# EDGAR Filing Document

**Accession Number:** 0001650372
**File Stem:** 0001650372-23-000005
**Filing Date:** 2023-2
**Character Count:** 82767
**Document Hash:** 9ed959bb99d9bb8a10b62f6565c06cfa
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001650372-23-000005.hdr.sgml**: 20230202

**ACCESSION NUMBER**: 0001650372-23-000005

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 36

**CONFORMED PERIOD OF REPORT**: 20230202

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230202

**DATE AS OF CHANGE**: 20230202

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Atlassian Corp
- **CENTRAL INDEX KEY:** 0001650372
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **IRS NUMBER:** 981258743
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37651
- **FILM NUMBER:** 23581256

**BUSINESS ADDRESS:**
- **STREET 1:** 350 BUSH STREET
- **STREET 2:** FLOOR 13
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94104
- **BUSINESS PHONE:** (415) 701-1110

**MAIL ADDRESS:**
- **STREET 1:** 350 BUSH STREET
- **STREET 2:** FLOOR 13
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94104

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Atlassian Corp Plc
- **DATE OF NAME CHANGE:** 20150807

?xml version="1.0" ? team-20230202

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

_________________

**FORM 8-K**_________________

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): February 2, 2023**

**ATLASSIAN CORPORATION**

**(Exact Name of Registrant as Specified in its Charter)**

_________________

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-37651** | **88-3940934** |
| **(State or other jurisdiction of**<br>**incorporation or organization)** | **(Commission File Number)** | **(I.R.S. Employer**<br>**Identification No.)** |

---

**350 Bush Street, Floor 13**

**San Francisco, California 94104**

**(Address of principal executive offices and Zip Code)**

**(415) 701-1110**

**(Registrant's telephone number, including area code)**

 **Not Applicable**

**(Former Name or Former Address, if Changed Since Last Report)**

_________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

---

| | | |
|:---|:---|:---|
| Securities registered pursuant to Section 12(b) of the Act: | Securities registered pursuant to Section 12(b) of the Act: |  |
| **Title of each class** | **Trading Symbol** | **Name of each exchange on which registered** |
| **Class A Common Stock, par value $0.00001 per share** | **TEAM** | **Nasdaq Global Select Market** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02.&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition.**

On February 2, 2023, Atlassian Corporation (the "**Company**") issued a press release announcing its results for the quarter ended December 31, 2022 (the "**Press Release**"). A copy of the Press Release is attached as Exhibit 99.1 to this current report on Form 8-K and is incorporated by reference herein. The Company also published a letter to its shareholders announcing its financial results for the quarter ended December 31, 2022 (the "**Shareholder Letter**"). The full text of the Shareholder Letter is attached as Exhibit 99.2 to this current report on Form 8-K and is incorporated by reference herein.

The information in this Item 2.02, including Exhibit 99.1 and Exhibit 99.2, is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "**Exchange Act**"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

**Item 8.01. Other Events.**

On February 2, 2023, the Company also announced, as part of the Press Release, that its Board of Directors authorized a program to repurchase up to $1 billion of the Company's Class A Common Stock (the "**Share Repurchase Program**"). The Company may repurchase shares of Class A Common Stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act, in accordance with applicable securities laws and other restrictions. The Share Repurchase Program does not have a fixed expiration date, may be suspended or discontinued at any time, and does not obligate the Company to acquire any amount of Class A Common Stock. The timing, manner, price, and amount of any repurchases will be determined by the Company at its discretion and will depend on a variety of factors, including business, economic and market conditions, prevailing stock prices, corporate and regulatory requirements, and other considerations.

**Item 9.01. Financial Statements and Exhibits.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits.

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1\* | <u>[Press Release dated February 2, 2023.](ex991q2fy23.htm)</u> |
| 99.2\* | <u>[Shareholder Letter dated February 2, 2023.](teamq22023shareholderlet.htm)</u> |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL). |

---

\* Filed herewith

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| | | | **ATLASSIAN CORPORATION** |
| Date: | February 2, 2023 | By: | /s/ Joseph Binz |
|  |  |  | Joseph Binz |
|  |  |  | Chief Financial Officer |

---

## Exhibit 99.1

![horizontalbluergba0a07.jpg](horizontalbluergba0a07.jpg)

**Atlassian Announces Second Quarter Fiscal Year 2023 Results**

*Quarterly revenue of $873 million, up 27% year-over-year*

*Quarterly subscription revenue of $711 million, up 40% year-over-year*

*Quarterly GAAP operating margin of (11)% and non-GAAP operating margin of 20%* 

*Quarterly cash flow from operations of $151 million and free cash flow of $146 million*

**TEAM, Anywhere/AUSTIN (February 2, 2023) —** Atlassian Corporation (NASDAQ: TEAM), a leading provider of team collaboration and productivity software, today announced financial results for its second quarter of fiscal year 2023 ended December 31, 2022 and released a shareholder letter available on Atlassian's Work Life blog at <u>http://atlassian.com/blog/announcements/shareholder-letter-q2fy23</u>. The shareholder letter was also posted to the Investor Relations section of Atlassian's website at <u>https://investors.atlassian.com</u>.

"We closed out 2022 with quarterly revenue of $873 million, up 27% year-over-year, driven by subscription revenue growth of 40% year-over-year," said Scott Farquhar, Atlassian's co-founder and co-CEO. "We are proud of everything we have accomplished in yet another unpredictable year. 2023 will be all about helping our customers navigate these challenging times, absorbing the macro-driven impacts on our business, and setting Atlassian up for long-term success."

"Our track record of making smart investment decisions in the service of long-term payoffs continues to yield results as we recently surpassed 45,000 Jira Service Management customers, making it one of our fastest-growing products. On top of that, Atlassian has also been recognized as a Leader by Gartner in the ITSM space" added co-founder and co-CEO Mike Cannon-Brookes. "We'll keep playing offense across our three large markets while being pragmatic."

**Second Quarter Fiscal Year 2023 Financial Highlights:**

On a GAAP basis, Atlassian reported:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•* Revenue:** Total revenue was $872.7 million for the second quarter of fiscal year 2023, up 27% from $688.5 million for the second quarter of fiscal year 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•* Operating Income (Loss) and Operating Margin:** Operating loss was $99.2 million for the second quarter of fiscal year 2023, compared with operating income of $23.0 million for the second quarter of fiscal year 2022. Operating margin was (11)% for the second quarter of fiscal year 2023, compared with 3% for the second quarter of fiscal year 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•* Net Loss and Net Loss Per Diluted Share:** Net loss was $205.0 million for the second quarter of fiscal year 2023, compared with a net loss of $22.3 million for the second quarter of fiscal year 2022. Net loss per diluted share was $0.80 for the second quarter of fiscal year 2023, compared with a net loss per diluted share of $0.09 for the second quarter of fiscal year 2022. Net loss for the second quarter of fiscal year 2023 includes a non-recurring income tax charge of $83.1 million which increased net loss per diluted share by $0.32.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Balance Sheet:** Cash and cash equivalents plus short-term investments at the end of the second quarter of fiscal year 2023 totaled $1.7 billion.

On a non-GAAP basis, Atlassian reported:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•* Operating Income and Operating Margin:** Operating income was $174.8 million for the second quarter of fiscal year 2023, compared with operating income of $176.8 million for the second quarter of fiscal year 2022. Operating margin was 20% for the second quarter of fiscal year 2023, compared with 26% for the second quarter of fiscal year 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•* Net Income and Net Income Per Diluted Share:** Net income was $114.7 million for the second quarter of fiscal year 2023, compared with net income of $110.4 million for the second quarter of fiscal year 2022. Net income per diluted share was $0.45 for the second quarter of fiscal year 2023, compared with net income per diluted share of $0.43 for the second quarter of fiscal year 2022.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Free Cash Flow:** Cash flow from operations was $150.5 million and free cash flow was $146.5 million for the second quarter of fiscal year 2023. Free cash flow margin for the second quarter of fiscal year 2023 was 17%. Cash flow from operations and free cash flow for the second quarter of fiscal year 2023 include a discrete tax payment of $57.0 million. Excluding this payment, cash flow from operations would have been $207.4 million, free cash flow would have been $203.4 million, and free cash flow margin would have been 23%.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below, under the heading "About Non-GAAP Financial Measures."

**Recent Business Highlights:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• A Leader in the 2022 Gartner® Magic Quadrant™ for IT Service Management Platforms:** Atlassian was named a Leader in the 2022 Gartner Magic Quadrant for IT Service Management Platforms<sup>1</sup>. Atlassian aims to unlock high-velocity teams across the enterprise with Jira Service Management. Today, Jira Service Management powers service delivery at more than 45,000 customers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Recognized in The Forrester Wave for Collaborative Work Management Tools:** Atlassian was recognized as a Strong Performer in The Forrester Wave™: Collaborative Work Management Tools, Q4, 2022. Atlassian's work management solutions for business teams - Trello, Confluence, Jira Work Management, Atlas and Jira Align - enable every team to choose the best tool for their needs. Today, over 150,000 organizations around the world use Atlassian work management products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Recognized in The Forrester Wave for Value Stream Management Solutions:** Atlassian was recognized as a Strong Performer in The Forrester Wave™: Value Stream Management Solutions, Q4 2022. Atlassian's product vision spans the entire software delivery organizational chart by leveraging the Jira suite as the centerpiece of its Value Stream Management strategy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Automation for Confluence:** Atlassian launched Automation for Confluence, a feature that manages system maintenance so teams can focus on continuous collaboration. Automation gives admins the ability to manage content, organize spaces, streamline teamwork, and notify teams of important updates without the manual overhead.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Atlassian Presents: Unleash:** Atlassian will hold an agile & DevOps tailored event on February 9, 2023. Discover how Atlassian tools, such as the Jira suite, and the right practices can unleash your team's ability to find success and take opportunities from idea to impact. Unleash will give attendees a unique opportunity to innovate with industry experts, master complexity through collaboration, and bring discovery into the software lifecycle. Unleash will be held in person at the bcc Berlin in Berlin, Germany, as well as virtually. Learn more at <u>https://events.atlassian.com/unleash</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Customer Growth:** Atlassian ended its second quarter of fiscal year 2023 with a total customer count, on an active subscription or maintenance agreement basis, of 253,177 customers, adding 4,004 net new customers during the quarter.

