TEAM Q4 2024 Earnings

Call Details

• Call Title: Atlassian Corporation Q4 2024 Earnings Call
• Date: August 1, 2024 at 9:00 PM UTC
• Management Team:
  • Mike Cannon-Brookes (Chief Executive Officer)
  • Scott Farquhar (Chief Executive Officer)
  • Joe Binz (Chief Financial Officer)
  • Martin Lam (Head of Investor Relations)

Call Summary

Financial Performance

• FY24 revenue was $4.4B for the year.
• FY24 free cash flow exceeded $1.4B for the year.
• The company reported surpassing 300,000 customers during FY24.
• Cloud revenue grew 31% year over year in Q4, which was slightly below the 32% cloud guidance for the quarter.
• The company stated FY24 non-GAAP operating margin was approximately 200 basis points higher than the FY25 guide, implying FY24 non-GAAP operating margin was roughly 23.5%.
• Atlassian reported it now has over 500 customers spending over $1M annually.

Guidance

• FY25 total revenue guidance is for 16% growth year over year.
• FY25 non-GAAP operating margin guidance is approximately 21.5%.
• The FY25 guidance approach is described as more conservative and risk-adjusted compared with the prior year due to macro uncertainty and go-to-market execution risks.
• The company reaffirmed its longer-term objective to deliver in excess of 20% compound annual revenue growth over the next three years.
• Loom is expected to impact FY25 cloud revenue growth by about one and a half to two points and to be slightly dilutive to FY25 operating margins.
• The company expects continued pricing increases to be a contributor to cloud revenue growth in FY25.