Atlassian Corporation reported its financial results for the third quarter of fiscal year 2025, revealing a total revenue of $1.36 billion, a 14% increase from $1.19 billion in the same period last year. Subscription revenue, which constitutes the majority of the company's income, rose by 19% to $1.27 billion, driven by increased demand from existing customers and price adjustments. However, other revenue sources, primarily from maintenance services, saw a significant decline of 29%, reflecting the end of support for the company's Server offerings.
The company's net loss for the quarter was $70.8 million, compared to a net income of $12.8 million in the prior year. This shift is attributed to increased operating expenses, which rose to $1.15 billion, up from $957.9 million a year earlier. Notably, research and development expenses surged by 19% to $685.3 million, reflecting Atlassian's commitment to innovation and product development. Marketing and sales expenses also increased by 32%, indicating a strategic push to expand market presence.
Atlassian's customer base continues to grow, with over 300,000 customers reported as of March 31, 2025. The number of customers generating more than $10,000 in annual recurring revenue from Cloud offerings increased to 50,715, up from 49,449 in the previous quarter. The company has emphasized its focus on expanding its customer relationships and enhancing product adoption, particularly in the cloud segment, which accounted for 65% of total revenue in the latest quarter.
In terms of financial health, Atlassian's cash and cash equivalents stood at $2.66 billion, up from $2.18 billion at the end of the previous fiscal year. The company also reported a free cash flow of $638.3 million for the quarter, an increase from $554.9 million year-over-year. This positive cash flow is attributed to higher cash receipts from customers and a decrease in cash paid for income taxes. Looking ahead, Atlassian remains focused on leveraging its product-led growth strategy to drive further expansion and innovation in the competitive software market.
About Atlassian Corp
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