Curious about Atlassian net worth and its financial journey in 2024? At Ando Money, we delve into the key aspects of Atlassian’s fiscal performance.
From its robust revenue growth to strategic product innovations, our goal is to give you a comprehensive understanding of the company’s financial situation.
Quick Facts
| Fact | Detail |
|---|---|
| Name | Atlassian Corporation |
| Industry | Software development, service management, work management |
| Traded as | NASDAQ: TEAM |
| ISIN | N/A |
| Founded | 2002 |
| Founders | Mike Cannon-Brookes, Scott Farquhar |
| Country/Territory | Australia |
| Headquarters | Team Anywhere/San Francisco |
| Chief Executive Officer | Mike Cannon-Brookes, Scott Farquhar |
| Number of Employees | Over 12,000 |
| Market Cap | $41.92 Billion |
| Total Assets | $5.212 Billion |
| Total Equity | $1.033 Billion |
| Revenue (FY 2024) | $4.4 Billion |
| Net Income (GAAP FY 2024) | -$300.5 Million |
What is the Net Worth/Market Cap Of Atlassian in 2024?
As of 2024, Atlassian holds a significant market capitalization of $41.92 billion. This figure places it among the world’s most valuable companies, reflecting its substantial financial growth and influence.
The company’s focus on team collaboration and productivity software has pushed it to the forefront, but how does it compare with others?
Here are a few other companies related to Atlassian in the tech industry:
- Adobe
- Microsoft
- ServiceNow
- IBM
- Slack Technologies
- Salesforce
- Trello (owned by Atlassian)
- Dropbox
- Asana
If you’re interested in exploring how Atlassian compares with the wealthiest corporations, click here for more insights.
Financial Performance Overview
Revenue Performance in Fiscal Year 2024
In fiscal year 2024, Atlassian reported a total revenue of $4.4 billion, marking a 23% increase from the previous year. This significant growth is attributed to the company’s ability to scale and innovate across its core product lines.
The fourth quarter revenue hit $1,132 million, a 20% year-over-year increase.
The company has effectively expanded its customer base and generated higher subscription income, contributing to the overall surge.
Subscription Services as a Revenue Driver
Subscription revenue remains a pivotal financial driver for Atlassian, with Q4 FY 2024 subscription revenue reaching $1,069 million, a 34% year-over-year rise.
This robust growth highlights the increasing demand for Atlassian’s cloud services and solutions.
The shift to subscription-based models has enabled the firm to achieve consistent revenue streams and enhance long-term profitability.
Cloud Revenue Growth and Its Role in Financial Performance
The cloud segment of Atlassian has experienced tremendous growth.
In FY 2024, cloud revenue accounted for a substantial portion of the company’s total revenue, with an expected 23% year-over-year growth in FY 2025.
This rise is driven by the adoption of cloud-based services, which offer enhanced flexibility and scalability for customers.
Atlassian’s focus on cloud innovation has been instrumental in attracting and retaining a diverse set of clients.
Data Center Revenue Trends
Data center revenue also plays a key role in Atlassian’s financial structure, with a reported 35% year-over-year growth expected in FY 2025.
The data center solutions cater to larger enterprise customers requiring on-premises deployment and control.
This sector is projected to continue growing, given the company’s strategic focus on enterprise-grade solutions.
Operating Margins and Their Influence on Financial Health
When it comes to operating margins, Atlassian reported a -6% GAAP operating margin for Q4 FY 2024, while the non-GAAP operating margin stood at 20%.
The operating margin is influenced by various factors, including stock-based compensation and research and development expenses.
Non-GAAP operating income reached $222 million in Q4 FY 2024, reflecting effective cost management.
Free Cash Flow: Generation and Utilization
Atlassian’s free cash flow for FY 2024 stood at $1.4156 billion, an indication of healthy cash generation.
This free cash flow comes from solid operational performance, with a reported $426.2 million generated from operations in Q4 FY 2024 alone.
The company aims to reinvest this cash flow into product development and strategic growth opportunities.
Total Assets and Equity Overview
As of June 30, 2024, Atlassian’s total assets reached $5.212 billion, with total equity reported at $1.033 billion.
This robust asset base underscores Atlassian’s solid financial standing, supporting the company’s ambitious growth and innovation goals.
The balance between assets and equity plays a crucial role in enhancing shareholder value.
The Firm’s Financial Targets and Expectations for FY 2025
Looking forward to FY 2025, Atlassian projects a total revenue growth of 16% and anticipates cloud revenue growth of 23%.
Additionally, they forecast a GAAP gross margin of 81% and a non-GAAP operating margin of 21.5%.
These targets align with the company’s continued focus on scaling its cloud services and expanding its enterprise customer base.
The Impact of Product Innovations on Revenue
Product innovations, such as the AI-powered “Rovo” and the unified Jira platform, have played a pivotal role in enhancing Atlassian’s financial performance.
These advancements have allowed the company to tap into new markets and offer enhanced functionalities, thus contributing to increased customer adoption and recurring revenue streams.
Changes in Customer Base and Their Financial Impact
Atlassian’s customer base, particularly those with over $10,000 in Cloud ARR, has grown by 18% year-over-year.
The expansion in enterprise customers and higher-value contracts has had a significant positive impact on the company’s revenue growth, emphasizing Atlassian’s strength in serving both SMBs and large-scale corporations.
Cost Management and Profitability Strategies
Effective cost management strategies, especially around research and development, marketing, and sales, have enabled Atlassian to maintain its profitability while continuing to invest in growth.
The company’s focus on balancing cost efficiency with product development has been instrumental in sustaining its operating margins and profitability.
FAQs About Atlassian
How did Atlassian perform financially in FY 2024?
Atlassian reported a $4.4 billion revenue in FY 2024, with a 23% year-over-year increase. It also generated $1.4156 billion in free cash flow.
What are Atlassian’s key revenue drivers?
The main revenue drivers are subscription services and cloud offerings, which experienced a 34% and 23% year-over-year growth, respectively.
How does Atlassian utilize its free cash flow?
Atlassian uses its free cash flow for reinvestment into product development, growth opportunities, and maintaining strong operational performance.
What are Atlassian’s financial targets for FY 2025?
For FY 2025, Atlassian targets a 16% total revenue growth and 23% cloud revenue growth, with a non-GAAP operating margin of around 21.5%.
How is Atlassian expanding its customer base?
The company is growing its customer base by focusing on cloud solutions and targeting enterprise clients, particularly those contributing over $10,000 in Cloud ARR.
Conclusion
At Ando Money, we’re committed to providing insights on Atlassian’s financial performance.
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