Atlassian Corporation · NASDAQ:TEAM
Atlassian — Investor Presentation (July 2018)
28 slides from Atlassian's investor presentation, Jul 26, 2018
Slide 1: New revenue recognition standard - IFRS 15
New revenue recognition standard - IFRS 15 July 26, 2018
Slide 2: Legal disclosure
Legal disclosure This presentation contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which statements involve substantial risks and uncertainties. All statements other than statements of historical fact could be deemed forward looking, i
Slide 3: Adoption of IFRS 15
adoption of IFRS 15 Income statement Balance sheet IMPACT IMPACT Adoption date Subscription revenue: Deferred revenue: • A portion of our revenue from term- • Decreases (as more revenue July 1, 2018 based licenses for our Data Center recognized up-front) products will be recognized earlier Full retr
Slide 4: Total Revenue
TOTAL REVENUE Previously Reported vs. IFRS 15 Adjusted USD IN MILLIONS Total Revenue (Previously Reported) Total Revenue (IFRS 15 Adjusted) $874.0 $881.0 $246.6 $619.9 $626.7 $243.8 $224.3 $214.6 $223.7 $212.6 $195.5 $193.8 FY17 FY18 Q1'18 Q2'18 Q3'18 Q4'18 Y/Y GROWTH RATE 41% 41% 4
Slide 5: Subscription Revenue
SUBSCRIPTION REVENUE Previously Reported vs. IFRS 15 Adjusted USD IN MILLIONS Subscription Revenue (Previously Reported) Subscription Revenue (IFRS 15 Adjusted) $410.7 $403.2 $120.3 $117.4 $106.3 $242.1 $249.8 $97.7 $105.6 $95.8 $86.4 $84.4 FY17 FY18 Q1'18 Q2'18 Q3'18 Q4'18 Y/Y GROWTH RATE 67% 64% 5
Slide 6: IFRS Gross Profit
IFRS GROSS PROFIT Previously Reported vs. IFRS 15 Adjusted $701.3 $708.3 $507.5 USD IN MILLIONS $500.8 Gross Profit (Previously Reported) Gross Profit (IFRS 15 Adjusted) FY17 FY18 6
Slide 7: Non-IFRS Gross Profit
NON-IFRS GROSS PROFIT Previously Reported vs. IFRS 15 Adjusted $734.4 $741.4 $522.2 $529.0 USD IN MILLIONS Gross Profit (Previously Reported) Gross Profit (IFRS 15 Adjusted) FY17 FY18 84.2% 84.4% 84.0% 84.2% % OF REVENUE Gross Margin (Previously Reported) Gross Margin (IFRS 15 Adjusted) FY17 FY18 7
Slide 8: IFRS Gross Profit (Quarterly)
IFRS GROSS PROFIT Previously Reported vs. IFRS 15 Adjusted $202.4 $199.6 USD IN MILLIONS $179.1 $171.4 Gross Profit (Previously Reported) $178.5 Gross Profit (IFRS 15 Adjusted) $155.4 $169.5 $153.7 Q1'18 Q2'18 Q3'18 Q4'18 8
Slide 9: Non-IFRS Gross Profit (Quarterly)
NON-IFRS GROSS PROFIT Previously Reported vs. IFRS 15 Adjusted $210.5 $207.6 $187.4 USD IN MILLIONS $179.9 $186.8 Gross Profit (Previously Reported) $163.7 $177.9 Gross Profit (IFRS 15 Adjusted) $162.0 Q1'18 Q2'18 Q3'18 Q4'18 85.3% % OF REVENUE 85.2% Gross Margin (Previously Reported) 83.7% 83.8% Gr
Slide 10: IFRS Operating Expenses
IFRS OPERATING EXPENSES Previously Reported vs. IFRS 15 Adjusted USD IN MILLIONS Operating Expenses (Previously Reported) Operating Expenses (IFRS 15 Adjusted) $755.0 $754.3 $204.9 $204.9 $563.9 $563.4 $189.4 $184.4 $189.4 $175.7 $184.7 $176.1 FY17 FY18 Q1'18 Q2'18 Q3'18 Q4'18 10
Slide 11: Non-IFRS Operating Expenses
