TEAM
$124.28
Atlassian Cls A Ord
($4.50)
(3.49%)
Earnings Details
Quarter June 2019
Thursday, July 25, 2019 4:03:00 PM
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Summary

Atlassian Cls A Ord Misses

Atlassian Cls A Ord (TEAM) reported Quarter June 2019 earnings of $0.10 per share on revenue of $334.6 million. The consensus earnings estimate was $0.16 per share on revenue of $330.5 million. The Earnings Whisper number was $0.18 per share. Revenue grew 37.2% on a year-over-year basis.

The company said it expects first quarter non-IFRS earnings of approximately $0.24 per share on revenue of $349.0 million to $353.0 million and fiscal 2020 earnings of approximately $1.00 per share on revenue of $1.54 billion to $1.556 billion. The current consensus earnings estimate is $0.21 per share on revenue of $349.9 million for the quarter ending September 30, 2019 and $1.00 per share on revenue of $1.55 billion for the year ending June 30, 2020.

Results
Reported Earnings
$0.10
Earnings Whisper
$0.18
Consensus Estimate
$0.16
Reported Revenue
$334.6 Mil
Revenue Estimate
$330.5 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Atlassian Announces Fourth Quarter and Fiscal Year 2019 Results

Quarterly revenue of $334.6 million, up 36% year-over-year

Quarterly IFRS operating margin of (10%) and non-IFRS operating margin of 17%

Quarterly cash flow from operations of $117.7 million and free cash flow of $98.2 million

SAN FRANCISCO--(BUSINESS WIRE)--Atlassian Corporation Plc (NASDAQ: TEAM), a leading provider of team collaboration and productivity software, today announced financial results for its fourth quarter and fiscal year ended June 30, 2019 and released a shareholder letter on the Investor Relations section of its website at https://investors.atlassian.com. All financial results and targets are based on the new revenue recognition standard IFRS 15, which the company adopted on July 1, 2018.

“Fiscal 2019 was another outstanding year for Atlassian. We surpassed 150,000 customers during fiscal 2019 – a remarkable achievement for Atlassian and triple the audacious 50,000 customer target we set when we founded the company,” said Scott Farquhar, Atlassian’s co-founder and co-CEO. “This propelled us past the $1 billion revenue mark for the first time in a fiscal year.”

“We are a Cloud-first company, with more than 125,000 of our customers using our Cloud products and more than 90% of our net new customers each quarter choosing a Cloud product,” said Mike Cannon-Brookes, Atlassian’s co-founder and co-CEO. “In fiscal 2020, we will continue to invest in our Cloud business to serve the needs of the Fortune 500,000 and drive our long-term growth.”

Fourth Quarter Fiscal Year 2019 Financial Highlights

On an IFRS basis, Atlassian reported:

  • Revenue: Total revenue was $334.6 million for the fourth quarter of fiscal 2019, up 36% from $246.6 million for the fourth quarter of fiscal 2018.
  • Operating Loss and Operating Margin: Operating loss was $32.4 million for the fourth quarter of fiscal 2019, compared with operating loss of $2.5 million for the fourth quarter of fiscal 2018. Operating margin was (10%) for the fourth quarter of fiscal 2019, compared with (1%) for the fourth quarter of fiscal 2018.
  • Net Loss and Net Loss Per Diluted Share: Net loss was $237.5 million for the fourth quarter of fiscal 2019, compared with net loss of $21.9 million for the fourth quarter of fiscal 2018. Net loss per diluted share was $0.99 for the fourth quarter of fiscal 2019, compared with a net loss per diluted share of $0.09 for the fourth quarter of fiscal 2018.

    Net loss for the fourth quarter of fiscal 2019 included a non-cash charge of $156.3 million recorded in “other non-operating expense, net,” as a result of marking to fair value the exchange feature of Atlassian's exchangeable senior notes and the related capped calls.

