Cover	12 Months Ended
Cover	Jun. 30, 2022 shares
Document Information [Line Items]
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Period End Date	Jun. 30, 2022
Current Fiscal Year End Date	--06-30
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	001-37651
Entity Registrant Name	Atlassian Corporation Plc
Entity Incorporation, State or Country Code	X0
Entity Address, Country	GB
Entity Address, Address Line One	Exchange House
Entity Address, Address Line Two	Primrose Street
Entity Address, City or Town	London
Entity Address, Postal Zip Code	EC2A 2EG
Title of 12(b) Security	Class A Ordinary Shares
Trading Symbol	TEAM
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Accounting Standard	International Financial Reporting Standards
Entity Shell Company	false
Entity Central Index Key	0001650372
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
Amendment Flag	false
Class A Ordinary Shares
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	144,891,749
Class B Ordinary Shares
Document Information [Line Items]
Security Reporting Obligation	15(d)
Entity Common Stock, Shares Outstanding	110,035,649
Business Contact
Document Information [Line Items]
Entity Address, Country	GB
Entity Address, Address Line One	Exchange House
Entity Address, Address Line Two	Primrose Street
Entity Address, City or Town	London
Entity Address, Postal Zip Code	EC2A 2EG
Contact Personnel Name	Stuart Fagin
City Area Code	415
Local Phone Number	701.1110
Contact Personnel Email Address	IR@atlassian.com

Audit Information	12 Months Ended
Audit Information	Jun. 30, 2022
Audit Information [Abstract]
Auditor Firm ID	42
Auditor Name	Ernst & Young LLP
Auditor Location	San Francisco, California

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands

12 Months Ended

Jun. 30, 2022

Jun. 30, 2021

Jun. 30, 2020

Revenues:

Total revenues

$ 2,802,882

$ 2,089,132

$ 1,614,173

Cost of revenues

^[1],[2]

465,707

336,021

268,807

Gross profit

2,337,175

1,753,111

1,345,366

Operating expenses:

Research and development

^[1],[2]

1,397,568

963,326

763,188

Marketing and sales

^[1],[2]

567,691

372,909

299,683

General and administrative

^[2]

478,373

315,242

268,409

Total operating expenses

2,443,632

1,651,477

1,331,280

Operating income (loss)

(106,457)

101,634

14,086

Other non-operating expense, net

(434,588)

(620,759)

(338,486)

Finance income

2,297

7,174

27,801

Finance costs

(25,824)

(122,713)

(49,610)

Loss before income tax expense

(564,572)

(634,664)

(346,209)

Income tax expense

(49,552)

(61,651)

(4,445)

Net loss

$ (614,124)

$ (696,315)

$ (350,654)

Net loss per share attributable to ordinary shareholders:

Basic (USD per share)

$ (2.42)

$ (2.79)

$ (1.43)

Diluted (USD per share)

$ (2.42)

$ (2.79)

$ (1.43)

Weighted-average shares outstanding used to compute net loss per share attributable to ordinary shareholders:

Basic (shares)

253,312,000

249,679,000

244,844,000

Diluted (shares)

253,312,000

249,679,000

244,844,000

Subscription

Revenues:

Total revenues

$ 2,096,706

$ 1,324,064

$ 931,455

Maintenance

Revenues:

Total revenues

495,077

522,971

469,350

Other

Revenues:

Total revenues

$ 211,099

$ 242,097

$ 213,368

[1]

Amounts include amortization of acquired intangible assets, as follows:


Cost of revenues	$	22,694	$	22,394	$	29,509
Research and development	374		168		166
Marketing and sales	9,330		9,192		12,860

[2]

Amounts include share-based payment expense, as follows:


Cost of revenues	$	44,848	$	24,739	$	19,787
Research and development	437,607		253,328		204,150
Marketing and sales	109,338		46,978		41,960
General and administrative	115,294		60,687		47,498

CONSOLIDATED STATEMENTS OF OPERATIONS - (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Statement Of Operations [Line Items]
Share-based payment expense	$ 707,087	$ 385,732	$ 313,395
Cost of revenues
Statement Of Operations [Line Items]
Share-based payment expense	44,848	24,739	19,787
Amortization charge	22,694	22,394	29,509
Research and development
Statement Of Operations [Line Items]
Share-based payment expense	437,607	253,328	204,150
Amortization charge	374	168	166
Marketing and sales
Statement Of Operations [Line Items]
Share-based payment expense	109,338	46,978	41,960
Amortization charge	9,330	9,192	12,860
General and administrative
Statement Of Operations [Line Items]
Share-based payment expense	$ 115,294	$ 60,687	$ 47,498

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Statement of comprehensive income [abstract]
Net loss	$ (614,124)	$ (696,315)	$ (350,654)
Items that will not be reclassified to profit or loss in subsequent periods:
Net gain (loss) on equity investments classified at fair value through other comprehensive income	(72,663)	48,080	41,255
Income tax effect	16,775	(11,283)	(9,380)
Other comprehensive income (loss) for items that will not be reclassified to profit or loss, net of tax	(55,888)	36,797	31,875
Items that will be reclassified to profit or loss in subsequent periods:
Foreign currency translation adjustment	(11,355)	4,916	(613)
Net change in unrealized gain (loss) on debt investments classified at fair value through other comprehensive income	(1,358)	(4,844)	5,053
Net gain (loss) on cash flow hedging derivative instruments	27,438	(16,008)	16,711
Income tax effect	(9,840)	7,827	(8,961)
Other comprehensive income (loss) after tax that will be reclassified to profit or loss in subsequent periods	4,885	(8,109)	12,190
Other comprehensive income (loss), net of tax	(51,003)	28,688	44,065
Total comprehensive loss, net of tax	$ (665,127)	$ (667,627)	$ (306,589)

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021
Current assets:
Cash and cash equivalents	$ 1,385,265	$ 919,227
Short-term investments	73,294	313,001
Trade receivables	308,127	173,473
Tax receivables	541	2,332
Derivative assets	13,685	127,486
Prepaid expenses and other current assets	58,077	48,322
Current assets other assets classified as held for sale	1,838,989	1,583,841
Assets held for sale	60,265	43,665
Total current assets	1,899,254	1,627,506
Non-current assets:
Property and equipment, net	98,554	66,221
Deferred tax assets	42,760	36,174
Goodwill	732,666	725,758
Intangible assets, net	100,840	124,590
Right-of-use assets, net	267,328	205,300
Strategic investments	159,064	122,159
Other non-current assets	60,740	37,636
Total non-current assets	1,461,952	1,317,838
Total assets	3,361,206	2,945,344
Current liabilities:
Trade and other payables	404,908	266,497
Tax liabilities	26,367	42,051
Provisions	32,796	25,148
Deferred revenue	1,066,059	812,943
Lease obligations	40,638	42,446
Derivative liabilities	23,288	772,127
Exchangeable senior notes, net	0	348,799
Total current liabilities	1,594,056	2,310,011
Non-current liabilities:
Deferred tax liabilities	26,457	26,625
Provisions	13,804	12,435
Deferred revenue	116,621	84,652
Term loan facility, net	999,419	0
Lease obligations	274,434	214,103
Other non-current liabilities	812	2,604
Total non-current liabilities	1,431,547	340,419
Total liabilities	3,025,603	2,650,430
Equity
Share capital	25,485	25,164
Share premium	461,044	461,016
Other capital reserves	2,223,820	1,516,609
Other components of equity	53,829	104,832
Accumulated deficit	(2,428,575)	(1,812,707)
Total equity	335,603	294,914
Total liabilities and equity	$ 3,361,206	$ 2,945,344

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands	Total	Share capital	Share premium	Other capital reserves	Cash flow hedge reserve	Foreign currency translation reserve	Investments at fair value through other comprehensive income reserve	Retained earnings (accumulated deficit)
Beginning Balance (Cumulative effect of applying new accounting pronouncement) at Jun. 30, 2019	$ (101)							$ (101)
Beginning Balance at Jun. 30, 2019	565,467	$ 24,199	$ 458,166	$ 816,660	$ (2,547)	$ 4,372	$ 30,254	(765,637)
Net loss	(350,654)							(350,654)
Other comprehensive income (loss), net of tax	44,065				8,714	(613)	35,964
Total comprehensive loss, net of tax	(306,589)				8,714	(613)	35,964	(350,654)
Changes in equity [abstract]
Issuance of ordinary shares upon exercise of share options	1,802	76	1,726
Vesting of early exercised shares	32	64		(32)
Issuance of ordinary shares for settlement of restricted share units (RSUs)	0	405		(405)
Share-based payment	313,706			313,706
Replacement equity awards related to business combination	552			552
Tax benefit from share plans	437			437
Increase (decrease) in equity	316,428	545	1,726	314,258				(101)
Ending Balance at Jun. 30, 2020	575,306	24,744	459,892	1,130,918	6,167	3,759	66,218	(1,116,392)
Net loss	(696,315)							(696,315)
Other comprehensive income (loss), net of tax	28,688				(9,102)	4,916	32,874
Total comprehensive loss, net of tax	(667,627)				(9,102)	4,916	32,874	(696,315)
Changes in equity [abstract]
Issuance of ordinary shares upon exercise of share options	1,163	39	1,124
Vesting of early exercised shares	0	34		(34)
Issuance of ordinary shares for settlement of restricted share units (RSUs)	0	347		(347)
Share-based payment	385,918			385,918
Replacement equity awards related to business combination	523			523
Tax benefit from share plans	(369)			(369)
Increase (decrease) in equity	387,235	420	1,124	385,691
Ending Balance at Jun. 30, 2021	294,914	25,164	461,016	1,516,609	(2,935)	8,675	99,092	(1,812,707)
Hyperinflation	(1,744)							(1,744)
Ending Balance at Jul. 01, 2021	293,170	25,164	461,016	1,516,609	(2,935)	8,675	99,092	(1,814,451)
Beginning Balance at Jun. 30, 2021	294,914	25,164	461,016	1,516,609	(2,935)	8,675	99,092	(1,812,707)
Net loss	(614,124)							(614,124)
Other comprehensive income (loss), net of tax	(51,003)				17,462	(11,355)	(57,110)
Total comprehensive loss, net of tax	(665,127)				17,462	(11,355)	(57,110)	(614,124)
Changes in equity [abstract]
Issuance of ordinary shares upon exercise of share options	32	4	28
Vesting of early exercised shares	0	21		(21)
Issuance of ordinary shares for settlement of restricted share units (RSUs)	0	296		(296)
Share-based payment	707,470			707,470
Tax benefit from share plans	58			58
Increase (decrease) in equity	707,560	321	28	707,211
Ending Balance at Jun. 30, 2022	$ 335,603	$ 25,485	$ 461,044	$ 2,223,820	$ 14,527	$ (2,680)	$ 41,982	$ (2,428,575)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Operating activities
Loss before income tax expense	$ (564,572)	$ (634,664)	$ (346,209)
Adjustments to reconcile loss before income tax expense to net cash provided by operating activities:
Depreciation and amortization	51,163	55,296	62,271
Depreciation of right-of-use assets	42,795	37,552	35,127
Share-based payment expense	707,087	385,732	313,395
Net loss on exchange derivative and capped call transactions	424,482	616,446	335,953
Amortization of debt discount and issuance cost	4,075	109,548	35,608
Interest income	(2,297)	(7,174)	(27,801)
Interest expense	21,749	13,164	14,002
Net foreign currency loss (gain)	(12,065)	7,650	(1,503)
Impairment of lease related assets	0	7,435	0
Net unrealized loss on investments	2,100	2,000	0
Net loss (gain) on sale of investments, disposal of assets and other	3,189	1,144	(993)
Changes in assets and liabilities:
Trade receivables	(134,764)	(61,256)	(29,440)
Prepaid expenses and other assets	(20,767)	(13,054)	(10,608)
Trade and other payables, provisions and other non-current liabilities	140,946	64,899	51,532
Deferred revenue	284,937	294,371	131,535
Interest received	2,086	12,513	29,217
Income tax paid, net	(66,648)	(50,272)	(17,876)
Net cash provided by operating activities	883,496	841,330	574,210
Investing activities
Business combinations, net of cash acquired	(12,377)	(91,584)	(53,212)
Purchases of intangible assets	(4,018)	(1,800)	0
Purchases of property and equipment	(70,583)	(31,520)	(35,709)
Purchases of investments	(132,671)	(119,431)	(985,931)
Proceeds from maturities of investments	76,937	454,996	513,268
Proceeds from sales of investments	186,262	48,786	245,498
Change in restricted cash	10,336	(2,618)	(2,085)
Payment of deferred consideration	(7,034)	(185)	(760)
Net cash provided by (used in) investing activities	46,852	256,644	(318,931)
Financing activities
Proceeds from exercise of share options	32	1,163	1,802
Payments of lease obligations	(49,142)	(44,874)	(38,125)
Payment of issuance costs for debt	0	(4,445)	0
Interest paid	(13,310)	(6,498)	(6,250)
Repayment of exchangeable senior notes	(1,548,686)	(1,803,244)	(2)
Proceeds from settlement of capped call transactions	135,497	203,093	0
Proceeds from term loan facility	1,000,000	0	0
Proceeds from other financing arrangements	13,877	0	0
Net cash used in financing activities	(461,732)	(1,654,805)	(42,575)
Effect of exchange rate changes on cash and cash equivalents	(9,194)	5,406	(1,176)
Net increase (decrease) in cash and cash equivalents	459,422	(551,425)	211,528
Cash and cash equivalents at beginning of period	919,227	1,479,969	1,268,441
Net decrease (increase) in cash and cash equivalents included in assets held for sale	6,616	(9,317)	0
Cash and cash equivalents at end of period	$ 1,385,265	$ 919,227	$ 1,479,969

Corporate Information	12 Months Ended
Corporate Information	Jun. 30, 2022
Corporate Information1 [Abstract]
Corporate Information	Corporate Information Atlassian Corporation Plc (the “Company”) is a public company limited by shares, incorporated and registered in the United Kingdom (the “UK”). The registered office of the Company and its subsidiaries (collectively, “Atlassian,” the “Group,” “our,” or “we”) is located at Exchange House, Primrose Street, London EC2A 2EG, c/o Herbert Smith Freehills LLP. We design, develop, license and maintain software and provision software hosting services to help teams organize, discuss and complete their work. Our primary products include Jira Software and Jira Work Management for planning and project management, Confluence for content creation and sharing, Trello for capturing and adding structure to fluid, fast-forming work for teams, Jira Service Management for team service, management and support applications, Jira Align for enterprise agile planning, and Bitbucket for code sharing and management. The accompanying consolidated financial statements of the Group for the year ended June 30, 2022 were authorized for issue in accordance with a resolution of the board of directors on August 19, 2022.

Summary of Significant Accounting Policies

12 Months Ended

Jun. 30, 2022

Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Basis of preparation

The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (“IFRS”), which includes all standards issued by the International Accounting Standards Board (“IASB”) and related interpretations issued by the IFRS Interpretations Committee. The consolidated financial statements have been prepared on a historical cost basis, except for debt and equity financial assets and derivative financial instruments that have been measured at fair value.

