approximately 81.0% on a GAAP basis and approximately 83.5% on a non-GAAP basis, and first quarter operating margin is expected to be approximately -7.0% on a GAAP basis and approximately 19.0% on a non-GAAP basis. For full fiscal year 2025, total revenue growth is expected to be approximately 16.0%, with Cloud growth of approximately 23.0%, Data Center growth of approximately 20.0%, and Other growth of approximately 5.0%. Full year gross margin is expected to be approximately 81.0% on a GAAP basis and approximately 83.5% on a non-GAAP basis. Full year operating margin is expected to be approximately -6.0% on a GAAP basis and approximately 21.5% on a non-GAAP basis. Over the next three years, management continues to target revenue growth at a compounded annual growth rate in excess of 20%, non-GAAP operating margin in excess of 25% by fiscal 2027, and annual revenue of more than $10 billion within five years.
Risks remain substantial. Management cites an uncertain macroeconomic outlook and macro-related factors that can pressure seat expansion, cross-sell, upsell, and customer retention. The enterprise go-to-market transition carries execution risk, especially with the sales leadership change. Data Center customers are expected to migrate over a multi-year period, and more of them may adopt hybrid Data Center and Cloud deployments. Cloud growth is expected to decelerate in the second half of fiscal 2025 as the company laps the Loom acquisition. Data Center growth is expected to decrease throughout the year, particularly in the third quarter, as it laps event-driven purchasing from Server end-of-support. Other revenue growth is expected to slow because the comparison tied to Server end-of-support is difficult and sales mix continues to shift to Cloud apps. Gross margin faces pressure from the continued revenue mix shift to Cloud. Stock-based compensation remains significant, and the company keeps a full valuation allowance on its U.S. federal, U.S. state, and Australian deferred tax assets.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.13B | $1.19B | -4.8% | $939.1M | +20.5% |
| Gross profit | $914.1M | $975.7M | -6.3% | $769.3M | +18.8% |
| Gross margin | 80.8% | 82.0% | -1.3 pp | 81.9% | -1.1 pp |
| Research & development | $589.1M | $576.5M | +2.2% | $474.9M | +24.1% |
| Sales & marketing | $239.6M | $223.8M | +7.1% | $202.6M | +18.3% |
| General & administrative | $152.3M | $157.6M | -3.3% | $142.2M | +7.1% |
| Total operating expenses | $981.0M | $957.9M | +2.4% | $819.7M | +19.7% |
| Operating income (loss) | -$67.0M | $17.8M | -476.0% | -$50.4M | -32.9% |
| Operating margin | -5.9% | 1.5% | -7.4 pp | -5.4% | -0.5 pp |
| Net income (loss) | -$196.9M | $12.8M | -1644.2% | -$59.0M | -234.0% |
| Net margin | -17.4% | 1.1% | -18.5 pp | -6.3% | -11.1 pp |
| Diluted EPS | -$0.76 | $0.05 | -$0.81 | -$0.23 | -$0.53 |
| Customers | 300,000 | 300,000 | ±0.0% | 260,000 | +15.4% |
Risks
Risk factors and MD&A both state that global economic and geopolitical volatility could reduce demand, elongate sales cycles, and harm collections. The filing notes expansion from existing customers has moderated in recent quarters, particularly among small and medium-sized customers.
The company is incorporating generative AI and machine learning into its platform, but competitors may incorporate AI more successfully and third-party model suppliers could terminate or raise costs. AI investments have negatively impacted operating margins until revenue grows enough to offset them.
The company ended maintenance and support for Server products in February 2024 and is directing resources to Cloud migrations. Cloud offerings typically generate lower initial revenue and higher hosting costs, and MD&A expects gross margin to modestly decrease from the Data Center to Cloud mix shift; gross margin was down 1.1 percentage points in FY2024 Q4 versus FY2023 Q4.
The business depends on customers renewing and expanding subscriptions, but customers primarily have monthly or annual terms and no long-term contracts. Expansion from existing customers has moderated, particularly among small and medium-sized customers, and retention could decline due to cloud transition, pricing, or macro conditions.
The Chief Revenue Officer stepped down effective December 31, 2023, and the company announced in April 2024 that a co-Chief Executive Officer and the Chief Sales Officer intend to step down effective August 31, 2024. The company has no employment agreements requiring executives to stay, and competition for AI and product engineering talent is intense.
As the enterprise sales force develops, the company may face longer, multi-phased sales cycles and less predictability. Adverse macroeconomic conditions have delayed enterprise purchasing decisions, increasing sales costs and time to close without assurance that potential customers will purchase.
The company derives a majority of its revenue from Jira and Confluence, so market acceptance of these products is critical. Demand could be harmed by new products, lower cost alternatives, or changes in addressable markets.
For fiscal year 2024, the company derived over 50% of revenue from channel partners' sales efforts. These partners are independent, non-exclusive, and may cease marketing the company's products with limited or no notice.
Security breaches or unauthorized access to customer data could lead to reputational harm, liabilities, and loss of customers. The company has experienced past breaches and inappropriate access, and its remote-first Team Anywhere environment, AI integration, and third-party Marketplace apps may increase data security risks.
Evolving regulation of cloud computing, AI services, cross-border data transfer, privacy, and other domestic or foreign laws may limit use and adoption of the company's services. AI and machine learning technologies face increased governmental and regulatory scrutiny.
Global operations subject the company to potentially adverse tax consequences. It finalized an Advanced Pricing Arrangement with the Australian Taxation Office and made an approximately $60.5 million cash tax payment during fiscal year 2024, and it maintains a full valuation allowance on U.S. federal, U.S. state, and Australian deferred tax assets.
SaaS KPIs
All quarters →Total customers
Non-GAAP Operating Margin
Free Cash Flow Margin
Free Cash Flow
Customers with >$10,000 in Cloud ARR
Deferred revenue
Summary, forecast, risks and KPIs are extracted from Atlassian Corp's SEC filings for Q4 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 6, 2026.