Atlassian swings to profit as cloud revenue jumps 31%
Atlassian reported US$189m operating profit for September quarter, reversing a US$96m loss a year ago, driven by cloud revenue growth.
Atlassian returned to profit in its September quarter with operating profit of US$189m, a dramatic turnaround from a US$96m loss 12 months earlier. The company's cloud business, its main growth engine, surged 31% to US$1.3bn in revenue.
Subscription annual recurring revenue climbed 23% to US$6.81bn, while contracted future revenue jumped 44% to US$4.75bn. The turnaround follows an AI-focused restructuring announced in March that cut 1,600 jobs.
CEO and cofounder Mike Cannon-Brookes said the company's Teamwork Collection customer numbers have grown sevenfold over the past year. For the December quarter, Atlassian forecasts revenue of US$1.825bn, US$1.835bn.
Despite a 19.5% share-price fall since late October, the stock has still climbed 98% in the past six months.
- US$189m
- Operating profit
- 31%
- Cloud revenue growth
- US$6.81bn
- Subscription ARR
- 1,600
- Jobs cut in March
Why it mattersAtlassian's profit recovery and strong cloud growth signal the company's restructuring is working, while the share-price surge suggests investors are betting on its AI strategy despite earlier job cuts.
AustraliaThe Sydney software giant's growth trajectory affects Australian tech investment returns and job prospects in the sector, though the restructuring means fewer roles.
