Atlassian Corporation Class A

Company Overview

Business Model: Atlassian Corporation's core mission is to unleash the potential of every team through its team collaboration software. The Company provides a deeply interconnected portfolio of apps, AI agents, and Collections, built on the Atlassian Cloud Platform and data model, to deliver solutions for software teams, IT operations and support teams, and leadership and business teams. Revenue is primarily generated from subscription fees for Cloud offerings (software in a cloud-based infrastructure) and Data Center offerings (on-premises term licenses bundled with support and maintenance). Additional revenue is derived from sales of third-party apps in the Atlassian Marketplace, advisory services, and training. The Company employs a product-led philosophy with a frictionless self-service model for customer acquisition and initial expansion, complemented by a sales force focused on deepening relationships with existing large enterprise customers.

Market Position: Atlassian Corporation's software powers over 300,000 customers worldwide, including over 80% of the Fortune 500, across more than 200 countries and territories. The Company is recognized as a leader in multiple markets, including software teams, IT operations and support teams, and leadership and business teams. Its competitive advantages stem from its deep investment in product development, high-value and competitively priced software, ease of adoption and use, versatility, integrated app portfolio, and an open, extensible platform with a vast ecosystem (Atlassian Marketplace).

Recent Strategic Developments:

• AI at the Center: Atlassian Corporation has embedded AI capabilities across its platform and apps, including the Rovo platform apps (Rovo Enterprise Search, Rovo Chat, Rovo Studio), to enhance teamwork, provide actionable insights, and enable smarter automation. Rovo is included in subscriptions for Jira, Confluence, and Jira Service Management, as well as in Collections.
• Shift to Collections: The Company has transitioned from stand-alone products to integrated, modular solutions organized into Collections, such as the Teamwork Collection (Jira, Confluence, Loom, Rovo agents) and the Strategy Collection (Jira Align, Focus, Talent).
• Expanded Cloud Offerings: New deployment options include Atlassian Government Cloud (early access, FedRAMP Moderate compliance) and Atlassian Isolated Cloud (announced in fiscal year 2025, single-tenant environment for strict data protection).
• Acquisition: In fiscal year 2024, Atlassian Corporation acquired Loom, Inc., an asynchronous video messaging platform.
• Leadership Change: Effective August 31, 2024, Scott Farquhar stepped down as Co-Chief Executive Officer, with Michael Cannon-Brookes becoming the sole Chief Executive Officer. A new Chief Revenue Officer was hired effective January 1, 2025, and the President is stepping down effective December 31, 2025.

Geographic Footprint: Atlassian Corporation operates globally, serving customers in over 200 countries and territories. The Company has employees in 15 countries, including Australia, Canada, France, Germany, India, Japan, the Netherlands, New Zealand, the Philippines, Poland, Singapore, South Korea, Turkey, the U.S., and the United Kingdom. Principal offices are located in Sydney, Australia, and the San Francisco Bay Area, California, United States.

Financial Performance

Revenue Analysis

Profitability Metrics (FY2025):

• Gross Margin: 83%
• Operating Margin: -2%
• Net Margin: -5%

Investment in Growth:

• R&D Expenditure: $2,669,312 thousand (51% of total revenue)
• Capital Expenditures: $44,850 thousand
• Strategic Investments: In fiscal year 2025, the Company completed two acquisitions to expand product and service offerings, which were not material individually or collectively. In fiscal year 2024, the Company acquired Loom, Inc.

Business Segment Analysis

Atlassian Corporation operates as a single operating and reportable segment. The Chief Operating Decision Maker (CODM) manages the Company using consolidated financial information and assesses performance by comparing consolidated results to forecasts. The Company offers a connected portfolio of apps built on a single Atlassian platform and data model.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: During fiscal year 2025, Atlassian Corporation repurchased approximately 4.0 million shares of its Class A Common Stock for approximately $780.7 million at an average price of $196.02 per share.
• Dividend Payments: Atlassian Corporation currently anticipates retaining future earnings for business development, operations, expansion, and funding its Share Repurchase Program, and does not anticipate declaring or paying any cash dividends for the foreseeable future.
• Future Capital Return Commitments: As of June 30, 2025, $1.2 billion of Class A Common Stock remained available for repurchase under the 2024 Repurchase Program, which commenced in April 2025 and has no fixed expiration date.

