Atlassian achieves 37% year-on-year revenue growth for FY19 as loss widens
Atlassian has achieved total revenue of $1,210 million for the 2019 financial year, up 37% from $881 million from the previous financial year.
For the full year, on an international financial reporting standards (IFRS) basis, operating loss came in at $63.4 million, an increase from the $46 million operating loss recorded in FY18. This contributed to net loss tripling to $637.6 million, from $113.4 million reported last financial year.
"Fiscal 2019 was another outstanding year for Atlassian. We surpassed 150,000 customers during fiscal 2019 – a remarkable achievement for Atlassian and triple the audacious 50,000 customer target we set when we founded the company," said Scott Farquhar, Atlassian's co-founder and co-CEO.
During the year in Q2, the company surpassed the $1 billion revenue mark in a calendar year for the first time.
In the fourth quarter of FY19 alone, Atlassian's revenue came in at $334.6 million, up 36% from $247 million recorded during the same period last year.
Meanwhile, IFRS operating loss for Q4 was $32.4 million, compared to $2.5 million for the same period last year. This resulted in the company reporting a net loss of $237.5 million for the fourth quarter of fiscal 2019, compared with net loss of $21.9 million for the fourth quarter of fiscal 2018.
Atlassian ended Q4 with a total of 152,727 customers on an active subscription or maintenance agreement basis, after adding 8,689 net new customers during the quarter.
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Looking ahead, Atlassian has set targets to achieve total revenue in the range of $349 million to $353 million with gross margin to be approximately 83% on an IFRS basis in Q1 during FY20.
The company also provided its financial targets for fiscal year 2020, with expectations that total revenue will come to the range of $1,540 million to $1,556 million, and gross margin to be in the range of 82% to 83% on an IFRS basis
In addition to the financial targets for FY20, the company anticipates that its subscription revenue will grow by over 40% year-over-year in fiscal 2020.
"We are a cloud-first company, with more than 125,000 of our customers using our cloud products and more than 90% of our net new customers each quarter choosing a cloud product," said Mike Cannon-Brookes, Atlassian's co-founder and co-CEO.
"In fiscal 2020, we will continue to invest in our Cloud business to serve the needs of the Fortune 500,000 and drive our long-term growth."
In April, Atlassian announced a bevy of new features across its product portfolio. The updates included new incident management capabilities and integrations across the Atlassian platform, a revamped user experience and 15 new features for Confluence, and performance and infrastructure enhancements to the company's self-managed enterprise offering.
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