    Net loss for the fourth quarter of fiscal 2019 also included a non-cash charge to income tax expense of $54.7 million as a result of a write-down of Atlassian’s deferred tax assets. The charge was driven by Atlassian’s assessment of the realizability of its deferred tax assets.
  • Balance Sheet: Cash and cash equivalents, and short-term investments at the end of the fourth quarter of fiscal 2019 totaled $1.7 billion.

On a non-IFRS basis, Atlassian reported:

  • Operating Income and Operating Margin: Operating income was $55.9 million for the fourth quarter of fiscal 2019, compared with operating income of $50.3 million for the fourth quarter of fiscal 2018. Operating margin was 17% for the fourth quarter of fiscal 2019, compared with 20% for the fourth quarter of fiscal 2018.
  • Net Income and Net Income Per Diluted Share: Net income was $51.2 million for the fourth quarter of fiscal 2019, compared with net income of $36.9 million for the fourth quarter of fiscal 2018. Net income per diluted share was $0.20 for the fourth quarter of fiscal 2019, compared with net income per diluted share of $0.14 for the fourth quarter of fiscal 2018.
  • Free Cash Flow: Cash flow from operations for the fourth quarter of fiscal 2019 was $117.7 million, while capital expenditures totaled $19.6 million, resulting in free cash flow of $98.2 million, an increase of 52% year-over-year. Free cash flow margin for the fourth quarter of fiscal 2019 was 29%.

Fiscal Year 2019 Financial Highlights

On an IFRS basis, Atlassian reported:

  • Revenue: Total revenue was $1,210.1 million for fiscal year 2019, up 37% from $881.0 million for fiscal year 2018.
  • Operating Loss and Operating Margin: Operating loss was $63.4 million for fiscal year 2019, compared with operating loss of $46.0 million for fiscal year 2018. Operating margin was (5%) for fiscal year 2019 and fiscal year 2018.
  • Net Loss and Net Loss Per Diluted Share: Net loss was $637.6 million for fiscal year 2019, compared with net loss of $113.4 million for fiscal year 2018. Net loss per diluted share was $2.67 for fiscal year 2019, compared with net loss per diluted share of $0.49 for fiscal year 2018.

    Net loss for fiscal 2019 included a non-cash charge of $533.9 million recorded in “other non-operating expense, net,” as a result of marking to fair value the exchange feature of Atlassian's exchangeable senior notes and the related capped calls.

On a non-IFRS basis, Atlassian reported:

  • Operating Income and Operating Margin: Operating income was $251.2 million for fiscal year 2019, compared with operating income of $174.1 million for fiscal year 2018. Operating margin was 21% for fiscal year 2019, compared with 20% for fiscal year 2018.
  • Net Income and Net Income Per Diluted Share: Net income was $214.5 million for fiscal year 2019, compared with net income of $124.5 million for fiscal year 2018. Net income per diluted share was $0.86 for fiscal year 2019, compared with net income per diluted share $0.51 for fiscal year 2018.
  • Free Cash Flow: Cash flow from operations for fiscal year 2019 was $466.3 million while capital expenditures totaled $44.2 million, leading to free cash flow of $422.2 million, an increase of 50% year-over-year. Free cash flow margin for fiscal 2019 was 35%.

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 fourth quarter of fiscal 2019 with a total customer count, on an active subscription or maintenance agreement basis, of 152,727. Atlassian added 8,689 net new customers during the quarter.
  • Jira Cloud for Mac: In June 2019, Atlassian was invited to present on the keynote stage at Apple’s Worldwide Developers Conference (WWDC), previewing Jira Cloud for Mac. Jira Cloud for Mac will be a fast and easy way for software developers to work with tasks and update their team on progress. With the app, Jira can be used right next to Xcode or any other development tools on Mac. The app will tightly integrate with macOS, including push notifications, keyboard shortcuts, Spotlight search, drag and drop, toolbars, and much more.
  • New Bengaluru Office: In July 2019, Atlassian expanded its presence in Bengaluru, India, by opening up a new technology center. Bengaluru is a major global technology hub with some of the brightest talent in the world. The company plans to grow the Bengaluru office into a world-class R&D and customer support center, and has already hired more than 200 employees locally. Over the next year, Atlassian plans to more than double its employee base in Bengaluru.