Balance Sheet Position (as of June 30, 2025):

• Cash and Equivalents: $2,512,874 thousand
• Total Debt: $987,684 thousand (net of unamortized discount and issuance costs)
• Net Cash Position: $1,525,190 thousand (Cash and Equivalents - Total Debt)
• Credit Rating: Not disclosed in the filing.
• Debt Maturity Profile: $500.0 million aggregate principal amount of 5.250% senior notes due May 15, 2029 (2029 Notes) and $500.0 million aggregate principal amount of 5.500% senior notes due May 15, 2034 (2034 Notes). The 2024 Credit Facility of $750 million matures in August 2029, with no outstanding borrowings as of June 30, 2025.

Cash Flow Generation:

• Operating Cash Flow: $1,460,393 thousand (FY2025)
• Free Cash Flow: $1,415,543 thousand (FY2025)
• Cash Conversion Metrics: Not explicitly detailed in the filing.

Operational Excellence

Production & Service Model: Atlassian Corporation's operational philosophy is centered on a product-led approach, delivering high-value, competitively priced software at high volume. The Company's cloud-based infrastructure is purpose-built to meet enterprise needs, ensuring performance, scale, reliability, security, compliance, and privacy. Service delivery emphasizes self-service for initial adoption and expansion, supported by automated and low-touch customer service, with a direct sales force focusing on large enterprise relationships.

Supply Chain Architecture: Atlassian Corporation relies on third-party cloud computing platform providers, such as Amazon Web Services, and other hardware and software providers to maintain its infrastructure and distribute its apps, agents, and products.

Key Suppliers & Partners:

• Cloud Computing Platform Providers: Amazon Web Services - provides critical infrastructure for maintaining and distributing Atlassian Corporation's offerings.
• Solution Partners: A global network of partners who resell and customize Atlassian Corporation's apps, provide deployment and customization services, and offer localized purchasing assistance.

Facility Network:

• Principal Offices: Approximately 146,000 square feet in Sydney, Australia, and 147,000 square feet in the San Francisco Bay Area, California, United States.
• Other Offices: Leased office facilities in other locations in the United States and Australia, as well as a number of countries in Europe and Asia.
• Future Commitments: An Agreement for Lease for a new global headquarters in Sydney, Australia, with the lease expected to commence in fiscal year 2027 for a fifteen-year term, with future lease payments of approximately $912.3 million.

Operational Metrics: Operational metrics such as capacity utilization, efficiency measures, and quality indicators are not explicitly quantified in the filing.

Market Access & Customer Relationships

Go-to-Market Strategy: Atlassian Corporation employs a dual go-to-market approach. The "flywheel motion" leverages word-of-mouth, low-touch demand generation, free trials, limited free versions, and affordable starter licenses to attract a high volume of new customers and drive organic expansion. The "sales-led motion" utilizes a direct sales force, solution sales, and a global network of channel partners to expand and deepen strategic relationships with existing large enterprise customers, selling to more teams, offering additional apps, and upgrading to higher-value editions or Collections.

Distribution Channels:

• Direct Sales: A strategically grown sales team focuses on existing large enterprise customers.
• Channel Partners: A global network of solution partners resells and customizes apps, provides deployment and customization services, and offers localized purchasing assistance. Over 50% of fiscal year 2025 revenue was derived from channel partners' sales efforts.
• Digital Platforms: The Company's website serves as the primary forum for new customer engagement and commercial transactions, enabling self-service purchasing.

Customer Portfolio:

• Total Customers: More than 300,000 customers worldwide.
• Enterprise Customers: Serves over 80% of the Fortune 500. No single customer contributed more than 5% of total revenues during fiscal year 2025.
• Strategic Customers: The number of customers with greater than $10,000 in Cloud Annualized Recurring Revenue (ARR) was 51,978 as of June 30, 2025, up from 45,842 in FY2024 and 38,726 in FY2023. These customers represent the majority of Cloud revenue.

