Atlassian Corporation Class A Common StockTEAM

International and currency · Foreign exchange and currency exposure

While we primarily sell our apps, agents, products, and services in U.S. dollars, we incur expenses in currencies other than the U.S. dollar, which exposes us to foreign currency exchange rate fluctuations. A large percentage of our expenses are denominated in the Australian dollar, the Indian rupee, the Euro, and the British pound sterling.

Capital structure and performance · Financial performance volatility

Our quarterly financial results have fluctuated in the past and may fluctuate in the future as a result of a variety of factors, many of which are outside of our control. If our quarterly financial results fall below the expectations of investors or any securities analysts who follow us, the price of our Class A Common Stock could decline substantially.

Market and investment · Market volatility and economic cycles

Global economic and political conditions, including macroeconomic and political events, have had, and may continue to have, an adverse impact on our business, results of operations and financial condition.

Capital structure and performance · Debt management and refinancing

Our current and future indebtedness may limit our flexibility in obtaining additional financing and in pursuing other business opportunities or operating activities. In May 2024, we issued $500 million aggregate principal amount of 5.250% senior notes due 2029 and $500 million aggregate principal amount of 5.500% senior notes due 2034.

Credit and liquidity · Access to capital and financing

We may require additional capital to support our operations or the growth of our business and we cannot be certain that we will be able to secure this capital on favorable terms, or at all.

Customer and revenue · Revenue concentration in specific products or segments

We derive a majority of our revenue from Jira, Confluence, and Jira Service Management. As such, the market acceptance of these apps and products is critical to our success.

Customer and revenue · Customer retention and subscription renewal

Our business depends on our customers renewing their subscriptions and purchasing additional licenses or subscriptions from us, and any decline in our customer retention or expansion could harm our future results of operations.

Market position and competition · Competitive pressure and market share loss

The markets for our solutions are fragmented, rapidly evolving, highly competitive, and have relatively low barriers to entry. We face competition from a wide range of companies in each of the markets we serve, including from both large technology vendors and smaller companies that offer project management, collaboration, and developer tools.

Market position and competition · Disruptive competitors and new market entrants

We also face competition from AI-native companies and emerging startups that leverage generative AI and large language models as the core foundation of their architecture, offering highly specialized, autonomous, or automated solutions that may bypass traditional business process workflows or displace established user interfaces.

Innovation and product development · Product development and randd investment risks

If we are unable to develop or package new apps, agents and enhancements to our existing offerings that achieve market acceptance and that keep pace with technological developments, our business and results of operations could be harmed.

Strategic execution · Merger acquisition and divestiture risks

Acquisitions, strategic investments or partnerships could disrupt our business, and we may be unable to integrate our acquisitions successfully or achieve the expected benefits of such transactions.

Data and privacy · Data protection and privacy laws

Privacy concerns and laws as well as evolving regulation of cloud computing, AI products and services, cross-border data transfers and other domestic or foreign regulations may limit the use and adoption of our services and adversely affect our business and results of operation.

Tax and financial reporting · Tax compliance and changes in tax law

We are subject to tax in the U.S., Australia, and various other jurisdictions. Our effective tax rate could be impacted by changes in our earnings and losses in countries with differing statutory tax rates, changes in transfer pricing, changes in operations, changes in nondeductible expenses.

Tax and financial reporting · Transfer pricing and international tax

Our intercompany relationships are subject to complex transfer pricing regulations administered by taxing authorities in various jurisdictions. The relevant revenue and taxing authorities may disagree with positions we have taken generally, or our determinations as to the value of assets sold or acquired.

Industry regulation · Regulatory compliance and changes

We and our customers are subject to increasing and changing laws and regulations that may expose us to liability and increase our costs. Federal, state, local and foreign government bodies or agencies have in the past adopted, and may in the future adopt, laws or regulations affecting the technology industry.

Human capital and workforce · Talent acquisition and retention

We depend on our executive officers and other key employees and the loss of one or more of these employees or the inability to attract and retain highly skilled employees could harm our business. Competition for highly qualified personnel is intense, and many of the companies with which we compete for experienced personnel have greater resources than we have.

Human capital and workforce · Key personnel dependence and succession

Our success depends largely upon the continued services of our executive officers and key employees. We do not have employment agreements with our executive officers or other key personnel that require them to continue to work for us for any specified period and, therefore, they are able to terminate their employment with us at any time.

Supply chain and procurement · Supplier operation and dependance

We have established relationships with certain solution partners to distribute our products. For fiscal year 2026, we derived over 50% of our revenue from channel partners' sales efforts. If we fail to identify additional solution partners in a timely and cost-effective manner, or at all, our business, results of operations, and financial condition could be harmed.

Economic and market conditions · Economic recession and downturns

Current global economic and business uncertainty could cause customers to reduce the number of personnel providing development or engineering services and decrease technology spending. We may see declines in expected spending from new customers or renewals and reductions in paid seats from existing customers.

Digital transformation and innovation · Digital transformation and modernization

We may encounter challenges as we continue to transition our business to focus on Cloud offerings. To support this transition, we have directed a significant portion of our financial and operating resources to implement robust Cloud offerings.