Quarterly revenue of $411.6 million, up 33%
year-over-year
Quarterly IFRS operating margin of (5)% and
non-IFRS operating margin of 19%
Quarterly cash flow from operations of $156.3
million and free cash flow of $140.3 million
Atlassian Corporation Plc (NASDAQ: TEAM), a leading provider of
team collaboration and productivity software, today announced
financial results for its third quarter of fiscal 2020 ended March
31, 2020 and released a shareholder letter on the Investor
Relations section of its website at
https://investors.atlassian.com.
“These are unprecedented times,” said Scott Farquhar,
Atlassian’s co-founder and co-CEO. “The COVID-19 pandemic has
caused a public health crisis and rapid economic change. As workers
respond in a remote-work world, we’ve never been more committed to
delivering on our mission to unleash the potential of every team
and support our customers and community.”
“We’ve built Atlassian to be an enduring company focused on
driving long-term results,” said Mike Cannon-Brookes, Atlassian’s
co-founder and co-CEO. “Through efforts like launching free cloud
editions of our core products, we will support our customers
through challenging times, and position ourselves to drive durable
growth.”
Third Quarter Fiscal Year 2020 Financial Highlights:
On an IFRS basis, Atlassian reported:
- Revenue: Total revenue was $411.6 million for the third
quarter of fiscal 2020, up 33% from $309.3 million for the third
quarter of fiscal 2019.
- Operating Loss: Operating loss was $19.9 million for the
third quarter of fiscal 2020, compared with an operating loss of
$27.6 million for the third quarter of fiscal 2019. Operating
margin was (5)% for the third quarter of fiscal 2020, compared with
(9)% for the third quarter of fiscal 2019.
- Net Loss and Net Loss Per Diluted Share: Net loss was
$158.8 million for the third quarter of fiscal 2020, compared with
net loss of $202.8 million for the third quarter of fiscal 2019.
Net loss per diluted share was $0.65 for the third quarter of
fiscal 2020, compared with net loss per diluted share of $0.85 for
the third quarter of fiscal 2019. Net loss for the third quarter of
fiscal 2020 included a non-cash charge recorded in “other
non-operating (expense) income, net” of $141.8 million, compared
with a non-cash charge of $172.6 million in the third quarter of
fiscal 2019, as a result of marking to fair value the exchange
feature of Atlassian’s exchangeable senior notes and related capped
calls.
- Balance Sheet: Cash and cash equivalents, and short-term
investments at the end of the third quarter of fiscal 2020 totaled
$2.1 billion.
On a non-IFRS basis, Atlassian reported:
- Operating Income and Operating Margin: Operating income
was $77.2 million for the third quarter of fiscal 2020, compared
with operating income of $58.0 million for the third quarter of
fiscal 2019. Operating margin was 19% for the third quarter of
fiscal 2020, compared with 19% for the third quarter of fiscal
2019.
- Net Income and Net Income Per Diluted Share: Net income
was $61.9 million for the third quarter of fiscal 2020, compared
with net income of $52.4 million for the third quarter of fiscal
2019. Net income per diluted share was $0.25 for the third quarter
of fiscal 2020, compared with net income per diluted share of $0.21
for the third quarter of fiscal 2019.
- Free Cash Flow: Cash flow from operations was $156.3
million and free cash flow was $140.3 million for the third quarter
of fiscal 2020. Free cash flow margin for the third quarter of
fiscal 2020 was 34%.
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:
- Customer Growth: Atlassian ended the third quarter of
fiscal 2020 with a total customer count, on an active subscription
or maintenance agreement basis, of 171,051. Atlassian added 6,261
net new customers during the quarter.
- Free Cloud Editions: Atlassian completed the full
rollout of free cloud editions across its core products - Jira
Software, Confluence and Jira Service Desk. The free editions
represent Atlassian’s commitment to make its products more
accessible to more teams throughout the world.
- Cloud Enterprise: At Remote Summit, Atlassian announced
Cloud Enterprise, its most advanced cloud offering. Cloud
Enterprise addresses the needs of the largest enterprises across
Jira Software, Jira Service Desk, and Confluence. Key features
include managing collaboration across unlimited users, data
residency, and centralized administration tools. Cloud Enterprise
is backed by a 99.95% uptime service-level agreement (SLA) and
includes dedicated 24/7 support.