Geographic Revenue Distribution (FY2025):

• Americas: $2,516,901 thousand (48.3% of total revenue)
  • United States: $2,182,073 thousand
  • Other Americas: $334,828 thousand
• EMEA: $2,123,971 thousand (40.7% of total revenue)
  • Germany: $539,550 thousand
  • Other EMEA: $1,584,421 thousand
• Asia Pacific: $574,432 thousand (11.0% of total revenue)

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The markets for Atlassian Corporation's solutions are fragmented, rapidly evolving, and highly competitive, characterized by relatively low barriers to entry. The industry is subject to rapid technological change, evolving standards, and shifting customer needs and preferences. The emergence of new technologies, particularly AI, is a significant trend driving market evolution.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors: Atlassian Corporation faces competition from a wide range of companies, including:

• Software Teams: Large technology vendors and smaller companies offering project management, collaboration, and developer tools.
• Service Teams: Cloud vendors targeting enterprise service management teams and legacy vendors offering service desk solutions.
• Business Teams: Large technology vendors offering product suites and smaller companies offering point solutions for team collaboration.
• Consolidated Offerings: Some competitors have made acquisitions to offer more comprehensive product or service offerings.

Emerging Competitive Threats: New entrants, disruptive technologies (especially AI), competitors developing more effective AI products, and companies that more successfully incorporate AI into their offerings and sales strategies. There is also a risk that customers, particularly large organizations, may develop or acquire their own internal collaboration and productivity software tools.

Competitive Response Strategy: Atlassian Corporation's strategy includes deep investment in research and development, embedding AI capabilities across its platform, continuously enhancing existing offerings, introducing new apps and Collections, maintaining an open and extensible platform with a vast ecosystem (Atlassian Marketplace), and offering multiple deployment options (Cloud, Atlassian Government Cloud, Atlassian Isolated Cloud, Data Center).

Risk Assessment Framework

Strategic & Market Risks

• Market Dynamics: Difficulty in evaluating future prospects due to rapid historical growth, potential inability to sustain revenue growth or achieve profitability, and the intensely competitive and rapidly evolving markets.
• Technology Disruption: AI offerings and investments may not be successful, competitors may develop more effective AI products, or AI may impact work practices, potentially reducing market opportunity.
• Customer Concentration: Business depends on customer renewals and expansion; any decline in retention or expansion could harm future results.
• Cloud Transition Challenges: Challenges in transitioning the business to focus on Cloud offerings, including increased expenses, lower margins, and potential slower-than-anticipated migration from Data Center.
• Product Development & Market Acceptance: Inability to develop or package new apps, agents, and enhancements that achieve market acceptance and keep pace with technological developments.
• R&D Investment Efficiency: Significant R&D investments may not translate into new offerings or material enhancements, or may not be used efficiently.
• Growth Management: Failure to effectively manage rapid growth in employee headcount, customer base, and global operations could harm business quality and reputation.
• Sales Force Development: Challenges in developing the sales force and sales strategy, particularly for enterprise customers, leading to increased costs, longer sales cycles, and less predictability.
• Low-Touch Model Effectiveness: The business model for low-touch customers relies on high transaction volume and organic expansion; if this model is ineffective, business could be harmed.
• Brand Maintenance: Failure to maintain and enhance the brand could harm business, reduce pricing power, and lead to customer loss.
• Atlassian Marketplace Success: Dependence on the Atlassian Marketplace for promotional efforts and ecosystem growth; failure to add vendors or issues with third-party app quality could harm business.
• Acquisition Integration: Acquisitions or strategic investments could disrupt business, lead to integration difficulties, unforeseen expenditures, and failure to achieve expected benefits.

Operational & Execution Risks

• Security Controls Vulnerabilities: Compromise of security controls leading to unauthorized access to customer data could result in loss of business, reputational damage, regulatory investigations, litigation, and significant liabilities. Risks are heightened by remote-first work and AI integration.
• Infrastructure & Performance: Interruptions or performance problems with technology and infrastructure (network, IT systems, websites, third-party cloud providers) could harm business and results of operations, including potential service level commitment breaches.
• Product Quality: Real or perceived errors, failures, vulnerabilities, or bugs in offerings or Atlassian Marketplace apps could lead to negative publicity, data loss, loss of market acceptance, and customer claims.
• Product Support Quality: Failure to offer high-quality product support, especially at global scale, could harm customer relationships and business growth.
• Solution Partner Relationships: Inability to develop and maintain successful relationships with solution partners, or their failure to perform, could harm business and revenue.
• Third-Party Integration: Failure to integrate apps, agents, and products with a variety of operating systems, software applications, platforms, and hardware developed by others could render products less marketable or obsolete.
• Product Concentration: A majority of revenue is derived from Jira, Confluence, and Jira Service Management; market acceptance of these apps is critical.
• Market Expansion: Inability to expand the use of offerings beyond software developers to other teams (IT, business) could harm business growth.
• Corporate Culture: Difficulty in maintaining corporate values (innovation, teamwork, customer focus) as the Company grows could harm its innovative approach and talent retention.