**Share Repurchase Program Authorization**

In January 2023, the Board of Directors authorized a program to repurchase up to $1 billion of Atlassian's Class A Common Stock. Atlassian may repurchase shares of Class A Common Stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions. The share repurchase program does not have a fixed expiration date, may be suspended or discontinued at any time, and does not obligate Atlassian to acquire any amount of Class A Common Stock. The timing, manner, price, and amount of any repurchases will be determined by Atlassian at its discretion and will depend on a variety of factors, including business, economic and market conditions, prevailing stock prices, corporate and regulatory requirements, and other considerations.

<sup>1</sup> Gartner, Magic Quadrant for IT Service Management Platforms, Rich Doheny, Chris Matchett, Siddharth Shetty, 31 October 2022.

Gartner Disclaimer- Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner research organization and should not be construed as statements of fact. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. Gartner Peer Insights Customers' Choice constitute the subjective opinions of individual end-user reviews, ratings, and data applied against a documented methodology; they neither represent the views of, nor constitute an endorsement by, Gartner or its affiliates. GARTNER and MAGIC QUADRANT are a registered trademark and service mark, and PEER INSIGHTS is a trademark and service mark, of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved.

------

**Financial Targets:**

Atlassian is providing its financial targets as follows:

**Third Quarter Fiscal Year 2023:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total revenue is expected to be in the range of $890 million to $910 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gross margin is expected to be approximately 81% on a GAAP basis and approximately 84% on a non-GAAP basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating margin is expected to be approximately (14%) on a GAAP basis and approximately 15% on a non-GAAP basis.

**Fiscal Year 2023:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total revenue growth year-over-year is expected to be approximately 25%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cloud revenue growth year-over-year is expected to be in the range of 35% to 40%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating margin is expected to be approximately (11%) on a GAAP basis and approximately 17% on a non-GAAP basis.

For additional commentary regarding financial targets, please see Atlassian's second quarter fiscal year 2023 shareholder letter dated February 2, 2023.

With respect to Atlassian's expectations under "Financial Targets" above, a reconciliation of GAAP to non-GAAP gross margin and operating margin has been provided in the financial statement tables included in this press release.

**Shareholder Letter and Webcast Details:**

A detailed shareholder letter is available on Atlassian's Work Life blog at <u>https://atlassian.com/blog/announcements/shareholder-letter-q2fy23</u>, and the Investor Relations section of Atlassian's website at: <u>https://investors.atlassian.com</u>. Atlassian will host a webcast to answer questions today:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **When**: Thursday, February 2, 2023 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Webcast:** A live webcast of the call can be accessed from the Investor Relations section of Atlassian's website at <u>https://investors.atlassian.com</u>. Following the call, a replay will be available on the same website.

Atlassian has used, and will continue to use, its Investor Relations website at <u>https://investors.atlassian.com</u> as a means of making material information public and for complying with its disclosure obligations.

**About Atlassian**

Atlassian unleashes the potential of every team. Our agile & DevOps, IT service management and work management software helps teams organize, discuss, and complete shared work. The majority of the Fortune 500 and over 250,000 companies of all sizes worldwide - including NASA, Kiva, Deutsche Bank, and Salesforce - rely on our solutions to help their teams work better together and deliver quality results on time. Learn more about our products, including Jira Software, Confluence, Jira Service Management, Trello, Bitbucket, and Jira Align at <u>https://atlassian.com/</u>.

**Investor Relations Contact**

Martin Lam

IR@atlassian.com

**Media Contact**

Marie-Claire Maple

press@atlassian.com

**Forward-Looking Statements**

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, which statements involve substantial risks and uncertainties. In some cases, you can identify these statements by forward-looking words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "should," "estimate," or "continue," and similar expressions or variations, but these words are not the

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exclusive means for identifying such statements. All statements other than statements of historical fact could be deemed forward looking, including risks and uncertainties related to statements about our products, customers, macroeconomic environment, anticipated growth, outlook, technology, share repurchase program and other key strategic areas, and our financial targets such as revenue and GAAP and non-GAAP financial measures including gross margin and operating margin.

We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

The achievement or success of the matters covered by such forward-looking statements involves known and unknown risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management's beliefs and assumptions only as of the date such statements are made.

Further information on these and other factors that could affect our financial results is included in filings we make with the Securities and Exchange Commission (the "SEC") from time to time, including the section titled "Risk Factors" in our most recently filed Forms 20-F and 10-Q. These documents are available on the SEC Filings section of the Investor Relations section of our website at: <u>https://investors.atlassian.com/</u>.

**About Non-GAAP Financial Measures**

In addition to the measures presented in our condensed consolidated financial statements, we regularly review other measures that are not presented in accordance with GAAP, defined as non-GAAP financial measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts and make strategic decisions. The key measures we consider are non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share and free cash flow (collectively, the "Non-GAAP Financial Measures"). These Non-GAAP Financial Measures, which may be different from similarly titled non-GAAP measures used by other companies, provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be unrelated to our core operations. Management believes that tracking and presenting these Non-GAAP Financial Measures provides management, our board of directors, investors and the analyst community with the ability to better evaluate matters such as: our ongoing core operations, including comparisons between periods and against other companies in our industry; our ability 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Non-GAAP gross profit*. Excludes expenses related to stock-based compensation and amortization of acquired intangible assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Non-GAAP operating income*. Excludes expenses related to stock-based compensation and amortization of acquired intangible assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Non-GAAP net income and non-GAAP net income per diluted share*. Excludes expenses related to stock-based compensation, amortization of acquired intangible assets, non-coupon impact related to exchangeable senior notes and capped calls, gain on a non-cash sale of a controlling interest of a subsidiary and the related income tax effects on these items, and a non-recurring income tax adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *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. We encourage you to review the tables in this press release titled "Reconciliation of GAAP to Non-GAAP Results" and "Reconciliation of GAAP to Non-GAAP Financial Targets" that present such reconciliations.

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**Atlassian Corporation**

**Condensed Consolidated Statements of Operations**

**(U.S. $ and shares in thousands, except per share data)**

**(unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Six Months Ended December 31,** | **Six Months Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| Revenues: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Subscription | $711199 | $508987 | $1362183 | $944283 |
| &nbsp;&nbsp;&nbsp;Maintenance | 106023 | 127059 | 219588 | 257649 |
| &nbsp;&nbsp;&nbsp;Other | 55482 | 52480 | 98325 | 100618 |
| Total revenues | 872704 | 688526 | 1680096 | 1302550 |
| Cost of revenues (1) (2) | 155945 | 110191 | 295337 | 206447 |
| Gross profit | 716759 | 578335 | 1384759 | 1096103 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Research and development (1) (2) | 473676 | 318569 | 872682 | 590709 |
| &nbsp;&nbsp;&nbsp;Marketing and sales (1) (2) | 186191 | 121046 | 346319 | 220375 |
| &nbsp;&nbsp;&nbsp;General and administrative (1) | 156131 | 115678 | 299024 | 205500 |
| Total operating expenses | 815998 | 555293 | 1518025 | 1016584 |
| Operating income (loss) | (99239) | 23042 | (133266) | 79519 |
| Other income (expense), net | (6749) | (22343) | 22540 | (478147) |
| Interest income | 8963 | 74 | 14106 | 351 |
| Interest expense | (7508) | (21022) | (13629) | (32540) |
| Loss before income taxes | (104533) | (20249) | (110249) | (430817) |
| Provision for income taxes | (100498) | (2079) | (108523) | (2715) |
| Net loss | $(205031) | $(22328) | $(218772) | $(433532) |
| Net loss per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $(0.80) | $(0.09) | $(0.86) | $(1.72) |
| &nbsp;&nbsp;&nbsp;Diluted | $(0.80) | $(0.09) | $(0.86) | $(1.72) |
| Weighted-average shares used in computing net loss per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 255874 | 252960 | 255520 | 252533 |
| &nbsp;&nbsp;&nbsp;Diluted | 255874 | 252960 | 255520 | 252533 |

---

(1)Amounts include stock-based compensation as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Six Months Ended December 31,** | **Six Months Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| &nbsp;&nbsp;&nbsp;Cost of revenues | $18553 | $8453 | $29166 | $14370 |
| &nbsp;&nbsp;&nbsp;Research and development | 169342 | 90120 | 279471 | 154402 |
| &nbsp;&nbsp;&nbsp;Marketing and sales | 38156 | 21873 | 61351 | 36367 |
| &nbsp;&nbsp;&nbsp;General and administrative | 39734 | 25374 | 69428 | 41588 |

---

(2)Amounts include amortization of acquired intangible assets, as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Six Months Ended December 31,** | **Six Months Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| &nbsp;&nbsp;&nbsp;Cost of revenues | $5697 | $5599 | $11394 | $11288 |
| &nbsp;&nbsp;&nbsp;Research and development | 93 | 93 | 187 | 187 |
| &nbsp;&nbsp;&nbsp;Marketing and sales | 2506 | 2266 | 5011 | 4537 |

