Company: TEAM
Filing Date: 2025-08-15
Form Type: 10-K
Source: 0001650372-25-000036
Chunk: 105

Company: Atlassian Corp
Filing Date: 2025-08-15
Form: 10-K
Item: Item 7
Chunk 105
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 Management believes that tracking and presenting these Non-GAAP Financial Measures provides management, our board of directors, investors and the analyst community with the ability to better evaluate matters such as: our ongoing core operations, including comparisons between periods and against other companies in our industry; our ability to generate cash to service our debt and fund our operations; and the underlying business trends that are affecting our performance.

Our Non-GAAP Financial Measures include: 

•Non-GAAP gross profit and non-GAAP gross margin. Excludes expenses related to stock-based compensation and amortization of acquired intangible assets.

•Non-GAAP operating income and non-GAAP operating margin. Excludes expenses related to stock-based compensation and amortization of acquired intangible assets.

•Non-GAAP net income and non-GAAP net income per diluted share. Excludes expenses related to stock-based compensation, amortization of acquired intangible assets, gain on a non-cash sale of a controlling interest of a subsidiary, and the related income tax adjustments.

•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. 

We understand that although these Non-GAAP Financial Measures are frequently used by investors and the analyst community in their evaluation of our financial performance, these measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. We compensate for such limitations by reconciling these Non-GAAP Financial Measures to the most comparable GAAP financial measures.

The following table presents a reconciliation of our Non-GAAP Financial Measures to the most comparable GAAP financial measure for fiscal years 2025 and 2024 (in thousands, except percentage and per share data):

Fiscal Year Ended June 30,20252024Gross profitGAAP gross profit$4,320,453 $3,555,108 Plus: Stock-based compensation83,017 71,691 Plus: Amortization of acquired intangible assets40,508 36,988 Non-GAAP gross profit$4,443,978 $3,663,787 Gross marginGAAP gross margin83%82%Plus: Stock-based compensation21Plus: Amortization of acquired intangible assets—1Non-GAAP gross margin85%84%Operating incomeGAAP operating loss$(130,392)$(117,077)Plus: Stock-based compensation1,362,222 1,081,433 Plus: Amortization