NON-IFRS OPERATING EXPENSES Previously Reported vs. IFRS 15 Adjusted USD IN MILLIONS Operating Expenses (Previously Reported) Operating Expenses (IFRS 15 Adjusted) $568.0 $567.3 $160.1 $160.1 $148.4 $418.0 $417.5 $148.4 $133.2 $125.5 $133.5 $125.9 FY17 FY18 Q1'18 Q2'18 Q3'18 Q4'18 11
Slide 12: IFRS Operating Income
IFRS OPERATING INCOME Previously Reported vs. IFRS 15 Adjusted USD IN MILLIONS Operating Income (Previously Reported) Operating Income (IFRS 15 Adjusted) ($46.0) ($55.8) ($53.7) ($63.1) FY17 FY18 12
Slide 13: Non-IFRS Operating Income
NON-IFRS OPERATING INCOME Previously Reported vs. IFRS 15 Adjusted $166.4 $174.1 $111.5 USD IN MILLIONS $104.2 Operating Income (Previously Reported) Operating Income (IFRS 15 Adjusted) FY17 FY18 19.0% 19.8% % OF REVENUE 16.8% 17.8% Operating Margin (Previously Reported) Operating Margin (IFRS 15 Ad
Slide 14: IFRS Operating Income (Quarterly)
IFRS OPERATING INCOME Previously Reported vs. IFRS 15 Adjusted ($2.5) ($10.3) ($5.3) ($13.0) USD IN MILLIONS ($10.9) Operating Income (Previously Reported) ($20.3) ($15.3) Operating Income (IFRS 15 Adjusted) ($22.3) Q1'18 Q2'18 Q3'18 Q4'18 14
Slide 15: Non-IFRS Operating Income (Quarterly)
NON-IFRS OPERATING INCOME Previously Reported vs. IFRS 15 Adjusted $50.3 $46.7 USD IN MILLIONS $47.5 $44.4 Operating Income (Previously Reported) $38.2 $39.0 Operating Income (IFRS 15 Adjusted) $38.4 $36.1 Q1'18 Q2'18 Q3'18 Q4'18 21.7% 20.4% % OF REVENUE 19.5% Operating Margin (Previously Reported)
Slide 16: Revenue
REVENUE Previously Reported vs. IFRS 15 Adjusted Previously IFRS 15 Delta Reported Adjusted Revenue FY17 FY18 FY17 FY18 △ FY17 △ FY18 Subscription $242.1 $403.2 $249.8 $410.7 $7.7 $7.5 Maintenance 265.5 325.9 264.5 326.5 (1.0) 0.6 Perpetual license 74.6 85.5 74.1 83.2 (0.5) (2.3) Other 37.7 59.4 38.
Slide 17: Revenue (Quarterly)
REVENUE Previously Reported vs. IFRS 15 Adjusted Previously Reported Q1’18 Q2’18 Q3’18 Q4’18 Subscription $84.4 $95.8 $105.6 $117.4 Maintenance 76.3 80.4 81.9 87.3 Perpetual license 19.9 21.7 21.3 22.5 Other 13.2 14.7 14.9 16.6 Total revenues $193.8 $212.6 $223.7 $243.8 IFRS 15 Adjusted Q1’18 Q2’18
Slide 18: IFRS Key Financial Metrics
IFRS KEY FINANCIAL METRICS Previously Reported vs. IFRS 15 Adjusted Previously IFRS 15 Delta Reported Adjusted FY17 FY18 FY17 FY18 △ FY17 △ FY18 Gross profit $500.8 $701.3 $507.5 $708.3 $6.7 $7.0 Gross margin 80.8% 80.2% 81.0% 80.4% 0.2% 0.2% Operating loss ($63.1) ($53.7) ($55.8) ($46.0) $7.3 $7.7
Slide 19: IFRS Key Financial Metrics (Quarterly)
IFRS KEY FINANCIAL METRICS Previously Reported vs. IFRS 15 Adjusted Previously Reported Q1’18 Q2’18 Q3’18 Q4’18 Gross profit $153.7 $169.5 $178.5 $199.6 Gross margin 79.3% 79.7% 79.8% 81.9% Operating loss ($22.3) ($15.3) ($10.9) ($5.3) Operating margin (11.5%) (7.2%) (4.9%) (2.2%) Net loss ($14.0) (
Slide 20: Non-IFRS Key Financial Metrics
NON-IFRS KEY FINANCIAL METRICS Previously Reported vs. IFRS 15 Adjusted Previously IFRS 15 Reported Adjusted Delta FY17 FY18 FY17 FY18 △ FY17 △ FY18 Gross profit $522.2 $734.4 $529.0 $741.4 $6.8 $7.0 Gross margin 84.2% 84.0% 84.4% 84.2% 0.2% 0.2% Operating income $104.2 $166.4 $111.5 $174.1 $7.3 $7.