Financial & Regulatory Risks

• Financial Volatility: Quarterly results have fluctuated and may continue to fluctuate significantly due to various factors, including customer behavior, economic conditions, and operational changes.
• Revenue Recognition: Revenue recognition over subscription contract terms means downturns in new sales may not be immediately reflected, making performance difficult to discern.
• Seasonality: Increased seasonal fluctuations in revenue due to enterprise customer budget cycles and internal sales commission plans, with higher sales in the second and fourth fiscal quarters.
• Capital Requirements: May require additional capital to support operations or growth, and securing this capital on favorable terms is not guaranteed.
• Indebtedness: Current and future indebtedness (Notes, 2024 Credit Facility) may limit financial flexibility, require substantial cash flow for debt service, and increase vulnerability to economic downturns.
• Strategic Investments: Exposure to credit risk and fluctuations in market values of investment portfolio, including partial or complete loss of invested capital in privately held companies.
• Tax Consequences: Global operations and structure subject the Company to potentially adverse tax consequences, including changes in tax laws (OBBBA, IRA, Pillar Two), transfer pricing disputes (e.g., ATO settlement), and sales/use/VAT tax assertions.
• Internal Control Effectiveness: Inability to maintain effective internal control over financial reporting could negatively affect investor confidence and stock price.
• Foreign Currency Exchange: Exposure to foreign currency exchange rate fluctuations, particularly for expenses denominated in Australian dollar, Indian rupee, Euro, and British pound sterling.
• Investment Company Act: Risk of being deemed an "investment company" under the Investment Company Act of 1940, which would impose significant regulatory burdens.

Geopolitical & External Risks

• Global Operations Risks: Increased management, travel, infrastructure, and legal compliance costs; difficulties in enforcing contracts; financial accounting and reporting burdens; differing technical standards; communication and integration problems in new markets; compliance with foreign privacy/security laws; anti-bribery laws; currency fluctuations; fund repatriation difficulties; weak economic conditions; geopolitical instability (Middle East, Ukraine); trade policies; labor standards; intellectual property protection challenges; and impacts of pandemics.
• Catastrophic Events: Natural disasters (wildfires, flooding, earthquakes), pandemics, geopolitical conflicts, social/political unrest, or other catastrophic events could disrupt operations, supply chains, and the global economy.
• Climate Change: Long-term impacts of climate change, including extreme weather events, could disrupt business, employees, suppliers, and customers, and failure to meet sustainability commitments could harm reputation and financial results.

Innovation & Technology Leadership

Research & Development Focus: Atlassian Corporation maintains a deep investment in product development, with over 50% of its employees involved in R&D activities as of June 30, 2025. The R&D organization focuses on:

• Building new apps, AI agents, and products.
• Adding new features and services.
• Integrating acquired technologies.
• Increasing functionality and enhancing cloud infrastructure.
• Advancing artificial intelligence capabilities.

Core Technology Areas:

• Atlassian Cloud Platform: A common technology foundation providing unified experiences, standardized data, and common enterprise infrastructure across all apps and teams. Designed for security, compliance, privacy, and centralized administration.
• Teamwork Graph: An intelligent, unified data layer connecting contextualized teamwork data across Atlassian and non-Atlassian tools, mapping relationships between goals, knowledge, teams, and work.
• Rovo: Atlassian Corporation’s advanced AI offering, consisting of three platform apps:
  • Rovo Enterprise Search: Delivers personalized results from Atlassian and connected third-party data sources.
  • Rovo Chat: Leverages knowledge with first-party and third-party actions integrated into workflows.
  • Rovo Studio: Provides a unified app for creating AI agents, automation, and apps.
• Platform Apps: Includes Home, Teams, Goals, Projects, Administration, and Analytics, providing unified and consistent experiences.
• Forge: The Company's cloud app development platform, enabling extensibility and new functionality.

Intellectual Property Portfolio: Atlassian Corporation protects its intellectual property through a combination of:

• Trademarks: "Atlassian" registered in the U.S., Australia, EU, Russia, China, Japan, Switzerland, Norway, Singapore, Israel, Korea, and Canada, along with product-related trademarks and logos.
• Patents: 569 issued patents and approximately 415 applications pending in the United States, plus applications pending before the European Patent Office.
• Copyrights & Trade Secrets: Protected through contractual provisions and restrictions.
• Domain Names: Registered holder of various domain names including "Atlassian" and variations.

