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New words:
advisory, biodiversity, conveniently, CSRD, edition, eighty, Fernandez, Heather, leave, Mirjahangir, RSA, signaled, slight, stabilize, strong, wider
Removed:
approved, ATO, investee, proactively
Financial report summary
?Competition
Microsoft • Open Text • Creatd • Smartsheet Inc - Ordinary Shares • ServiceNow • Zendesk • Asana Inc - Ordinary Shares • Freshworks Inc - Ordinary Shares • Pagerduty • Hewlett Packard EnterpriseRisks
- Our rapid growth makes it difficult to evaluate our future prospects and may increase the risk that we will not continue to grow at or near historical rates.
- We may not be able to sustain our revenue growth rate or achieve profitability in the future.
- The continuing global economic and geopolitical volatility, the COVID-19 pandemic, including any associated economic and social impacts, increased inflation and measures taken in response to these events, could harm our business and results of operations.
- The markets in which we participate are intensely competitive, and if we do not compete effectively, our business, results of operations, and financial condition could be harmed.
- Our distribution model of offering and selling on-premises offerings of certain of our products, in addition to offering and selling Cloud offerings of these products, increases our expenses, may impact revenue recognition timing, and may pose other challenges to our business.
- Our business depends on our customers renewing their subscriptions and purchasing additional licenses or subscriptions from us, and any decline in our customer retention or expansion could harm our future results of operations.
- If we are not able to develop new products and enhancements to our existing products that achieve market acceptance and that keep pace with technological developments, our business and results of operations could be harmed.
- We invest significantly in research and development, and to the extent our research and development investments do not translate into new products or material enhancements to our current products, or if we do not use those investments efficiently, our business and results of operations would be harmed.
- If we fail to effectively manage our growth, our business and results of operations could be harmed.
- Our recent restructuring may not result in anticipated alignment with customer needs and business priorities or operational efficiencies, could result in total costs and expenses that are greater than expected, and could disrupt our business.
- Our corporate values have contributed to our success, and if we cannot maintain these values as we grow, we could lose the innovative approach, creativity, and teamwork fostered by our values, and our business could be harmed.
- Our quarterly results have fluctuated in the past and may fluctuate significantly in the future and may not fully reflect the underlying performance of our business.
- We may require additional capital to support our operations or the growth of our business and we cannot be certain that we will be able to secure this capital on favorable terms, or at all.
- If our current marketing model is not effective in attracting new customers, we may need to incur additional expenses to attract new customers and our business and results of operations could be harmed.
- One of our marketing strategies is to offer free trials, limited free versions or affordable starter licenses for certain products, and we may not be able to realize the benefits of this strategy.
- Our business model relies on a high volume of transactions and affordable pricing. As lower cost or free products are introduced by our competitors, our ability to generate new customers could be harmed.
- Our sales model does not rely primarily on a direct enterprise sales force, which could impede the growth of our business.
- We derive a majority of our revenue from Jira Software and Confluence.
- We recognize certain revenue streams over the term of our subscription contracts. Consequently, downturns in new sales may not be immediately reflected in our results of operations and may be difficult to discern.
- If the Atlassian Marketplace does not continue to be successful, our business and results of operations could be harmed.
- Any failure to offer high-quality product support could harm our relationships with our customers and our business, results of operations, and financial condition.
- If we are unable to develop and maintain successful relationships with our solution partners, our business, results of operations, and financial condition could be harmed.
- Our Credit Facility and overall debt level may limit our flexibility in obtaining additional financing and in pursuing other business opportunities or operating activities.
- If we are not able to maintain and enhance our brand, our business, results of operations, and financial condition could be harmed.
- Legal, regulatory, social, and ethical issues relating to the use of new and evolving technologies, such as AI and machine learning, in our offerings may result in reputational harm and liability.
- If we fail to integrate our products with a variety of operating systems, software applications, platforms and hardware that are developed by others, our products may become less marketable, less competitive, or obsolete and our results of operations could be harmed.
- Acquisitions of, or investments in, other businesses, products, or technologies could disrupt our business, and we may be unable to integrate acquired businesses and technologies successfully or achieve the expected benefits of such acquisitions.
- We are subject to risks associated with our strategic investments, including partial or complete loss of invested capital. Significant changes in the value of this portfolio could negatively impact our financial results.
- If our security measures are breached or unauthorized or inappropriate access to customer data is otherwise obtained, our products may be perceived as insecure, we may lose existing customers or fail to attract new customers, and we may incur significant liabilities.