---

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**Atlassian Corporation**

**Condensed Consolidated Balance Sheets**

**(U.S. $ in thousands)**

**(unaudited)**

---

| | | |
|:---|:---|:---|
| | **December 31, 2022** | **June 30, 2022** |
| **Assets** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $1636615 | $1385265 |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketable securities | 36069 | 73294 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 354844 | 308127 |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets held for sale |  | 60265 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 107232 | 70002 |
| Total current assets | 2134760 | 1896953 |
| Non-current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 100334 | 100662 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 254811 | 277276 |
| &nbsp;&nbsp;&nbsp;&nbsp;Strategic investments | 237181 | 159064 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible assets, net | 84248 | 100840 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 723229 | 722838 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets | 7657 | 10335 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-current assets | 71795 | 58862 |
| **Total assets** | $3614015 | $3326830 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $130318 | $81220 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 308930 | 406139 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue, current portion | 1158743 | 1066059 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities, current portion | 46659 | 40638 |
| Total current liabilities | 1644650 | 1594056 |
| Non-current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue, net of current portion | 115338 | 116621 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities, net of current portion | 257653 | 274434 |
| &nbsp;&nbsp;&nbsp;&nbsp;Term loan facility | 999506 | 999419 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities | 2489 | 312 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-current liabilities | 16887 | 14616 |
| **Total liabilities** | 3036523 | 2999458 |
| **Stockholders' equity** |  |  |
| &nbsp;&nbsp;Common stock | 2 | 2 |
| &nbsp;&nbsp;Additional paid-in capital | 2621776 | 2182536 |
| &nbsp;&nbsp;Accumulated other comprehensive income | 43516 | 13864 |
| &nbsp;&nbsp;Accumulated deficit | (2087802) | (1869030) |
| **Total stockholders' equity** | 577492 | 327372 |
| **Total liabilities and stockholders' equity** | $3614015 | $3326830 |

---

------

**Atlassian Corporation**

**Condensed Consolidated Statements of Cash Flows**

**(U.S. $ in thousands)**

**(unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Six Months Ended December 31,** | **Six Months Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **Cash flows from operating activities:** |  |  |  |  |
| Net loss | $(205031) | $(22328) | $(218772) | $(433532) |
| Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |  |  |
| &nbsp;&nbsp;Depreciation and amortization | 15476 | 12298 | 30096 | 25602 |
| &nbsp;&nbsp;Stock-based compensation | 265785 | 145820 | 439416 | 246727 |
| &nbsp;&nbsp;Deferred income taxes | 3291 | (427) | 4813 | (2041) |
| &nbsp;&nbsp;Net loss on exchange derivative and capped call transactions |  |  |  | 424482 |
| &nbsp;&nbsp;Amortization of debt discount and issuance cost | 117 | 16975 | 235 | 26816 |
| &nbsp;&nbsp;Net loss on strategic investments | 7563 | 22135 | 19076 | 53557 |
| &nbsp;&nbsp;Net foreign currency gain | (2203) | (5258) | (5828) | (11656) |
| &nbsp;&nbsp;Gain on a non-cash sale of a controlling interest of a subsidiary | (2066) |  | (45158) |  |
| &nbsp;&nbsp;Other | (5) | 297 | (5) | (318) |
| &nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | (107805) | (68203) | (46491) | (68203) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (2690) | (25082) | (25367) | (25082) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 18587 | 20507 | 49734 | 20507 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 58260 | (63287) | (50183) | (63287) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 101246 | 77884 | 91401 | 77884 |
| **Net cash provided by operating activities** | 150525 | 206455 | 242967 | 271456 |
| **Cash flows from investing activities:** |  |  |  |  |
| Business combinations, net of cash acquired |  | (2701) | (600) | (3839) |
| Purchases of property and equipment | (4040) | (12581) | (20536) | (19462) |
| Purchases of strategic investments | (1100) | (42000) | (9450) | (95000) |
| Purchases of marketable securities |  |  | (10000) | (21003) |
| Proceeds from maturities of marketable securities | 18750 | 7600 | 47700 | 61487 |
| Proceeds from sales of marketable securities and strategic investments | 363 |  | 621 | 186262 |
| **Net cash provided by (used in) investing activities** | 13973 | (49682) | 7735 | 108445 |
| **Cash flows from financing activities:** |  |  |  |  |
| Proceeds from term loan facility |  | 350000 |  | 1000000 |
| Repayment of exchangeable senior notes |  | (1234376) |  | (1548686) |
| Proceeds from settlement of capped call transactions |  | 104519 |  | 135497 |
| Proceeds from other financing arrangements |  | 4 | 1396 | 5 |
| **Net cash provided by (used in) financing activities** |  | (779853) | 1396 | (413184) |
| Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 3522 | (246) | (1417) | (2355) |
| **Net increase (decrease) in cash, cash equivalents, and restricted cash** | 168020 | (623326) | 250681 | (35638) |
| **Cash, cash equivalents, and restricted cash at beginning of period** | 1469949 | 1519213 | 1386686 | 931023 |
| Net decrease in cash and cash equivalents included in assets held for sale |  | 4182 | 602 | 4684 |
| **Cash, cash equivalents, and restricted cash at end of period** | $1637969 | $900069 | $1637969 | $900069 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

------

**Atlassian Corporation<br>Revenues by Deployment Options**

**(U.S. $ in thousands)**

**(unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Six Months Ended December 31,** | **Six Months Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| Cloud | $512335 | $364099 | $987378 | $682002 |
| Data Center | 194264 | 139108 | 365492 | 250303 |
| Server (1) | 106168 | 135519 | 219981 | 275066 |
| Marketplace and services (2) | 59937 | 49800 | 107245 | 95179 |
| Total revenues | $872704 | $688526 | $1680096 | $1302550 |

---

(1) Included in Server is perpetual license revenue. Perpetual license revenue is captured as other revenue on the Condensed Consolidated Statements of Operations.

(2) Included in Marketplace and services is premier support revenue. Premier support is a subscription-based arrangement for a higher level of support across different deployment options. Premier support is recognized as subscription revenue on the Condensed Consolidated Statements of Operations as the services are delivered over the term of the arrangement.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

------

**Atlassian Corporation**

**Reconciliation of GAAP to Non-GAAP Results**

**(U.S. $ and shares in thousands, except per share data)**

**(unaudited)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Six Months Ended December 31,** | **Six Months Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **<u>Gross profit</u>** |  |  |  |  |
| GAAP gross profit | $716759 | $578335 | $1384759 | $1096103 |
| &nbsp;&nbsp;&nbsp;Plus: Stock-based compensation | 18553 | 8453 | 29166 | 14370 |
| &nbsp;&nbsp;&nbsp;Plus: Amortization of acquired intangible assets | 5697 | 5599 | 11394 | 11288 |
| Non-GAAP gross profit | $741009 | $592387 | $1425319 | $1121761 |
| **<u>Operating income</u>** |  |  |  |  |
| GAAP operating income (loss) | $(99239) | $23042 | $(133266) | $79519 |
| &nbsp;&nbsp;&nbsp;Plus: Stock-based compensation | 265785 | 145820 | 439416 | 246727 |
| &nbsp;&nbsp;&nbsp;Plus: Amortization of acquired intangible assets | 8296 | 7958 | 16592 | 16012 |
| Non-GAAP operating income | $174842 | $176820 | $322742 | $342258 |
| **<u>Net income</u>** |  |  |  |  |
| GAAP net loss | $(205031) | $(22328) | $(218772) | $(433532) |
| &nbsp;&nbsp;&nbsp;Plus: Stock-based compensation | 265785 | 145820 | 439416 | 246727 |
| &nbsp;&nbsp;&nbsp;Plus: Amortization of acquired intangible assets | 8296 | 7958 | 16592 | 16012 |
| &nbsp;&nbsp;&nbsp;Plus: Non-coupon impact related to exchangeable senior notes and capped calls |  | 16856 |  | 450829 |
| &nbsp;&nbsp;&nbsp;Less: Gain on a non-cash sale of a controlling interest of a subsidiary | (2067) |  | (45158) |  |
| &nbsp;&nbsp;&nbsp;Plus (less): Income tax adjustments | 47750 | (37879) | 15202 | (75200) |
| Non-GAAP net income | $114733 | $110427 | $207280 | $204836 |
| **<u>Net income per share</u>** |  |  |  |  |
| GAAP net loss per share - diluted | $(0.80) | $(0.09) | $(0.86) | $(1.72) |
| &nbsp;&nbsp;&nbsp;Plus: Stock-based compensation | 1.04 | 0.57 | 1.72 | 0.98 |
| &nbsp;&nbsp;&nbsp;Plus: Amortization of acquired intangible assets | 0.03 | 0.03 | 0.06 | 0.06 |
| &nbsp;&nbsp;&nbsp;Plus: Non-coupon impact related to exchangeable senior notes and capped calls |  | 0.07 |  | 1.77 |
| &nbsp;&nbsp;&nbsp;Less: Gain on a non-cash sale of a controlling interest of a subsidiary | (0.01) |  | (0.17) |  |
| &nbsp;&nbsp;&nbsp;Plus (less): Income tax adjustments | 0.19 | (0.15) | 0.06 | (0.29) |
| Non-GAAP net income per share - diluted | $0.45 | $0.43 | $0.81 | $0.80 |
| **<u>Weighted-average diluted shares outstanding</u>** |  |  |  |  |
| Weighted-average shares used in computing diluted GAAP net loss per share | 255874 | 252960 | 255520 | 252533 |
| &nbsp;&nbsp;&nbsp;Plus: Dilution from dilutive securities (1) | 304 | 3072 | 673 | 3178 |
| Weighted-average shares used in computing diluted non-GAAP net income per share | 256178 | 256032 | 256193 | 255711 |
| **<u>Free cash flow</u>** |  |  |  |  |
| GAAP net cash provided by operating activities | $150525 | $206455 | $242967 | $271456 |
| &nbsp;&nbsp;&nbsp;Less: Capital expenditures | (4040) | (12581) | (20536) | (19462) |
| Free cash flow | $146485 | $193874 | $222431 | $251994 |

---

(1) The effects of these dilutive securities were not included in the GAAP calculation of diluted net loss per share for the three and six months ended December 31, 2022 and 2021 because the effect would have been anti-dilutive.

