Company: TEAM
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001650372-25-000022
Chunk: 287

Company: Atlassian Corp
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 8
Chunk 287
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 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.

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•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.

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The following table presents a reconciliation of our Non-GAAP Financial Measures to the most comparable GAAP financial measure for the three and nine months ended March 31, 2025 and 2024 (in thousands, except percentage and per share data):

Three Months Ended March 31,Nine Months Ended March 31,2025202420252024Gross profitGAAP gross profit$1,137,041 $975,703 $3,170,534 $2,641,023 Plus: Stock-based compensation20,980 17,840 62,225 53,874 Plus: Amortization of acquired intangible assets10,131 12,454 30,377 25,282 Non-GAAP gross profit$1,168,152 $1,005,997 $3,263,136 $2,720,179 Gross marginGAAP gross margin84%82%83%82%Plus: Stock-based compensation2221Plus: Amortization of acquired intangible assets—1—1Non-GAAP gross margin86%85%85%84%Operating incomeGAAP operating income (loss)$(12,456)$17,804