Atlassian Q3 Revenue Soars 32% to $1.79B; EPS $1.75 Beats Estimates
Atlassian posted fiscal Q3 revenue of $1.79 billion, a 32% year-over-year increase, with non-GAAP EPS of $1.75 versus $1.32 estimates. Cloud revenue rose 29% to $1.13 billion and Service Collection ARR topped $1 billion, while GAAP net loss widened to $98.4 million after $223.8 million restructuring and guidance held at 24%.
1. Q3 Financial Results
Atlassian reported fiscal third-quarter revenue of $1.79 billion, a 32% increase year over year, and non-GAAP EPS of $1.75 compared with $1.32 expected, while GAAP net loss widened to $98.4 million, or $0.38 per share, from a $70.8 million loss a year earlier.
2. Cloud and Product Growth
Cloud revenue rose 29% to $1.13 billion and data center revenue reached $560.7 million, boosting remaining performance obligations by 37% to $4.0 billion; Service Collection annual recurring revenue topped $1 billion with more than 30% growth driven by AI-enhanced features and seat expansion.
3. Profitability and Restructuring Charges
GAAP operating margin fell by twelve percentage points after $223.8 million in restructuring charges tied to workforce reductions and lease consolidations, and free cash flow declined 12% to $561.3 million.
4. Full-Year Outlook
The company reaffirmed full-year revenue growth guidance at approximately 24%, with cloud revenue growth expected near 26.5% and data center growth around 21.5%, following elimination of about 1,600 positions to prioritize AI development and enterprise expansion.