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Highlights

  • Q3 FY2025 revenue climbs 14% year-over-year to $1.36 billion

  • Company posts $70.8 million net loss despite growth in cloud revenue

  • Q4 revenue projected between $1.349 billion and $1.359 billion, led by 23% growth in cloud segment

Atlassian Corporation (NASDAQ:TEAM), a global leader in team collaboration and productivity software, announced its financial results for the third quarter of fiscal year 2025, ended March 31.

The company reported total revenue of $1.36 billion, representing a 14% increase from the $1.19 billion posted in the same quarter of the previous fiscal year. The growth underscores continued demand for Atlassian’s suite of tools such as Jira, Confluence, and Trello, particularly within its cloud-based offerings.

However, despite the revenue growth, Atlassian recorded an operating loss of $12.5 million, a sharp reversal from the $17.8 million in operating income it posted in Q3 FY2024. This resulted in an operating margin of -1%, compared to 1% in the same quarter last year.

The company’s net loss widened to $70.8 million, down from a net income of $12.8 million a year ago. Correspondingly, net loss per diluted share stood at $0.27, compared to earnings per share of $0.05 in Q3 FY2024.

Despite the dip in profitability, Atlassian remains optimistic about its future outlook, particularly in the cloud segment. For the fourth quarter of fiscal year 2025, the company projects total revenue between $1.349 billion and $1.359 billion. Cloud revenue is expected to grow by approximately 23% year-over-year.

In other revenue categories, Data Center revenue is forecasted to grow by 16.5%, while Marketplace and other revenue are expected to remain flat compared to the prior year.

Atlassian also anticipates maintaining strong profitability metrics at the gross margin level. For Q4 FY2025, GAAP gross margin is projected at 82.5%, while non-GAAP gross margin is expected to be 84.5%, reflecting efficient cost management in core product delivery.