Atlassian Corporation announced its financial results for the third quarter of fiscal year 2025, ended March 31, 2025, on May 1, 2025. The company reported total revenues of $1.36 billion, up 14% year-over-year, exceeding estimates. However, GAAP net loss was $70.8 million, or $0.27 per share, missing expectations, while non-GAAP EPS was $0.97.
Cloud revenue grew 25% year-over-year to $880.43 million, and subscription revenue increased 19% to $1.27 billion. Despite this growth, Atlassian forecast fourth-quarter revenue below estimates, citing enterprise customers cutting spending on cloud software services in a tough economy.
A significant strategic shift announced was the inclusion of Rovo, its AI assistant, in all Jira, Confluence, and Jira Service Management Premium and Enterprise edition subscriptions. This move is expected to forgo some near-term revenue but is a long-term play to accelerate AI adoption and strengthen platform stickiness, aiming to drive upgrades and cloud migrations.
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