Slide 1: Financial impacts of conversion from IFRS to U.S. GAAP
O C T O B E R 3 , 2 0 2 2 Financial impacts of conversion from IFRS to U.S. GAAP
Slide 2: Legal Disclosure
LEGAL DISCLOSURE This presentation includes certain non-IFRS and non-GAAP financial measures. These non-IFRS and non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with IFRS and U.S. GAAP. There are a numb
Slide 3: Overview
OVERVIEW Effective September 30, 2022, Atlassian Corporation (Atlassian) completed the company’s redomiciliation from the United Kingdom to the United States. As a result of the redomiciliation, Atlassian is transitioning its accounting standards from International Financial Reporting Standards (“IF
Slide 4: Summary of Primary Impacts to Convert from IFRS to GAAP
SUMMARY OF PRIMARY IMPACTS TO CONVERT FROM IFRS TO GAAP IFRS GAAP Statement of operations impacts of conversion from IFRS to GAAP Stock-based compensation (“SBC”) Expense is recognized under the accelerated method for stock-based awards resulting in greater expense being recognized in the earlier ye
Slide 5: Operating Income IFRS vs. GAAP
OPERATING INCOME IFRS VS. GAAP The difference between IFRS results previously reported and GAAP is primarily due to stock- based compensation expense. Under IFRS, more stock-based compensation is recognized in the earlier vesting periods for an award. Atlassian typically grants stock awards annually
Slide 6: Operating Income & Margin Non-IFRS vs. Non-GAAP
OPERATING INCOME & MARGIN NON-IFRS VS. NON-GAAP The difference between non-IFRS results previously reported and non-GAAP is primarily due to the reclassification of interest expense for lease obligations from non-operating expense under IFRS to operating expense under GAAP. Under GAAP, Atlassian wil
Slide 7: Free Cash Flow & Margin Non-IFRS vs. Non-GAAP
FREE CASH FLOW & MARGIN NON-IFRS VS. NON-GAAP The difference between non-IFRS results previously reported and non-GAAP is due to the reclassification of cash flows for interest paid on the Exchangeable Notes and the Credit Facility from financing activities to operating activities on the statement o
Slide 8: Key Financial Metrics IFRS vs. GAAP
KEY FINANCIAL METRICS IFRS VS. GAAP (U.S. $ and shares in thousands, except percentages and per share data) IFRS GAAP (unaudited) Delta FY21 FY22 FY21 FY22 ΔFY21 ΔFY22 Revenue 2,089,132 2,802,882 2,089,132 2,802,882 - - Gross profit 1,753,111 2,337,175 1,757,282 2,349,968 4,171 12,793 Gross margin 8
Slide 9: Key Financial Metrics Non-IFRS vs. Non-GAAP
KEY FINANCIAL METRICS NON-IFRS VS. NON-GAAP (U.S. $ and shares in thousands, except percentages and per share data) (unaudited) Non-IFRS Non-GAAP Delta FY21 FY22 FY21 FY22 ΔFY21 ΔFY22 Gross profit 1,800,244 2,404,717 1,799,555 2,404,020 (689) (697) Gross margin 86.2% 85.8% 86.1% 85.8% (0.1%) -% Oper
Slide 10: Key Financial Metrics — Quarterly IFRS vs. GAAP
KEY FINANCIAL METRICS — QUARTERLY IFRS VS. GAAP (U.S. $ and shares in thousands, except percentages and per share data) (unaudited) (1) IFRS Q1’22 Q2’22 Q3’22 Q4’22 Gross profit 516,006 573,365 621,117 626,687 Gross margin 84.0% 83.3% 83.9% 82.5% Operating income/(loss) 39,646 (66,718) (16,132) (63,
Slide 11: Key Financial Metrics — Quarterly Non-IFRS vs. Non-GAAP
KEY FINANCIAL METRICS — QUARTERLY NON-IFRS VS. NON-GAAP (U.S. $ and shares in thousands, except percentages and per share data) (unaudited) (1) Non-IFRS Q1’22 Q2’22 Q3’22 Q4’22 Gross profit 529,540 592,595 638,557 644,025 Gross margin 86.2% 86.1% 86.2% 84.8% Operating income 166,675 178,250 179,184
Slide 12: Reconciliation of GAAP to Non-GAAP Results
(U.S. $ and shares in thousands, except percentages and per share data) (unaudited) (1) RECONCILIATION OF GAAP TO NON-GAAP RESULTS
Slide 13: Reconciliation of IFRS to Non-IFRS Results
(U.S. $ and shares in thousands, except percentages and per share data) (unaudited) (1) RECONCILIATION OF IFRS TO NON-IFRS RESULTS
Slide 14: Atlassian
A ATLASSIAN