------

**Atlassian Corporation**

**Reconciliation of GAAP to Non-GAAP Financial Targets**

---

| | |
|:---|:---|
| | **Three Months Ending<br> March 31, 2023** |
| **GAAP gross margin** | **81%** |
| &nbsp;&nbsp;&nbsp;Plus: Stock-based compensation | 2 |
| &nbsp;&nbsp;&nbsp;Plus: Amortization of acquired intangible assets | 1 |
| **Non-GAAP gross margin** | **84%** |
| **GAAP operating margin** | **(14%)** |
| &nbsp;&nbsp;&nbsp;Plus: Stock-based compensation | 28 |
| &nbsp;&nbsp;&nbsp;Plus: Amortization of acquired intangible assets | 1 |
| **Non-GAAP operating margin** | **15%** |

---

---

| | |
|:---|:---|
| | **Fiscal Year Ending<br> June 30, 2023** |
| **GAAP operating margin** | **(11%)** |
| &nbsp;&nbsp;&nbsp;Plus: Stock-based compensation | 27 |
| &nbsp;&nbsp;&nbsp;Plus: Amortization of acquired intangible assets | 1 |
| **Non-GAAP operating margin** | **17%** |

---

## Exhibit 99.2

![](teamq22023shareholderlet001.jpg)

Q2 FY23 \| February 2, 2023 Shareholder Letter

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![](teamq22023shareholderlet002.jpg)

Q2 FY23 From the CEOs 2 Fellow sh!reholders, Atl!ssi!n closed out 2022 proud of everything we !ccomplished in yet !nother unpredict!ble ye!r. Despite the current m!croeconomic he!dwinds, the m!ssive opportunities in front of us h!ve not ch!nged, !nd we're re!dy to execute with relentless focus throughout 2023. Continuing the trend from l!st qu!rter, existing customers !re exp!nding their p!id se!ts !t ! slower p!ce. We !lso continue to see solid growth in free editions of our cloud products, but more hesit!ncy to upgr!de to p!id editions. While these two m!cro-induced he!dwinds bec!me more pronounced in Q2, c!lend!r 2023 will be !ll !bout helping our customers n!vig!te these ch!llenging times, !bsorbing the downstre!m imp!cts on our business, !nd setting ourselves up for long-term success. To be cle!r, our competitive position rem!ins unch!nged. As customers seek to work more effectively, !nd !cceler!te digit!l tr!nsform!tion in !n uncert!in environment, they're deepening their commitment to Atl!ssi!n. Cloud migr!tions !re moving right !long, customers !re signing longer contr!cts, !nd retention rem!ins he!lthy. As we s!id l!st qu!rter, we intend to continue pl!ying offense in our three l!rge m!rkets while b!l!ncing our investments !g!inst the growth of our business over!ll. Atl!ssi!n's unique business model, bro!d customer b!se, !nd !gile !ppro!ch to pl!nning !llow us to !d!pt to ch!nges quickly, which is ex!ctly wh!t we're doing. We're reb!l!ncing our t!lent !nd resources to put incre!sed focus on our l!rgest growth opportunities: cloud migr!tions, the IT service m!n!gement m!rket, !nd serving enterprise customers. Atl!ssi!n is well positioned in these !re!s with signific!nt momentum th!t c!n help us power through the turbulence !he!d. Of course, centering our investments on top growth initi!tives !lso me!ns shifting !w!y from lower-priority ende!vors. We'll continue to m!n!ge expenses, invest responsibly for the long term, !nd be prudent stew!rds of c!pit!l !s we respond to m!croeconomic conditions. Over our seven ye!rs !s ! public comp!ny, you've consistently seen us pl!y the long g!me while being incredibly c!pit!l efficient. Th!t's ! winning str!tegy !nd we're sticking with it. We h!ve ! p!ssion!te, vers!tile te!m th!t c!n !d!pt when priorities shift !nd !ddress ! multitude of ch!llenges. We h!ve innov!tive products th!t s!tisfy the most cruci!l use c!ses for comp!nies l!rge !nd sm!ll. And we h!ve !n incredible model th!t !llows us to be p!tient !nd disciplined, even !midst ! r!pidly ch!nging economy, so we c!n emerge even stronger. Increasingly "cloudy" with sustained migration momentum Atl!ssi!n rem!ins focused on building ! world-cl!ss cloud pl!tform !nd m!king sure our customers benefit from everything it h!s to offer. Migr!tions !re tr!cking well, up ne!rly 2x ye!r-over-ye!r, !nd we continue to expect migr!tions to !ccount for !pproxim!tely 10 points of cloud revenue growth in FY23. We've !lso m!de it

------

![](teamq22023shareholderlet003.jpg)

Q2 FY23 3 e!sier for enterprise customers to determine which migr!tion !ppro!ch is right for them with ! dynamic automated form th!t m!tches them to the right migr!tion support te!m b!sed on their !nswers to ! few simple questions. Addition!lly, we completed two of our biggest migr!tions to d!te in Q2. One of Austr!li!'s l!rgest b!nks migr!ted 25,000 users to Jir! Softw!re Cloud's Enterprise edition, !nd ! m!jor UK-b!sed b!nk moved ! tot!l of 30,000 users from D!t! Center editions of Jir! Softw!re !nd Confluence to our cloud pl!tform. Working with meg!-migr!tors like these resulted in tooling improvements !nd lessons le!rned th!t !re !lre!dy proving v!lu!ble for migr!tions of all sizes. On the R&D side, our investment in "build once, run everywhere" pl!tform c!p!bilities !nd commitment to developer productivity !llow our te!ms to roll out ! ste!dy stre!m of fe!tures !nd enh!ncements th!t m!ke Atl!ssi!n's cloud ever more !ccessible (!nd !ttr!ctive) to customers. In the c!se of the UK-b!sed b!nk, the !bility to !rchive Jir! issues !nd support for multiple identity providers in Atl!ssi!n Access unblocked their move to cloud. And the l!unch of d!t! residency in Germ!ny in Q2 is unlocking cloud for more of our customers in regul!ted industries. Fin!nci!l firms like Fino! !nd Giesecke+Devrient GmbH, !s well !s other security-conscious enterprise vendors like Celonis !nd Softw!re AG migr!ted to our cloud products recently, b!cked by the growing list of compli!nce certific!tions !nd d!t! residency options our pl!tform h!s !chieved. To further incentivize migr!tion !nd upgr!des to higher editions, we l!unched new !utom!tion c!p!bilities in Confluence Cloud's Premium !nd Enterprise editions. Now !dmins c!n keep sp!ces org!nized by !utom!tic!lly !rchiving in!ctive content !nd !ny user c!n !utom!te p!ge cre!tion for recurring te!m pr!ctices like monthly business reviews or retrospectives. With the !ver!ge cloud customer !lre!dy running over 650 !utom!ted oper!tions e!ch d!y, we know customers will get ! lot of v!lue out of this new fe!ture !nd the Confluence Automation Template Library. And it's not just Confluence. We're investing in !utom!tion c!p!bilities th!t extend !cross – !nd even beyond – our pl!tform. Jir! Softw!re users c!n connect with Bitbucket, GitHub, GitL!b, !nd L!unchD!rkly to !utom!tic!lly cre!te development br!nches !nd fe!ture fl!gs. And th!nks to ! new integr!tion with Am!zon Web Services (AWS), ITOps te!ms c!n !utom!te m!nu!l t!sks like notifying st!keholders of !n incident or rest!rting ! server if it stops running. The result is th!t customers c!n spend more time where it m!tters. Th!t's some pretty good ROI. ATLASSIAN + SOFT WARE AG "In Germany, we have to be both innovative and compliant with strict regulatory standards. With Atlassian Cloud, we can do both… Creating multiple instances without any additional costs allows you to segregate data for security reasons." Tim Brutscher Enterprise IT Architect at Software AG

------

![](teamq22023shareholderlet004.jpg)

Q2 FY23 4 Market deep-dive: IT service management As comp!nies move through digit!l tr!nsform!tion !nd gr!pple with !ging systems th!t c!n't keep up with the dem!nds of the modern world, IT h!s gone from being ! cost center to ! str!tegic p!rtner for the entire business. Recent CIO surveys !nd our own convers!tions with But wait! There's more. In !ddition to d!t! residency in Germ!ny !nd !utom!tion c!p!bilities in Confluence, we shipped pl!tform enh!ncements in Q2 th!t unlock migr!tion for hundreds of thous!nds of se!ts, !s well !s product fe!tures th!t will delight customers in the cloud. ‣ E!rly !ccess progr!m for migr!ting nested groups ‣ Audit logs for Jir! !nd Confluence permission ch!nges ‣ Uptime SLA of 99.9% for Bitbucket Cloud Premium ‣ Self-serve org!niz!tion deletion for !dmins ‣ HIPAA compli!nce for Jir! Service M!n!gement ‣ New d!shbo!rds for request, ch!nge, !nd incident m!n!gement, !s well !s Opsgenie !lerts !nd insight objects ‣ Custom reporting for Jir! Service M!n!gement ‣ Incoming c!ll routing for Jir! Service M!n!gement !nd Opsgenie ‣ Improved support for post-incident reviews ‣ Ch!nge c!lend!r support for scheduling product freezes !nd m!inten!nce windows ‣ M!cOS builds for Bitbucket Pipelines ‣ DevOps toolch!in visu!liz!tion in Jir! Softw!re ‣ Support to link Atl!ssi!n An!lytics d!shbo!rds with rele!se versions in Jir! Softw!re's rele!se hub ‣ Enh!nced support for p!r!llel sprints in Jir! Softw!re ‣ Extern!l guest coll!bor!tion support in Confluence ‣ Bulk !ctions for Trello Enterprise !dmins While we've historically addressed all three of our interconnected markets in shareholder letters, we're now offering a deeper look at one each quarter.