All amounts included in the consolidated financial statements are reported in thousands of U.S. dollars (U.S. $ in thousands) except where otherwise stated. Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

Use of estimates

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgments and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgments and estimates on historical experience and on other various factors it believes to be reasonable under the circumstances, the result of which forms the basis of the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions and may materially affect the financial results or the financial position reported in future periods. Significant estimates, assumptions and judgments made by management include revenue recognition and impairment of non-financial assets (see Note 3, “Critical Accounting Estimates and Judgments”). Other estimates, assumptions and judgments made by management include business combinations, fair value measurement of financial instruments and accounting for income taxes.

In March 2020, the World Health Organization declared a novel coronavirus (“COVID-19”) a pandemic. The impact of COVID-19 has been difficult to predict and the full extent of the impact will depend on a number of factors, including the continued duration and spread of the outbreak and related variants, its severity, the actions taken by governments and authorities to contain the virus or treat its impact, the effectiveness of current vaccines and therapeutic treatments, and the extent to which normal economic and operating conditions continue to resume. The Group considered the impact of COVID-19 on the assumptions and estimates used, including the allowance for credit losses for accounts receivable, the creditworthiness of customers entering into revenue arrangements, our impairment assessment of assets, the fair values of our financial instruments, and income taxes, which require increased judgement and carry a higher degree of estimate uncertainty. The Group determined that there were no material adverse impacts on the consolidated financial statements for the fiscal years ended June 30, 2022 and 2021. As events continue to evolve and additional information becomes available, the Group’s assumptions and estimates may change in future periods.

Principles of consolidation

The consolidated financial statements incorporate the financial positions and the results of operations of the Group. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The financial statements of the subsidiaries are prepared for the same reporting period as the Company, using consistent accounting policies. Intercompany transactions, balances and unrealized gains on transactions between Group companies are eliminated.

Segment

The Group operates as a single operating segment, which is also its reporting segment. An operating segment is defined as a component of an entity for which discrete financial information is available and whose results of operations are regularly reviewed by the chief operating decision maker. The Group's chief operating decision makers are the Group's Co-Chief Executive Officers, who review results of operations to make decisions about allocating resources and assessing performance based on consolidated financial information. Accordingly, the Group has determined it operates in one operating segment.

Foreign currency

The Group's consolidated financial statements are presented using the U.S. dollar, which is the Company's functional currency. Some of the Group’s foreign subsidiaries’ functional currency is the local currency. We translate the financial statements of these subsidiaries to U.S. dollars using month-end exchange rates for assets and liabilities, and average exchange rates for revenue, costs, and expenses. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component on the consolidated statements of comprehensive loss.

Foreign currency transaction gains and losses from re-measurement of monetary assets and liabilities that are denominated in currencies other than the respective functional currencies are included in other non-operating expense, net in the consolidated statements of operations for the period.

Revenue recognition

Policies, Estimates and Judgments

Revenues are generally recognized upon the transfer of control of promised products or services provided to our customers, reflecting the amount of consideration we expect to receive for those products or services. We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of sales and other similar taxes collected from customers, which are subsequently remitted to governmental authorities. The revenue recognition policy is consistent for sales generated directly with customers and sales generated indirectly through solution partners and resellers.

Revenues are recognized upon the application of the following steps:

1.identification of the contract or contracts with a customer;

2.identification of the performance obligations in the contract;

3.determination of the transaction price;

4.allocation of the transaction price to the performance obligations in the contract; and

5.recognition of revenue when, or as, the performance obligation is satisfied.

The timing of revenue recognition may differ from the timing of billing our customers. We receive payments from customers based on a billing schedule as established in our contracts. Contract assets are recognized when performance is completed in advance of scheduled billings. Deferred revenue is recognized when billings are in advance of performance under the contract. Our revenue arrangements include standard warranty provisions that our products and services will perform and operate in all material respects with the applicable published specifications, the financial impacts of which have historically been, and are expected to continue to be insignificant. Our contracts do not include a significant financing component.

Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require judgment.

We allocate the transaction price for each contract to each performance obligation based on the relative standalone selling price (“SSP”) for each performance obligation. We use judgment in determining the SSP for products and services. We typically determine an SSP range for our products and services which is reassessed on a periodic basis or when facts and circumstances change. For all performance obligations other than perpetual and term licenses, we are able to determine SSP based on the observable prices of products or services sold separately in comparable circumstances to similar customers. In instances where performance obligations do not have observable standalone sales, we utilize available information that may include market conditions, pricing strategies, the economic life of the software, and other observable inputs to estimate the price we would charge if the products and services were sold separately.

Our products are generally sold with a right of return, we may provide other credits or incentives, and in certain instances we estimate customer usage of our services, which are accounted for as variable consideration when determining the amount of revenue to recognize. Returns and credits are estimated at contract inception and updated at the end of each reporting period if additional information becomes available. Variable consideration was not material for the periods presented.

Recognition of revenue

Revenue recognized from contracts with customers is disaggregated into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. We report our revenues in three categories: (i) subscription, (ii) maintenance, and (iii) other. In addition, we present revenue by geographic region in Note 16, “Revenue.”

Subscription revenues

Subscription revenues consist primarily of fees earned from subscription-based arrangements for providing customers the right to use our software in a cloud-based-infrastructure that we provide. We also sell on-premises term license agreements for our Data Center products, which consist of software licensed for a specified period and include support and maintenance services that are bundled with the license for the term of the license period. Subscription revenues also include subscription-based agreements for our premier support services. Subscription revenues are driven primarily by the number and size of active licenses, the type of product and the price of the licenses. Our subscription-based arrangements generally have a contractual term of one to twelve months, with a majority being one month. For cloud-based services, subscription revenue is recognized ratably as services are performed, commencing with the date the service is made available to customers. For on-premises term-based licenses, we recognize revenue upfront for the portion that relates to the delivery of the term license and the support and related revenue is recognized ratably as the services are delivered over the term of the arrangement.

Maintenance revenues

Maintenance revenues represent fees earned from providing customers unspecified future updates, upgrades and enhancements and technical product support for perpetual license products on an if-and-when-available basis. Maintenance revenue is recognized ratably over the term of the support period.

Other revenues

Other revenues include primarily fees received for sales of third-party apps in the Atlassian Marketplace and perpetual license revenues. Technical account management, consulting and training services are also included in other revenues. Revenue from the sale of third-party apps via Atlassian Marketplace is recognized on the date of product delivery on a net basis given that all of our performance obligations have been satisfied at that time and we function as the agent in the relationship. Revenue from technical account management is recognized over the time period that the customer has access to the service. Revenue from consulting and training is recognized over time as the services are performed. Perpetual license revenues represent fees earned from the perpetual licenses of software to customers for use on the customer’s premises. Perpetual license revenues consist of the revenues recognized from sales of licenses to new customers and additional licenses to existing customers. We typically recognize revenue on the license portion of perpetual license arrangements once the customer obtains control of the license, which is generally upon delivery of the license.

Cash and cash equivalents

The Group considers all highly liquid investments purchased with an original maturity of three months or less and subject to an insignificant risk of changes in value to be cash equivalents. Cash equivalents also include

amounts due from third-party credit card processors as they are both short-term and highly liquid in nature and are typically converted to cash within three days of the sales transaction.

Current versus non-current classification

The Group presents assets and liabilities in the consolidated statements of financial position based on current or non-current classification. An asset is current when it is expected to be realized or intended to be sold or consumed in the normal operating cycle; expected to be realized within twelve months after the reporting period; or cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. A liability is current when it is due to be settled within twelve months after the reporting period. The Group classifies all other liabilities as non-current.

Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Our financial assets include trade receivables and contract assets, debt and equity investments and derivative financial instruments. We generally classify financial assets into the following categories: subsequently measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss depending on the contractual cash flows of and our business model for holding the respective asset. Financial assets that are measured at fair value on a recurring basis include debt and equity investments and derivative financial instruments. Trade receivables and contract assets are measured at amortized cost. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognized on the trade date.

Our financial liabilities include trade and other payables, the Notes and derivative financial instruments. We generally classify financial liabilities as subsequently measured at amortized cost and at fair value through profit or loss. Financial liabilities that are measured at fair value are the derivative financial instruments. Trade and other payables are measured at amortized cost and the Notes are measured at amortized cost using the effective interest rate (“EIR”) method.

Marketable debt securities

The Group’s marketable debt securities were classified as instruments at fair value through other comprehensive income. These debt securities give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding. After consideration of our objectives, as well as our liquidity requirements, we may sell these debt securities prior to their stated maturities. As we view these securities as available for use to support current operations, we classify highly liquid securities with maturities beyond 12 months as current assets under the caption short-term investments on the consolidated statements of financial position. Fair value changes of marketable debt securities that have been recognized in other comprehensive income are reclassified to profit or loss upon sale of the financial asset.

Strategic investments

The Group holds strategic investments in privately held debt and equity securities and publicly held equity securities in which the Company does not have a controlling interest.

The Group’s non-marketable debt securities are classified as instruments at fair value through profit or loss. The non-marketable debt securities are convertible notes issued by private companies without quoted market prices. To estimate the fair value of the non-marketable debt securities, we use the income approach utilizing our estimates of timing, probability, and amount of cash flows associated with liquidation of the securities. Financial information of private companies may not be available and consequently we will estimate the fair value based on the best available information at the measurement date.

The Group has irrevocably designated the equity investments not accounted for under the equity method as instruments at fair value through other comprehensive income. Changes in fair value of these equity investments are recognized in other comprehensive income and never reclassified to profit or loss, even if the asset is impaired, sold or otherwise derecognized.

Marketable equity securities are measured at fair value using readily determinable market value. Non-marketable equity securities are measured at fair value using market data, such as publicly available financing round valuations. Judgment is required particularly in estimating the fair values of non-marketable equity securities.

Exchangeable senior notes

The Group’s exchangeable senior notes (the “Notes”) were classified as financial liabilities at amortized cost and measured using the EIR method. Amortized cost was calculated by taking into account any discount and issuance cost that were an integral part of the EIR. The EIR amortization was included as finance costs in the consolidated statements of operations.

Derivative financial instruments

The Group enters into foreign exchange forward contracts with the objective to mitigate certain currency risks associated with cost of revenues and operating expenses denominated in foreign currencies. These foreign exchange forward contracts are designated as cash flow hedges. The Group also enters into foreign exchange forward contracts to hedge a portion of certain foreign currency denominated as monetary assets and liabilities to reduce the risk that such foreign currency will be adversely affected by changes in exchange rates. The Group uses interest rate swaps to hedge the variability of cash flows in the interest payments associated with its variable-rate debt due to changes in the LIBOR-based floating interest rate. The interest rate swaps are designated as cash flow hedges. Hedging derivative instruments are recognized as either assets or liabilities and are measured at fair value.

At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge.

The documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how the Group will assess whether the hedging relationship meets the hedge effectiveness requirements (including the analysis of sources of hedge ineffectiveness and how the hedge ratio is determined). A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements:

•There is ‘an economic relationship’ between the hedged item and the hedging instrument;

•The effect of credit risk does not ‘dominate the value changes’ that result from that economic relationship; and

•The hedge ratio of the hedging relationship is the same as the ratio resulting from the quantity of the hedged item and the quantity of the hedging instrument.

For derivative instruments designated as cash flow hedges, the effective portion of the gains (losses) on the derivatives is initially reported as a component of other comprehensive income and is subsequently recognized in earnings when the hedged exposure is recognized in earnings. Amounts reclassified from cash flow hedge reserve to profit or loss are recorded to the same functional expense as the hedged item or items. Gains (losses) on derivatives representing hedge ineffectiveness are recognized in earnings. For derivative instruments that are not designated as hedges, gains (losses) from changes in fair values are primarily recognized in other income (expense), net.

The Group had other derivatives such as embedded exchange feature of the Notes and capped call transactions (“Exchange and Capped Call Derivatives”). Please see Note 16, “Debt” for details. The Exchange and Capped Call Derivatives are measured at fair value at each reporting date and gains (losses) from changes in fair values are recognized in other non-operating expense, net. The Group used Black-Scholes option pricing models to fair value the exchange feature of the Notes. Certain inputs used in the model such as stock price volatility requires judgment. The Capped Call Derivatives’ fair value was obtained from counterparty banks.

Impairment of financial assets

The Group measures loss allowances on debt investments at fair value through other comprehensive income at an amount equal to lifetime expected credit losses (“ECLs”), except for securities that are determined to have low credit risk at the reporting date and other securities and bank balances for which credit risk has not increased significantly since initial recognition, which are measured as 12-month ECLs. ECLs are a probability-weighted estimate of the difference in the present value of contractual cash flows and the present value of cash flows that the Group expects to receive. Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. 12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months following the reporting date.

For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. The Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each

reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

Derecognition

Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.

Financial liabilities are derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the consolidated statements of operations.

Fair value measurement

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, we consider the principal or most advantageous market in which we would transact, as well as assumptions that market participants would use when pricing the asset or liability.

The three levels of inputs that may be used to measure fair value are:

•Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

•Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

•Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

The fair value of financial instruments traded in active markets is included in Level 1.

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity-specific estimates. If all significant inputs required to measure the fair value an instrument are observable, the instrument is included in Level 2.

If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.

Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Group's assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and considers factors specific to the asset or liability.

Disposal group held for sale

The Group classifies the disposal group as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. A disposal group is a group of assets and liabilities which the Group intends to dispose of in a single transaction. The disposal group classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of the asset group, excluding finance costs and income tax expense.

The criteria for held for sale classification is regarded as met only when the sale is highly probable, and the disposal group is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset group and the sale expected to be completed within one year from the date of the classification.

Assets classified as held for sale are presented separately as current items in the consolidated statement of financial position.

Property and equipment

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method to allocate the cost over the estimated useful lives or, in the case of leasehold improvements and certain leased equipment, the remaining lease term if shorter. The estimated useful lives for each asset class are as follows:


Equipment			3 years
Computer hardware and computer-related software			3 years
Furniture and fittings			5 years
Leasehold improvements			Shorter of the remaining lease term or 7 years

Business combinations

We include the results of operations of the businesses that we acquire as of the acquisition date. We record the assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred.

We use our best estimates and assumptions to accurately assign fair value to the intangible assets acquired at the acquisition date. The estimation is primarily due to the judgmental nature of the inputs to the valuation models used to measure the fair value of these intangible assets, as well as the sensitivity of the respective fair values to the underlying significant assumptions. Our estimates are inherently uncertain and subject to refinement. We use a discounted cash flow method of the income approach to measure the fair value of these intangible assets. Assumptions used to estimate the fair value of the intangible assets include revenue growth rates, technology migration curves, customer attrition rates and discount rates. These assumptions are forward-looking and could be affected by future economic and market conditions.