Licensing Programs: Not explicitly detailed as a separate program beyond general IP protection. The Company provides certain customers with the ability to request source code copies for internal use under limited license terms.

IP Litigation: The Company has received, and may receive in the future, communications and lawsuits from third parties claiming infringement or misappropriation of intellectual property rights.

Technology Partnerships: Atlassian Corporation's apps are designed to be open and interoperable with a range of other platforms and applications, including Microsoft, Zoom, Salesforce, Workday, and Dropbox. The Atlassian Marketplace provides a vast ecosystem of thousands of third-party apps developed by independent developers and vendors.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: The Company has experienced changes in its executive management team, including the transition of Scott Farquhar from Co-Chief Executive Officer to an advisory role and the upcoming departure of the President. The Company focuses on attracting and retaining highly qualified personnel, particularly in product engineering and AI/machine learning.

Board Composition: The board of directors considers cybersecurity risk as part of its risk oversight function and has delegated oversight of cybersecurity and other information technology risks to its Audit Committee. The CTrO and CISO provide regular updates to the Audit Committee and the full board.

Human Capital Strategy

Workforce Composition: As of June 30, 2025, Atlassian Corporation had 13,813 full-time employees. Over 50% of employees are involved in research and development activities. The workforce is global and distributed across 15 countries.

Talent Management:

• Acquisition & Retention: The Company emphasizes building and maintaining a strong culture to attract, retain, and develop a talented, global, and distributed workforce. It invests in people development and sustainability programs, along with a total rewards program.
• Employee Value Proposition: Offers competitive compensation and benefits packages, including fixed and variable cash compensation, and equity compensation (primarily restricted stock units). Benefits vary by country and include paid parental leave, family formation assistance, flexible working arrangements, wellness reimbursements, mental well-being support, and learning and development resources.

Diversity & Development:

• Diversity Metrics: The "Team Everyone" approach aims to build an inclusive workplace, with over 10% of employees participating in one or more of the nine Employee Resource Groups (ERGs).
• Development Programs: Efforts include embedding bias mitigation across the hiring process, empowering leaders with training and support, and providing tools for employee wellness.
• Culture & Engagement: Corporate values (Open company, no bullshit; Play, as a team; Build with heart and balance; Be the change you seek; Don’t #@!% the customer) guide actions and foster innovation, creativity, and teamwork.
• Team Anywhere: A remote-first distributed work approach offering employees the choice to work from home, physical offices, or a combination, within 15 countries. This approach aims to provide flexibility and broaden the talent pool.

Environmental & Social Impact

Environmental Commitments:

• Climate Strategy: Atlassian Corporation has set science-based targets to achieve net zero emissions by 2040.
• Carbon Neutrality: Committed to achieving net zero emissions by 2040.
• Renewable Energy: Adopts clean energy and sourcing strategies.

Supply Chain Sustainability: The Company's sustainability strategy includes engaging suppliers on ESG requirements and responsible sourcing practices.

Social Impact Initiatives: Atlassian Corporation invests in People programs, respects human rights, and lays out guiding principles for responsible technology. It publishes an annual Sustainability Report aligned with the Greenhouse Gas Protocol, Taskforce on Climate-related Financial Disclosures, and Sustainability Accounting Standards Board frameworks.

Business Cyclicality & Seasonality

Demand Patterns: Atlassian Corporation's business experiences seasonal fluctuations due to customer buying patterns, which are expected to become more pronounced as the Company continues to target large enterprise customers. A higher percentage of customer sales are generally executed in the second and fourth quarters of its fiscal year. The business is also sensitive to economic conditions, with global economic and geopolitical volatility potentially leading to decreased demand, reduced spending, and elongated sales cycles.

Planning & Forecasting: The Company monitors the direct and indirect impacts of macroeconomic conditions on its business and financial results.

Regulatory Environment & Compliance

Regulatory Framework: Atlassian Corporation is subject to various federal, state, local, and foreign laws and regulations, including those related to financial disclosures, accounting standards, privacy and data protection, cybersecurity, intellectual property, AI technology, corporate governance, tax, environmental, government contracting, trade, antitrust, employment, import/export, and anti-corruption.

