Company: TEAM
Filing Date: 2025-08-15
Form Type: 10-K
Source: 0001650372-25-000036
Chunk: 120

Company: Atlassian Corp
Filing Date: 2025-08-15
Form: 10-K
Item: Item 8
Chunk 120
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 Financial Accounting Standards Board (“FASB”).Certain reclassifications have been made to prior period balances to conform to the current period presentation. “Maintenance” revenues have been reclassified to “Other” revenues on the Company’s Consolidated Statements of Operations. This reclassification had no impact on previously reported total revenues.Principles of ConsolidationThe accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.Use of EstimatesThe preparation of the consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions in the Company’s consolidated financial statements. These estimates are based on information available as of the date of the consolidated financial statements. Such management estimates and assumptions include, but are not limited to the determination of:•the standalone selling price (“SSP”) of performance obligations for revenue contracts with multiple performance obligations;•the recognition, measurement and valuation of current and deferred income taxes and uncertain tax positions. Actual results could differ materially from these estimates.SegmentThe Company operates as a single operating segment and derives revenue primarily from fees earned from subscription-based arrangements for providing customers software in a cloud-based-infrastructure that the Company provides, and from the sale of on-premises term license agreements. An operating segment is defined as a component of an entity for which discrete financial information is available and whose results of operations are regularly reviewed by the chief operating decision maker (“CODM”). Effective August 31, 2024. Scott Farquhar stepped down from his role as Co-CEO, at that time, Mike Cannon-Brookes became the sole CEO, and in conjunction with that change, became the sole CODM. The CODM manages the Company using consolidated financial information. Further, the Company offers a connected portfolio of apps that are built on a single Atlassian platform and data model. Accordingly, the Company has determined it operates as a single operating and reportable segment.The CODM uses consolidated net loss to allocate resources, including headcount, and make business investment decisions during the Company’s budgeting process. The CODM also uses consolidated net loss to assess performance by comparing the consolidated results to forecasts. Significant segment expenses are organized by function and are presented on the Consolidated Statements of Operations. Other segment items 

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included in consolidated net loss are: other income and expense, net, interest income, interest expense and the provision for income taxes, which are reflected in the Consolidated Statements of Operations.Foreign CurrencyThe Company’s consolidated financial statements are presented using the