- Quarterly revenue of US$1,384m, up 22%
- Quarterly subscription revenue of $1,313m, up 23%
- Quarterly operating loss of $28.5m
- Atlassian president departs
Atlassian generated US$5.2 billion in revenue in the 2025 financial year, up 20% on 12 months ago, but two decades of annual losses continue as the business heads into its 24th year.
Releasing stronger-than-expected fourth quarter earnings as well as full year results today, the US-domiciled business software platform revealed strong growth across the board, with Q4 revenue up 22% on last year at US$1,384.3 million.
The Q4 operating loss was US$28.5 million, down from $67m in Q4 FY24, but the operating loss for the year grew to $130.4m in FY25, up from $117.1m in the previous fiscal year. The operating margin was steady at (3%).
Cash and cash equivalents, plus marketable securities at the end of the fourth quarter totalled US$2.9 billion.
Atlassian’s CFO Joe Binz said the quarter was a “solid close” to FY25, with Cloud revenue of $928 million, up 26% on Q4, 2024, but global economic uncertainty continues to hang over the business.
“Our results this quarter strengthen our conviction in the investments we are making across our strategic priorities of Enterprise Cloud, AI, and the Atlassian System of Work,” he said.
Rounding out his year as CEO without his cofounder Scott Farquhar, by his side, Mike Cannon-Brookes was keen to tell investors on the earnings call that he’s “not going anywhere” in the wake of Atlassian president Anu Bharadwaj will hand in his pass at the end of 2025 after 12 years with the company.
“You are going to have to put up with me for many more years. I love my job and this is the most exciting time to be at Atlassian,” the billionaire said.
His commitment came in the wake of recent critical Australian media reporting, including sacking 150 customer service staff globally last week (44 in Australia) via a pre-record video message, blaming the redundancies on AI.
Cannon-Brookes said today that AI is “creating significant tailwinds” for the business and “fundamentally changing” how people work, but “there’s still a lot of, awful lot of work to do” at Atlassian.
But he believes it will create more jobs.
“Do I think there will be far less developers in the world five years from now? No, I don’t think so,” he said.
“I think there’ll be far more and far more people creating software in other functions. Whether they’re in finance or HR marketing, there’s going to be a lot more people creating software.”
Cannon-Brookes said Atlassian is “still hiring a whole lot of engineers and developers”.
On LinkedIn Bharadwaj, who became president in 2023 after a stint as COO, said she’d spent more than a decade at Atlassian because of “deep abiding love: a love for the company we’ve built, the customers we serve and the community we’ve created.”
“I started my journey at Atlassian as Head of Product for Jira, when we had a few hundred employees, 35,000 customers, and a couple hundred million USD in revenue. As we close out FY25, we have nearly 14,000 employees, over 300,000 customers, and have surpassed 5 billion USD in annual revenue,” she said.
“It’s safe to say that my time at Atlassian has reinforced the importance of aiming high and dreaming big – you just might reach it! But behind every success are the humans that dare to dream and work together to make it come true.”
The company also announced an expanded multi-year partnership with Google Cloud for three key products, Confluence, Jira and Loom.
Meanwhile, its share price fell more than 7% despite the strong results. Atlassian’s (Nasdaq: TEAM) share price is down 10% for the week and nearly 30% in 2025, pulling its market cap below US$45 billion, but remains 24.45% up on 12 months ago at US$171.
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