Industry-Specific Regulations:

• Government Contracting: Offers apps, agents, products, and services to U.S. federal, state, and local government agencies, as well as contractors. Has obtained Federal Risk and Authorization Management Program (FedRAMP) Moderate authorization for Jira, Confluence, and Jira Service Management, and is investing in expanding compliance to higher security levels (FedRAMP High, U.S. Department of Defense Impact Level 5).
• Financial Services: Subject to guidelines from financial services regulators in various jurisdictions regarding cloud computing services.

Trade & Export Controls:

• Export Restrictions: Products are subject to U.S. export controls, including the Export Administration Regulations and economic and trade sanctions regulations administered by the U.S. Treasury Department’s Office of Foreign Assets Controls. These regulations may limit exports or require authorizations.
• Sanctions Compliance: Prohibitions on sales or supply of products to embargoed or sanctioned countries, regions, governments, persons, and entities. The Company has experienced previous exports to a small number of sanctioned entities.

Legal Proceedings: The Company is party to litigation and other legal proceedings in the ordinary course of business, including intellectual property, labor and employment, competition, commercial disputes, data security and privacy, bankruptcy, and tax matters. A purported securities class action complaint filed in February 2023 was dismissed in August 2024.

Data Privacy: Subject to evolving data privacy laws and regulations globally, including the European Union General Data Protection Regulation (EU GDPR), United Kingdom General Data Protection Regulation (UK GDPR), and U.S. state data privacy laws (e.g., California Consumer Privacy Act as amended by the California Privacy Rights Act). These laws impose obligations related to data collection, processing, storage, transfer, and use, and include cross-border data transfer restrictions (e.g., EU-U.S. Data Privacy Framework).

AI Regulation: Subject to evolving laws and regulations governing AI, including those related to privacy, data protection, intellectual property, and platform moderation (e.g., EU AI Act, U.S. state laws on profiling).

Tax Strategy & Considerations

Tax Profile: Atlassian Corporation is subject to income taxes and non-income-based taxes in the U.S., Australia, and other jurisdictions. The effective tax rate for fiscal year 2025 was -160% (compared to -252% in FY2024), driven by factors such as foreign earnings, transfer pricing, non-deductible stock-based compensation, valuation allowances, and tax law changes. The Company recorded a valuation allowance of $3.5 billion as of June 30, 2025, primarily related to U.S. investment basis differences, U.S. net operating loss and credit carryforwards, and deferred revenue deferred tax assets.

Geographic Tax Planning: Intercompany relationships are subject to complex transfer pricing regulations. During fiscal year 2024, the Company finalized a unilateral advanced pricing arrangement with the Australian Taxation Office (ATO) for its transfer pricing arrangements between Australia and the U.S. for tax years ended June 30, 2019, to June 30, 2025, resulting in a $117.4 million tax payment.

Tax Reform Impact:

• The One Big Beautiful Bill Act (OBBBA): Enacted in July 2025, includes provisions allowing immediate expensing of qualifying domestic research and development expenses and permanent extensions of certain Tax Cuts and Jobs Act provisions, effective for the Company beginning in fiscal year 2026.
• Inflation Reduction Act (IRA): Signed into law in 2022, includes corporate tax provisions such as a new alternative corporate minimum tax, which may become applicable in future years.
• OECD Pillar Two: Global minimum corporate income tax of 15% began applying to the Company in fiscal year 2025 in certain jurisdictions where it operates. The U.S. has announced opposition to aspects of these rules, with a new "side-by-side" solution under discussion.

Insurance & Risk Transfer

Risk Management Framework: Atlassian Corporation has developed and implemented a cybersecurity risk management program based on the National Institute of Standards and Technology Cybersecurity Framework (NIST CSF) and Secure Software Development Framework (SSDF). This program includes risk assessments, a dedicated Security team, external service providers, employee training, incident response plans, post-incident reviews, and internal policies for system protection and business resilience. Cybersecurity risks are integrated into the overall enterprise risk management program, with oversight from the Audit Committee.

Insurance Coverage: The Company maintains errors and omissions insurance, covering certain security and privacy damages and claim expenses, and directors' and officers' liability insurance.

Risk Transfer Mechanisms: Atlassian Corporation utilizes a foreign exchange hedging program, entering into derivative instruments such as foreign currency forward contracts, to mitigate certain currency risks associated with cost of revenues and operating expenses denominated in foreign currencies. These contracts are designated as cash flow hedges or non-hedges.