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How Does Atlassian Make its Money?
Atlassian is the company behind some of the most widely used software development and collaboration tools, including Jira (project and issue tracking), Confluence (team wiki and knowledge management), Trello (kanban boards), and Bitbucket (code repository). Over 300,000 organizations worldwide use Atlassian’s products, from startups to Fortune 500 companies. The company has been executing a major cloud migration, transitioning customers from self-managed server and data center deployments to its cloud platform, and is heavily investing in AI-powered features across its product suite.
Atlassian (TEAM) Business Model
Atlassian operates in the technology sector. Below is a summary of Atlassian’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Atlassian’s 2024 fiscal year filings with the SEC.
Atlassian Competitors
Atlassian’s key competitors and comparable public companies in the technology sector include Datadog, MongoDB, and ServiceNow. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Atlassian stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
Atlassian’s total revenue in 2024 grew 23.5% year-over-year. Here is how their revenue breaks down by segment:
| Revenue Stream | 2024 | 2023 |
|---|---|---|
| Cloud | $2,630 | $2,140 |
| Data Center | $1,200 | $900 |
| Marketplace and Other | $270 | $240 |
| Server (Legacy) | $5 | $50 |
| Total | $4,360 | $3,530 |
All values in millions USD unless otherwise stated.
Income Statement Breakdown
Here is a summary of Atlassian’s income statement comparing 2024 to 2023:
| Item | 2024 | 2023 |
|---|---|---|
| Total Revenue | $4,360 | $3,530 |
| Cost of Revenue | $790 | $700 |
| Gross Profit | $3,570 | $2,830 |
| Operating Expenses | $3,300 | $3,100 |
| Operating Income | $270 | $-270 |
| Net Income | $92 | $-49 |
All values in millions USD.
Key Financial Metrics
Gross Margin: 81.9% — This tells us how much profit Atlassian keeps after direct costs of delivering their product or service.
Operating Margin: 6.2% — After accounting for all operating expenses like R&D, sales, and administration, this is the profit margin from core operations.
Revenue Growth: 23.5% — Year-over-year revenue growth from 2023 to 2024.
Is Atlassian Profitable?
Yes, Atlassian is profitable. The company reported net income of $92 on total revenue of $4,360.
Atlassian (TEAM) Financial Summary
Atlassian (TEAM) is a technology company that generated $4,360 in total revenue in fiscal year 2024. The company earned $92 in net income, making it profitable. For a deeper look at Atlassian’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.