Financial Targets

Atlassian is providing its financial targets for the first quarter and full fiscal year 2020. The company’s financial targets are as follows:

  • First Quarter Fiscal Year 2020:
    • Total revenue is expected to be in the range of $349 million to $353 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 approximately (3%) on an IFRS basis and approximately 21% on a non-IFRS basis.
    • Net loss per diluted share is expected to be approximately ($0.08) on an IFRS basis, and net income per diluted share is expected to be approximately $0.24 on a non-IFRS basis.
    • Weighted average share count is expected to be in the range of 242 million to 243 million shares when calculating diluted IFRS net loss per share and in the range of 251 million to 252 million shares when calculating diluted non-IFRS net income per share.
  • Fiscal Year 2020:
    • Total revenue is expected to be in the range of $1,540 million to $1,556 million.
    • Gross margin is expected to be in the range of 82% to 83% on an IFRS basis and in the range of 85% to 86% on a non-IFRS basis.
    • Operating margin is expected to be approximately (2%) on an IFRS basis and approximately 20% on a non-IFRS basis.
    • Net loss per diluted share is expected to be approximately ($0.22) on an IFRS basis, and net income per diluted share is expected to be approximately $1.00 on a non-IFRS basis.
    • Weighted average share count is expected to be in the range of 244 million to 246 million shares when calculating diluted IFRS net loss per share and in the range of 253 million to 255 million shares when calculating diluted non-IFRS net income per share.
    • Cash flow from operations is expected to be in the range of $495 million to $505 million and free cash flow is expected to be in the range of $465 million to $475 million, which factors in capital expenditures that are expected to be approximately $30 million.

In addition to the financial targets for fiscal year 2020 listed above, the company anticipates that its subscription revenue will grow by over 40% year-over-year in fiscal 2020.

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, July 25, 2019 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 1-888-346-0688. For international callers, please dial 1-412-902-4250. 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 1-877-344-7529 (access code 10132376). International callers, please dial 1-412-317-0088 (access code 10132376).

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 152,000 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, employee plans, 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 operating results. 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.

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.

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 operating results 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; and
  • 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 June 30,

 

Fiscal Year Ended June 30,

 

2019

 

2018

 

2019

 

2018

 

 

 

*As Adjusted

 

 

 

*As Adjusted

Revenues:

 

 

 

 

 

 

 

Subscription

$

180,917

 

 

$

120,304

 

 

$

633,950

 

 

$

410,694

 

Maintenance

105,767

 

 

87,591

 

 

394,526

 

 

326,511

 

Perpetual license

22,824

 

 

21,698

 

 

93,593

 

 

83,171

 

Other

25,078

 

 

16,997

 

 

88,058

 

 

60,602

 

Total revenues

334,586

 

 

246,590

 

 

1,210,127

 

 

880,978

 

Cost of revenues (1) (2)

61,129

 

 

44,196

 

 

210,285

 

 

172,690

 

Gross profit

273,457

 

 

202,394

 

 

999,842

 

 

708,288

 

Operating expenses:

 

 

 

 

 

 

 

Research and development (1) (2)

170,321

 

 

111,046

 

 

579,134

 

 

415,776

 

Marketing and sales (1) (2)

76,600

 

 

49,049

 

 

268,356

 

 

187,315

 

General and administrative (1)

58,980

 

 

44,766

 

 

215,714

 

 

151,242

 

Total operating expenses

305,901

 

 

204,861

 

 

1,063,204

 

 

754,333

 

Operating loss

(32,444

)

 

(2,467

)

 

(63,362

)

 

(46,045

)

Other non-operating expense, net

(157,473

)

 

(14,739

)

 

