Atlassian Corporation Plc (TEAM): History, Ownership, Mission, How It Works & Makes Money

Given its incredible growth to $5.2 billion in fiscal year 2025 revenue, do you defintely know how Atlassian Corporation Plc (TEAM) continues to dominate the collaboration software market with products like Jira and Confluence? As a leader in the work management space, the company's core mission to unleash the potential of every team is now being amplified by its strategic pivot to cloud-first solutions and a major investment in AI, evidenced by reaching 2.3 million AI monthly active users. While the firm reported a GAAP net loss of $256.7 million for the year, its ability to generate $1.4 billion in free cash flow and maintain a market capitalization (market capitalisation) around $38.49 billion as of November 2025 shows a powerful, cash-generating business model that demands a closer look at its history and how it actually makes money.

Atlassian Corporation Plc (TEAM) History

You need to understand the bedrock of Atlassian Corporation Plc to see where its future growth will come from. The company's story is a masterclass in product-led growth, starting from a tiny capital base to becoming a $5.22 billion revenue enterprise in fiscal year 2025. This entire trajectory was built on two simple, yet powerful, ideas: make collaboration software great, and let the product sell itself.

Atlassian Corporation Plc's Founding Timeline

Year established

Atlassian Corporation Plc was officially established in 2002.

Original location

The company started in Sydney, Australia, which remains its global headquarters, though it is domiciled in the United States as Atlassian Corporation Plc.

Founding team members

The company was founded by two friends from the University of New South Wales: Mike Cannon-Brookes and Scott Farquhar.

Initial capital/funding

The co-founders famously bootstrapped the company, funding its start with a $10,000 debt on a credit card, avoiding venture capital for many years. That's a defintely lean start for a future software giant.

Atlassian Corporation Plc's Evolution Milestones

Atlassian Corporation Plc's Transformative Moments

The company's success isn't just about product launches; it's about strategic, often counter-intuitive, business model decisions. The most transformative move was its commitment to a low-touch sales model-no large, traditional sales force-relying instead on product quality and word-of-mouth to drive adoption. This kept costs low and margins high for years.

Here's the quick math on their current scale: for the full fiscal year 2025, the company reported revenue of US$5.22 billion, with an expected non-GAAP operating margin in the 22.0% to 22.5% range. This profitability, even with a GAAP operating loss of US$-130 million, shows the power of their scale and subscription model.

Other key decisions that shaped its trajectory:

• Early Cloud Commitment: Recognizing the shift, they embraced the cloud early and, in 2019, announced the end of their legacy Server product line, pushing customers toward Cloud and Data Center. This was a tough, but necessary, transition.
• Strategic Portfolio Expansion: Acquisitions like Trello and Opsgenie (acquired in 2018 for $295 million) were not just bolt-ons; they were deliberate moves to expand the product suite beyond the core development team into IT Service Management (Jira Service Management) and business teams (Jira Work Management).
• The AI-First Future: The recent acquisitions, including the $1 billion purchase of DX in September 2025, show a clear, aggressive pivot to embed Artificial Intelligence into the core of its collaboration platform, Rovo being a prime example.

The company's mission, which centers on unleashing the potential of every team, is fundamentally tied to these historical decisions. You can read more about that here: Mission Statement, Vision, & Core Values of Atlassian Corporation Plc (TEAM).

Atlassian Corporation Plc (TEAM) Ownership Structure

Atlassian Corporation Plc operates with a dual-class share structure, a common setup in tech that separates economic ownership from voting control, meaning a small group of founders retains the ultimate decision-making power despite having sold a portion of the company to the public.

This structure is key to understanding governance: while the majority of the company's equity is held by institutional investors, the co-founders' Class B shares carry ten votes per share compared to the Class A shares' single vote, effectively giving them majority voting control over the organization.

Atlassian Corporation Plc's Current Status

Atlassian Corporation Plc is a publicly traded company on the Nasdaq Global Select Market under the ticker symbol TEAM. As of November 2025, the company's market capitalization is approximately $40.7 billion, based on roughly 263.11 million outstanding shares. The company is incorporated in the United Kingdom but operates globally, with its software powering workflows for over 300,000 organizations worldwide. For fiscal year 2025, Atlassian reported strong financial results, including total revenue of $5.2 billion and a free cash flow of $1.4 billion. That revenue growth is defintely a factor in its valuation.

Atlassian Corporation Plc's Ownership Breakdown

The shareholder base is a mix of the founding insiders, massive asset managers, and the general public, but the dual-class structure means not all shares are created equal when it comes to voting power. This table breaks down the percentage of total outstanding stock held by the primary shareholder types as of late 2025.