------

![](teamq22023shareholderlet005.jpg)

Q2 FY23 5 customers reve!l th!t cybersecurity !nd incident m!n!gement, plus !utom!ted workflows !nd reporting, top their list of priorities. This, !s IT te!ms continue to forge closer rel!tionships !nd tighter !lignment with s!les, HR, fin!nce, !nd other te!ms !cross the business. All of which is ex!ctly wh!t Jir! Service M!n!gement !nd our other ITSM products !re designed for. Jira Service Management steals the competition's thunder The ITSM m!rket is one of Atl!ssi!n's biggest !re!s of opportunity, with Jir! Service M!n!gement le!ding the w!y !s our f!stest-growing product !t sc!le. • We're the only vendor th!t brings softw!re !nd IT te!ms together on the s!me pl!tform. • Developers h!ve trusted us for over two dec!des, expediting exp!nsion into IT !nd ops te!ms !t comp!nies of !ll sizes !nd in every industry. • We h!ve ! consistent tr!ck record of investment delivering !m!zing customer v!lue, including ! h!ndful of sm!rt tuck-in !cquisitions !nd ! metric ton of home-grown innov!tions. • Unlike competitors with intermin!ble s!les cycles !nd roll-out processes, te!ms c!n get up !nd running with Jir! Service M!n!gement in !s little !s ! d!y. Between the superior time-to-v!lue for customers, the ste!dy drumbe!t of improvements, !nd ! price point th!t's !ccessible to comp!nies of !ll sizes, we !re not surprised !nd believe this is why the industry is t!king note . Atl!ssi!n w!s n!med ! Le!der for the first time in the 2022 G!rtner® M!gic Qu!dr!nt™ for IT Service M!n!gement Pl!tforms1. This comes on the heels of being n!med ! Le!der in The Forrester W!ve™: Enterprise Service M!n!gement, Q4 2021 . Not only th!t, but !ccording to the 2022 report, A Buyer's Guide to ITSM Pl!tforms, "eight out of 10 IT org!niz!tions overspend on their IT service m!n!gement (ITSM) pl!tform subscriptions by h!lf of the contr!ct v!lue bec!use they purch!se functions th!t do not get fully used2". So we've introduced !ttr!ctive incentives for customers who switch from their hulking ITSM monoliths to Jir! Service M!n!gement. Our "End Bad Service Management Now" c!mp!ign offers l!rge comp!nies compelling pricing incentives for their first ye!r when they m!ke the switch from ! leg!cy vendor, !nd sm!ller comp!nies c!n get up to 10 !gents for free for 12 months. These moves, !s we've done throughout our history, demonstr!te our willingness to m!ke bold, short-term tr!de-offs in the service of long-term p!yoffs.

------

![](teamq22023shareholderlet006.jpg)

Q2 FY23 6 Comp!nies like PostNord, S!int Gob!in, !nd Engie, m!ssive enterprises going through intense digit!l !nd cultur!l tr!nsform!tions, h!ve !lre!dy switched over. Engie h!d been using ! l!rge- sc!le leg!cy solution but found it difficult to configure !nd use (not to mention the sh!re of their budget it !te up). Since the switch, they've cut licensing costs by 67% !nd !re s!ving roughly 200 hours of their IT te!m's time e!ch month. ! And from !n end user's perspective, the tr!nsition liter!lly h!ppened overnight: Engie's !dmins turned off the old system one evening !nd turned on Jir! Service M!n!gement the next d!y. Ready and able to meet the challenges ahead With Q3 underw!y, we will execute on the decisions we've m!de so f!r !nd continue to reb!l!nce our investments !s the situ!tion c!lls for. We've pl!yed offense !mid uncert!inty more th!n once in our 20 ye!rs !s ! comp!ny, !nd we're confident th!t our tr!dem!rk vigil!nce !nd discipline will guide us through successfully once !g!in. As !lw!ys, we're incredibly gr!teful to the Atl!ssi!n te!m for st!ying focused on delivering gre!t products, !nd to our customers !nd p!rtners for their p!ssion in building ! vibr!nt community !round us. Our te!ms !re focused !nd fired up. We've positioned ourselves for success in ! ch!llenging environment, !nd we're re!dy to get !fter it. (As we s!y in Austr!li!, "we're not here to #@!% spiders.") Here's to the ro!d !he!d, !nd to unle!shing the potenti!l of every te!m. – Mike !nd Scott Tod!y, te!ms !t over 45,000 comp!nies use Jir! Service M!n!gement, !nd we're just getting st!rted. ATLASSIAN + ENGIE "It was like lowering a curtain, and raising it back up again." Jose Luis Lizárraga Castro IT Support Engineer at Engie Mexico Mike Cannon-Brookes Co-founder and co-CEO Scott Farquhar Co-founder and co-CEO MIKE & SCOT T

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Q2 FY23 7 The bottom line ‣ The m!cro-induced he!dwinds !round se!t exp!nsion within existing customers !nd free-to-p!id conversion bec!me more pronounced this qu!rter, p!rticul!rly with SMB customers. Atl!ssi!n is responding by reb!l!ncing our investments to focus more on our biggest growth opportunities: cloud migr!tions, the ITSM m!rket, !nd serving enterprise customers. ‣ Cloud migr!tions !nd the rele!se of new fe!tures continue trucking !long. We're seeing customers commit deeper to Atl!ssi!n despite the uncert!in economic b!ckdrop. ‣ Jir! Service M!n!gement is ! rising st!r in the ITSM sp!ce, surp!ssing 45,000 customers in tot!l, e!rning Atl!ssi!n recent recognition by industry experts. ‣ Our te!ms !re executing with urgency !nd dedic!tion. We h!ve the right experience, the right t!lent, !nd the right str!tegies for long-term success. We're re!dy for wh!t lies !he!d. 1Gartner, Magic Quadrant for IT Service Management Platforms, Rich Doheny, Chris Matchett, Siddharth Shetty, 31 October 2022. 2Gartner, A Buyer's Guide to ITSM Platforms, Chris Matchett, Rich Doheny, 4 August 2022. Gartner Disclaimer Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner research organization and should not be construed as statements of fact. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. Gartner Peer Insights Customers' Choice constitute the subjective opinions of individual end-user reviews, ratings, and data applied against a documented methodology; they neither represent the views of, nor constitute an endorsement by, Gartner or its affiliates. GARTNER and MAGIC QUADRANT are a registered trademark and service mark, and PEER INSIGHTS is a trademark and service mark, of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved.

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Q2 FY23 8 As mentioned !bove, we continue to see he!dwinds imp!cting new customer conversion. We !dded 4,004 net new customers in Q2, bringing our tot!l customer count to 253,177. I'm encour!ged by the number of people coming to our sites !nd signing up for Free editions of our products, which continues to grow !t he!lthy r!tes. The number of monthly !ctive users !lso continues to perform well, underscoring the mission-critic!l role our products pl!y for our customers. The "High Velocity" ITSM event we hosted in London w!s ! big highlight of my December. We spent the d!y with hundreds of customers !nd prospects from !cross industries, plus thous!nds of virtu!l !ttendees, discussing service m!n!gement pr!ctices !nd digit!l tr!nsform!tion. I h!d the privilege of hosting ! live Q&A with two of our enterprise customers, Edenred !nd Arv!to Systems, where we discussed their !doption of Jir! Service M!n!gement !nd the incredible benefits they've experienced to d!te. We !lso s!w ! gre!t response to our new "End Bad Service Management Now" campaign with m!ny of our l!rgest enterprise customers !sking how Atl!ssi!n c!n help them modernize their ITSM offerings !nd s!ve money in the process. And the customer event tr!in keeps on rolling! Next week, on Febru!ry 9th, we he!d to Berlin for our !gile/DevOps-focused event, "Unle!sh." Along with meeting !s m!ny of our Europe!n customers !s possible, I'll be doing ! fireside ch!t with Atl!ssi!n's Chief Trust Officer, Adri!n Ludwig, focused on coping with emerging cybersecurity thre!ts, both from ! technic!l !nd customer rel!tions perspective. If you h!ppen to be in the !re!, I'd love to set up ! time to meet on or !round the 9th. Otherwise, you c!n register for the live stre!m here !nd experience the event virtu!lly. I look forw!rd to spe!king with you soon, either !t the event, on our e!rnings c!ll this !fternoon, or whenever we cross p!ths. – C!meron Customer highlight reel Cameron Deatsch Chief Revenue Officer Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 253,177249,173242,623234,575226,521 216,500 204,754 188,033 174,948166,180 Customers: We define the number of customers at the end of any particular period as unique domains that have at least one active and paid product license or subscription, with two or more seats, excluding starter licenses/subscriptions. For each period ended Customers