During the measurement period, which may be up to one year from the date of acquisition, the Group may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed based on additional information obtained affecting the fair value of those assets and liabilities, with the corresponding offset to goodwill. In addition, uncertain tax positions are initially established in connection with a business combination as of the acquisition date. The Group continues to collect information and reevaluates these provisional estimates and assumptions as deemed reasonable by management. The Group records any adjustments to these provisional estimates and assumptions against goodwill provided they arise within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations. Please refer to Note 13, “Business combinations,” for details.

Goodwill

Goodwill is the excess of the aggregate of the consideration transferred over the identifiable assets acquired and liabilities assumed. Goodwill is tested for impairment annually during the fourth quarter of the Group's fiscal year and when circumstances indicate that the carrying value may be impaired. The Group performs its goodwill impairment test at the level of its operating segment as there are no lower levels within the Group at which goodwill is monitored. Impairment is determined for goodwill by assessing the recoverable amount of the operating segment. When the recoverable amount of the operating segment is less than its carrying amount, an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods.

Intangible assets

We acquire intangible assets separately or in connection with business combinations. Intangible assets are measured at cost initially. All of our intangible assets are with finite lives and are amortized over their estimated useful life using the straight-line method. The amortization expense on intangible assets is recognized in the consolidated statements of operations in the expense category, consistent with the function of the intangible asset.

The estimated useful lives for each intangible asset class are as follows:


Patents, trademarks and other rights			5 - 12 years
Customer relationships			3 - 10 years
Acquired developed technology			4 - 6 years

Intangible assets with finite lives are assessed for impairment whenever there is an indication that the intangible asset may be impaired. When the recoverable amount of an intangible asset is less than its carrying amount, an impairment loss is recognized.

Impairment of non-financial assets

At the end of each reporting period, the Group assesses whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset’s recoverable amount. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. An asset’s recoverable amount is the higher of an asset’s or cash generating unit (“CGU”)’s fair value less costs of disposal and its value in use. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.

Share-based payments

Share-based payments cover equity-settled awards including stock options, restricted share units (“RSUs”) and restricted shares issued to our employees in exchange of their service. The cost of the equity-settled awards is determined by the fair value at the grant date. The fair value of RSUs or restricted shares is equal to the market value of our common stock on the grant date. The Group estimates the fair value of stock options using the Black-Scholes option pricing model. This option-pricing model requires the input of assumptions, including the awards’ expected life and the price volatility of the underlying stock.

We recognize equity-settled awards cost, net of estimated forfeitures, over the awards’ requisite service period on a graded-vesting basis. No compensation cost is recognized for awards that do not ultimately vest because service conditions have not been met and we estimate forfeiture based on historical experience. The respective expenses are recognized as employee benefits and classified in our consolidated statements of operations according to the activities that the employees perform.

The Group also issues replacement awards in connection with business combinations in exchange for awards held by employees of the acquiree. We recognize the portion of the acquiree award that is attributable to pre-combination service as purchase consideration. The portion of the replacement award attributable to post-combination service is recognized as employee benefits and classified in our consolidated statements of operations according to the activities that the employees perform.

Provisions

Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Leases

Group as lessee

We determine if an arrangement is a lease at inception. Our lease agreements generally contain lease and non-lease components. Lease payments under our lease arrangements are primarily fixed. Non-lease components primarily include payments for maintenance and utilities and are expensed as incurred.

Lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is our incremental borrowing rate, because the interest rate implicit in our leases is not readily determinable. Our incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. Our lease terms include periods under options to extend or terminate the lease when it is reasonably certain that we will exercise that option. We generally use the base, non-cancelable, lease term when determining lease liabilities. We reassess the lease term if and when a significant event or change in circumstances occurs within the control of the Group.

Right-of-use assets are recognized at cost at the lease commencement date. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct cost incurred, any prepaid lease payments less lease incentives and an estimate of restoration cost. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.

We apply the short-term lease recognition exemption for our short-term leases and leases of low-value assets. Short-term leases are leases with a lease term of 12 months or less. Low-value assets are primarily comprised of office equipment. Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis over the lease term.

Research and development

Research and development expense includes the employee, software, and hardware costs incurred for the development of new products, enhancements and updates of existing products and quality assurance activities. These costs incurred for the development of computer software to be marketed externally are expensed until the point that technological feasibility has been established, which, for our products, is typically reached shortly before the release of such products, and, as a result, the Group has not capitalized any research and development costs.

Taxation

Current tax

Current income tax assets and/or liabilities comprise amounts expected to be recovered or paid to Her Majesty's Revenue & Customs, the Australian Taxation Office, the United States Internal Revenue Service and other fiscal authorities relating to the current or prior reporting periods, which are unpaid at each reporting date. Current tax is payable on taxable income that differs from the consolidated statements of operations in the financial statements due to permanent and temporary timing differences. The calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax

The Group uses the liability method of accounting for income taxes. Deferred income tax assets and liabilities represent temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and their corresponding tax basis used in the computation of taxable income. Deferred tax however is not recognized on the initial recognition of goodwill, or the initial recognition of an asset or liability (other than in a business combination) in a transaction that affects neither tax nor accounting income.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Group is able to control the reversal of the temporary differences and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax liabilities are generally provided for in full.

Deferred tax assets are recognized to the extent that they are expected to reverse in the foreseeable future and it is probable that they will be able to be utilized against future taxable income, based on the Group's forecast of future results of operations. Deferred tax assets are adjusted for significant non-taxable income, expenses and specific limits on the use of any unused tax loss or credit. Unrecognized deferred income tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable income will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are calculated, without discounting, at tax rates and in accordance with laws that are expected to apply to their respective period of realization, provided the tax rates and laws are enacted or substantively enacted by the end of the reporting period. The carrying amount of deferred tax assets are reviewed

at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the deferred tax asset to be utilized.

Deferred tax liabilities and assets are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. Changes in deferred tax assets or liabilities are recognized as a component of tax expense (benefit) in the consolidated statements of operations, except where they relate to items that are recognized in other comprehensive income or directly in equity, in which case the related deferred tax is also recognized in other comprehensive income or equity, respectively. Where deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

Deferred tax assets are recognized for deductible temporary differences for which management considers it is probable that future taxable income will be available to utilize those temporary differences. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable income, together with future tax-planning strategies. Assumptions about the generation of future taxable income depend on management’s estimates of future cash flows, future business expectations, capital expenditures, dividends, and other capital management transactions. Management judgment is also required in relation to the application of income tax legislation, which involves complexity and an element of uncertainty. Where management judgment is found to be misplaced, some or all of recognized deferred tax asset and liability carrying amounts may require adjustment, resulting in a corresponding credit or charge to the consolidated statements of operations.

The Company assesses uncertainty over a tax treatment in accordance with the International Financial Reporting Interpretations Committee (“IFRIC”) 23. When the Company concludes it is not probable that the taxation authority will accept an uncertain tax treatment, the Company will reflect the effect of uncertainty by using either of the following methods, depending on which method the Company expects to better predict the resolution of the uncertainty:

•The most likely amount: the single most likely amount in a range of possible outcomes.

•The expected value: the sum of the probability-weighted amounts in a range of possible outcomes.

For details of taxation, please refer to Note 8, “Income Tax.”

New Standards, Interpretations and Amendments Not Yet Adopted in Fiscal Year 2022

The IASB has issued other amendments resulting from improvements to IFRS that management considers do not have any impact on the accounting policies, financial position or performance of the Group. The Group does not expect them to have a material impact on the accounting policies.

Hyperinflation

With effect from July 1, 2021, we have applied hyperinflationary accounting in accordance with IAS 29, Financial Reporting in Hyperinflationary Economies, for our subsidiary in Turkey as Turkey’s cumulative rate of inflation over the last three years is in excess of 100%. Non-monetary balance sheet items are restated using a general price index; monetary items are not restated. Items in the income statement and the statement of comprehensive income are restated by applying the change in the general price index from the dates when the income and expense items were initially recorded in the financial statements. The impact was not material on the consolidated financial statements for the fiscal year 2022. Comparative amounts presented previously in U.S. dollars are not restated.

Reclassification

Certain reclassifications have been made to prior period balances in order to conform to the current period presentation. “Perpetual License” revenues have been reclassified to “Other” revenues on our consolidated statements of operation. The reclassifications had no impact on our previously reported total revenues.

Critical Accounting Estimates and Judgments	12 Months Ended
Critical Accounting Estimates and Judgments	Jun. 30, 2022
Accounting Judgments and Estimates [Abstract]
Critical Accounting Estimates and Judgments	Critical Accounting Estimates and JudgmentsManagement has identified the following critical accounting policies for which significant judgments, estimates and assumptions are made. Critical accounting estimates and assumptions The Group based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such changes are reflected in the assumptions when they occur. Revenue recognition Determining the SSP for products and services requires estimates and assumptions. We typically determine a SSP range for our products and services which is reassessed on a periodic basis or when facts and circumstances change. For all performance obligations other than perpetual and term licenses, we are able to determine SSP based on the observable prices of products or services sold separately in comparable circumstances to similar customers. In instances where performance obligations do not have observable standalone sales, we utilize available information that may include market conditions, pricing strategies, the economic life of the software, and other observable inputs to estimate the price we would charge if the products and services were sold separately. Critical accounting judgments Impairment of non-financial assets For assets excluding goodwill, and CGUs, impairment assessments are made at each reporting date by evaluating conditions specific to the Group and to the particular asset that may lead to impairment. Goodwill is tested for impairment annually during the fourth quarter of the Group's fiscal year and when circumstances indicate that the carrying value may be impaired. These include product performance, technology, economic and political environments, and future product expectations. If an impairment trigger exists or when annual impairment testing for an asset is required, the recoverable amount of the asset is determined. The Group operates as a single operating segment and the Group performs the goodwill impairment test at the level of its operating segment as there are no lower levels within the Group at which goodwill is monitored. The recoverable amount of goodwill was assessed by comparing the market capitalization of the Group to its book value, among other qualitative factors, when reviewing for impairment. There was no impairment of goodwill during the fiscal years 2022, 2021 and 2020. During fiscal year 2021, the Group elected to early terminate one of its office leases. The Group did not have any rights to sublease the facility. The recoverable amount of the related lease assets including right-of-use assets and leasehold improvement was determined to be zero. An impairment charge of $7.4 million was recorded to profit or loss in fiscal year 2021. For details of the office lease impairment, please refer to Note 7, “Expenses.” Other than the lease-related assets discussed above, no indicators of impairment existed that were significant enough to warrant non-financial assets to be tested for impairment in the fiscal years 2022, 2021 and 2020. For details of non-financial assets, please refer to Note 10, “Property and Equipment”, Note 11, “Goodwill and Intangible assets” and Note 12, “Leases.” Impairment of non-marketable debt and equity investments We assess our privately held debt and equity securities strategic investment portfolio quarterly for impairment. Our impairment analysis encompasses an assessment of both qualitative and quantitative analyses of key factors including the investee’s financial metrics, market acceptance of the product or technology, and any similar new rounds of financing. If the investment is considered to be impaired, we record any privately held equity investments at fair value by recognizing an impairment through the Statement of Financial Position and establishing a new carrying value for the investment. Any adjustments to privately held debt securities are recorded through the Consolidated Statement of Operations. An impairment charge of $0.3 million for privately held equity investments were recorded in other comprehensive loss in fiscal year 2021. There was no impairment of privately held equity investments during the fiscal years 2022 and 2020. Impairment charges of $2.1 million and $2.0 million for privately held debt investments, respectively, were recorded to profit or loss during the fiscal years 2022 and 2021. There was no impairment of privately held debt investments during the fiscal years 2020. Please refer to Note 5, “Financial Assets and Liabilities,” for details.

Group Information

12 Months Ended

Jun. 30, 2022

Disclosure of interests in other entities [Abstract]

Group Information

Group InformationAs of June 30, 2022, the Group’s subsidiaries, all of which are wholly owned, were as follows:


Name						Country of Incorporation
Atlassian (UK) Limited						United Kingdom, United States of America
Atlassian (UK) Holdings Limited						United Kingdom, United States of America
Atlassian (Australia) Limited						United Kingdom, United States of America
Atlassian (UK) Operations Limited						United Kingdom
Atlassian (US) LLC						United States of America
Atlassian US, Inc.						United States of America
Atlassian Network Services, Inc.						United States of America
Dogwood Labs, Inc.						United States of America
Trello, Inc.						United States of America
AgileCraft LLC						United States of America
OpsGenie, Inc.						United States of America
Opsgenie Yazılım Anonim Şirketi						Turkey
iFountain, LLC						United States of America
Halp, Inc.						United States of America
Buddy AI Inc.						United States of America
Atlassian Australia 1 Pty Ltd						Australia
Atlassian Australia 2 Pty Ltd						Australia
Atlassian Corporation Pty. Ltd.						Australia
Atlassian Pty Ltd						Australia
Good Software Co. Pty Ltd						Australia
Code Barrel Pty Ltd						Australia
Lead Green Pty Ltd						Australia
Lead Green Trust						Australia
Vertical First Pty Ltd						Australia
Vertical First Trust						Australia
Atlassian Capital Pty. Ltd.						Australia
MITT Australia Pty Ltd						Australia
MITT Trust						Australia
Atlassian Holdings B.V.						Netherlands
Atlassian K.K.						Japan
Atlassian Germany GmbH						Germany
Atlassian Philippines, Inc.						Philippines
Atlassian France SAS						France
Atlassian B.V.						Netherlands
Atlassian Canada Inc.						Canada
Atlassian India LLP						India
Mindville AB						Sweden


Atlassian New Zealand						New Zealand
Atlassian Poland sp z o.o.						Poland
Chart.io, Inc.						United States of America
ThinkTilt Pty Ltd						Australia

Financial Assets and Liabilities

12 Months Ended

Jun. 30, 2022

Disclosure of detailed information about financial instruments [abstract]

Financial Assets and Liabilities

Financial Risk Management

The Group's activities expose it to a variety of financial risks: market risk (including currency risk, equity price risk, and interest rate risk), credit risk and liquidity risk. The Group's overall risk management approach focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance of the Group.

Management regularly reviews the Group's risk management objectives to ensure that risks are identified and managed appropriately. The board of directors is made aware of and reviews management's risk assessments prior to entering into significant transactions.

Market risk

Currency risk

The Group operates globally and is exposed to foreign exchange risk arising from exposure to various currencies in the ordinary course of business. Our exposures primarily consist of the Australian dollar (“AUD”), Indian rupee, Euro (“EUR”), British pound, Japanese yen, Philippine peso and Canadian dollar. Foreign exchange risk arises from commercial transactions and recognized financial assets and liabilities denominated in a currency other than the U.S. dollar (“USD”). The Group’s financial risk management policy is reviewed annually by the Group’s Audit Committee and requires the Group to monitor its foreign exchange exposure on a regular basis.

The substantial majority of our sales contracts are denominated in U.S. dollars, and our operating expenses are generally denominated in the local currencies of the countries where our operations are located. We therefore benefit from a strengthening of the U.S. dollar and are adversely affected by the weakening of the U.S. dollar.

