Company: TEAM
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001650372-25-000022
Chunk: 364

Company: Atlassian Corp
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 2
Chunk 364
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-based compensation).

Other Expense, net Three Months Ended March 31,  (in thousands, except percentage data)20252024$ Change% ChangeOther expense, net$(14,861)$(10,990)$(3,871)35 %

Other expense, net increased $3.9 million, or 35%, in the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The overall increase in other expense was primarily attributable to an increase of $1.9 million in net loss related to strategic investments and an increase of $1.8 million in contributions to the Atlassian Foundation.

Interest Income

 Three Months Ended March 31,(in thousands, except percentage data)20252024$ Change% ChangeInterest income27,767 21,414 $6,353 30 %

Interest income increased $6.4 million, or 30% in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase was primarily attributable to an increase in investment income as a result of increased investment balances.

32

Interest Expense Three Months Ended March 31,(in thousands, except percentage data)20252024$ Change% ChangeInterest expense$(7,804)$(8,453)$649 (8)%

Interest expense decreased $0.6 million, or 8% in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The decrease was primarily attributable to a decrease in interest expense on our outstanding debt as a result of the issuance of the Notes (as defined below) and repayment of the Term Loan (as defined below) in the fourth quarter of fiscal year 2024.

Provision for Income Taxes Three Months Ended March 31,  (in thousands, except percentage data)20252024$ Change% ChangeProvision for income taxes$(63,453)$(7,023)$(56,430)*Effective tax rate**  

*    Not meaningful

Provision for income taxes increased $56.4 million for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. The increase was primarily attributable to the change in the mix of earnings and losses in foreign jurisdictions. See Note 14, “Income Taxes,” of the notes to our condensed consolidated financial statements for additional information