Atlassian has delivered a second consecutive quarterly statutory profit, posting US$91 million (A$131m) in net income as revenue grew 24% to US$1.77 billion (A$2.55bn).
The Sydney software giant’s September quarter result reverses a US$52m loss 12 months ago, although profit was down from US$139m in the June quarter.
Atlassian (Nasdaq: TEAM) reported operating profit of US$189m for the first quarter of its 2027 financial year, compared with a US$96m operating loss 12 months ago.
Its statutory operating margin improved from negative 7% to 11%. On a non-GAAP, or adjusted, basis, operating profit was US$576m, with a 32% margin. Adjusted net profit reached US$423m, up from US$276m.
Cloud revenue remains the main growth area, rising 31% to US$1.3bn. Subscription annual recurring revenue increased 23% to US$6.81bn, while remaining performance obligations, a measure of contracted future revenue, climbed 44% to US$4.75bn.
The result follows an AI-focused restructuring, announced in March, cutting 1600 jobs.
Atlassian subsequently reported a US$98.4m March-quarter net loss, before moving into profit in June.
CEO and cofounder Mike Cannon-Brookes said Teamwork Collection customer numbers increased sevenfold over the past year, arguing the competitive advantage in enterprise AI was shifting towards platforms that connect people and agents.
“Enterprise AI has hit an inflection point. Model power is table stakes,” he said.
“The advantage goes to platforms that bring people and AI agents together with shared context, deep collaboration, and confidence in the outcome. That’s what we’ve built.”
The company recently unveiled its Agentic Multiplayer Protocol, allowing AI agents to work alongside staff with their own identities, permissions and audit trails. It also expanded its OpenAI partnership, connecting ChatGPT and Codex with Atlassian’s workplace information.
Service Collection now has more than 70,000 customers and over US$1bn in annual recurring revenue (ARR), growing more than 30% annually as adoption spreads beyond IT into functions including HR, legal and finance.
CFO James Chuong said the business was combining growth with tighter financial management.
“We paired that growth with continued operational discipline, expanding GAAP operating margin to 11% while generating $463 million in free cash flow, reflecting our commitment to durable, profitable growth,” he said.
Cash and equivalents stood at US$1.12bn.
Atlassian expects December-quarter revenue of US$1.825bn–US$1.835bn, with cloud revenue growing about 27%. Its statutory operating margin is forecast to fall to 4.5%.
For the full financial year, it now forecasts revenue growth of 13.75%, up from the 13% forecast in August. Cloud revenue is expected to grow 26%, while Data Center revenue is forecast to shrink 16%.
The full-year statutory operating margin target also edged higher, from 4.5% to 5%.
Despite a fall of around 19.5% in Atlassian’s share price since a peak of US$227.61 on October 23, the company’s stock has still climbed 98% in the last six months.