We have a hedging program in place and enter into derivative transactions to manage certain foreign currency exchange risks that arise in the Group’s ordinary business operations. We enter into master netting agreements with financial institutions to execute our hedging program. We recognize all hedging derivative instruments as either assets or liabilities on our consolidated statements of financial position and measure them at fair value. We have the rights to net certain hedging derivative assets and liabilities, but we currently present them on the gross basis. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting.

Our master netting agreements are with select financial institutions to reduce our credit risk, and we trade with several counterparties to reduce our concentration risk with any single counterparty. We do not have significant exposure to counterparty credit risk at this time. We do not require nor are we required to post collateral of any kind related to our foreign currency derivatives.

Cash flow hedging

We enter into foreign exchange forward contracts with the objective to mitigate certain currency risks associated with forecast cost of revenues and operating expenses denominated in Australian dollars. These foreign exchange forward contracts are designated as cash flow hedges.

There is an economic relationship between the hedged items and the hedging instruments as the terms of the foreign exchange and forward contracts match the terms of the expected highly probable forecast transactions (i.e., notional amount and expected payment date). The Group has established a hedge ratio of 1:1 for the hedging relationships as the underlying risk of the foreign exchange and forward contracts are identical to the hedged risk components. We measure ineffectiveness in a cash flow hedge relationship using the hypothetical derivative method. Ineffectiveness occurs only if the present value of the cumulative gain or loss on the derivative instrument exceeds the present value of the cumulative gain or loss on the hypothetical derivative, which is used to measure changes of expected future cash flow. Ineffectiveness mainly rises from the differences in the timing of the cash flows of the hedged items and the hedging instruments.

It is our policy to enter into cash flow hedges to hedge cost of revenues and operating expenses up to 24 months.

Balance sheet hedging

We also enter into foreign exchange forward contracts to hedge a portion of certain foreign currency denominated monetary assets and liabilities to reduce the risk that such foreign currency assets or liabilities will be adversely affected by changes in exchange rates. These contracts hedge monetary assets and liabilities that are denominated in non-functional currencies. These contracts do not subject us to material balance sheet risk due to exchange rate movements because gains and losses on these derivatives are intended to offset gains and losses on the monetary assets and liabilities being hedged.

Foreign currency exchange rate exposure

The Group hedges material foreign currency denominated monetary assets and liabilities using balance sheet hedges. The fluctuations in the fair market value of balance sheet hedges due to foreign currency rates generally offset those of the hedged items, resulting in no material effect on profit. Consequently, we are primarily exposed to significant foreign currency exchange rate fluctuations with regard to the spot component of derivatives held within a designated cash flow hedge relationship affecting other comprehensive income.

The following table sets forth foreign currency sensitivity analysis of a hypothetical 10% change in exchange rate of the U.S. dollar against the Australian dollar to our cash flow hedging portfolio:


Foreign Currency Sensitivity	Effect on other comprehensive income, before tax
	2022		2021
	(U.S. $ in thousands)
Foreign currency forward contracts - cash flow hedging:
U.S. dollar +10%, decrease in fair value of foreign currency forward contracts	$	(38,198)	$	(39,416)
U.S. dollar -10%, increase in fair value of foreign currency forward contracts	38,198		39,416

Equity Price Risk

The Group is exposed to equity price risk in connection with our equity investments. The Group’s marketable equity investments are susceptible to market price risk from uncertainties about future values of the investment securities.

The following table sets forth equity price sensitivity analysis of a hypothetical 10% change in share prices:


Equity Price Sensitivity	Effect on other comprehensive income, before tax
		2022		2021
		(U.S. $ in thousands)




Fair value change of marketable equity investments:
Increase in respective share prices of 10%		$	3,080	$	11,041
Decrease in respective share prices of 10%		(3,080)		(11,041)

Interest rate risk

We have access to a $1 billion senior unsecured delayed-draw term loan facility (the “Term Loan Facility”) and a $500 million senior unsecured revolving credit facility (the “Revolving Credit Facility,” and together with the Term Loan Facility, the “Credit Facility”). The Credit Facility matures in October 2025 and bears a variable interest rate. Please refer to Note 16, “Debt” for the details of the Credit Facility. As of June 30, 2022, $1 billion has been drawn under the Term Loan Facility.

The Group is exposed to interest rate risk arising from our variable interest rate Credit Facility. The Group’s financial risk management policy is reviewed annually by the Group’s Audit Committee and requires the Group to monitor its interest rate exposure on a regular basis.

We have a hedging program in place and enter into derivative transactions to manage the variable interest rate risks that arise with the Group’s Term Loan Facility. We enter into master netting agreements with financial institutions to execute our hedging program. Our master netting agreements are with select financial institutions to reduce our credit risk, and we trade with several counterparties to reduce our concentration risk with any single counterparty. We do not have significant exposure to counterparty credit risk at this time. We do not require nor are we required to post collateral of any kind related to our interest rate derivatives.

We enter into interest rate swaps with the objective to hedge the variability of cash flows in the interest payments associated with our variable-rate Term Loan Facility. The interest rate swaps involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The interest rate swaps are designated as cash flow hedges and measured at fair value. As of June 30, 2022 and 2021, we have entered into interest rate swaps with a total notional amount of $650.0 million.

In addition, our cash equivalents and investment portfolio are subject to market risk due to changes in interest rates. Fixed rate securities may have their market value adversely impacted due to a rise in interest rates. As of June 30, 2022, the Group had cash and cash equivalents totaling $1.4 billion and short-term investments totaling $73.3 million.

The following table sets forth an interest rate sensitivity analysis of a hypothetical 100 basis point change in interest rates. This estimate is based on a sensitivity model that measures market value changes when changes in interest rates occur:


Interest Rate Sensitivity	Effect on other comprehensive income, before tax
	2022		2021
	(U.S. $ in thousands)
Change in market value of marketable debt investments:
Interest Rate +100bps, decrease in market value of marketable debt investments	$	(284)	$	(1,888)
Interest Rate -100bps, increase in market value of marketable debt investments	284		259

Change in market value of interest rate swap:
Interest Rate +100bps, increase in market value of interest rate swaps	$	17,624	$	24,845
Interest Rate -100bps, decrease in market value of interest rate swaps	(18,789)		(20,635)

Credit risk

The Group is exposed to credit risk arising from cash and cash equivalents, deposits with banks and financial institutions, investments, foreign exchange and interest rate derivative contracts, as well as credit exposures to customers, including outstanding receivables and committed transactions. Credit risk is managed on a Group basis.

The Group has a minimum credit rating requirement for banks and financial institutions with which it transacts. The Group’s investments are governed by a corporate investment policy with a minimum credit rating and concentration limits for all securities.

The Group is exposed to credit risk in the event of non-performance by the counterparties to our foreign exchange and interest rate derivative contracts and our capped call transactions at maturity. To reduce the credit risk, we continuously monitor credit quality of our counterparties to such derivatives. We believe the risk of non-performance under these contracts is remote.

The Group's customer base is highly diversified, thereby limiting credit risk. Our credit policy typically requires payment within 30-45 days, and we establish credit limits for each customer based on our internal guidelines. The Group does not hold collateral as security or call on other credit enhancements. The Group manages its credit risk with customers by closely monitoring its receivables and contract assets. We continuously monitor outstanding receivables locally to assess whether there is objective evidence that our trade receivables and contract assets are credit-impaired. An impairment analysis is performed at each reporting date using a provision matrix to measure

ECLs. The provision rates are based on days past due. Please refer to Note 9, “Trade Receivables” for the details of receivables, credit concentration, and ECL allowance.

Liquidity risk

Liquidity risk is the risk that the group will encounter difficulty in meeting its obligations associated with its financial liabilities as they fall due. The Group’s primary source of cash is cash generated from business operations.

The table below presents the contractual undiscounted cash flows relating to the Group’s financial liabilities at the balance sheet date. The cash flows are grouped based on the remaining period to the contractual maturity date. The Group has sufficient funds, including its cash, cash equivalents, short-term investments, expected cash flows from operations and borrowing capacity from the Revolving Credit Facility, to meet these commitments as they become due. The Group may enter into financial transactions to secure additional funding to supplement existing cash flows or to maintain financial flexibility.

Contractual maturities of financial liabilities are as follows:


	Less than 1 year		1 - 3 years		3 - 5 years		More than 5 years		Total
	(U.S. $ in thousands)
As of June 30, 2022
Financial liabilities:
Trade and other payables	$	404,908	$	—	$	—	$	—	$	404,908
Lease liabilities (1)	53,408		99,668		78,577		128,157		359,810
Derivative liabilities	23,288		812		—		—		24,100
Term loan facility	—		87,500		912,500		—		1,000,000
	$	481,604	$	187,980	$	991,077	$	128,157	$	1,788,818
As of June 30, 2021
Financial liabilities:
Trade and other payables	$	266,497	$	—	$	—	$	—	$	266,497
Lease liabilities (1)	48,297		77,768		65,227		91,131		282,423
Derivative liabilities	11,438		669		—		—		12,107
Exchangeable senior notes (2)	1,109,593		—		—		—		1,109,593
	$	1,435,825	$	78,437	$	65,227	$	91,131	$	1,670,620

(1) Lease liabilities represent undiscounted lease payments excluding certain low-value and short-term leases, refer to Note 12, “Leases” for details.

(2) The amount related to Notes represent the if-exchanged value using stock price as of June 30, 2021. Refer to Note 16, “Debt” for details.

Capital risk management

For the purpose of the Group’s capital management, capital includes issued capital, share premium and all other capital reserves attributable to the equity holders of the parent. The primary objective of the Group's capital structure management is to ensure that it maintains an appropriate capital structure to support its business and maximize shareholder value. The Group manages its capital structure and adjusts it based on business needs and economic conditions.

During the fiscal year ended June 30, 2018, the Group issued $1.0 billion of the Notes for working capital and other corporate purposes, including acquiring complementary businesses, products, services or technologies. During the fiscal year ended June 30, 2021, the Group entered into a $1.5 billion Credit Facility. The Group will use the net proceeds of the Credit Facility for general corporate purposes, including repayment of the then existing indebtedness. As of June 30, 2022, $1.0 billion has been drawn under the Term Loan Facility, and we are in compliance with all related covenants. During the fiscal year 2022, the Company had fully settled the remaining principal amount of the Notes for aggregate consideration of $1.5 billion in cash and unwound the related capped calls for net proceeds of $135.5 million. Refer to Note 16, “Debt” for details.

To maintain or adjust the capital structure, the Group may return capital to shareholders, issue new shares, or consider external financing alternatives. The Group does not have any present or future plan to pay dividends on its shares.

Fair Value Measurements

The following table presents the Group’s financial assets and liabilities as of June 30, 2022, by level within the fair value hierarchy:


	Level 1		Level 2		Level 3		Total
	(U.S. $ in thousands)
Description
Assets measured at fair value
Cash and cash equivalents:
Money market funds	$	555,247	$	—	$	—	$	555,247






Short-term investments:
U.S. treasury securities	—		70,294		—		70,294

Certificates of deposit and time deposits	—		3,000		—		3,000




Current derivative assets:
Derivative assets - foreign exchange hedging	—		389		—		389

Derivative assets - interest rate swaps	—		13,296		—		13,296
Non-current derivative assets:

Derivative assets - interest rate swaps	—		30,367		—		30,367
Other non-current assets:

Marketable equity securities	30,801		—		—		30,801
Non-marketable equity securities	—		—		126,995		126,995
Non-marketable debt securities	—		—		1,268		1,268
Total assets measured at fair value	$	586,048	$	117,346	$	128,263	$	831,657

Liabilities measured at fair value
Current derivative liabilities:
Derivative liabilities - foreign exchange hedging	$	—	$	23,288	$	—	$	23,288


Non-current derivative liabilities:
Derivative liabilities - foreign exchange hedging	—		812		—		812


Total liabilities measured at fair value	$	—	$	24,100	$	—	$	24,100

The following table presents the Group’s financial assets and liabilities as of June 30, 2021, by the level within the fair value hierarchy:


	Level 1		Level 2		Level 3		Total
	(U.S. $ in thousands)
Description
Assets measured at fair value
Cash and cash equivalents:
Money market funds	$	20,966	$	—	$	—	$	20,966

Agency securities	—		4,600		—		4,600

Commercial paper	—		149,347		—		149,347

Short-term investments:
U.S. treasury securities	—		209,948		—		209,948
Agency securities	—		5,752		—		5,752
Certificates of deposit and time deposits	—		6,653		—		6,653

Corporate debt securities	—		87,948		—		87,948
Municipal securities	—		2,700		—		2,700

Current derivative assets:
Derivative assets - foreign exchange hedging	—		3,333		—		3,333
Derivative assets - capped call transactions	—		—		124,153		124,153
Non-current derivative assets:

Derivative assets - interest rate swaps	—		3,147		—		3,147
Other non-current assets:
Certificates of deposit and time deposits	—		2,600		—		2,600
Marketable equity securities	110,409		—		—		110,409
Non-marketable equity securities	—		—		11,750		11,750
Total assets measured at fair value	$	131,375	$	476,028	$	135,903	$	743,306

Liabilities measured at fair value
Current derivative liabilities:
Derivative liabilities - foreign exchange hedging	$	—	$	8,058	$	—	$	8,058
Derivative liabilities - interest rate swaps	—		3,380		—		3,380
Derivative liabilities - exchangeable feature of exchangeable senior notes	—		—		760,689		760,689
Non-current derivative liabilities:
Derivative liabilities - foreign exchange hedging	—		669		—		669

Total liabilities measured at fair value	$	—	$	12,107	$	760,689	$	772,796

Due to the short-term nature of trade receivables, contract assets and trade and other payables, their carrying amount is assumed to approximate their fair value.

Determination of fair value

The following table sets forth a description of the valuation techniques and the inputs used in fair value measurement:


Type	Level	Valuation Technique	Inputs
Money market fund	Level 1	Quoted price in active market	N/A
Marketable equity securities	Level 1	Quoted price in active market	N/A
Marketable debt securities	Level 2	Quoted market price to the extent possible or alternative pricing sources and models utilizing market observable inputs	N/A
Non-marketable equity securities	Level 3	Last financing round valuation	N/A
Non-marketable debt securities	Level 3	Discounted cash flow	Timing, probability, and amount of forecasted cash flows associated with liquidation of the securities
Foreign currency forward contracts	Level 2	Discounted cash flow	Foreign currency spot and forward rate Interest rate Credit quality of counterparties
Interest rate swaps	Level 2	Discounted cash flow	Forward and contract interest rates Credit quality of counterparties
Exchange feature of the Notes	Level 3	Black-Scholes option pricing models	Stock price Time to expiration of the options Stock price volatility Interest rate
	Level 2	September 30, 2021: Redemption settlement price*	Stock price Exchange ratio
Capped Call Derivatives	Level 3	Non-binding quoted price obtained from counterparty banks	N/A

*As of September 30, 2021, all outstanding Notes were called for redemption by the Company. As such, the Company used redemption settlement price as fair value.