The institutional stake is significant, with firms like Vanguard Group Inc. and BlackRock, Inc. holding substantial passive positions, but their voting influence is structurally diluted by the founders' Class B shares. Honestly, the founders control the strategic direction, full stop. If you want to dive deeper into the major institutional movements, you should check out Exploring Atlassian Corporation Plc (TEAM) Investor Profile: Who's Buying and Why?

Atlassian Corporation Plc's Leadership

The company is steered by a seasoned executive team, with the co-founders remaining at the helm and maintaining a long-term vision, supported by a management team with an average tenure of 3.2 years. The co-founders, Mike Cannon-Brookes and Scott Farquhar, have been the driving force since 2002.

In a governance shift, Mike Cannon-Brookes transitioned from Co-Chief Executive Officer to the sole Chief Executive Officer (CEO) in September 2024, though Scott Farquhar remains a co-founder and an active member of the Board of Directors. This change clarifies the top operational role while maintaining the founders' collective oversight.

• Mike Cannon-Brookes: Chief Executive Officer (CEO) and Co-Founder.
• Scott Farquhar: Co-Founder and Member of the Board of Directors.
• Anu Bharadwaj: President, overseeing transformative projects across product lines and the enterprise business.
• Joe Binz: Chief Financial Officer (CFO), managing the company's financial strategy and operations.
• Rajeev Rajan: Chief Technology Officer (CTO), responsible for engineering, IT, and the crucial Cloud transformation efforts.

The Board of Directors is chaired by Shona Brown, an independent director, and is majority independent, which provides a layer of external oversight to the founder-controlled voting structure.

Atlassian Corporation Plc (TEAM) Mission and Values

Atlassian Corporation Plc's mission is a clear and powerful directive: to unleash the potential of every team. This purpose, coupled with five distinct core values, forms the cultural and strategic DNA that guides its development of collaborative software like Jira and Confluence, and helped the company achieve $5.2 billion in revenue in fiscal year 2025.

The company's ethos goes beyond just shipping code; it's about fostering a global culture of open communication, customer focus, and continuous improvement, which is defintely a key factor in its cloud net revenue retention rate of 120% for the same period.

Atlassian Corporation Plc's Core Purpose

The core purpose defines what Atlassian Corporation Plc stands for, translating its products into a human-centric outcome. It's not just about selling software; it's about enabling better, more efficient work for over 300,000 customers globally.

Official mission statement

The mission statement is the company's guiding star, focusing its entire product portfolio and strategic acquisitions, such as the recent purchases of DX and The Browser Company of New York in late 2025, on a singular goal.

• Unleash the potential of every team.

This mission is supported by five non-traditional core values that dictate how employees build products and interact with the market:

• Open company, no bullshit: Prioritizing transparency and honesty in all internal and external dealings.
• Build with heart and balance: Combining passion and urgency with thoughtful, measured decision-making.
• Don't #@!% the customer: Placing the collective customer perspective first, recognizing they are the company's lifeblood.
• Play, as a team: Encouraging mutual respect, support, and collaboration, making work feel less like 'work.'
• Be the change you seek: Empowering every employee to be resourceful and courageous in driving continuous improvement.

Vision statement

While the mission is constant, the near-term vision is currently focused on becoming the orchestrator of human and AI collaboration. This strategic pivot is evident in their investment in AI capabilities, which resulted in 2.3 million AI monthly active users in fiscal year 2025.

• Enable teams to achieve their full potential through a connected 'System of Work.'
• Deliver powerful AI capabilities, such as Rovo, to unlock organizational knowledge and accelerate teamwork.
• Shift the product portfolio to integrated apps, AI agents, and Collections, moving beyond stand-alone tools.

This focus on AI and the cloud is a clear action plan, not just a lofty goal. You can dive deeper into how this impacts the stock by Exploring Atlassian Corporation Plc (TEAM) Investor Profile: Who's Buying and Why?

Atlassian Corporation Plc slogan/tagline

The company often uses its mission as its most prominent public-facing phrase, but its strategic focus on connecting disparate workflows has led to a powerful, descriptive tagline for its platform.

• System of Work.

This simple phrase captures the ambition to connect all teams-from software developers to marketing and HR-on a single, unified platform, which is a key driver for its $3.4 billion Cloud revenue in FY2025.

Atlassian Corporation Plc (TEAM) How It Works

Atlassian Corporation Plc operates by providing a connected 'System of Work,' a unified cloud platform that links technical, IT, and business teams across an organization. Their model is built on a high-volume, low-friction, self-service distribution strategy, which allows them to scale efficiently by letting customers try and buy their software without a traditional sales team.

The company generates significant revenue from subscriptions, with total revenue for the fiscal year 2025 reaching approximately $5.2 billion, a nearly 20% increase year-over-year.

