Atlassian achieves 37% year-on-year revenue growth for FY19 as loss widens

The collaboration and productivity software firm now has more than 150,000 customers.
Written by Aimee Chanthadavong, Contributor

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. 

See also: With more hybrid cloud offerings arriving, does Azure Stack still stack up? (TechRepublic)

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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