Level 3 financial instruments disclosure

In April 2018, Atlassian US, Inc. (formerly known as Atlassian, Inc.), a wholly-owned subsidiary of the Company, issued $1 billion in Notes and entered into related capped call transactions. Please refer to Note 16, “Debt,” for details. Exchange and Capped Call Derivatives are classified as Level 3. The exchange feature of the Notes is valued using a Black-Scholes option pricing model as of June 30, 2021. The exchange feature of the Notes was transferred to Level 2 and was settled during fiscal year 2022. There were no other transfers between levels during the fiscal year 2022.

The following table presents the reconciliations of Level 3 financial instrument fair values:


	Capped Call		Embedded exchange feature of Notes		Non-marketable investments
	(U.S. $ in thousands)
Balance as of June 30, 2020	$	310,608	$	(1,283,089)	$	3,750
Purchases	(203,093)		1,155,484		10,250

Gains (losses)

Recognized in other non-operating expense, net	16,638		(633,084)		(2,000)
Recognized in other comprehensive income	—		—		(250)
Balance as of June 30, 2021	$	124,153	$	(760,689)	$	11,750
Change in unrealized gains (losses) relating to assets and liabilities held as of June 30, 2021
Recognized in other non-operating expense, net	$	14,764	$	(308,820)	$	(2,000)
Recognized in other comprehensive loss	—		—		(250)

Balance as of June 30, 2021	$	124,153	$	(760,689)	$	11,750
Settlements or purchases	(135,497)		1,196,515		111,668

Gains (losses)

Recognized in other non-operating expense, net	11,344		(435,826)		(2,100)
Recognized in other comprehensive income	—		—		6,945
Balance as of June 30, 2022	$	—	$	—	$	128,263
Change in unrealized gains (losses) relating to assets and liabilities held as of June 30, 2022
Recognized in other non-operating expense, net	$	—	$	—	$	(2,100)
Recognized in other comprehensive income	—		—		6,945

During the fiscal years 2022 and 2021, the Group made fifteen and five equity investments, respectively, totaling $108.3 million and $8.2 million, respectively, in privately-held technology companies’ financing rounds.

Marketable debt investments

As of June 30, 2022, the Group’s investments consisted of the following:


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(U.S. $ in thousands)

U.S. treasury securities	$	70,947	$	—	$	(653)	$	70,294

Certificates of deposit and time deposits	3,000		—		—		3,000




Total marketable debt investments	$	73,947	$	—	$	(653)	$	73,294

As of June 30, 2022, the Group had $73.3 million of investments which were classified as short-term investments on the Group’s consolidated statements of financial position.

As of June 30, 2021, the Group’s investments consisted of the following:


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(U.S. $ in thousands)

U.S. treasury securities	$	209,567	$	407	$	(26)	$	209,948
Agency securities	5,750		2		—		5,752
Certificates of deposit and time deposits	9,253		—		—		9,253

Corporate debt securities	87,626		322		—		87,948
Municipal securities	2,700		—		—		2,700

Total marketable debt investments	$	314,896	$	731	$	(26)	$	315,601

As of June 30, 2021, the Group had $313.0 million of investments which were classified as short-term investments on the Group’s consolidated statements of financial position. Additionally, the Group had certificates of deposit and time deposits totaling $2.6 million which were classified as long-term and were included in other non-current assets on the Group’s consolidated statements of financial position.

Strategic investments

As of June 30, 2022, the Group’s strategic investments consisted of the following:


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(U.S. $ in thousands)
Marketable equity securities	$	10,270	$	20,531	$	—	$	30,801
Non-marketable equity securities	120,300		6,695		—		126,995
Non-marketable debt securities	5,368		—		(4,100)		1,268
Total strategic investments	$	135,938	$	27,226	$	(4,100)	$	159,064

As of June 30, 2021, the Group’s strategic investments consisted of the following:


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(U.S. $ in thousands)
Marketable equity securities	$	10,270	$	100,139	$	—	$	110,409
Non-marketable equity securities	12,000		—		(250)		11,750
Non-marketable debt securities	2,000		—		(2,000)		—
Total strategic investments	$	24,270	$	100,139	$	(2,250)	$	122,159

In December 2020, the Group sold marketable equity securities following an assessment of its investments. The aggregate fair values of the marketable equity securities on the dates of sale were $38.1 million and the accumulated gains recognized in other comprehensive income were $28.1 million.

The effects of the Group’s investments on the consolidated financial statements were as follows (amounts presented are prior to any income tax effects):


	Fiscal Year Ended June 30,
	2022		2021		2020
	(U.S. $ in thousands)
Unrealized fair value movements on marketable debt investments recognized in other comprehensive income	$	(831)	$	(4,779)	$	5,750
Gains recognized into profit or loss on sale of debt investments	527		65		697
Unrealized fair value movements on non-marketable debt securities recognized in other non-operating expense, net	(2,100)		(2,000)		—
Fair value movements on marketable equity investments recognized in other comprehensive income	(79,608)		48,330		41,255
Fair value movements on non-marketable equity investments recognized in other comprehensive income	6,945		(250)		—

The table below summarizes the Group’s debt investments by remaining contractual maturity based on the effective maturity date:


	As of June 30,
	2022		2021
	(U.S. $ in thousands)
Recorded as follows:
Due in one year or less	$	73,294	$	265,679
Due after one year	—		49,922
Total investments	$	73,294	$	315,601

Derivative financial instruments

The Group has derivative instruments that are used for hedging activities as discussed below and derivative instruments relating to the Notes and the capped calls as discussed in Note 16, “Debt.”

The fair values of the hedging derivative instruments were as follows:


		As of June 30,
	Statement of Financial Position Location	2022		2021
		(U.S. $ in thousands)
Derivative assets - hedging
Derivatives designated as hedging instruments:
Foreign exchange forward contracts	Current derivative assets	$	—	$	3,325

Interest rate swaps	Current derivative assets	13,296		—
Interest rate swaps	Other non-current assets	30,367		3,147
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Current derivative assets	389		8
Total derivative assets		$	44,052	$	6,480

Derivative liabilities - hedging
Derivatives designated as hedging instruments:
Foreign exchange forward contracts	Current derivative liabilities	$	18,208	$	5,336
Foreign exchange forward contracts	Other non-current liabilities	812		669
Interest rate swaps	Current derivative liabilities	—		3,380
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Current derivative liabilities	5,080		2,722
Total derivative liabilities		$	24,100	$	12,107

The following table sets forth the notional amounts of our hedging derivative instruments as of June 30, 2022:


	Notional Amounts of Derivative Instruments
	Notional Amount by Term to Maturity								Classification by Notional Amount
	Under 12 months		Over 12 months			Total			Cash Flow Hedge			Non Hedge		Total
	(U.S. $ in thousands except average forward rate and average interest rate)
Forward contracts:
AUD/USD forward contracts:
Notional amount	$	593,155	$	37,015		$	630,170		$	401,534		$	228,636	$	630,170
Average forward rate	0.7180		0.7038			0.7171			0.7248			0.7037		0.7171
EUR/USD forward contracts:
Notional amount	19,368		—			19,368			—			19,368		19,368
Average forward rate	1.0617		—			1.0617			—			1.0617		1.0617
Total	$	612,523	$	37,015		$	649,538		$	401,534		$	248,004	$	649,538

Interest rate swaps:
Notional amount	$	—	$	650,000		$	650,000		$	650,000		$	—	$	650,000
Average interest rate			0.81		%	0.81		%	0.81		%			0.81		%

The following table sets forth the notional amounts of our hedging derivative instruments as of June 30, 2021:


	Notional Amounts of Derivative Instruments
	Notional Amount by Term to Maturity								Classification by Notional Amount
	Under 12 months		Over 12 months			Total			Cash Flow Hedge			Non Hedge		Total
	(U.S. $ in thousands except average forward rate and average interest rate)
AUD/USD forward contracts:
Notional amount	$	623,321	$	24,627		$	647,948		$	397,184		$	250,764	$	647,948
Average forward rate	0.7563		0.7718			0.7569			0.7563			0.7579		0.7569
EUR/USD forward contracts:
Notional amount	11,040		—			11,040			—			11,040		11,040
Average forward rate	1.2025		—			1.2025			—			1.2025		1.2025
Total	$	634,361	$	24,627		$	658,988		$	397,184		$	261,804	$	658,988

Interest rate swaps:
Notional amount	$	—	$	650,000		$	650,000		$	650,000		$	—	$	650,000
Average interest rate			0.81		%	0.81		%	0.81		%			0.81		%

The effects of derivatives designated as hedging instruments on our consolidated financial statements were as follows (amounts presented are prior to any income tax effects):



	Fiscal Year Ended June 30,
	2022		2021		2020
	(U.S. $ in thousands)
Forward contracts:
Gross unrealized gains (losses) recognized in other comprehensive income (loss)	$	(29,192)	$	19,302	$	3,048
Net gains (losses) reclassified from cash flow hedge reserve into profit or loss - effective portion	$	(12,864)	$	35,077	$	(13,663)
Recognized in cost of revenues	(525)		1,326		(807)
Recognized in research and development	(10,513)		28,490		(9,647)
Recognized in marketing and sales	(220)		400		(273)
Recognized in general and administrative	(1,606)		4,861		(2,936)

Change in fair value used for measuring ineffectiveness:
Cash flow hedging instruments	$	(29,295)	$	19,312	$	2,889
Hedged item - highly probable forecast purchases	(29,192)		19,302		3,048
Gains (losses) recognized into general and administrative - ineffective portion	(103)		10		(159)

Interest rate swaps:
Gross unrealized gain recognized in other comprehensive income	$	40,613	$	(233)	$	—
Net loss reclassified from interest rate swap reserve into finance cost	(3,153)		—		—

Other Non-Operating Expense, Net

12 Months Ended

Jun. 30, 2022

Disclosure of Additional Information [Abstract]

Other Non-Operating Expense, Net

Other Non-Operating Expense, NetOther non-operating expense, net consisted of the following:


	Fiscal Year Ended June 30,
	2022		2021		2020
	(U.S. $ in thousands)
Net loss on exchange derivative and capped calls	$	(424,482)	$	(616,446)	$	(335,953)
Foreign currency exchange gain (loss), net	2,695		4,054		910
Contributions to Atlassian Foundation	(9,742)		(7,809)		(5,282)
Other income (expense)	(3,059)		(558)		1,839

Other non-operating expense, net	$	(434,588)	$	(620,759)	$	(338,486)

Expenses

12 Months Ended

Jun. 30, 2022

Analysis of income and expense [abstract]

Expenses

ExpensesLoss before income tax expense included the following expenses:


	Fiscal Year Ended June 30,
	2022		2021		2020
	(U.S. $ in thousands)
Depreciation:
Equipment	$	1,641	$	2,150	$	2,077
Computer hardware and software	1,648		1,897		1,096
Furniture and fittings	3,180		3,442		3,000
Leasehold improvements	12,296		16,053		13,563
Total depreciation	18,765		23,542		19,736
Amortization:
Patents and trademarks	1,305		1,124		5,377
Customer relationships	8,652		8,939		8,086
Acquired developed technology	22,441		21,691		29,072
Total amortization	32,398		31,754		42,535
Total depreciation and amortization	$	51,163	$	55,296	$	62,271
Employee benefits expense:
Salaries and wages	880,421		$	637,143	$	467,718
Variable compensation	169,695		106,835		82,851
Payroll taxes	88,878		68,543		53,189
Share-based payment expense	707,087		385,732		313,395
Defined contribution plan expense	54,441		39,116		29,783
Contractor expense	29,241		26,589		35,343
Other	124,416		83,350		63,362
Total employee benefits expense	$	2,054,179	$	1,347,308	$	1,045,641
Impairment:
Right of use assets	—		3,759		—
Property and equipment	—		3,676		—
Total impairment	$	—	$	7,435	$	—

The impairment charge during fiscal year 2021 was related to our leased office space. During fiscal year 2021, the Group elected to early terminate one of our office leases. The recoverable amount of the related lease assets including right-of-use assets and leasehold improvement was determined to be zero. The impairment charge was classified within the statement of operations as follows:


	Fiscal Year Ended June 30, 2021
	(U.S. $ in thousands)
Cost of revenues	$	1,710
Research and development	3,217
Marketing and sales	195
General and administrative	2,313

Income Tax

12 Months Ended

Jun. 30, 2022

Income Taxes [Abstract]

Income Tax

The major components of income tax expense for the fiscal years ended 2022, 2021 and 2020 are as follows:


	Fiscal Year Ended June 30,
	2022		2021		2020
	(U.S. $ in thousands)
Current income tax:
Current income tax charge	$	(51,417)	$	(74,126)	$	(25,715)
Adjustments in respect of current income tax of previous years	(472)		702		1,276
Deferred tax:
Benefit relating to origination and reversal of temporary differences	2,186		11,422		18,702
Adjustments in respect of temporary differences of previous years	151		351		1,292
Income tax expense	$	(49,552)	$	(61,651)	$	(4,445)

A reconciliation between income tax expense and the product of accounting loss multiplied by the UK's domestic tax rate for the fiscal years ended 2022, 2021 and 2020, is as follows:


	Fiscal Year Ended June 30,
	2022		2021		2020
	(U.S. $ in thousands)
Loss before income tax expense	$	(564,572)	$	(634,664)	$	(346,209)
At the United Kingdom's statutory income tax rate of 19% in fiscal years 2022, 2021 and 2020	107,269		120,586		65,688
Tax effect of amounts that are not taxable (deductible) in calculating taxable income:
Research and development incentive	15,597		7,693		6,816
Non-deductible charges relating to exchangeable senior notes	(92,275)		(149,265)		(80,262)
Share-based payment	(9,162)		(14,674)		(10,619)
Foreign tax credits not utilized	(518)		(166)		(93)
Foreign tax paid	9,105		15,797		4,765




Foreign tax rate differential	30,879		(9,008)		1,416
Adjustment to unrecognized deferred tax balance	(102,986)		(37,062)		8,835
Other items, net	(7,140)		3,395		(3,559)
	(49,231)		(62,704)		(7,013)
Adjustments in respect to current income tax of previous years	(472)		702		1,276
Adjustments in respect to deferred income tax of previous years	151		351		1,292
Income tax expense	$	(49,552)	$	(61,651)	$	(4,445)

In March 2021, the UK announced an increase in the main corporate tax rate from 19% to 25%, effective for financial years beginning after April 1, 2023. Due to the magnitude of our UK operations, this change is not expected to have a material impact to the Company.

