Atlassian Corporation, a prominent provider of team collaboration and productivity software, has reported its financial results for the second quarter ended December 31, 2023. The company's quarterly revenue reached $1,060 million, marking a 21% increase year-over-year. The subscription revenue for the quarter was $932 million, a 31% rise year-over-year. The company reported a quarterly GAAP operating margin of 5% and a non-GAAP operating margin of 24%. Cash flow from operations was $290 million, and free cash flow was $284 million.

"Q2 was full of incredible milestones as we recorded our first-ever $1 billion revenue quarter, Jira Software crossed $1 billion in Cloud ARR, and we surpassed 300,000 customers. We continued to execute well with quarterly revenue up 21% year-over-year, driven by subscription revenue growth of 31% year-over-year. While we are extremely proud of our accomplishments, we remain laser-focused on executing against our top strategic priorities: cloud migrations, serving enterprise customers, ITSM, and AI." said Scott Farquhar, Atlassian's co-founder and co-CEO.

In the second quarter, Atlassian surpassed 300,000 customers and Jira Software crossed $1 billion in Cloud ARR. The company also officially welcomed Loom to its family in Q2. The financial results for the second quarter of fiscal year 2024 include the impact from the acquisition of Loom, which closed on November 30, 2023.

"The steady drumbeat of delivering innovation across our cloud platform continues as we rolled out our first wave of Atlassian Intelligence capabilities into general availability accelerating our customers' productivity. With over 20 years of experience and knowledge about how technical and non-technical teams plan, track, deliver, and collaborate, we are uniquely positioned to supercharge teams through the power of AI. We officially welcomed Loom to the Atlassian family in Q2, and have been thrilled to see the team deliver on their ambitious AI vision with a slew of new features including an enhanced editing experience that makes updating a video as easy as editing a text document. The addition of async video to our toolbelt combined with its AI capabilities will help our customers collaborate in deeper and more meaningful ways." added Mike Cannon-Brookes, Atlassian's co-founder and co-CEO.

Atlassian ended its second quarter of fiscal year 2024 with 42,864 customers with greater than $10,000 in Cloud ARR, an increase of 18% year-over-year. The company provided financial targets for the third quarter of fiscal year 2024 and fiscal year 2024, which include the impact from the acquisition of Loom.