Atlassian has delivered a second quarterly statutory profit in a row, reporting net income of A$131m for the September quarter as revenue increased 24% to A$2.55bn.
The result for the Sydney-founded software company, listed on Nasdaq under the ticker TEAM, marks a turnaround from a US$52m loss in the same quarter a year earlier. Profit did, however, slip from the US$139m it earned in the June quarter, according to a report by Startup Daily.
Operating Profit Swings Back Into Positive Territory
For the first quarter of its 2027 financial year, Atlassian posted an operating profit of US$189m, compared with an operating loss of US$96m twelve months earlier.
Its statutory operating margin moved from negative 7% to 11%. On an adjusted, non-GAAP basis, operating profit came in at US$576m, representing a 32% margin, while adjusted net profit rose to US$423m from US$276m.
Cloud Remains the Main Engine of Growth
Cloud revenue continued to lead the business, climbing 31% to US$1.3bn. Subscription annual recurring revenue grew 23% to US$6.81bn.
Remaining performance obligations, which track revenue already contracted for future delivery, jumped 44% to US$4.75bn, pointing to a solid pipeline of committed customer spending.
Recovery Follows an AI-Focused Restructuring
The improved numbers come after Atlassian announced a restructuring in March centred on artificial intelligence, which eliminated 1600 roles.
The company recorded a net loss of US$98.4m in the March quarter before returning to profit in June and sustaining that position in the most recent period.
Betting on Platforms That Connect People and AI Agents
Chief executive and cofounder Mike Cannon-Brookes said the number of Teamwork Collection customers had risen sevenfold over the past year. He argued that the edge in enterprise AI is moving towards platforms that link human workers and AI agents with shared context.
"Enterprise AI has hit an inflection point. Model power is table stakes," Cannon-Brookes said.
Atlassian recently introduced its Agentic Multiplayer Protocol, designed to let AI agents operate alongside employees with their own identities, permissions and audit trails. It has also broadened its partnership with OpenAI, linking ChatGPT and Codex to information held in Atlassian's workplace tools.
Service Collection Expands Beyond IT
The Service Collection product line now counts more than 70,000 customers and over US$1bn in annual recurring revenue, with growth exceeding 30% a year.
Adoption is spreading from IT teams into other departments, including HR, legal and finance. Chief financial officer James Chuong said the company had combined its growth with ongoing operational discipline, generating US$463m in free cash flow during the quarter.
Guidance Raised, but Near-Term Margins Narrow
For the December quarter, Atlassian expects revenue between US$1.825bn and US$1.835bn, with cloud revenue growing about 27%. Its statutory operating margin is forecast to drop to 4.5%.
Across the full financial year, the company now expects revenue growth of 13.75%, up from the 13% it projected in August. Cloud revenue is tipped to rise 26%, while Data Center revenue is expected to shrink 16%, and the full-year statutory operating margin target has been nudged up from 4.5% to 5%.
What the Result Signals for Software Companies
Investors have been volatile on the stock. Atlassian shares have fallen roughly 19.5% from their US$227.61 peak on October 23, yet remain up 98% over the past six months.
For founders and the broader software sector, the quarter shows a mature company pairing cost cuts with an aggressive push into AI agents and cloud migration. Whether that mix can keep profits steady as margins tighten in the coming quarter will be closely watched.
Source: Startup Daily