Details of deferred taxes, recognized and unrecognized:


	As of June 30,
	2022		2021
	(U.S. $ in thousands)
Depreciation for tax purposes	$	2,143	$	275
Provisions, accruals and prepayments	(3,245)		(1,427)
Deferred revenue	2,963		(948)
Unrealized foreign currency exchange losses (gains)	(3,450)		9
Unrealized investment gains	(16,205)		(23,150)
Carried forward tax losses	8,101		7,610
Carried forward tax credits—credited to profit and loss	13,557		9,129
Intangible assets	10,409		15,555
Tax benefit from share plans—income	1,651		1,143
Tax benefit from share plans—equity	133		733

Other, net	246		620

Deferred tax assets, net	$	16,303	$	9,549
Reflected in the consolidated statements of financial position as follows:
Deferred tax assets	$	42,760	$	36,174
Deferred tax liabilities	(26,457)		(26,625)
Deferred tax assets, net	$	16,303	$	9,549
Items for which no deferred tax asset has been recognized:
Depreciation and amortization for tax purposes	$	15,720	$	9,747
Provisions, accruals and prepayments	61,597		45,711
Deferred revenue	161,508		86,722
Unrealized foreign currency exchange gains	2,484		3,569
Unused tax losses	1,005,649		814,106
Intangible assets	1,527,714		1,682,610
Tax benefit from share plans- income	76,843		69,113
Tax benefit from share plans- equity	15,402		74,631

Carried forward tax credits- credited to profit and loss	142,178		100,251
Unrealized loss on investments	11,169		1,541
Other, net	38,561		28,063
	$	3,058,825	$	2,916,064

Details of deferred tax benefits and expenses:


	Fiscal Year Ended June 30,
	2022		2021		2020
	(U.S. $ in thousands)
Depreciation for tax purposes	$	1,691	$	(215)	$	(2,564)
Provisions, accruals and prepayments	(1,697)		(1,843)		(7,164)
Deferred revenue	1,291		(1,198)		(23,932)
Unrealized foreign currency exchange losses (gains)	(802)		1,422		(101)
Unrealized investment losses (gains)	8		5,269		(405)
Carried forward tax losses (gains)	1,966		1,970		(409)
Carried forward tax credits—credited to profit and loss	6,757		5,555		(3,005)
Intangible assets	(3,853)		44		13,095
Tax benefit from share plans—income	718		162		331
Tax benefit (expense) from share plans—equity	(870)		(704)		300
Deferred foreign taxes	—		—		10,605
Other, net	(2,872)		1,311		(2,667)
Deferred tax benefit (expense)	$	2,337	$	11,773	$	(15,916)

Reconciliation of net deferred tax assets:


	2022		2021
	(U.S. $ in thousands)

Balance at the beginning of	$	9,549	$	4,047
Deferred tax expense for the year	2,337		11,773
Credited (Debited) to equity	6,975		(6,147)

Impact from business combinations	(733)		(97)
Currency revaluation impact	(341)		(27)
Balance at the end of	$	16,303	$	9,549

The assessment of the realizability of the Australian and U.S. deferred tax assets is based on all available positive and negative evidence. Such evidence includes, but is not limited to, recent cumulative earnings or losses, expectations of future taxable income by taxing jurisdiction, and the carry-forward periods available for the utilization of deferred tax assets. The assessment of the recoverability of Australian and U.S. deferred tax assets will not change until there is sufficient evidence to support their realizability. The Group will continue to assess and record any necessary changes to align its deferred tax assets to their realizable value.

The Group does not have any material deferred tax liabilities associated with investments in its subsidiaries.

The Group recognizes certain amounts directly in equity including current tax benefits related to tax deductions in excess of cumulative book expense for share based payment awards, deferred tax benefits related to revaluing its deferred tax assets for share based payment awards to fair market value at each reporting date, and deferred tax expense or benefit related to unrealized gains and losses that are recorded in other comprehensive income.


	2022		2021
	(U.S. $ in thousands)
Amounts recognized directly in equity:

Net deferred tax—credited (debited) directly to equity	$	6,975	$	(6,147)

The Group has the following losses and credits available for offsetting future profit and taxes:


	Expiration	Amount carried forward		Amount recognized as of June 30, 2022
		(U.S. $ in thousands)
U.S. net operating loss (Pre - 2017 Tax Reform)	June 30, 2030-December 30, 2038	$	137,635	$	230
U.S. net operating loss (Post - 2017 Tax Reform)	None	4,290,309		7,172
State net operating loss- various states	June 30, 2024-June 30, 2041	1,269,537		685
UK net operating loss	None	14,602		—
U.S. research and development credits	June 30, 2025-June 30, 2041	98,885		813
State research and development credits- California	None	54,033		374
State research and development credits- Texas	June 30, 2036-June 30, 2041	6,157		6,157
Australia capital loss	None	4,637		—
India alternative minimum tax credits	March 31, 2036 - March 31, 2037	6,211		6,211
Poland research and development credits	June 30,2026 - June 30,2028	1,729		—

Trade Receivables

12 Months Ended

Jun. 30, 2022

Trade and other receivables [abstract]

Trade Receivables

The Group’s trade receivables consisted of the following:


	As of June 30,
	2022		2021
	(U.S. $ in thousands)
Gross trade receivables	$	312,172	$	173,849
Expected credit loss allowance	(4,045)		(376)
Total trade receivables	$	308,127	$	173,473

As of June 30, 2022 and 2021, no customer represented more than 10% of the total trade receivables balance.

Expected Credit Loss Allowance

The movements in the ECL allowance were as follows:


	(U.S. $ in thousands)
As of June 30, 2020	$	1,156
Change in estimate	(780)

As of June 30, 2021	$	376
Change in estimate	3,669

As of June 30, 2022	$	4,045

The following table sets forth the information about the credit risk exposure on the Group's trade receivables using a provision matrix:


				Past due days
	Current			< 90 days			> 90 days			Total
	(U.S. $ in thousands except ECL rate)
As of June 30, 2022
ECL rate	—		%	3.3		%	23.1		%
Trade receivables carrying amount	$	256,418		$	44,636		$	11,118		$	312,172
ECL allowance	—			1,479			2,566			4,045

As of June 30, 2021
ECL rate	—		%	0.3		%	20.9		%
Trade receivables carrying amount	$	157,804		$	14,468		$	1,577		$	173,849
ECL allowance	6			41			329			376

For the purpose of the provision matrix, customers are clustered into different risk classes, mainly based on past due days of trade receivables. We also consider market information such as the country risk assessment of their country of origin, type of industry and objective evidence of credit impairment for individual receivables. Loss rates used to reflect lifetime ECL are based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

Property and Equipment

12 Months Ended

Jun. 30, 2022

Disclosure of detailed information about property, plant and equipment [abstract]

Property and Equipment

Property and equipment, net consisted of the following:


	Equipment		Computer Hardware and Software		Furniture and Fittings		Leasehold Improvements and Other		Construction in progress*		Total
	(U.S. $ in thousands)
As of June 30, 2021
Opening cost balance	$	9,652	$	12,065	$	19,687	$	103,100	$	11,261	$	155,765
Additions	1,077		170		2,051		4,807		21,872		29,977
Transfer to assets held for sale	—		—		—		—		(35,123)		(35,123)
Disposals	(311)		(2,694)		(643)		(1,266)		—		(4,914)
Effect of change in exchange rates	12		(4)		93		355		1,990		2,446
Closing cost balance	10,430		9,537		21,188		106,996		—		148,151

Opening accumulated depreciation	(5,618)		(8,611)		(8,388)		(35,500)		—		(58,117)
Depreciation expense	(2,150)		(1,897)		(3,442)		(16,053)		—		(23,542)
Impairment	—		—		—		(3,676)		—		(3,676)
Effect of change in exchange rates	(7)		4		(31)		(99)		—		(133)
Disposals	230		1,442		602		1,264		—		3,538
Closing accumulated depreciation and impairment	(7,545)		(9,062)		(11,259)		(54,064)		—		(81,930)
Net book balance	$	2,885	$	475	$	9,929	$	52,932	$	—	$	66,221

As of June 30, 2022
Opening cost balance	$	10,430	$	9,537	$	21,188	$	106,996	$	—	$	148,151
Additions	78		16,818		6,409		28,628		—		51,933

Disposals	(1,160)		(7,720)		(2,230)		(14,631)		—		(25,741)
Effect of change in exchange rates	(208)		(311)		(210)		(1,326)		—		(2,055)
Closing cost balance	9,140		18,324		25,157		119,667		$	—	172,288

Opening accumulated depreciation	(7,545)		(9,062)		(11,259)		(54,064)		—		(81,930)
Depreciation expense	(1,641)		(1,648)		(3,180)		(12,296)		—		(18,765)

Effect of change in exchange rates	130		88		119		1,083		—		1,420
Disposals	1,153		7,720		2,149		14,519		—		25,541
Closing accumulated depreciation and impairment	(7,903)		(2,902)		(12,171)		(50,758)		—		(73,734)

Net book balance	$	1,237	$	15,422	$	12,986	$	68,909	$	—	$	98,554

*Construction in progress is related to the construction project associated with our new headquarters building in Sydney, Australia. As of June 30, 2021, construction in progress has been transferred to assets held for sale. Please refer to Note 14, “Other Balance Sheet Accounts,” for details of the transaction.

Goodwill and Intangible Assets

12 Months Ended

Jun. 30, 2022

Disclosure of detailed information about intangible assets [abstract]

Goodwill and Intangible Assets

Goodwill

Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill amounts are not amortized, but rather tested for impairment at least annually during the fourth quarter, or when indicators of impairment exist.

Goodwill consisted of the following:


		Goodwill
	Note	(U.S. $ in thousands)
Balance as of June 30, 2020		$	645,140
Additions	13	80,649
Effect of change in exchange rates		(31)
Balance as of June 30, 2021		$	725,758
Additions	13	9,361
Effect of change in exchange rates		(2,453)
Balance as of June 30, 2022		$	732,666

Additions to goodwill during fiscal year 2022 were as a result of an acquisition completed during the fiscal year. Additions to goodwill during fiscal year 2021 were as a result of the acquisitions completed during the fiscal year including, primarily Mindville AB (“Mindville”) and Chart.io, Inc. (“Chartio”). See Note 13, “Business combinations” for additional information regarding acquisitions.

Intangible assets

Intangible assets consisted of the following:


	Patents, Trademarks and Other Rights		Acquired Developed Technology		Customer Relationships		Total
	(U.S. $ in thousands)
As of June 30, 2021
Opening cost balance	$	27,795	$	214,744	$	128,502	$	371,041
Additions	1,800		23,005		1,849		26,654
Disposals	(220)		(6,900)		(310)		(7,430)

Closing cost balance	29,375		230,849		130,041		390,265

Opening accumulated amortization	(23,205)		(147,146)		(71,000)		(241,351)
Amortization charge	(1,124)		(21,691)		(8,939)		(31,754)
Disposals	220		6,900		310		7,430

Closing accumulated amortization	(24,109)		(161,937)		(79,629)		(265,675)
Net book balance	$	5,266	$	68,912	$	50,412	$	124,590

As of June 30, 2022
Opening cost balance	$	29,375	$	230,849	$	130,041	$	390,265
Additions	4,018		3,769		861		8,648
Disposals	—		—		(1,400)		(1,400)

Closing cost balance	33,393		234,618		129,502		397,513

Opening accumulated amortization	(24,109)		(161,937)		(79,629)		(265,675)
Amortization charge	(1,305)		(22,441)		(8,652)		(32,398)
Disposals	—		—		1,400		1,400

Closing accumulated amortization	(25,414)		(184,378)		(86,881)		(296,673)
Net book balance	$	7,979	$	50,240	$	42,621	$	100,840

As of June 30, 2022, no development costs have qualified for capitalization, and all development costs have been expensed as incurred.

As of June 30, 2022, the remaining amortization period for patents, trademarks and other rights ranged from one year to nine years. The remaining amortization period for acquired developed technology ranged from approximately one year to four years. The remaining amortization period for customer relationships ranged from one year to six years.

Leases

12 Months Ended

Jun. 30, 2022

Presentation of leases for lessee [abstract]

Leases

The Group leases various offices in locations including, Sydney, Australia; the San Francisco Bay Area, California, New York, New York, Austin, Texas, and Boston, Massachusetts, in the United States; Amsterdam, the Netherlands; Manila, the Philippines; Bengaluru, India; Yokohama, Japan; and Gdansk, Poland under leases expiring within one to twelve years. The leases have varying terms, escalation clauses and renewal rights. On renewal, the terms of the leases are renegotiated. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. Our lease agreements generally do not contain any material residual value guarantees or material restrictive covenants.

The following table sets forth the carrying amounts of our right-of-use assets and lease obligations and the movements during the fiscal years ended June 30, 2022 and 2021:


	Fiscal Year Ended June 30,
	2022		2021
	(U.S. $ in thousands)
Right-of-use assets
Balance at the beginning of period	$	205,300	$	217,683
Additions	105,592		28,939
Disposals	—		(256)
Depreciation expense	(42,795)		(37,552)
Effect of change in exchange rates	(769)		245
Impairment of right-of-use asset	—		(3,759)
Balance at the end of period	$	267,328	$	205,300

Lease obligations
Balance at the beginning of period	$	256,549	$	264,568
Additions	105,961		27,042
Disposals	—		(270)
Interest expense	7,257		7,019
Payments	(49,142)		(44,874)
Effect of change in exchange rates	(5,553)		3,064
Balance at the end of period	$	315,072	$	256,549

Lease obligations, current	$	40,638	$	42,446
Lease obligations, non-current	274,434		214,103
Total lease obligations, as the end of period	$	315,072	$	256,549

The following table presents supplemental information about our leases:


	Fiscal Year Ended June 30,
	2022		2021

Short-term leases and low value leases expense:
Short-term leases expense	$	363	$	336
Low value leases expense	$	2,198	$	1,436

Cash outflows:
Principal portion of the lease obligations	$	41,885	$	37,855
Interest portion of the lease obligations	7,257		7,019
Short-term leases and low value leases	2,035		2,999
Total cash outflows	$	51,177	$	47,873

As of June 30, 2022, we have entered into an Agreement for Lease (the “AFL”) for our new global headquarters in Sydney, Australia (the “Australian HQ Property”). Following completion of the development of the Australian HQ Property, the AFL requires the Group to enter into a lease agreement for the planned headquarters office space. The lease is expected to commence in fiscal year 2027 and will continue for 15 years, with the Group’s option to extend the term for up to two additional ten-year periods. Future lease payments are approximately $1.0 billion for the initial term of 15 years. Please refer to Note 14, “Other Balance Sheet Accounts,” for details of the transaction.

Business Combinations

12 Months Ended

Jun. 30, 2022

Disclosure of detailed information about business combination [abstract]

Business Combinations

Fiscal year 2022

We acquired a company primarily to expand our products and services offerings during the fiscal year ended June 30, 2022. The acquisition is not significant to our consolidated financial statements.

Fiscal year 2021

Mindville

On July 24, 2020, we acquired 100% of the outstanding equity of Mindville, an asset and configuration management company based in Sweden. Total purchase price consideration for Mindville was approximately $36.4 million in cash. In addition, the Company granted $12.0 million worth of restricted shares of the Company to key employees of Mindville, which are subject to future vesting provisions based on service conditions and accounted for as share based compensation. For details of restricted shares, please refer to Note 22, “Share-based Payments.”

With the acquisition of Mindville, Atlassian brings critical configuration management database capabilities to Jira Service Management to better meet the needs of its IT customers. We have included the financial results of Mindville in our consolidated financial statements from the date of acquisition, which have not been material. Pro forma results of operations have not been presented for the twelve months ended June 30, 2021 because the effect of the acquisition was not material to the financial statements.

