Company: TEAM
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001650372-25-000022
Chunk: 368

Company: Atlassian Corp
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 2
Chunk 368
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52024$ Change% ChangeOther expense, net$(42,292)$(23,964)$(18,328)76 %

Other expense, net increased $18.3 million, or 76% in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024. The overall increase was primarily attributable to an increase of $9.2 million in expense related to our share of loss from an equity method investment and an increase of $5.6 million in contributions to the Atlassian Foundation.

Interest Income

Nine Months Ended March 31,(in thousands, except percentage data)20252024$ Change% ChangeInterest Income$81,917 $69,233 $12,684 18 %

Interest income increased $12.7 million, or 18% in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024. The increase was primarily attributable to an increase in investment income as a result of increased investment balances.

35

Interest Expense Nine Months Ended March 31,(in thousands, except percentage data)20252024$ Change% ChangeInterest expense$(22,413)$(26,430)$4,017 (15)%

Interest expense decreased $4.0 million, or 15%, in the nine months ended March 31, 2025 compared to the nine 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 Nine Months Ended March 31,  (in thousands, except percentage data)20252024$ Change% ChangeProvision for income taxes$(148,083)$(72,312)$(75,771)*Effective tax rate**  

*    Not meaningful

Provision for income taxes increased $75.8 million for the nine months ended March 31, 2025, as compared to the nine 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.

Our future effective annual tax rate may be materially impacted by the expense or benefit from tax amounts associated