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Q2 FY23 9 Financial highlights Joe Binz Chief Financial Officer Second quarter fiscal year 2023 financial summary (U.S. $ in thousands, except per share data and percentages) A reconcili!tion of GAAP to non-GAAP me!sures is provided within the t!bles !t the end of this letter !s well !s in our e!rnings press rele!se, !nd on our Investor Rel!tions website. Second quarter fiscal year 2023 highlights We delivered solid fin!nci!l results in Q2 with ste!dy execution in ! ch!llenging !nd uncert!in m!croeconomic environment resulting in revenue, gross profit, !nd oper!ting income exceeding our expect!tions. Strong revenue growth from D!t! Center !nd M!rketpl!ce offerings offset we!ker-th!n-expected results in cloud, which continues to be imp!cted by m!cro he!dwinds, p!rticul!rly in the SMB customer b!se. We continue to be responsive to these ch!nges by m!n!ging costs while investing !g!inst the long-term opportunity in our three l!rge m!rkets !nd rel!ted str!tegic priorities. We !re m!n!ging the comp!ny for the long term !nd !re well-positioned to successfully n!vig!te the ne!r term m!croeconomic turbulence !nd emerge ! stronger comp!ny. FDONE Q RTFR OG GJSD L (() GJN NDJ L S MM RY O IP TBOET F DF FS TIBSF EB B BOE FSDFO B FT IRFF 8ONTIS 2NEFE 1FDFMCFR)'$ J 8ONTIS 2NEFE 1FDFMCFR)'$(((((' (((((' 4 RFS LTS FWFO F .-(- ,.. (, ,. ,) (7SPTT SPG - , - -.))). - ,) 7SPTT NBS O % % % FSB O ODPNF MPTT () () ()) (,, - FSB O NBS O) F MPTT () (()(. (. --()))(F MPTT FS TIBSF $ E M FE %. % %., %-(3BTI GMP GSPN P FSB POT ((, ((,- (- , 9ON%4 RFS LTS 7SPTT SPG - ().- () (-, 7SPTT NBS O)) FSB O ODPNF - . (-, .()((- () ((. FSB O NBS O % %(% %) F ODPNF -)) (- (- (. (.), F ODPNF FS TIBSF $ E M FE % %) %. %. 6SFF DBTI GMP , .) .- ((() (

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Q2 FY23 10 Highlights for Q2'23 include: All growth comparisons below relate to the corresponding period of last year, unless otherwise noted. • Revenue of $873 million incre!sed 27%, driven by growth in our Cloud !nd D!t! Center offerings. • GAAP gross m!rgin of 82% decre!sed 2 percent!ge points. Non-GAAP gross m!rgin of 85% decre!sed 1 percent!ge point, driven by business mix shift to the cloud. • GAAP oper!ting expenses of $816 million incre!sed 47%. Non-GAAP oper!ting expenses of $566 million incre!sed 36%, driven by growth in R&D !nd s!les !nd m!rketing investments !cross our t!rget m!rkets !nd str!tegic priorities. • GAAP oper!ting loss w!s $99 million. GAAP oper!ting m!rgin of (11%) decre!sed 15 percent!ge points. Non-GAAP oper!ting income of $175 million decre!sed 1% !nd non-GAAP oper!ting m!rgin of 20% decre!sed 6 percent!ge points. L!stly, we !re ple!sed to !nnounce the initi!tion of ! sh!re repurch!se progr!m of up to $1 billion. This progr!m underscores our confidence in our business, conviction in our signific!nt long-term opportunities, !nd view th!t our sh!res !re underv!lued. Our sc!le, b!l!nce sheet, !nd unique business model which gener!tes consistent free c!sh flow !llow us to opportunistic!lly return c!pit!l to sh!reholders while !lso investing for dur!ble long-term growth. (U.S. $ in thousands, except percentage data) Revenue FDONE Q RTFR OG GJSD L (() RF FN F RFS LTS O IP TBOET F DF FSDFO B F (() (((AF R%O FR%YF R ROWTI F FN FS CY TYPF CTDS PO - . .- :B O FOBODF , () (- - IFS .((. , P BM SFWFO FT .-(- ,.. (, (- (() (((AF R%O FR%YF R ROWTI F FN FS CY EFPLOYMFNT 3MP E ())), 4B B 3FO FS (,) . FSWFS , ,.) ((:BSLF MBDF BOE TFSW DFT)- . (P BM SFWFO FT .-(- ,.. (, (- (() (((AF R%O FR%YF R ROWTI F FN FS CY 1NFS DBT (-) . (, () 5:51)) -- (,) ,) 1T B BD G D ((-, -) P BM SFWFO FT .-(- ,.. (, (-

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Q2 FY23 11 Revenue growth in the qu!rter w!s driven by subscription revenue, which grew 40%. Despite ongoing m!croeconomic uncert!inty, customers continued to choose Atl!ssi!n products to help their te!ms org!nize, discuss, !nd complete their work, illustr!ting the mission-critic!l role our products pl!y in their success. Cloud revenue growth of 41% continued to be imp!cted by the ch!llenging m!croeconomic conditions in the form of moder!ting growth in 1) p!id se!t exp!nsion from existing customers !nd 2) free to p!id conversion r!tes. These he!dwinds were consistently observed !cross geogr!phies, industries, !nd products - !nd were p!rticul!rly pronounced in December !nd in our SMB customer b!se. Beyond these two !re!s, we were ple!sed with the perform!nce in other cloud drivers including monthly !ctive users, se!t migr!tions, doll!r-b!sed churn, !nd upsell to Premium or Enterprise editions, !ll of which continued to perform in line with our expect!tions !nd underscore the v!lue our cloud products deliver to customers !nd their continued desire to move to our cloud. D!t! Center revenue growth of 40% w!s driven by strong perform!nce of renew!ls, se!t exp!nsion from existing customers, !nd migr!tions from Server. Revenue growth r!tes !cross geogr!phic regions were consistent with the exception of the Americ!s, which grew 23% due to ! tough prior ye!r comp!r!ble. As ! reminder, in Q2'22, the Americ!s benefited from p!rticul!rly strong D!t! Center s!les, ! portion of which is recognized up-front in the period the subscription begins. L!stly, deferred revenue incre!sed 31% ye!r-over-ye!r to $1.3 billion driven by growth in !nnu!l Cloud subscriptions !nd multi-ye!r billings, which highlight customer commitment to our pl!tform. Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 $872.7 $807.4 $759.8$740.5 $688.5 $614.0 Total revenue (U.S. $ in millions, year-over-year growth rate in %) 30%37% 36%34% 31% 27%

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Q2 FY23 12 Year-over-year growth % Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Cloud 53% 58% 60% 55% 49% 41% Data Center 68% 83% 59% 60% 54% 40% Marketplace and services 26% 20% (4%) 24% 4% 20% Server (7%) (12%) (19%) (16%) (18%) (22%) Total revenues 34% 37% 30% 36% 31% 27% Included in Server is perpetual license revenue. Perpetual license revenue is captured as other revenue on the Condensed Consolidated Statements of Operations. (1) Included in Marketplace and services is premier support revenue. Premier support is a subscription-based arrangement for a higher level of support across different deployment options. Premier support is recognized as subscription revenue on the Condensed Consolidated Statements of Operations as the services are delivered over the term of the arrangement. (2) (U.S. $ in millions, except percentage data) Revenues by deployment $872.7 $807.4 $759.8$740.5 $688.5 $614.0 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 $106.2 $113.8 $117.6 $132.3 $135.5 $139.5 $59.9 $47.3 $49.3 $57.6 $49.8 $45.4 $194.3 $171.2 $158.9 $151.1 $139.1 $111.2 $512.3$475.0$434.0$399.5$364.1$317.9 Cloud Data Center Marketplace and services Server (2) (1) Note: revenue totals may not foot due to rounding

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Q2 FY23 13 Net income (U.S. $ in thousands, except per share data) GAAP net loss includes ! non-recurring income t!x ch!rge of $83 million for Q2'23 for uncert!in t!x provisions rel!ted to tr!nsfer pricing. This ch!rge incre!sed GAAP net loss per diluted sh!re by $0.32 in Q2'23. Free c!sh flow in Q2'23 includes ! discrete t!x p!yment of $57 million rel!ted to tr!nsfer pricing. Excluding this p!yment, free c!sh flow would h!ve incre!sed 5% ye!r-over-ye!r to $203 million, !nd free c!sh flow m!rgin would h!ve been 23%. (U.S. $ in thousands, except percentage data) Margins, operating expenses, and operating income FDONE Q RTFR OG GJSD L (() M R JNS NE OPFR TJN F PFNSF S MM RY O IP TBOET F DF FS TIBSF EB B BOE FSDFO B F (() (((4ROSS M R JN 711 SPTT NBS O .(% . % PO$711 SPTT NBS O . % .,% OT L OPFR TJN F PFNSFS 711 P FSB O F FOTFT . . () PO$711 P FSB O F FOTFT ,, ,- ,- FSF RDI NE EF FLOPMFNT F PFNSFS 711 SFTFBSDI BOE EFWFMP NFO F FOTFT -) ,-,) . , PO$711 SFTFBSDI BOE EFWFMP NFO F FOTFT) (((.) , 2 525 0 3.7.16.4 % 8 R FTJN NE S LFS F PFNSFS 711 NBSLF O BOE TBMFT F FOTFT ., (, PO$711 NBSLF O BOE TBMFT F FOTFT (, - 2 525 0 3.7.16.4) 4FNFR L NE EMJNJSTR TJ F F PFNSFS 711 FOFSBM BOE BEN O T SB WF F FOTFT ,) ,-. PO$711 FOFSBM BOE BEN O T SB WF F FOTFT ,) -) 2 525 0 3.7.16.4 :PFR TJN JNDOMF LOSS 711 P FSB O ODPNF MPTT () () (PO$711 P FSB O ODPNF - . (-, .(2 525 0 3.7.16.4 % %(FDONE Q RTFR OG GJSD L (() 9FT 5NDOMF O IP TBOET F DF FS TIBSF EB B (() (((4 RFS LTS F MPTT () (()(. F MPTT FS TIBSF $ E M FE %. % 9ON%4 RFS LTS F ODPNF -)) (- F ODPNF FS TIBSF $ E M FE % %) FDONE Q RTFR OG GJSD L (() 3RFF 0 SI 3LOW O IP TBOET F DF FSDFO B F (() (((3RFF D SI GLOW 711 OF DBTI SPW EFE C P FSB O BD W FT ((, 9FTT0 3B BM F FOE SFT (. 6SFF DBTI GMP , .) .- 2 525 0 3.7.16.4) % % Free cash flow (U. . $ in thousands, except per share data and percentages) FDONE Q RTFR OG GJSD L (() 9FT 5NDOMF O IP TBOET F DF FS TIBSF EB B (() (((4 RFS LT F MPTT () (()(. F M TT FS TIBSF $ E M FE %. % 9ON%4 RFS LTS F ODPNF -)) (- F ODPNF FS TIBSF $ E M FE % %) FDONE Q RTFR OG GJSD L (() 3RFF 0 SI 3LOW O IP TBOET F DF FSDFO B F (() (((3RFF D SI GLOW 711 OF DBTI SPW EFE C P FSB O BD W FT ((, 9FTT0 3B BM F FOE SFT (. 6SFF DBTI GMP , .) .- 2 525 0 3.7.16.4) % %