- Leader in Magic Quadrant for Enterprise Agile Planning
Tools: Atlassian was named as a Leader in Gartner’s 2020 Magic
Quadrant for Enterprise Agile Planning Tools for its combined Jira
Software and Jira Align solution. The report also ranked Atlassian
highest in “Completeness of Vision.” Jira Align unlocks enterprise
agility by connecting business strategy to team-level work. The
Jira Align platform ensures teams are working towards the same
goal, and makes it easier to determine scope, roadmaps, and
dependencies.
- New Chief People Officer: Atlassian welcomed Tami Rosen
as its new Chief People Officer (CPO) in January 2020. Prior to
Atlassian, Tami held leadership roles at Goldman Sachs and Apple,
and was the first CPO for Quora and Luminar Technologies. Tami
brings an agile philosophy to all aspects of people operations, and
is widely recognized for her strengths in HR Transformation,
Employer Branding, Leadership Development and Culture Education.
Tami is also a strong advocate for employees through initiatives
that embrace inclusion, empowerment, and growth of women, LGBTQ+,
and underrepresented populations, such as Wall Street’s first Ally
program, which won the Human Rights Campaign Innovation Award.
- New Chief Revenue Officer: Atlassian also named Cameron
Deatsch as its new Chief Revenue Officer. Cameron joined Atlassian
in October of 2012, and was most recently Head of Server & Data
Center product teams. He also has served in a variety of leadership
roles across sales, advocacy, marketing, and corporate development.
As Chief Revenue Officer, Cameron will lead all go-to-market
functions at Atlassian.
Financial Targets:
Atlassian is providing its financial targets for the fourth
quarter and full fiscal year 2020. The company’s financial targets
are as follows:
- Fourth Quarter Fiscal Year 2020:
- Total revenue is expected to be in the range of $400 million to
$415 million.
- Gross margin is expected to be approximately 83% on an IFRS
basis and approximately 85% on a non-IFRS basis.
- Operating margin is expected to be in the range of (9%) to (6%)
on an IFRS basis and in the range of 14% to 17% on a non-IFRS
basis.
- Net loss per diluted share is expected to be in the range of
($0.21) to ($0.16) on an IFRS basis, and net income per diluted
share is expected to be in the range of $0.17 to $0.22 on a
non-IFRS basis.
- Weighted average share count is expected to be in the range of
246 million to 247 million shares when calculating diluted IFRS net
loss per share and in the range of 252 million to 253 million
shares when calculating diluted non-IFRS net income per share.
- Fiscal Year 2020:
- Total revenue is expected to be in the range of $1,584 million
to $1,599 million.
- Gross margin is expected to be approximately 83% on an IFRS
basis and approximately 86% on a non-IFRS basis.
- Operating margin is expected to be in the range of (1.5%) to
(0.5%) on an IFRS basis and in the range of 21.5% to 22.5% on a
non-IFRS basis.
- Net income per diluted share is expected to be in the range of
($0.08) to ($0.02) on an IFRS basis and in the range of $1.06 to
$1.12 on a non-IFRS basis.
- Weighted average share count is expected to be in the range of
244 million to 245 million shares when calculating diluted IFRS net
loss per share and in the range of 251 million to 252 million when
calculating diluted non-IFRS net income per share.
- Cash flow from operations is expected to be in the range of
$512 million to $542 million and free cash flow is expected to be
in the range of $445 million to $475 million.
With respect to Atlassian’s expectations under “Financial
Targets” above, a reconciliation of IFRS to non-IFRS gross margin,
operating margin, net income (loss) per diluted share, and free
cash flow has been provided in the financial statement tables
included in this press release.
Shareholder Letter and Webcast/Conference Call
Details:
A detailed shareholder letter is available on the Investor
Relations section of Atlassian’s website at:
https://investors.atlassian.com. Atlassian will host a webcast and
conference call to answer questions today:
- When: Thursday, April 30, 2020 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.
- Dial in: To access the call via telephone in North
America, please dial 1-866-211-4184. For international callers,
please dial 1-647-689-6846. Participants should request the
“Atlassian call” after dialing in.
- 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 3442667). International callers, please
dial 1-416-621-4642 (access code 3442667).
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 171,000
customers, across large and small organizations - including General
Motors, Walmart Labs, Bank of America Merrill Lynch, Lyft, Verizon,
Spotify and NASA - 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, Trello,
Bitbucket, Opsgenie, Jira Service Desk, 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, future responses to and effects of the COVID-19
pandemic, 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, net income (loss) per diluted share, and free cash
flow.
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 changes in our assessment
regarding the realizability of our deferred tax assets.
- 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 from fiscal 2020, with
the adoption of IFRS 16, Leases (“IFRS 16”), payments of lease
obligations are also deducted.
