Company: TEAM
Filing Date: 2025-01-31
Form Type: 10-Q
Source: 0001650372-25-000009
Chunk: 47

Company: Atlassian Corp
Filing Date: 2025-01-31
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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ization 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 six months ended December 31, 2024 and 2023 (in thousands, except percentage and per share data):

Three Months Ended December 31,Six Months Ended December 31,2024202320242023Gross profitGAAP gross profit$1,063,336 $865,574 $2,033,493 $1,665,320 Plus: Stock-based compensation23,031 19,213 41,245 36,034 Plus: Amortization of acquired intangible assets10,130 7,056 20,246 12,828 Non-GAAP gross profit$1,096,497 $891,843 $2,094,984 $1,714,182 Gross marginGAAP gross margin83%82%82%82%Plus: Stock-based compensation1222Plus: Amortization of acquired intangible assets1—1—Non-GAAP gross margin85%84%85%84%Operating incomeGAAP operating loss$(57,479)$(49,062)$(89,457)$(67,931)Plus: Stock-based compensation378,730 289,845 664,876 525,426 Plus: Amortization of acquired intangible assets13,896 9,861 27,778 18,092 Non-GAAP operating income$335,147 $250,644 $603,197 $475,587 Operating marginGAAP operating margin(4)%(5)%(4)%(3)%Plus: Stock-based compensation29282725Plus: Amortization of acquired intangible assets1111Non-GAAP operating margin