(535,453

)

 

(15,157

)

Finance income

9,272

 

 

5,053

 

 

33,500

 

 

9,877

 

Finance costs

(10,217

)

 

(6,782

)

 

(40,241

)

 

(6,806

)

Loss before income tax expense

(190,862

)

 

(18,935

)

 

(605,556

)

 

(58,131

)

Income tax expense

(46,655

)

 

(2,995

)

 

(32,065

)

 

(55,301

)

Net loss

$

(237,517

)

 

$

(21,930

)

 

$

(637,621

)

 

$

(113,432

)

Net loss per share attributable to ordinary shareholders:

 

 

 

 

 

 

 

Basic

$

(0.99

)

 

$

(0.09

)

 

$

(2.67

)

 

$

(0.49

)

Diluted

$

(0.99

)

 

$

(0.09

)

 

$

(2.67

)

 

$

(0.49

)

Weighted-average shares outstanding used to compute net loss per share attributable to ordinary shareholders:

 

 

 

 

 

 

 

Basic

241,121

 

 

234,206

 

 

238,611

 

 

231,184

 

Diluted

241,121

 

 

234,206

 

 

238,611

 

 

231,184

 

 

(1) Amounts include share-based payment expense, as follows:

 

 

Three Months Ended June 30,

 

Fiscal Year Ended June 30,

 

2019

 

2018

 

2019

 

2018

Cost of revenues

$

5,294

 

 

$

2,762

 

 

$

17,450

 

 

$

11,955

 

Research and development

47,005

 

 

20,271

 

 

149,049

 

 

98,609

 

Marketing and sales

10,713

 

 

5,444

 

 

39,303

 

 

23,605

 

General and administrative

13,120

 

 

9,999

 

 

51,960

 

 

28,704

 

 

(2) Amounts include amortization of acquired intangible assets, as follows:

 

 

Three Months Ended June 30,

 

Fiscal Year Ended June 30,

 

2019

 

2018

 

2019

 

2018

Cost of revenues

$

8,518

 

 

$

5,299

 

 

$

27,997

 

 

$

21,188

 

Research and development

20

 

 

 

 

60

 

 

 

Marketing and sales

3,672

 

 

9,023

 

 

28,744

 

 

36,090

 

 

* As adjusted to reflect the impact of the full retrospective adoption of IFRS 15.

Atlassian Corporation Plc

Consolidated Statements of Financial Position

(U.S. $ in thousands)

 

 

June 30, 2019

 

June 30, 2018

 

(unaudited)

 

*As Adjusted

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

1,268,441

 

 

$

1,410,339

 

Short-term investments

445,046

 

 

323,134

 

Trade receivables

82,525

 

 

46,141

 

Current tax receivables

707

 

 

12,622

 

Current derivative assets

215,156

 

 

60

 

Prepaid expenses and other current assets

30,236

 

 

29,735

 

Total current assets

2,042,111

 

 

1,822,031

 

Non-current assets:

 

 

 

Property and equipment, net

81,459

 

 

51,656

 

Deferred tax assets

17,084

 

 

59,220

 

Goodwill

608,907

 

 

311,943

 

Intangible assets, net

150,975

 

 

63,577

 

Non-current derivative assets

77

 

 

99,935

 

Other non-current assets

76,645

 

 

13,466

 

Total non-current assets

935,147

 

 

599,797

 

Total assets

$

2,977,258

 

 

$

2,421,828

 

Liabilities

 

 

 

Current liabilities:

 

 

 

Trade and other payables

$

159,487

 

 

$

107,892

 

Current tax liabilities

11,703

 

 

172

 

Provisions

8,983

 

 

7,215

 

Deferred revenue

440,954

 

 

324,394

 

Current derivative liabilities

855,005

 

 

5,213

 

Current portion of exchangeable senior notes, net

853,576

 

 

 

Total current liabilities

2,329,708

 

 

444,886

 

Non-current liabilities:

 

 