The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of the date of acquisition:


	Fair Value
	(U.S. $ in thousands)
Cash and cash equivalents	$	1,235
Tax receivables, current	166
Prepaid expenses and other current assets	668
Property and equipment, net	52
Right-of-use assets, net	403
Intangible assets	9,600
Goodwill	30,039
Trade and other payables	(492)
Tax liabilities	(23)
Provisions, current	(135)
Deferred revenue	(1,300)
Lease obligations, current	(268)
Deferred tax liabilities	(2,694)
Lease obligations, non-current	(136)
Other non-current liabilities	(669)
Net assets acquired	$	36,446

The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. The goodwill balance is primarily attributed to the assembled workforce and expanded market opportunities. The goodwill balance is deductible in the U.S. and not deductible in Sweden for income tax purposes. The fair values assigned to tangible assets acquired, liabilities assumed and identifiable intangible assets were based on management’s estimates and assumptions. The deferred tax liabilities were primarily a result of the difference in the book basis and tax basis related to the identifiable intangible assets. Transaction costs of $1.1 million were expensed as incurred, which was included in general and administrative expenses.

The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition:


	Fair Value		Useful Life
	(U.S. $ in thousands)		(years)
Developed technology	$	8,200	5
Customer relationships	1,400		5
Total intangible assets subject to amortization	$	9,600

The amount recorded for developed technology represents the estimated fair value of Mindville’s asset and configuration management solution. The amount recorded for customer relationships represents the fair value of the underlying relationships with Mindville’s customers. The purchase price allocation was finalized in fiscal year 2022 without further adjustment.

Chartio

On February 26, 2021, we acquired 100% of the outstanding equity of Chart.io, Inc. (“Chartio”), a data analytics and visualization tool that allows users to create dashboards and charts using their various data sources. Total purchase price consideration for Chartio was approximately $45.6 million, consisting of $45.0 million in cash and $0.6 million in equity. In addition, the Company granted $4.5 million worth of restricted shares of the Company to key employees of Chartio, which are subject to future vesting provisions based on service conditions and accounted for as share based compensation.

The acquisition of Chartio brings an analytics and data visualization solution to Atlassian’s products, including Jira Software, Jira Align and Jira Service Management. We have included the financial results of Chartio in our

consolidated financial statements from the date of acquisition. Pro forma results of operations have not been presented for the twelve months ended June 30, 2021 because the effect of the acquisition was not material to the financial statements.

The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of the date of acquisition:


	Fair Value
	(U.S. $ in thousands)
Cash and cash equivalents	$	1,035
Accounts receivable	266
Prepaid and other assets	40
Deferred tax assets	3,133
Developed technology	12,400
Goodwill	33,437
Deferred revenue	(682)
Trade and other payables	(674)
Deferred tax liabilities	(3,387)
Net assets acquired	$	45,568

The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. The goodwill balance is primarily attributed to the assembled workforce and expanded market opportunities. The goodwill balance is not deductible in the U.S. for income tax purposes. The fair values assigned to tangible assets acquired, liabilities assumed and identifiable intangible assets were based on management’s estimates and assumptions. The fair value of acquired receivables approximates the gross contractual amounts receivable. The deferred tax liabilities were primarily a result of the difference in the book basis and tax basis related to the identifiable intangible assets. The amount recorded for developed technology of $12.4 million represents the estimated fair value of Chartio’s data visualization technology and is amortized over six years. The purchase price allocation was finalized in fiscal year 2022 without further adjustment.

Other fiscal year 2021 business combinations

On October 27, 2020, we acquired 100% of the outstanding equity of a privately held company in Poland that primarily provided outsourced software development and support services to Atlassian for a cash consideration of approximately $10.6 million. The purchase price was allocated to net liabilities of $0.7 million and goodwill of $11.3 million. The goodwill balance is primarily attributed to the assembled workforce and is deductible in the U.S. and not deductible in Poland for income tax purposes.

On April 12, 2021, we acquired 100% of the outstanding equity of a privately held company in Australia which sells a no-code/low-code form builder for Jira for a cash consideration of approximately $9.2 million. The purchase price was allocated to net assets of $0.3 million, developed technology of $2.4 million, customer relationship of $0.5 million and goodwill of $6.0 million. The goodwill balance is primarily attributed to the assembled workforce and expanded market opportunities. The goodwill balance is deductible in the U.S. and not deductible in Australia for income tax purposes.

Fiscal Year 2020

Code Barrel

On October 15, 2019, we acquired 100% of the outstanding equity of Code Barrel, a workflow automation tool for Jira. Total purchase price consideration for Code Barrel was approximately $39.1 million in cash. In addition, the Company granted $27.0 million worth of restricted shares of the Company to key employees of Code Barrel, which are subject to future vesting provisions based on service conditions and accounted for as share-based compensation.

Code Barrel is the creator of ‘Automation for Jira,’ a tool for easily automating several aspects of Jira. The acquisition of Code Barrel enhances Jira by helping customers automate more of the time-consuming and error-prone tasks in Jira. We have included the financial results of Code Barrel in our consolidated financial statements from the date of acquisition, which have not been material. Pro forma results of operations have not been presented for the twelve months ended June 30, 2022 because the effect of the acquisition was not material to the financial statements.

The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of the date of acquisition:


	Fair Value
	(U.S. $ in thousands)
Cash and cash equivalents	$	1,970
Intangible assets	15,900
Goodwill	23,124
Trade and other payables	(617)
Deferred revenue	(600)
Deferred tax liabilities	(639)
Net assets acquired	$	39,138

The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. The goodwill balance is primarily attributed to the assembled workforce and expanded market opportunities. The goodwill balance is deductible in Australia and not deductible in the U.S. for income tax purposes. The fair values assigned to tangible assets acquired, liabilities assumed and identifiable intangible assets were based on management’s estimates and assumptions. The deferred tax liabilities were primarily a result of the difference in the book basis and tax basis related to the identifiable intangible assets.

The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition:


	Fair Value		Useful Life
	(U.S. $ in thousands)		(years)
Developed technology	$	13,700	4
Customer relationships	1,800		3
Trade name	400		1
Total intangible assets subject to amortization	$	15,900

The amount recorded for developed technology represents the estimated fair value of Code Barrel’s workflow automation technology. The amount recorded for customer relationships represents the fair value of the underlying relationships with Code Barrel’s customers. The amount recorded for trade name represents the fair value of Code Barrel’s brand recognition as of acquisition date. The purchase price allocation was finalized in fiscal year 2021 without further adjustment.

Halp

On May 11, 2020, we acquired 100% of the outstanding equity of Halp, a message-based conversational help desk ticketing solution. Total purchase price consideration for Halp was approximately $17.6 million, which consisted of approximately $17.0 million in cash and $0.6 million in fair value of replacement shares attributable to service provided prior to acquisition. The Company issued 9,929 replacement shares and the fair value of the replacement shares was based on grant date stock price of the Company. In addition, the Company granted $4.1 million worth of restricted shares of the Company to key employees of Halp, which are subject to future vesting provisions based on service conditions and accounted for as share based compensation.

We acquired Halp to provide customers a standalone solution that allows them to turn their internal messaging tool into a help desk. For customers using Jira Service Management or similar service management tools, Halp integrates their messaging tool seamlessly with their established workflows. We have included the financial results of Halp in our consolidated financial statements from the date of acquisition, which have not been

material to date. Pro forma results of operations have not been presented for the twelve months ended June 30, 2020 because the effect of the acquisition was not material to the financial statements.

The following table summarizes the preliminary estimated fair values of assets acquired and liabilities assumed as of the date of acquisition:


	Fair Value
	(U.S. $ in thousands)
Cash and cash equivalents	$	664
Trade receivables	36
Prepaid expenses and other current assets	22
Deferred tax assets	475
Intangible assets	5,350
Goodwill	12,322
Deferred revenue	(50)
Deferred tax liabilities	(1,237)
Net assets acquired	$	17,582

The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. The goodwill balance is primarily attributed to the assembled workforce and expanded market opportunities. The goodwill balance is not deductible for income tax purposes. The fair values assigned to tangible assets acquired, liabilities assumed and identifiable intangible assets were based on management’s estimates and assumptions. The fair value of acquired receivables approximates the gross contractual amounts receivable.

The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition:


	Fair Value		Useful Life
	(U.S. $ in thousands)		(years)
Developed technology	$	4,400	6
Customer relationships	850		6
Trade name	100		1
Total intangible assets subject to amortization	$	5,350

The amount recorded for developed technology represents the estimated fair value of Halp’s message-based help desk ticketing technology. The amount recorded for customer relationships represents the fair value of the underlying relationships with Halp’s customers. The amount recorded for trade name represents the fair value of Halp’s brand recognition as of the acquisition date. The purchase price allocation was finalized in fiscal year 2021 without further adjustment.

Other Balance Sheet Accounts

12 Months Ended

Jun. 30, 2022

Subclassifications of assets, liabilities and equities [abstract]

Other Balance Sheet Accounts

Cash and cash equivalents

Cash and cash equivalents consisted of the following:


	As of June 30,
	2022		2021
	(U.S. $ in thousands)
Cash and bank deposits	$	820,959	$	739,042
Amounts due from third-party credit card processors	9,059		5,272
Money market funds	555,247		20,966
Commercial paper	—		149,347
Agency securities	—		4,600




Total cash and cash equivalents	$	1,385,265	$	919,227

The majority of the Group’s cash and cash equivalents are held in bank deposits, money market funds and short-term investments which have a maturity of three months or less to enable us to meet our short-term liquidity requirements. Money market funds are quoted in active markets and are subject to insignificant risk of changes in value. The Group only purchases investment grade securities rated A- and above, which are highly liquid and subject to insignificant risk of changes in value.

Prepaid expenses and other current assets

Prepaid expenses and other current assets consisted of the following:


	As of June 30,
	2022		2021
	(U.S. $ in thousands)
Prepaid expenses	$	40,384	$	33,923
Deferred commission	8,806		3,226
Accrued interest income on short-term investments	621		1,411
Other receivables	3,746		6,149
Other current assets	4,520		3,613
Total prepaid expenses and other current assets	$	58,077	$	48,322

Assets held for sale

During the fourth quarter of the fiscal year ended June 30, 2021, the Group committed to a plan to sell a controlling interest of our subsidiary, Vertical First Trust (“VFT”), which was established for the construction project associated with the Australian HQ Property. In July 2021, the Group entered into a term sheet with a buyer to effect the sale. The term sheet provides a framework for the buyer to invest in and develop the Australian HQ Property. In March 2022, the Group entered into a series of agreements with the buyer, including the Agreement for Lease. As part of the contemplated transactions and subject to certain contingencies, the buyer was to take control of VFT and construct the Australian HQ Property. The Group will retain a minority equity interest in Vertical First Trust. On July 20, 2022, the Group completed a non-cash sale of a controlling interest of VFT to the buyer as part of the contemplated transactions, please refer to Note 23, “Events after the reporting period,” for details.

The assets were presented as held for sale in the consolidated statements of financial position as of June 30, 2022 and 2021 measured at the lower of carrying value or fair value less cost to sell.

The major assets classified as held for sale at June 30, 2022 and 2021 and were as follows:


	As of
	June 30, 2022		June 30, 2021
	(U.S. $ in thousands)
Cash and cash equivalents	$	2,701	$	9,317
Property and equipment, net	$	57,482	$	34,092

The following table sets forth the carrying amounts of property and equipment, net in assets held for sale and the movements during the fiscal year ended June 30, 2022:


	Fiscal Year Ended June 30, 2022
	(U.S. $ in thousands)
Balance at the beginning of period	$	34,092
Additions	26,899
Effect of change in exchange rates	(3,509)
Balance at the end of period	$	57,482

Other non-current assets

Other non-current assets consisted of the following:


	As of June 30,
	2022		2021
	(U.S. $ in thousands)

Security deposits	$	948	$	4,267
Restricted cash	1,422		11,795
Derivative assets	30,367		3,147
Deferred commission	18,335		5,785
Other	9,668		12,642
Total other non-current assets	$	60,740	$	37,636

As of June 30, 2022 and 2021, the Group’s restricted cash was primarily used for the benefit of employees through a deferred compensation plan and for commitments of standby letters of credit related to facility leases and was not available for the Group’s use in its operations, respectively. As of June 30, 2021, the Group had certificates of deposit and time deposits totaling $2.6 million, which were classified as long-term and were included in security deposits.

Trade and other payables

Trade and other payables consisted of the following:


	As of June 30,
	2022		2021
	(U.S. $ in thousands)
Trade payables	$	67,355	$	40,366
Accrued expenses	161,599		101,940
Accrued bonus	126,687		91,894

Value-added tax payables	14,887		10,152
Current portion of contingent consideration	1,500		6,896
Customer deposits	9,718		8,832
Liabilities held for sale	17,564		949
Other payables	5,598		5,468
Total trade and other payables	$	404,908	$	266,497

Current provisions

Current provisions consisted of the following:


	As of June 30,
	2022		2021
	(U.S. $ in thousands)
Employee benefits	$	32,796	$	24,690
Dilapidation provision	—		458
Total current provisions	$	32,796	$	25,148

Current provisions for employee benefits include accrued annual leave, long service leave and retention benefits. Long service leave covers all unconditional entitlements where employees have completed the required period of service and those where employees are entitled to pro rata payments.

The dilapidation provision relates to certain lease arrangements for office space entered into by the Group. These lease arrangements require the Group to restore each premises to its original condition upon lease termination. Accordingly, the Group records a provision for the present value of the estimated future costs to retire lease related assets at the expiration of these leases.

Non-current provisions

Non-current provisions consisted of the following:


	As of June 30,
	2022		2021
	(U.S. $ in thousands)
Employee benefits	$	8,630	$	7,255
Dilapidation provision	5,174		5,180
Total non-current provisions	$	13,804	$	12,435

The non-current provision for employee benefits includes long service leave and retention benefits as described above. The dilapidation provision relates to certain lease arrangements for office space entered into by the Group as described above.

Revenue

12 Months Ended

Jun. 30, 2022

Disclosure of revenue from contracts with customers [Abstract]

Revenue

Deferred revenues

We record deferred revenues when cash payments are received or due in advance of our performance, including amounts which are refundable. The changes in the balances of deferred revenue are as follows:


	Fiscal Year Ended June 30,
		2022		2021

Balance, beginning of period		$	897,595	$	601,005
Additions		3,087,967		2,385,722
Subscription revenue		(2,096,706)		(1,324,064)
Maintenance revenue		(495,077)		(522,971)

Other revenue		(211,099)		(242,097)
Balance, end of period		$	1,182,680	$	897,595

The additions in the deferred revenue balance are primarily cash payments received or due in advance of satisfying our performance obligations.

For the fiscal years ended June 30, 2022 and 2021, approximately 29% and 27% of revenue recognized was from the deferred revenue balances at the beginning of each fiscal year, respectively.