- Interruptions or performance problems associated with our technology and infrastructure could harm our business and results of operations.
- Real or perceived errors, failures, vulnerabilities, or bugs in our products or in the products on Atlassian Marketplace could harm our business and results of operations.
- Privacy concerns and laws as well as evolving regulation of cloud computing, AI services, cross-border data transfer restrictions and other domestic or foreign regulations may limit the use and adoption of our services and adversely affect our business and results of operation.
- We may be sued by third parties for alleged infringement or misappropriation of their intellectual property rights.
- Indemnity provisions in various agreements potentially expose us to substantial liability for intellectual property infringement and other losses.
- We use open source software in our products that may subject our products to general release or require us to re-engineer our products, which could harm our business.
- Any failure to protect our intellectual property rights could impair our ability to protect our proprietary technology and our brand.
- Our global operations and structure subject us to potentially adverse tax consequences.
- Taxing authorities may successfully assert that we should have collected or in the future should collect sales and use, value-added or similar taxes, and we could be subject to liability with respect to past or future sales, which could harm our results of operations.
- The requirements of being a public company may strain our resources, divert management’s attention, and affect our ability to attract and retain executive officers and qualified board members.
- If we are unable to maintain effective internal control over financial reporting in the future, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of our Class A Common Stock could be negatively affected.
- We and our customers are subject to increasing and changing laws and regulations that may expose us to liability and increase our costs.
- Investors’ and other stakeholders’ expectations of our performance relating to environmental, social and governance factors may impose additional costs and expose us to new risks.
- If we are deemed to be an investment company under the Investment Company Act of 1940, our results of operations could be harmed.
- The dual class structure of our common stock has the effect of concentrating voting control with certain stockholders, in particular, our Co-Chief Executive Officers and their affiliates, which will limit our other stockholders’ ability to influence the outcome of important transactions, including a change in control.
- The market price of our Class A Common Stock is volatile, has fluctuated significantly in the past, and could continue to fluctuate significantly regardless of our operating performance resulting in substantial losses for the holders of our Class A Common Stock.
- Substantial future sales of our Class A Common Stock could cause the market price of our Class A Common Stock to decline.
- We cannot guarantee that our Share Repurchase Program will be fully consummated or that it will enhance long-term stockholder value. Repurchases of shares of our Class A Common Stock could also increase the volatility of the trading price of our Class A Common Stock and could diminish our cash reserves.
- We do not expect to declare dividends in the foreseeable future.
- Anti-takeover provisions contained in our amended and restated certificate of incorporation and amended and restated bylaws, as well as provisions of Delaware law, could impair a takeover attempt.
- Claims for indemnification by our directors and officers may reduce our available funds to satisfy successful third-party claims against us and may reduce the amount of money available to us.
- Our amended and restated certificate of incorporation and amended and restated bylaws provide for an exclusive forum in the Court of Chancery of the State of Delaware for certain disputes between us and our stockholders, and that the federal district courts of the United States will be the exclusive forum for the resolution of any complaint asserting a cause of action under the Securities Act.
- Our global operations subject us to risks that can harm our business, results of operations, and financial condition.
- Catastrophic events may disrupt our business.
- Climate change may have a long-term impact on our business.
- We depend on our executive officers and other key employees and the loss of one or more of these employees or the inability to attract and retain highly skilled employees could harm our business.
- We are exposed to credit risk and fluctuations in the market values of our investment portfolio.
Management Discussion
- Total revenues increased $273.7 million, or 30%, in the three months ended March 31, 2024 compared to the three months ended March 31, 2023. Growth in total revenues was primarily attributable to increased demand for our products from both new and existing customers. Of total revenues recognized in the three months ended March 31, 2024, over 90% was attributable to sales to customer accounts existing on or before December 31, 2023.
- Subscription revenues increased $310.7 million, or 41%, in the three months ended March 31, 2024 compared to the three months ended March 31, 2023. The increase in subscription revenues was primarily attributable to additional subscriptions from our existing customer base, and customers migrating to subscription services for our Cloud offerings and term-based licenses for our Data Center offerings.
- Maintenance revenues decreased $64.7 million, or 69%, in the three months ended March 31, 2024 compared to the three months ended March 31, 2023. We no longer offer upgrades to perpetual licenses beginning February 2022, and generally ended maintenance and support for these products in February 2024.