 

Deferred tax liabilities

13,872

 

 

12,160

 

Provisions

6,082

 

 

4,363

 

Deferred revenue

27,866

 

 

18,477

 

Exchangeable senior notes, net

 

 

819,637

 

Non-current derivative liabilities

74

 

 

202,757

 

Other non-current liabilities

34,189

 

 

12,228

 

Total non-current liabilities

82,083

 

 

1,069,622

 

Total liabilities

2,411,791

 

 

1,514,508

 

Equity

 

 

 

Share capital

24,199

 

 

23,531

 

Share premium

458,166

 

 

454,766

 

Other capital reserves

816,660

 

 

557,100

 

Other components of equity

32,079

 

 

(61

)

Accumulated deficit

(765,637

)

 

(128,016

)

Total equity

565,467

 

 

907,320

 

Total liabilities and equity

$

2,977,258

 

 

$

2,421,828

 

 

* As adjusted to reflect the impact of the full retrospective adoption of IFRS 15.

Atlassian Corporation Plc

Consolidated Statements of Cash Flows

(U.S. $ in thousands)

(unaudited)

 

 

Three Months Ended June 30,

 

Fiscal Year Ended June 30,

 

2019

 

2018

 

2019

 

2018

 

 

 

*As Adjusted

 

 

 

*As Adjusted

Operating activities

 

 

 

 

 

 

 

Loss before income tax expense

$

(190,862

)

 

$

(18,935

)

 

$

(605,556

)

 

$

(58,131

)

Adjustments to reconcile loss before income tax expense to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

15,845

 

 

17,754

 

 

70,248

 

 

79,435

 

(Gain) loss on sale of investments and other assets

(12

)

 

62

 

 

(2,357

)

 

(1,163

)

Net unrealized foreign currency gain

(136

)

 

(93

)

 

(770

)

 

(188

)

Share-based payment expense

76,132

 

 

38,476

 

 

257,762

 

 

162,873

 

Net unrealized loss on exchange derivative and capped call transactions

156,321

 

 

12,414

 

 

533,908

 

 

12,414

 

Amortization of debt discount and issuance cost

8,638

 

 

7,478

 

 

33,939

 

 

7,478

 

Interest income

(9,272

)

 

(5,053

)

 

(33,500

)

 

(9,877

)

Interest expense

1,579

 

 

1,113

 

 

6,302

 

 

1,113

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

Trade receivables

(14,584

)

 

(7,748

)

 

(30,211

)

 

(19,635

)

Prepaid expenses and other assets

14,292

 

 

(7,324

)

 

1,085

 

 

(8,449

)

Trade and other payables, provisions and other non-current liabilities

19,419

 

 

9,908

 

 

75,624

 

 

43,477

 

Deferred revenue

33,556

 

 

30,482

 

 

122,502

 

 

97,676

 

Interest received

8,372

 

 

4,211

 

 

30,328

 

 

8,679

 

(Income tax paid) tax refunds received, net

(1,562

)

 

(542

)

 

7,038

 

 

(4,246

)

Net cash provided by operating activities

117,726

 

 

82,203

 

 

466,342

 

 

311,456

 

Investing activities

 

 

 

 

 

 

 

Business combinations, net of cash acquired

(155,041

)

 

 

 

(418,595

)

 

 

Purchases of intangible assets

(1,260

)

 

 

 

(2,110

)

 

 

Purchases of property and equipment

(19,563

)

 

(17,802

)

 

(44,192

)

 

(30,209

)

Proceeds from sales of property, equipment and intangible assets

 

 

1,775

 

 

3,721

 

 

2,775

 

Purchases of investments

(295,389

)

 

(55,798

)

 

(648,036

)

 

(347,822

)

Proceeds from maturities of investments

167,438

 

 

81,015

 

 

485,021

 

 

206,119

 

Proceeds from sales of investments

11,803

 

 

22,897

 

 

20,545

 

 

123,862

 