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Q2 FY23 3JN NDJ L R FTS 4 IRFF 8ONTIS 2NEJN 8 RDI)'$(() FWFO F . N MM PO P N MM PO 7SPTT NBS O . FSB O NBS O 9ON%4 IRFF 8ONTIS 2NEJN 8 RDI)'$(() 7SPTT NBS O . FSB O NBS O 14 Financial targets (U.S. $) Fiscal 2023 outlook Total revenue For FY23, we expect tot!l comp!ny revenue growth of !pproxim!tely 25% ye!r-over- ye!r. This guid!nce !ssumes the m!croeconomic environment continues to worsen in H2. Further det!il provided below: SUBSCRIPTION REVENUE Cloud revenue We expect FY23 Cloud revenue growth of 35-40% ye!r-over-ye!r, with !n incre!sing m!cro imp!ct on both p!id se!t exp!nsion within existing customers !nd new customer conversions. We continue to expect !pproxim!tely 10 points of cloud revenue growth to be driven by migr!tions. While we h!ve yet to see signific!nt imp!ct in !re!s like churn or upsell to Premium !nd Enterprise editions of our products, the lower end of our r!nge contempl!tes some m!cro imp!ct in these !re!s. D!t! Center revenue While we continue to see he!lthy dem!nd for our D!t! Center products driven by stronger-th!n-expected renew!ls !nd se!t exp!nsion from existing customers, we expect D!t! Center revenue growth r!tes to moder!te in H2. MAINTENANCE REVENUE In line with our !nnounced Server end-of-life, we expect m!inten!nce revenue to continue to contr!ct over the course of FY23 to !pproxim!tely $85 million in Q4'23. As ! reminder, we will no longer provide m!inten!nce !nd support for our Server offerings beginning Febru!ry 2024.

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Q2 FY23 15 OTHER REVENUE We expect FY23 Other revenue to be !pproxim!tely fl!t comp!red to FY22. The m!jority of Other revenue is comprised of M!rketpl!ce revenue, which we expect to grow in the mid-teens % ye!r- over-ye!r in FY23. M!rketpl!ce revenue will be imp!cted by the ongoing mix shift of third-p!rty !pp s!les from Server !nd D!t! Center to Cloud, which h!s ! lower t!ke r!te to incentivize cloud !pp development. We look to drive s!les of third-p!rty cloud !pps !t ! r!te th!t exceeds those of our own products. As ! reminder, revenue on the s!le of third-p!rty M!rketpl!ce !pps is recognized in the period the product is purch!sed, which !dds qu!rter-to-qu!rter vol!tility in M!rketpl!ce growth r!tes. As ! reminder, perpetu!l license revenue, which is reflected in Other revenue, will be $0 in FY23 !nd tot!led !pproxim!tely $30 million in FY22. Operating margin We expect FY23 GAAP oper!ting m!rgin will be !pproxim!tely (11%) !nd non-GAAP oper!ting m!rgin will be !pproxim!tely 17%. Despite the uncert!inties in the m!croeconomic environment, we continue to h!ve strong conviction in the long-term opportunities in front of us !nd will continue to pl!y offense. In terms of costs, we will invest to drive long-term growth in the business while being responsive to m!croeconomic ch!nges. We continue to expect oper!ting expense growth to deceler!te in H2 !s we follow through on our previously !nnounced pl!ns from l!st qu!rter to reduce discretion!ry non-he!dcount rel!ted spending !nd moder!te the p!ce of he!dcount growth. Share count In FY23, we expect less th!n 2% ye!r-over-ye!r incre!se in diluted sh!re count.

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Q2 FY23 16 ATLASSIAN CORPORATION Condensed consolidated statements of operations (U.S. $ and shares in thousands, except per share data) (unaudited) Y QEE 8NMS R 2MDED 1ECEL EQ)'$ I 8NMS R 2MDED 1ECEL EQ)'$ Y (((((' (((((' F FN FS0 CSDR PT ON - . .-),(.) (.) :B NTFNBNDF , () (- (.. (- , TIFR .((. .)(, . OTBL RF FN FS .-(- ,.. (, ,. ,) (3OST OG RF FN FS (())- (, - 7ROSS PROG T - , - -.))). - ,) PFRBT N F PFNSFS0 FSFBRDI BNE EF FLOPMFNT (-) ,-,) . , .-(,.(- :BR FT N BNE SBLFS (., (,) ,) (()- 7FNFRBL BNE BEM N STRBT F ,) ,-. (((OTBL OPFRBT N F PFNSFS . . () . (, . PFRBT N NDOMF LOSS () () ()) (,, - TIFR NDOMF F PFNSF NFT , - (()) ((-. - 8NTFRFST NDOMF . ,) - ,) 8NTFRFST F PFNSF - . ((() ,()(9OSS CFGORF NDOMF TB FS)) ((() . - RO S ON GOR NDOMF TB FS . (- . () (- FT LOSS () (()(. (. --()))(FT LOSS PFR SIBRF0 2BS D %. % %., %-(4 L TFE %. % %., %-(AF ITFE$B FRB F SIBRFS SFE N DOMP T N NFT LOSS PFR SIBRF0 2BS D (.- ((, (((()) 4 L TFE (.- ((, (((()) 1MO NTS NDL EF STOD $CBSFE DOMPFNSBT ON BS GOLLOWS0 QEE 8NMS R 2MDED 1ECEL EQ)'$ I 8NMS R 2MDED 1ECEL EQ)'$(((((' (((((' 3OST OG RF FN FS .) .) (,,)- FSFBRDI BNE EF FLOPMFNT ,) (((- - (:BR FT N BNE SBLFS). , (.-) ,)),),- 7FNFRBL BNE BEM N STRBT F) -) ()- , (. .. (1MO NTS NDL EF BMORT BT ON OG BD RFE NTBN CLF BSSFTS BS GOLLOWS0 QEE 8NMS R 2MDED 1ECEL EQ)'$ I 8NMS R 2MDED 1ECEL EQ)'$(((((' (((((' 3OST OG RF FN FS , -) (.. FSFBRDI BNE EF FLOPMFNT)) .- .- :BR FT N BNE SBLFS (, ((,,)-

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Q2 FY23 17 ATLASSIAN CORPORATION Condensed consolidated balance sheets (U.S. $ in thousands) (unaudited) 1ECEL EQ)'$(((TME) $(((RRESR 3 RRFNT BSSFTS0 3BSI BNE DBSI F BLFNTS ,), ,). (, :BR FTBCLF SFD R T FS), , -) (1DDO NTS RFDF BCLF NFT) .) . (- 1SSFTS IFLE GOR SBLF , (, RFPB E F PFNSFS BNE OTIFR D RRFNT BSSFTS - ()(- (OTBL D RRFNT BSSFTS () -, . ,) ON$D RRFNT BSSFTS0 ROPFRT BNE F PMFNT NFT)) ,,(PFRBT N LFBSF R IT$OG$ SF BSSFTS (. (-- (-, TRBTF D N FSTMFNTS ()- . , 8NTBN CLF BSSFTS NFT . (. . 7OOEW LL -() ((-((.). 4FGFRRFE TB BSSFTS - , -)) TIFR NON$D RRFNT BSSFTS - - . .,(NSA ARRESR) ,))(, .) IA I ISIER AMD SNCJ N DEQR 2PTIS 3 RRFNT L BC L T FS0 1DDO NTS PB BCLF)) . . ((1DDR FE F PFNSFS BNE OTIFR D RRFNT L BC L T FS) .) ,) 4FGFRRFE RF FN F D RRFNT PORT ON . -) ,, PFRBT N LFBSF L BC L T FS D RRFNT PORT ON , , ,). OTBL D RRFNT L BC L T FS , , , ON$D RRFNT L BC L T FS0 4FGFRRFE RF FN F NFT OG D RRFNT PORT ON)). , ,(PFRBT N LFBSF L BC L T FS NFT OG D RRFNT PORT ON (- ,) (-) FRM LOBN GBD L T , 4FGFRRFE TB L BC L T FS (.) (TIFR NON$D RRFNT L BC L T FS , ..- , , NSA IA I ISIER)), () (. SNCJ N DEQR EPTIS 3OMMON STOD ((1EE T ONBL PB E$ N DBP TBL (,(--, (.(), 1DD M LBTFE OTIFR DOMPRFIFNS F NDOMF) ,) ., 1DD M LBTFE EFG D T (.- . (.,) OTBL STOD IOLEFRS F T -- ()(-)-(NSA IA I ISIER AMD RSNCJ N DEQR EPTIS) ,))(, .)