Atlassian Corporation Plc's Product/Service Portfolio

Atlassian's value is delivered through a portfolio of interconnected applications, which they are increasingly packaging into 'Collections' and powering with AI agents like Rovo. This is a deliberate shift from selling standalone tools to offering an integrated platform for all enterprise teams.

Atlassian Corporation Plc's Operational Framework

The company's operational framework is designed to drive massive scale through low-touch customer acquisition and a cloud-first mandate, which is critical for their Enterprise strategy. They want to be the 'orchestrator of human and AI collaboration.'

• Cloud-First and Enterprise Focus: The strategic shift to Cloud deployment is complete, with Cloud revenue surging 28% to approximately $3.4 billion in fiscal year 2025. This focus ensures better scalability and faster feature delivery, supporting up to 150,000 users on a single Confluence site.
• The Teamwork Graph: This is the underlying unified data model that connects all Atlassian products, third-party apps, and data. It breaks down product silos, allowing capabilities like AI and search to operate across all organizational data, not just one application.
• Self-Service and Viral Adoption: Their unique distribution model relies on product-led growth-users start small, often for free, and then expand. This low-friction approach means they spend less on traditional sales, contributing to a strong gross margin of approximately 83% in FY2025.
• AI and Automation: The company is deeply integrating AI, with 2.3 million AI monthly active users reported by the end of FY2025. This includes Rovo and specialized AI agents, like Rovo Dev Agents, which are designed to chip away at the 84% of a developer's day often spent on non-coding tasks.

Honestly, their growth is defintely tied to getting non-technical teams to adopt Jira and Confluence.

Atlassian Corporation Plc's Strategic Advantages

Atlassian's market success is rooted in a few clear, structural advantages that are difficult for competitors to replicate, particularly their embeddedness and unique data model.

• Deep Developer Embeddedness: They have a substantial installed base of over 250,000 customers and are deeply embedded in software development organizations, which are often the most influential technology adopters within an enterprise. This 'bottom-up' adoption creates a powerful land-and-expand effect.
• The Unified Platform and Teamwork Graph: Unlike some competitors built through disparate acquisitions, Atlassian's platform is built on a unified data model, the Teamwork Graph. This allows for seamless integration and contextual understanding of work, knowledge, and teams, which is a significant differentiator, especially for AI capabilities.
• Unconventional Distribution and Pricing: Their self-service, low-cost-of-entry model is a competitive advantage, bypassing the high acquisition costs of traditional enterprise software sales. This is a core reason they generated $1.4 billion in free cash flow in fiscal year 2025.
• AI-Driven Enterprise Knowledge: The strategic focus on Rovo and acquisitions like DX (completed in November 2025) is aimed at creating an AI feedback loop, providing data-driven productivity metrics for developers and translating qualitative feedback into actionable insights, a niche not fully captured by rivals like Microsoft or GitLab.

To understand the foundation of their strategy, you should review their core principles: Mission Statement, Vision, & Core Values of Atlassian Corporation Plc (TEAM).

Atlassian Corporation Plc (TEAM) How It Makes Money

Atlassian Corporation Plc makes the vast majority of its money by selling software subscriptions for its collaboration and productivity tools, like Jira and Confluence, primarily through a high-margin, volume-based cloud model. The company's revenue engine is designed to land a customer with a small team and then expand that relationship into a full-scale enterprise subscription over time.

Atlassian Corporation Plc's Revenue Breakdown

For the fiscal year 2025, Atlassian Corporation Plc reported total revenue of over $5.2 billion, a 20% increase year-over-year, with the shift to cloud subscriptions driving nearly all the growth. The company has essentially completed the sunset of its legacy Server product line, which means the high-margin Maintenance revenue stream is now negligible.

The Subscription and Data Center segment, which generated approximately $4.93 billion in FY2025, is the core of the business, growing at over 25% year-over-year. This stream captures revenue from Cloud products (like Jira Cloud and Confluence Cloud) and the self-managed Data Center offerings for large enterprises, which acts as a bridge for customers not yet ready for the Cloud. Other Revenue, which includes sales from the Atlassian Marketplace and professional services, accounted for approximately $284.70 million.

Business Economics

The company's economic model is a classic, highly effective product-led growth (PLG) strategy, often called 'land-and-expand,' which minimizes sales costs and maximizes lifetime customer value. You start small, and you grow with the product.