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.
- The related income tax effects on these items, and changes in
our assessment regarding the realizability of our deferred tax
assets.
- Capital expenditures 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 changes in our assessment
regarding the realizability of our deferred tax assets 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 changes in our assessment regarding the realizability of
our deferred tax assets 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 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,
2020
2019
2020
2019
Revenues:
Subscription
$
244,155
$
166,468
$
673,934
$
453,033
Maintenance
119,628
98,862
346,576
288,759
Perpetual license
21,002
23,152
74,797
70,769
Other
26,797
20,788
88,390
62,980
Total revenues
411,582
309,270
1,183,697
875,541
Cost of revenues (1) (2)
70,655
54,189
198,695
149,156
Gross profit
340,927
255,081
985,002
726,385
Operating expenses:
Research and development (1) (2)
204,148
153,069
552,450
408,813
Marketing and sales (1) (2)
84,485
70,544
221,791
191,756
General and administrative (1)
72,214
59,025
193,395
156,734
Total operating expenses
360,847
282,638
967,636
757,303
Operating (loss) income
(19,920
)
(27,557
)
17,366
(30,918
)
Other non-operating (expense) income,
net
(141,701
)
(173,324
)
44,748
(377,980
)
Finance income
7,199
9,303
24,411
24,228
Finance costs
(12,435
)
(10,103
)
(37,126
)
(30,024
)
(Loss) income before income tax benefit
(expense)
(166,857
)
(201,681
)
49,399
(414,694
)
Income tax benefit (expense)
8,032
(1,163
)
(14,830
)
14,590
Net (loss) income
$
(158,825
)
$
(202,844
)
$
34,569
$
(400,104
)
Net (loss) income per share attributable
to ordinary shareholders:
Basic
$
(0.65
)
$
(0.85
)
$
0.14
$
(1.68
)
Diluted
$
(0.65
)
$
(0.85
)
$
0.14
$
(1.68
)
Weighted-average shares outstanding used
to compute net (loss) income per share attributable to ordinary
shareholders:
Basic
245,504
239,410
244,161
237,778
Diluted
245,504
239,410
251,255
237,778
(1) Amounts include share-based payment expense, as follows:
Three Months Ended March
31,
Nine Months Ended March
31,
2020
2019
2020
2019
Cost of revenues
$
5,535
$
4,871
$
14,654
$
12,156
Research and development
57,071
42,222
151,988
102,044
Marketing and sales
11,397
10,979
32,902
28,590
General and administrative
13,519
14,674
35,712
38,840
(2) Amounts include amortization of
acquired intangible assets, as follows:
Three Months Ended March
31,
Nine Months Ended March
31,
2020
2019
2020
2019
Cost of revenues
$
6,645
$
7,068
$
24,306
$
19,479
Research and development
41
19
124
40
Marketing and sales
2,900
5,716
10,511
25,072
Atlassian Corporation
Plc
Consolidated Statements of
Financial Position
(U.S. $ in thousands)
March 31, 2020
June 30, 2019
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
1,338,193
$
1,268,441
Short-term investments
733,612
445,046
Trade receivables
93,710
82,525
Tax receivables
1,784
707
Derivative assets
245,601
215,156
Prepaid expenses and other current
assets
45,470
30,236
Total current assets
2,458,370
2,042,111
Non-current assets:
Property and equipment, net
85,038
81,459
Deferred tax assets
19,639
17,084
Goodwill
632,779
608,907
Intangible assets, net
131,934
150,975
Right-of-use assets, net
225,985
—
Other non-current assets
87,212
76,722
Total non-current assets
1,182,587
935,147
Total assets
$
3,640,957
$
2,977,258
Liabilities
Current liabilities:
Trade and other payables
$
179,739
$
159,487
Tax liabilities
14,300
11,703
Provisions
9,721
8,983
Deferred revenue
547,518
440,954
Lease obligations
34,659
—
Derivative liabilities
858,447
855,005
Current portion of exchangeable senior
notes, net
880,120
853,576
Total current liabilities
2,524,504
2,329,708
Non-current liabilities:
Deferred tax liabilities
16,020
13,872
Provisions
7,221
6,082
Deferred revenue
35,638
27,866
Lease obligations
235,974
—
Other non-current liabilities
1,441
34,263
Total non-current liabilities
296,294
82,083
Total liabilities
2,820,798
2,411,791
Equity
Share capital
24,629
24,199
