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Sydney-based productivity software group Atlassian (NASDAQ: TEAM) has broken through the US$4 billion revenue barrier in FY24 after recording a 20 per cent increase in total revenue for the fourth quarter to US$1.13 billion.
The surge in revenue to US$4.4 billion ($6.77 billion) puts the NASDAQ-listed company on track to hit its target of US$10 billion over the next five years, although the latest result has still not produced a profit for the company which was founded by Mike Cannon-Brookes and Scott Farquhar in 2001.
Critically, Atlassian has forecast revenue growth will slow over the next year to about 16 per cent.
Atlassian’s operating loss in the fourth quarter blew out to US$67.0 million, from US$50.4 million a year earlier.
The net loss for the quarter more than tripled to US$196.9 million from US$59.0 million in the fourth quarter of FY23.
However, the company’s operating loss in fiscal 2024 narrowed sharply to US$117.1 million from US$345.2 million in 2023.
Focusing on the company’s continued growth, Cannon-Brookes describes fiscal 2024 as a year of achievements.
“This past year we’ve once again proved to ourselves that we can accomplish big things,” he says.
“We grew revenue to US$4.4 billion, generated free cash flow of over US$1.4 billion, and surged past 300,000 customers. We announced transformative innovations for our customers like Rovo, the latest human-AI technology reshaping the way we work.
“We achieved significant milestones like FedRAMP’s ‘In Process’ status, a huge step towards supporting the US public sector in the cloud, and we wound down support for Server.”
FedRAMP is a US government-wide program that provides a standardised approach to security assessment, authorisation and continuous monitoring for cloud products and services.
“With this setup, we feel tremendously optimistic about what is ahead of us. We’re excited to build on this momentum and get cracking on FY25,” says Cannon-Brookes.
Atlassian posted a net loss of US$300.5 million for FY24, down from a net loss of US$486.8 million a year earlier.
Among the highlights for the company is a 48 per cent increase in the number of customers who spend more than US$1 million annually.
In another looming milestone, Farquhar will step down as co-CEO of Atlassian at the end of this month after announcing in April his decision to spend more time with his young family while focusing on his philanthropic pursuits and assisting the technology industry globally.
“When I look back on the last 23 years, I am filled with pride at what two mates from Australia built,” says Farquhar.
“We created a global company with over 12,000 employees, tens of thousands of champions across the Atlassian ecosystem, and over 300,000 customers. We’ve helped companies big and small all over the world solve some of the most interesting and challenging problems - from the development of electric vehicles and life-saving medical advancements to space exploration. And yet our best days are still ahead.
“I leave the co-CEO role knowing Atlassian is incredibly well-positioned to capitalise on the huge opportunities ahead and live its mission of unleashing the potential of every team. I look forward to continuing along the journey, albeit from a slightly different seat.”
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