Decrease (increase) in restricted cash

 

 

106

 

 

(552

)

 

(3,131

)

Payment of deferred consideration

 

 

 

 

 

 

(3,290

)

Net cash (used in) provided by investing activities

(292,012

)

 

32,193

 

 

(604,198

)

 

(51,696

)

Financing activities

 

 

 

 

 

 

 

Proceeds from exercise of share options

713

 

 

908

 

 

3,542

 

 

3,995

 

Proceeds from issuance of exchangeable senior notes, net of discount and issuance costs (payment of issuance cost)

 

 

990,494

 

 

(410

)

 

990,494

 

Purchase of capped calls

 

 

(87,700

)

 

 

 

(87,700

)

Interest paid

(3,125

)

 

 

 

(6,319

)

 

 

Net cash (used in) provided by financing activities

(2,412

)

 

903,702

 

 

(3,187

)

 

906,789

 

Effect of exchange rate changes on cash and cash equivalents

(145

)

 

(1,272

)

 

(855

)

 

(630

)

Net (decrease) increase in cash and cash equivalents

(176,843

)

 

1,016,826

 

 

(141,898

)

 

1,165,919

 

Cash and cash equivalents at beginning of period

1,445,284

 

 

393,513

 

 

1,410,339

 

 

244,420

 

Cash and cash equivalents at end of period

$

1,268,441

 

 

$

1,410,339

 

 

$

1,268,441

 

 

$

1,410,339

 

 

* As adjusted to reflect the impact of the full retrospective adoption of IFRS 15.

Atlassian Corporation Plc

Reconciliation of IFRS to Non-IFRS Results

(U.S. $ and shares in thousands, except per share data)

(unaudited)

 

 

Three Months Ended June 30,

 

Fiscal Year Ended June 30,

 

2019

 

2018

 

2019

 

2018

 

 

 

*As Adjusted

 

 

 

*As Adjusted

Gross profit

 

 

 

 

 

 

 

IFRS gross profit

$

273,457

 

 

$

202,394

 

 

$

999,842

 

 

$

708,288

 

Plus: Share-based payment expense

5,294

 

 

2,762

 

 

17,450

 

 

11,955

 

Plus: Amortization of acquired intangible assets

8,518

 

 

5,299

 

 

27,997

 

 

21,188

 

Non-IFRS gross profit

$

287,269

 

 

$

210,455

 

 

$

1,045,289

 

 

$

741,431

 

Operating income

 

 

 

 

 

 

 

IFRS operating loss

$

(32,444

)

 

$

(2,467

)

 

$

(63,362

)

 

$

(46,045

)

Plus: Share-based payment expense

76,132

 

 

38,476

 

 

257,762

 

 

162,873

 

Plus: Amortization of acquired intangible assets

12,210

 

 

14,322

 

 

56,801

 

 

57,278

 

Non-IFRS operating income

$

55,898

 

 

$

50,331

 

 

$

251,201

 

 

$

174,106

 

Net income

 

 

 

 

 

 

 

IFRS net loss

$

(237,517

)

 

$

(21,930

)

 

$

(637,621

)

 

$

(113,432

)

Plus: Share-based payment expense

76,132

 

 

38,476

 

 

257,762

 

 

162,873

 

Plus: Amortization of acquired intangible assets

12,210

 

 

14,322

 

 

56,801

 

 

57,278

 

Plus: Non-coupon impact related to exchangeable senior notes and capped calls

164,959

 

 

19,892

 

 

567,847

 

 

19,892

 

Less: Income tax effects and adjustments

35,429

 

 

(13,823

)

 

(30,243

)

 

(2,150

)

Non-IFRS net income

$

51,213

 

 

$

36,937

 

 

$

214,546

 

 

$

124,461

 

Net income per share

 

 

 

 

 

 

 

IFRS net loss per share - diluted

$

(0.99

)

 

$

(0.09

)

 

$

(2.67

)

 

$

(0.49

)