Share premium
459,590
458,166
Other capital reserves
1,051,796
816,660
Other components of equity
15,313
32,079
Accumulated deficit
(731,169
)
(765,637
)
Total equity
820,159
565,467
Total liabilities and equity
$
3,640,957
$
2,977,258
Atlassian Corporation
Plc
Consolidated Statements of
Cash Flows
(U.S. $ in thousands)
(unaudited)
Three Months Ended March
31,
Nine Months Ended March
31,
2020
2019
2020
2019
Operating activities
(Loss) income before income tax benefit
(expense)
$
(166,857
)
$
(201,681
)
$
49,399
$
(414,694
)
Adjustments to reconcile (loss) income
before income tax benefit (expense) to net cash provided by
operating activities:
Depreciation and amortization
14,738
16,303
49,148
54,403
Depreciation of right-of-use assets
8,945
—
26,172
—
Net unrealized loss (gain) on
investments
—
1
—
(46
)
(Gain) loss on sale of investments and
disposal of other assets
(591
)
2
(855
)
(2,345
)
Net unrealized foreign currency gain
(4,119
)
(742
)
(3,173
)
(634
)
Share-based payment expense
87,522
72,746
235,256
181,630
Net unrealized loss (gain) on exchange
derivative and capped call transactions
141,783
172,582
(46,743
)
377,587
Amortization of debt discount and issuance
cost
8,955
8,535
26,545
25,301
Interest income
(7,200
)
(9,417
)
(24,411
)
(24,228
)
Interest expense
3,482
1,568
10,581
4,723
Changes in assets and liabilities:
Trade receivables
29,902
7,513
(11,211
)
(15,627
)
Prepaid expenses and other assets
(1,224
)
4,046
(7,594
)
(13,161
)
Trade and other payables, provisions and
other non-current liabilities
30,961
38,231
25,452
56,205
Deferred revenue
4,958
16,201
113,737
88,946
Interest received
8,146
8,235
24,416
21,956
(Income tax paid) tax refunds received,
net
(3,088
)
(872
)
(15,850
)
8,600
Net cash provided by operating
activities
156,313
133,251
450,869
348,616
Investing activities
Business combinations, net of cash
acquired
—
—
(37,983
)
(263,554
)
Purchases of intangible assets
—
—
—
(850
)
Purchases of property and equipment
(6,742
)
(6,106
)
(19,865
)
(24,629
)
Proceeds from sales of property, equipment
and intangible assets
—
—
—
3,721
Purchases of investments
(364,603
)
(158,258
)
(951,481
)
(352,647
)
Proceeds from maturities of
investments
232,239
131,669
425,257
317,583
Proceeds from sales of investments
95,680
3,070
237,641
8,742
Increase in restricted cash
—
—
—
(552
)
Net cash used in investing activities
(43,426
)
(29,625
)
(346,431
)
(312,186
)
Financing activities
Proceeds from exercise of share
options
499
1,125
1,485
2,829
Payment of exchangeable senior notes
issuance costs
—
—
—
(410
)
Payments of lease obligations
(9,308
)
—
(26,335
)
—
Interest paid
—
—
(3,125
)
(3,194
)
Repayment of exchangeable senior notes
(2
)
—
(2
)
—
Net cash (used in) provided by financing
activities
(8,811
)
1,125
(27,977
)
(775
)
Effect of exchange rate changes on cash
and cash equivalents
(5,608
)
(56
)
(6,709
)
(710
)
Net increase in cash and cash
equivalents
98,468
104,695
69,752
34,945
Cash and cash equivalents at beginning
of period
1,239,725
1,340,589
1,268,441
1,410,339
Cash and cash equivalents at end of
period
$
1,338,193
$
1,445,284
$
1,338,193
$
1,445,284
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,
2020
2019
2020
2019
Gross profit
IFRS gross profit
$
340,927
$
255,081
$
985,002
$
726,385
Plus: Share-based payment expense
5,535
4,871
14,654
12,156
Plus: Amortization of acquired intangible
assets
6,645
7,068
24,306
19,479
Non-IFRS gross profit
$
353,107
$
267,020
$
1,023,962
$
758,020
Operating income
IFRS operating (loss) income
$
(19,920
)
$
(27,557
)
$
17,366
$
(30,918
)
Plus: Share-based payment expense
87,522
72,746
235,256
181,630
Plus: Amortization of acquired intangible
assets
9,586
12,803
34,941
44,591
Non-IFRS operating income
$
77,188
$
57,992
$
287,563
$
195,303
Net income
IFRS net (loss) income
$
(158,825
)
$
(202,844
)
$
34,569
$
(400,104
)
Plus: Share-based payment expense
87,522
72,746
235,256
181,630
Plus: Amortization of acquired intangible
assets
9,586
12,803
34,941
44,591
Plus: Non-coupon impact related to the