• High Gross Margin: Atlassian operates with a non-GAAP gross margin that reached as high as 86% in the first half of fiscal year 2025, which is a key indicator of its software-as-a-service (SaaS) financial health.
• Product-Led Acquisition: Most new customers start with the free or low-cost tiers of products like Jira or Trello, reducing the need for a large, expensive direct sales force. This is defintely a capital-efficient way to acquire users.
• Net Revenue Retention: The Cloud net revenue retention rate stood at approximately 120% in fiscal year 2025, meaning existing Cloud customers spent 20% more on average than they did in the prior year. This expansion comes from adding more users (seat-based pricing) and upgrading to higher-tier products (like Premium and Enterprise).
• Enterprise Upsell: The strategic focus is on moving the over 300,000 customers to the higher-value Cloud and Data Center tiers. As of Q4 FY2025, nearly 52,000 customers contributed over $10,000 in Cloud Annual Recurring Revenue (ARR), a clear sign the enterprise strategy is paying off.
• AI Monetization: The company is integrating AI capabilities, such as the Rovo AI assistant, into its premium and enterprise offerings, creating a new vector for upsell and future consumption-based pricing models.

Atlassian Corporation Plc's Financial Performance

The company is balancing aggressive investment in its cloud platform and AI with strong non-GAAP profitability, showing the scalability of its model even as it continues its massive cloud migration effort. For the full fiscal year 2025, the numbers show a business prioritizing growth and platform investment while maintaining robust cash generation.

• Non-GAAP Operating Income: The company delivered non-GAAP operating income of approximately $1,287.3 million for FY2025, resulting in a non-GAAP operating margin of 25%, up from 23% in the prior year.
• Free Cash Flow: Atlassian generated over $1.4 billion in free cash flow for the full fiscal year 2025, demonstrating its ability to translate subscription revenue into significant cash. This cash flow is crucial for funding its research and development (R&D) and strategic acquisitions.
• Net Income: Non-GAAP net income for FY2025 was approximately $975.9 million, translating to a non-GAAP earnings per diluted share (EPS) of $3.68. This non-GAAP figure excludes significant non-cash items, such as stock-based compensation, which is common for high-growth software companies.
• Strategic Investment: The company's focus on its strategic priorities-Enterprise Cloud, AI, and the Atlassian System of Work-is evident in its continued R&D spending, which is necessary to maintain its competitive edge against rivals. Learn more about the company's long-term focus here: Mission Statement, Vision, & Core Values of Atlassian Corporation Plc (TEAM).

Atlassian Corporation Plc (TEAM) Market Position & Future Outlook

Atlassian is defintely positioned as a powerhouse in the collaboration and workflow software space, successfully transitioning from a developer-centric tool provider to an enterprise platform, a shift reflected in its strong fiscal year 2025 results. The company closed out FY2025 with total revenue of over $5.2 billion, and generated more than $1.4 billion in free cash flow, underscoring the strength of its subscription-based cloud model. The future hinges on the successful execution of its AI strategy and deeper penetration into the non-technical enterprise market.

Competitive Landscape

In the fiercely competitive IT Service Management (ITSM) market, where Jira Service Management competes, Atlassian holds a significant but not dominant share. The company's core advantage lies in its product-led growth model and its deep-rooted integration with developer and technical teams, which often serves as the entry point for its broader enterprise adoption.

Opportunities & Challenges

The company's strategic roadmap for late 2025 and 2026 is clearly focused on three areas: AI, Cloud, and the Enterprise. The opportunity is massive, but so is the competitive pressure from giants like Microsoft and ServiceNow.

Industry Position

Atlassian's standing is that of a 'collaboration powerhouse' with a unique bottom-up, product-led growth model. This model has given them a significant footprint in the market, especially with technical teams, making Jira a standard in agile software development. They are a recognized leader in the 2025 Gartner Magic Quadrant for Collaborative Work Management. You can get a deeper look at the numbers in Breaking Down Atlassian Corporation Plc (TEAM) Financial Health: Key Insights for Investors.

The current strategic move is to translate that technical dominance into full enterprise-wide adoption, competing directly with platforms like ServiceNow and Microsoft. This involves expanding Jira Service Management into a true Enterprise Service Management (ESM) solution and pushing Confluence into the broader knowledge management space. The financial health is solid, with a non-GAAP operating income of over $1.28 billion in FY2025, giving them the capital to invest heavily in AI and enterprise features.

• Cloud revenue growth of 26% in Q4 FY2025 confirms the successful platform transition.
• New products like Rovo and the Strategy Collection aim to increase the average revenue per user (ARPU) through cross-selling.
• The company's greatest strength remains its ecosystem and Marketplace, which creates a high switching cost for its vast customer base.

The next concrete step for investors is to monitor the adoption rates of the new AI-powered Rovo features among its enterprise customers. Finance: Track the percentage of subscription revenue coming from Enterprise-tier plans by the next quarterly report.