Slide 21: Non-IFRS Key Financial Metrics (Quarterly)
NON-IFRS KEY FINANCIAL METRICS Previously Reported vs. IFRS 15 Adjusted Previously Reported Q1’18 Q2’18 Q3’18 Q4’18 Gross profit $162.0 $177.9 $186.8 $207.6 Gross margin 83.6% 83.7% 83.5% 85.2% Operating income $36.1 $44.4 $38.4 $47.5 Operating margin 18.6% 20.9% 17.1% 19.5% Net income $29.9 $31.0 $
Slide 22: Deferred Revenue
DEFERRED REVENUE Previously Reported vs. IFRS 15 Adjusted Previously Reported 6/30/17 9/30/17 12/31/17 3/31/18 6/30/18 Deferred revenue, current $245.3 $264.3 $284.2 $308.2 $340.8 Deferred revenue, non-current 10.7 13.9 17.5 17.9 19.4 Total deferred revenue $256.0 $278.2 $301.7 $326.1 $360.2 IFRS 15
Slide 23: Balance Sheet - Impacted Line Items
BALANCE SHEET - IMPACTED LINE ITEMS Previously Reported vs. IFRS 15 Adjusted Year Ended June 30, 2018 Previously Reported IFRS 15 Adjustment IFRS 15 Adjusted Prepaid expenses and other current assets $28.2 $1.6 $29.8 Deferred tax assets, non-current 64.7 (5.5) 59.2 Other non-current assets 112.2 1.2
Slide 24: Appendix
Appendix 24
Slide 25: Reconciliation of IFRS to Non-IFRS Results
Reconciliation of IFRS to Non-IFRS Results The financial results below are based on the previous revenue recognition standard (IAS 18). Description Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 FY2017 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 FY2018 Subscription 49,931 56,326 63,369 72,502 242,128 84,378 95,793 105,604 117
Slide 26: Reconciliation of IFRS to Non-IFRS Results
Reconciliation of IFRS to Non-IFRS Results The financial results below are based on the previous revenue recognition standard (IAS 18). Description Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 FY2017 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 FY2018 IFRS gross profit 114,225 122,010 127,014 137,526 500,775 153,728 169,462
Slide 27: Reconciliation of IFRS to Non-IFRS Results
Reconciliation of IFRS to Non-IFRS Results The financial results below are based on the new revenue recognition standard (IFRS 15). Description FY2017 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 FY2018 Subscription 249,823 86,391 97,704 106,295 120,304 410,694 Maintenance 264,453 76,219 80,489 82,212 87,591 326
Slide 28: Reconciliation of IFRS to Non-IFRS Results
Reconciliation of IFRS to Non-IFRS Results The financial results below are based on the new revenue recognition standard (IFRS 15). Description FY2017 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 FY2018 IFRS gross profit 507,523 155,390 171,414 179,090 202,394 708,288 IFRS Gross Profit Reconciled to Non-IFRS Plu