Notes and capped calls
150,738
181,117
(20,198
)
402,888
Less: Income tax effects and
adjustments
(27,129
)
(11,410
)
(58,774
)
(65,672
)
Non-IFRS net income
$
61,892
$
52,412
$
225,794
$
163,333
Net income per share
IFRS net (loss) income per share -
diluted
$
(0.65
)
$
(0.85
)
$
0.14
$
(1.68
)
Plus: Share-based payment expense
0.35
0.29
0.93
0.76
Plus: Amortization of acquired intangible
assets
0.04
0.05
0.14
0.18
Plus: Non-coupon impact related to the
Notes and capped calls
0.61
0.76
(0.08
)
1.67
Less: Income tax effects and
adjustments
(0.10
)
(0.04
)
(0.23
)
(0.27
)
Non-IFRS net income per share -
diluted
$
0.25
$
0.21
$
0.90
$
0.66
Weighted-average diluted shares
outstanding
Weighted-average shares used in computing
diluted IFRS net (loss) income per share
245,504
239,410
251,255
237,778
Plus: Dilution from share options and RSUs
(1)
6,389
9,382
—
9,844
Weighted-average shares used in computing
diluted non-IFRS net income per share
251,893
248,792
251,255
247,622
Free cash flow
IFRS net cash provided by operating
activities
$
156,313
$
133,251
$
450,869
$
348,616
Less: Capital expenditures
(6,742
)
(6,106
)
(19,865
)
(24,629
)
Less: Payments of lease obligations
(9,308
)
—
(26,335
)
—
Free cash flow (2)
$
140,263
$
127,145
$
404,669
$
323,987
(1) The effects of these dilutive securities were not included
in the IFRS calculation of diluted net loss per share for the three
months ended March 31, 2020 and 2019 and the nine months ended
March 31, 2019 because the effect would have been
anti-dilutive.
(2) As a result of our adoption of IFRS 16 on July 1, 2019, we
have updated our definition of free cash flow to subtract payments
of lease obligations under IFRS 16. These payments were previously,
but no longer, reported in cash provided by operating activities.
As a result, free cash flow is not affected by this change.
Atlassian Corporation
Plc
Reconciliation of IFRS to
Non-IFRS Financial Targets
(U.S. $)
Three Months Ending
June 30, 2020
Fiscal Year Ending June
30, 2020
Revenue
$400 million to $415
million
$1,584 million to $1,599
million
IFRS gross margin
83%
83%
Plus: Share-based payment expense
1
1
Plus: Amortization of acquired intangible
assets
1
2
Non-IFRS gross margin
85%
86%
IFRS operating margin
(9%) to (6%)
(1.5%) to (0.5%)
Plus: Share-based payment expense
21
20
Plus: Amortization of acquired intangible
assets
2
3
Non-IFRS operating margin
14% to 17%
21.5% to 22.5%
IFRS net loss per share -
diluted
($0.21) to ($0.16)
($0.08) to ($0.02)
Plus: Share-based payment expense
0.35
1.28
Plus: Amortization of acquired intangible
assets
0.03
0.17
Plus: Non-coupon impact related to
exchangeable senior notes and capped calls
0.04
(0.04)
Less: Income tax effects and
adjustments
(0.04)
(0.27)
Non-IFRS net income per share -
diluted
$0.17 to $0.22
$1.06 to $1.12
Weighted-average shares used in
computing diluted IFRS net loss per share
246 million to 247
million
244 million to 245
million
Dilution from share options and RSUs
(1)
6 million
7 million
Weighted-average shares used in
computing diluted non-IFRS net income per share
252 million to 253
million
251 million to 252
million
IFRS net cash provided by operating
activities
$512 million to $542
million
Less: Capital expenditures
(32 million)
Less: Payments of lease obligations
(35 million)
Free cash flow (2)
$445 million to $475
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, 2020 and fiscal year ending June 30, 2020
because the effect would be anti-dilutive.
(2) As a result of our adoption of IFRS 16 on July 1, 2019, we
have updated our definition of free cash flow to subtract payments
of lease obligations under IFRS 16. These payments were previously,
but no longer, reported in cash provided by operating activities.
As a result, free cash flow is not affected by this change.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200430005928/en/
Investor Relations Contact Martin Lam & Matt
Sonefeldt IR@atlassian.com
Media Contact Jake Standish press@atlassian.com
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