Summary of key developments for investors in Q1 FY2025: Atlassian posted revenue of $1.188 billion, with cloud revenue up 31% year over year and ongoing momentum from migrations to the Atlassian Cloud Platform. The company reiterated a two-pronged AI strategy: (1) enhancing existing cloud products with Atlassian Intelligence and (2) launching Rovo, a purpose-built AI-powered standalone product. Usage of Atlassian Intelligence has increased more than 10x since the start of the year, and Rovo has reached general availability, driving higher-value editions and cloud migrations. Management emphasized that AI is accelerating customer velocity and ROI, while cloud migrations and enterprise expansion remain core growth levers.
Despite solid top-line progress, Q1 results reflect ongoing profitability pressures from elevated R&D and SG&A investments, resulting in a GAAP net loss of $123.8 million and negative operating income of $31.98 million. Free cash flow was positive at $74.3 million, and Atlassian remains financially robust with cash, cash equivalents and short-term investments totaling about $2.22 billion and a net cash position (net debt) of approximately -$810.6 million. The balance sheet is healthy with total assets of roughly $4.99 billion and total stockholders’ equity of about $1.03 billion. The quarter showcased strong customer and product momentum (55k Jira Service Management customers; 524 customers with >$1 million ARR), as well as progress on enterprise GTM initiatives and AI-driven product innovation. Going forward, management signaled a conservative but constructive outlook, highlighting the importance of data-center migrations to cloud, continued cloud growth, and monetization of Rovo as adoption scales.