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Q2 FY23 18 ATLASSIAN CORPORATION Condensed consolidated statements of cash flows (U.S. $ in thousands) (unaudited) QEE 8NMS R 2MDED 1ECEL EQ)'$ I 8NMS R 2MDED 1ECEL EQ)'$(((((' (((((' 0AR F N R FQNL NOEQASIMG ACSI ISIER E DD () (()(. (. --()))(FDE ED E C : E DD E E D AC G: A C E: E:G:E: D 4FPRFD BT ON BNE BMORT BT ON -, ((.) , (, (TOD $CBSFE DOMPFNSBT ON (, -. .() , (, -(- 4FGFRRFE NDOMF TB FS) ((- .) (FT LOSS ON F DIBN F EFR BT F BNE DBPPFE DBLL TRBNSBDT ONS L (.(1MORT BT ON OG EFCT E SDO NT BNE SS BNDF DOST - , - () (, . , FT LOSS ON STRBTF D N FSTMFNTS - ,) (() -,) - FT GORF N D RRFND B N (() (. .(. , , 7B N ON B NON$DBSI SBLF OG B DONTROLL N NTFRFST OG B S CS E BR (,, . TIFR (-) . D : A C E: DD ED : : :E: D 1DDO NTS RFDF BCLF NFT - . (, ,. () RFPB E F PFNSFS BNE OTIFR BSSFTS (,) . - (),- (.(F ED A . .- (. -) (- 1DDR FE F PFNSFS BNE OTIFR L BC L T FS . (, (.) ,) (.- 4FGFRRFE RF FN F (, , (-- .. 9ES CAR OQN IDED NOEQASIMG ACSI ISIER ((, ((,- (- , 0AR F N R FQNL IM ERSIMG ACSI ISIER FD: DD : E: D E D BF:C (- ,) .) FC D D AC A CE BF:A E (. (), ,(FC D D DEC E : : G DE ED (FC D D C E D FC:E: D () C D C EFC:E: D C E D FC:E: D . - - , - - , .- C D C D D C E D FC:E: D DEC E : : G DE ED),) ,(., (,(9ES CAR OQN IDED TRED IM IM ERSIMG ACSI ISIER) -) ,.(- -) . 0AR F N R FQNL FIMAMCIMG ACSI ISIER C D C E C : :E) FPB MFNT OG F DIBN FBCLF SFN OR NOTFS ())-, . ,., C D C D EE E AA EC D E: D) - C D C E C : : CC ED) , 9ES CAR OQN IDED TRED IM FIMAMCIMG ACSI ISIER -- .)) ,) .) E C : I C E D D D BF:G ED C DEC: E D) (((, - () - C 2 2 2 2 D E2 C 2 C C 2 ,. (,())(, (,.) ,). 2 2 D E2 C 2 C C 2 2C 3 , ())., ,.,) () E C D : D D BF:G ED : F : DD ED C D .(, (,. 2 2 D E2 C 2 C C 2 2C ,)- , , ,)- , ,

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Q2 FY23 19 ATLASSIAN CORPORATION Reconciliation of GAAP to non-GAAP results (U.S. $ and shares in thousands, except per share data) (unaudited)Y 0 , C) (3 G , C) (3 Y C C DD AC :E - , - -.))). - ,) FD E D A D E: .) .) (,,)- FD CE: E: BF:C : E : DD ED , -) (.. C DD AC :E - ().- () (-, 2C A C E: : DD () () ()) (,, - FD E D A D E: (, -. .() , (, -(- FD CE: E: BF:C : E : DD ED . (, - . , (, (A C E: : - . (-, .()((- () ((. - C E DD () (()(. (. --()))(FD E D A D E: (, -. .() , (, -(- FD CE: E: BF:C : E : DD ED . (, - . , (, (FD FA : A E C E E I D : C E D AA D , . , .(- DD : D D EC : : E C DE DF D: : C (,- . FD DD , E I FDE ED - -)- .- ((- (E : -)) (- (- (. (.), - C 2 E DD A C D C : FE %. % %., %-(FD E D A D E: % % - %-(% . FD CE: E: BF:C : E : DD ED %) %) % , % , FD FA : A E C E E I D : C E D AA D % - %-- - DD : D D EC : : E C DE DF D: : C % % - FD DD , E I FDE ED % % % , %(E : A C D C : FE % %) %. %. 1 C 2E 2 DC 2 DC C2 1 : E G C D C D FD : AFE: : FE E DD A C D C (.- ((, (((()) FD (: FE: C : FE:G D FC:E: D)) -(,-)) -. 1 : E G C D C D FD : AFE: : FE E : A C D C (, -. (,)((,) (- 2 F E D AC G: A C E: E:G:E: D ((, ((,- (- , - DD A:E IA :EFC D (. (), ,(C D , .) .- ((() (IF FGGFDTS OG TIFSF E L T F SFD R T FS WFRF NOT NDL EFE N TIF 711 DBLD LBT ON OG E L TFE NFT LOSS PFR SIBRF GOR TIF TIRFF BNE S MONTIS FNEFE 4FDFMCFR) (((BNE ((CFDB SF TIF FGGFDT WO LE IB F CFFN BNT $E L T F%

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Q2 FY23 20 ATLASSIAN CORPORATION Reconciliation of GAAP to non-GAAP financial targets (U.S. $) FOCC L QFP 0 G E OAF ('%'(2-- EOLPP J OEG L S0 TOD $CBSFE DOMPFNSBT ON (L S0 1MORT BT ON OG BD RFE NTBN CLF BSSFTS L 2-- EOLPP J OEG) 2-- LMCO QG E J OEG) L S0 TOD $CBSFE DOMPFNSBT ON (. L S0 1MORT BT ON OG BD RFE NTBN CLF BSSFTS L 2-- LMCO QG E J OEG , F E 2-- LMCO QG E J OEG %% L S0 TOD $CBSFE DOMPFNSBT ON L S0 1MORT BT ON OG BD RFE NTBN CLF BSSFTS L 2-- LMCO QG E J OEG %(

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Q2 FY23 21 FORWARD-LOOKING STATEMENTS This shareholder letter contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, which statements involve substantial risks and uncertainties. In some cases, you can identify these statements by forward-looking words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "should," "estimate," or "continue," and similar expressions or variations, but these words are not the exclusive means for identifying such statements. All statements other than statements of historical fact could be deemed forward looking, including risks and uncertainties related to statements about our products, customers, Cloud migrations, macroeconomic environment, anticipated growth, outlook, technology, share repurchase program, and other key strategic areas, and our financial targets such as revenue and GAAP and non-GAAP financial measures including gross margin and operating margin. We undertake no obligation to update any forward-looking statements made in this shareholder letter to reflect events or circumstances after the date of this shareholder letter or to reflect new information or the occurrence of unanticipated events, except as required by law. The achievement or success of the matters covered by such forward-looking statements involves known and unknown risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management's beliefs and assumptions only as of the date such statements are made. Further information on these and other factors that could affect our financial results is included in filings we make with the Securities and Exchange Commission (the "SEC") from time to time, including the section titled "Risk Factors" in our most recently filed Forms 20-F and 10-Q. These documents are available on the SEC Filings section of the Investor Relations section of our website at: https:// investors.atlassian.com. ABOUT NON-GAAP FINANCIAL MEASURES In addition to the measures presented in our condensed consolidated financial statements, we regularly review other measures that are not presented in accordance with GAAP, defined as non-GAAP financial measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts and make strategic decisions. The key measures we consider are non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share and free cash flow (collectively, the "Non-GAAP Financial Measures"). These Non-GAAP Financial Measures, which may be different from similarly titled non-GAAP measures used by other companies, provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be unrelated to our core operations. Management believes that tracking and presenting these Non-GAAP Financial Measures provides management, our board of directors, investors and the analyst community with the ability to better evaluate matters such as: our ongoing core operations, including comparisons between periods and against other companies in our industry; our ability 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. Excludes expenses related to stock-based compensation and amortization of acquired intangible assets. • Non-GAAP operating income. Excludes expenses related to stock-based compensation and amortization of acquired intangible assets. • Non-GAAP net income and non-GAAP net income per diluted share. Excludes expenses related to stock-based compensation, amortization of acquired intangible assets, non-coupon impact related to exchangeable senior notes and capped calls, gain on a non-cash sale of a controlling interest of a subsidiary and the related income tax effects on these items, and a non-recurring income tax adjustment. • 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. We encourage you to review the tables in this shareholder letter titled "Reconciliation of GAAP to Non-GAAP Results" and "Reconciliation of GAAP to Non-GAAP Financial Targets" that present such reconciliations. ABOUT ATLASSIAN Atlassian unleashes the potential of every team. Our agile & DevOps, IT service management and work management software helps teams organize, discuss, and complete shared work. The majority of the Fortune 500 and over 250,000 companies of all sizes worldwide - including NASA, Kiva, Deutsche Bank, and Salesforce - rely on our solutions to help their teams work better together and deliver quality results on time. Learn more about our products, including Jira Software, Confluence, Jira Service Management, Trello, Bitbucket, and Jira Align at https://atlassian.com. Investor relations contact: Martin Lam, IR@atlassian.com Media contact: M-C Maple, press@atlassian.com

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