Plus: Share-based payment expense

0.32

 

 

0.15

 

 

1.05

 

 

0.68

 

Plus: Amortization of acquired intangible assets

0.05

 

 

0.06

 

 

0.23

 

 

0.25

 

Plus: Non-coupon impact related to exchangeable senior notes and capped calls

0.68

 

 

0.08

 

 

2.37

 

 

0.08

 

Less: Income tax effects and adjustments

0.14

 

 

(0.06

)

 

(0.12

)

 

(0.01

)

Non-IFRS net income per share - diluted

$

0.20

 

 

$

0.14

 

 

$

0.86

 

 

$

0.51

 

Weighted-average diluted shares outstanding

 

 

 

 

 

 

 

Weighted-average shares used in computing diluted IFRS net loss per share

241,121

 

 

234,206

 

 

238,611

 

 

231,184

 

Plus: Dilution from share options and RSUs (1)

8,860

 

 

11,204

 

 

9,609

 

 

12,801

 

Weighted-average shares used in computing diluted non-IFRS net income per share

249,981

 

 

245,410

 

 

248,220

 

 

243,985

 

Free cash flow

 

 

 

 

 

 

 

IFRS net cash provided by operating activities

$

117,726

 

 

$

82,203

 

 

$

466,342

 

 

$

311,456

 

Less: Capital expenditures

(19,563

)

 

(17,802

)

 

(44,192

)

 

(30,209

)

Free cash flow

$

98,163

 

 

$

64,401

 

 

$

422,150

 

 

$

281,247

 

 

* As adjusted to reflect the impact of the full retrospective adoption of IFRS 15.

 

(1) The effects of these dilutive securities were not included in the IFRS calculation of diluted net loss per share for the three months and fiscal year ended June 30, 2019 and 2018 because the effect would have been anti-dilutive.

Atlassian Corporation Plc

Reconciliation of IFRS to Non-IFRS Financial Targets

(U.S. $)

 

 

Three Months Ending
September 30, 2019

 

Fiscal Year Ending
June 30, 2020

Revenue

$349 million to $353 million

 

$1,540 million to $1,556 million

 

 

 

 

IFRS gross margin

83%

 

82% to 83%

Plus: Share-based payment expense

1

 

2

Plus: Amortization of acquired intangible assets

2

 

1

Non-IFRS gross margin

86%

 

85% to 86%

 

 

 

 

IFRS operating margin

(3%)

 

(2%)

Plus: Share-based payment expense

20

 

20

Plus: Amortization of acquired intangible assets

4

 

2

Non-IFRS operating margin

21%

 

20%

 

 

 

 

IFRS net loss per share - diluted

($0.08)

 

($0.22)

Plus: Share-based payment expense

0.28

 

1.20

Plus: Amortization of acquired intangible assets

0.05

 

0.15

Plus: Non-coupon impact related to exchangeable senior notes and capped calls

0.03

 

0.14

Less: Income tax effects and adjustments

(0.04)

 

(0.27)

Non-IFRS net income per share - diluted

$0.24

 

$1.00

 

 

 

 

Weighted-average shares used in computing diluted IFRS net loss per share

242 million to 243 million

 

244 million to 246 million

Dilution from share options and RSUs (1)

9 million

 

9 million

Weighted-average shares used in computing diluted non-IFRS net income per share

251 million to 252 million

 

253 million to 255 million

 

 

 

 

IFRS net cash provided by operating activities

 

 

$495 million to $505 million

Less: Capital expenditures

 

 

(30 million)

Free cash flow

 

 

$465 million to $475 million

 

(1) The effects of these dilutive securities are not included in our IFRS calculation of diluted net loss per share for the three months ending September 30, 2019 and fiscal year ending June 30, 2020 because the effect would be anti-dilutive.

 

Investor Relations Contact
Ian Lee
IR@atlassian.com

Media Contact
Jake Standish
press@atlassian.com

Source: Atlassian Corporation Plc