Transaction price allocated to remaining performance obligations

Transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. Transaction price allocated to the remaining performance obligations is influenced by several factors, including the timing of renewals, the timing of delivery of software licenses, average contract terms, and foreign currency exchange rates. Unbilled portions of the remaining performance obligations are subject to future economic risks including bankruptcies, regulatory changes and other market factors.

As of June 30, 2022, approximately $1.3 billion of revenue is expected to be recognized from transaction price allocated to remaining performance obligations. We expect to recognize revenue on approximately 84% of these remaining performance obligations over the next 12 months with the balance recognized thereafter.

Disaggregated revenue

The Group’s revenues by geographic region based on end-users who purchased our products or services are as follows:


	Fiscal Year Ended June 30,
	2022		2021		2020
	(U.S. $ in thousands)
Americas:
United States	$	1,230,801	$	901,389	$	700,893
Other Americas	178,067		127,092		101,606
Total Americas	$	1,408,868	$	1,028,481	$	802,499

EMEA:
United Kingdom	$	187,863	$	139,411	$	110,887
Other EMEA	889,475		687,034		522,848
Total EMEA	$	1,077,338	$	826,445	$	633,735

Asia Pacific	$	316,676	$	234,206	$	177,939

Total revenues	$	2,802,882	$	2,089,132	$	1,614,173

No one customer has accounted for more than 10% of revenue for the fiscal years ended 2022, 2021, and 2020.

The Group provides different deployment options for our product offerings. Cloud offerings provide customers the right to use our software in a cloud-based infrastructure that we provide. Data Center offerings are on-premises term license agreements for our Data Center products, which are software licensed for a specified period, and includes support and maintenance service that is bundled with the license for the term of the license period. Server offerings include the license of software on a perpetual basis to customers for use on the customer’s premises and support and maintenance service of unspecified future updates, upgrades and enhancements and technical product support. Marketplace and services offerings mainly include fees received for sales of third-party apps in the Atlassian Marketplace and services like premier support, technical account management, consulting and training. Premier support consists of subscription-based arrangements for a higher level of support across different deployment options, and revenues from this offering are included in Subscription revenues within our Consolidated Statements of Operations. For the fiscal years ended June 30, 2022, 2021 and 2020, premier support revenues were $21.0 million, $20.0 million, and $21.1 million, respectively.

The Group’s revenues by deployment options are as follows:


	Fiscal Year Ended June 30,
	2022		2021		2020
	(U.S. $ in thousands)
Cloud	$	1,515,424	$	967,832	$	696,628
Data Center	560,319		336,273		213,678
Server	525,028		607,778		564,513
Marketplace and services	202,111		177,249		139,354
Total revenues	$	2,802,882	$	2,089,132	$	1,614,173

Deferred commissions

Deferred commissions are costs incurred to obtain a contract if such costs are recoverable, and consist primarily of sales commissions, related payroll taxes, and third-party referral fees. Incremental costs of obtaining a contract are earned on new and expansion contracts which are capitalized and amortized over the average period of benefit that we have determined to be four years, which is typically greater than the term of the initial customer

contract and reflects the average period of benefit, including anticipated renewals. We determine the period of benefit by taking into consideration the initial estimated customer life and the technological life and related significant features.

Amortization of capitalized contract costs are commensurate to the pattern of revenue recognition, or when the transfer of control of the related goods or services occurs. Therefore, a portion of commissions related to our Data Center offering is expensed when the control of the license is transferred to the customer, and all other commissions are amortized on a straight-line basis over the four-year period. Amortization of deferred commissions is included in marketing and sales expense in the consolidated statements of operations. We apply the practical expedient to expense costs as incurred for contract costs when the amortization period would have been one year or less. These costs include commissions on one-year renewal contracts as we have determined such commissions are commensurate with annual sales activities.

We periodically review these deferred commissions to determine whether events or changes in circumstances have occurred that could impact the period of benefit. There were no impairments of deferred commissions for fiscal year ended June 30, 2022 and 2021.

The changes in the balances of deferred commissions are as follows:


	Fiscal Year Ended June 30,
	2022		2021
	(U.S. $ in thousands)
Balance, beginning of period	$	9,011	$	4,495
Additions	24,302		7,450
Amortization expense	(6,172)		(2,934)
Balance, end of period	$	27,141	$	9,011

Deferred commission included in prepaid expenses and other current assets	$	8,806	$	3,226
Deferred commission included in other non-current assets	18,335		5,785
Total deferred commission, as the end of period	$	27,141	$	9,011

Debt

12 Months Ended

Jun. 30, 2022

Borrowings [abstract]

Debt

Exchangeable Senior Notes

2023 Exchangeable Senior Notes

In 2018, Atlassian US, Inc., a wholly owned subsidiary of the Company, issued $1 billion in aggregate principal amount of Notes due on May 1, 2023. The Notes were senior, unsecured obligations of the Group, and were scheduled to mature on May 1, 2023, unless earlier exchanged, redeemed or repurchased. The Notes bore interest at a rate of 0.625% per year payable semiannually in arrears on May 1 and November 1 of each year, beginning on November 1, 2018. The net proceeds from the offering of the Notes were approximately $990.0 million, after deducting issuance cost. The Notes were classified as Level 2 instruments, and the estimated fair value of the Notes was $1,151 million as of June 30, 2021.

In connection with the issuance of the Notes, the Company entered into privately negotiated capped call transactions with certain financial institutions. The aggregate cost of the capped calls was $87.7 million. The capped call transactions were scheduled to expire in May 2023 and were required to be settled in cash. The capped call transactions were expected to generally offset cash payments due, limited by a capped price per share. The initial cap price of the capped call transactions was $114.42 per share and was subject to certain adjustments under the terms of the capped call transactions. The fair value of capped call assets was $124.2 million as of June 30, 2021. As of June 30, 2022, the Notes and the related capped call transactions were fully settled and no longer outstanding.

The exchange feature of the Notes required bifurcation from the Notes and was accounted for as a derivative liability. The capped call transactions were accounted for as derivative assets. The Notes embedded exchange

derivative and capped call assets were carried on the consolidated statements of financial position at their estimated fair values and were adjusted at the end of each reporting period, with unrealized gain or loss reflected in the consolidated statements of operations.

The current or non-current classification of the embedded exchange derivative liability and the capped calls asset corresponds with the classification of the Notes on the consolidated statements of financial position. The classification was evaluated at each balance sheet date. As of June 30, 2021, the closing price exchange condition has been met and the Notes, exchange derivative liability and the capped call assets were classified as current. Please refer to Note 5, “Financial Assets and Liabilities” for details on the valuation of exchange feature derivative liability and capped call assets.

During fiscal year 2021, we repurchased $643.2 million principal amount of the Notes in privately-negotiated transactions for aggregate consideration of $1.8 billion in cash. In addition, we settled $4.7 million principal amount of the Notes through early exchange requests for aggregate consideration of $12.8 million during fiscal year 2021. We unwound the corresponding portion of our capped calls for net proceeds of $203.1 million.

During fiscal year 2022, we fully settled $352.2 million principal amount of the Notes for aggregate consideration of $1.5 billion in cash and unwound the corresponding portion of our capped calls for net proceeds of $135.5 million.

The principal amount, unamortized debt discount, unamortized issuance costs and net carrying amount of the liability component of the Notes as of June 30, 2022 and 2021 were as follows:


	As of June 30,
	2022		2021
	(U.S. $ in thousands)
Principal amount	$	—	$	352,171
Unamortized debt discount	—		(3,224)
Unamortized issuance cost	—		(148)
Net liability	$	—	$	348,799

The effective interest rate, contractual interest expense and amortization of debt discount for the Notes for the fiscal year ended June 30, 2022 and 2021 were as follows:


	Fiscal Year Ended June 30,
	2022			2021
	(U.S. $ in thousands)
Effective interest rate	4.83		%	4.83		%
Contractual interest expense	$	—		$	4,859
Amortization of debt discount	$	3,224		$	102,673
Amortization of issuance cost	$	148		$	4,703

Credit Facility

In October 2020, Atlassian US, Inc. entered into a $1 billion Term Loan Facility and a $500 million Revolving Credit Facility. The Group will use the net proceeds of the Credit Facility for general corporate purposes, including repayment of the then existing indebtedness. The Credit Facility matures in October 2025 and bears interest, at the Group’s option, at a base rate plus a margin up to 0.50% or LIBOR rate plus a spread of 0.875% to 1.50%, in each case with such margin being determined by the Group’s consolidated leverage ratio. The Revolving Credit Facility may be borrowed, repaid, and re-borrowed until its maturity, and the Group has the option to request an increase of $250 million in certain circumstances. The Group may prepay the Credit Facility at its discretion without penalty. Commencing on October 31, 2023, we are obligated to repay the outstanding principal amount of the Credit Facility in installments on a quarterly basis in an amount equal to 1.25% of the Credit Facility borrowing amount until the maturity of the Credit Facility.

The Group is also obligated to pay a ticking fee and a commitment fee on the undrawn amounts of the Term Loan Facility and Revolving Credit Facility, respectively, at an annual rate ranging from 0.075% to 0.20%, determined by the Group’s consolidated leverage ratio. The Credit Facility requires compliance with various financial and non-financial covenants, including affirmative and negative covenants. The financial covenants include a maximum consolidated leverage ratio of 3.5x, which increases to 4.5x during the period of four fiscal quarters immediately following a material acquisition. As of June 30, 2022, the Group was in compliance with all related covenants.

During the fiscal year ended June 30, 2022, the Group drew $1.0 billion from the Term Loan Facility. The principal amount and unamortized issuance costs of the Term Loan as of June 30, 2022 were as follows:


	As of June 30, 2022
	(U.S. $ in thousands)
Principal amount	$	1,000,000
Unamortized issuance cost	(581)
Net liability	$	999,419

The total contractual interest expense, including the ticking fee and commitment fee, for the Credit Facility was $11.6 million for the fiscal year 2022.

Reconciliation of assets and liabilities arising from financing activities:


	Capped call assets		Exchangeable Notes, net		Embedded exchange feature of Notes		Term loan Facility
	(U.S. $ in thousands)
Balance as of June 30, 2020	$	(310,608)	$	889,183	$	1,283,089	$	—
Cash flows	203,093		(647,760)		(1,155,484)		—
Amortization of debt discount and issuance cost	—		107,376		—		—
Fair value changes	(16,638)		—		633,084		—
Accrual of interest	—		—		—		—
Balance as of June 30, 2021	$	(124,153)	$	348,799	$	760,689	$	—
Cash flows	135,497		(352,171)		(1,196,515)		1,000,000
Amortization of debt discount and issuance cost	—		3,372		—		160
Fair value changes	(11,344)		—		435,826		—
Other	—		—		—		(741)
Balance as of June 30, 2022	$	—	$	—	$	—	$	999,419

Shareholders' Equity

12 Months Ended

Jun. 30, 2022

Disclosure of classes of share capital [abstract]

Shareholders' Equity

Shareholders’ Equity

Share capital


	As of June 30,		As of June 30,
	2022	2021	2022		2021
	(number of shares)		(U.S. $ in thousands)
Details
Class A ordinary shares	144,819,265	137,037,518	$	14,481	$	13,703
Class B ordinary shares	110,035,649	114,609,645	11,004		11,461



	254,854,914	251,647,163	$	25,485	$	25,164

Movements in Class A ordinary share capital


	Number of Shares	Amount
		(U.S. $ in thousands)
Details
Balance as of June 30, 2020	127,685,599	$	12,768
Conversion of Class B ordinary shares	5,152,036	515
Exercise of share options	390,802	39
Issuance for settlement of RSUs	3,468,136	347
Vesting of early exercised shares	340,945	34
Balance as of June 30, 2021	137,037,518	$	13,703
Conversion of Class B ordinary shares	4,573,996	457
Exercise of share options	42,973	4
Issuance for settlement of RSUs	2,958,190	296
Vesting of early exercised shares	206,588	21
Balance as of June 30, 2022	144,819,265	$	14,481

Class A shares as of June 30, 2022 and June 30, 2021 does not include 72,484 and 270,251 shares of restricted stock outstanding, respectively, that are subject to forfeiture or repurchase.

Movements in Class B ordinary share capital


	Number of Shares	Amount
		(U.S. $ in thousands)
Details
Balance as of June 30, 2020	119,761,681	$	11,976

Conversion to Class A ordinary shares	(5,152,036)	(515)
Balance as of June 30, 2021	114,609,645	$	11,461

Conversion to Class A ordinary shares	(4,573,996)	(457)
Balance as of June 30, 2022	110,035,649	$	11,004

Ordinary shares

Nominal value

Ordinary shares have a nominal value of $0.10.

Conversion

If the aggregate number of Class B ordinary shares comprises less than 10% of the total shares of the Company then in issue, each Class B ordinary share will automatically convert into one Class A ordinary share.

Upon consent of at least 66.66% of the Class B ordinary shares, each Class B ordinary share will convert into one Class A ordinary share. A Class B ordinary shareholder may elect at any time to convert any of its Class B ordinary shares into Class A ordinary shares on a one-for-one basis. Upon a transfer of Class B ordinary shares to a person or entity that is not a permitted Class B ordinary share transferee as defined in the Company’s articles of association, each transferred Class B ordinary share converts into one Class A ordinary share.

Dividend rights

Any dividend declared by the Company shall be paid on the Class A ordinary shares and the Class B ordinary shares pari passu as if they were all shares of the same class.

Voting rights

Each Class A ordinary share is entitled to one vote. Each Class B ordinary share is entitled to ten votes.

Share premium

Share premium consists of additional consideration for shares above the nominal value of shares in issue.

Other capital reserves


	As of June 30,
	2022		2021
	(U.S. $ in thousands)
Capital redemption reserve	$	98	$	98
Merger reserve	34,943		34,943
Share-based payments reserve	2,188,779		1,481,568
Other capital reserves	$	2,223,820	$	1,516,609

Capital redemption and merger reserves

The Company has capital redemption and merger reserves of $35.0 million in total at June 30, 2022, 2021 and 2020. They are comprised of a $98 thousand capital redemption reserve that is a non-distributable reserve arising on the redemption of redeemable shares and a $34.9 million merger reserve representing the difference between the nominal value of the shares issued by the Company in a prior reorganization and the share capital and share premium account prior to reorganization.

Share-based payments reserve

Share-based payments represent the current period’s expense related to the fair value of RSUs and share options issued to employees. Tax benefits from share plans represent the deferred tax benefit of share-based payments in excess of the expense already recognized over the life of the share-based award. The total deferred tax benefit is determined using the intrinsic value of the share-based award as at the reporting date. Issuance of ordinary shares for settlement of RSUs represents the release of ordinary shares to our employees as RSUs vest and reduces the share-based payments reserve.

Other components of equity

Cash flow hedge reserve

The change in fair value for the Group’s derivatives designated as hedging instruments are recognized in other comprehensive income and accumulated in a separate reserve within equity. The effect of the cash flow hedges determined to be effective is reclassified to the consolidated statements of operations in the same period as the hedged transactions. Gains or losses related to ineffective portion of cash flow hedges, if any, are recognized immediately to the consolidated statements of operations.

Foreign currency translation reserve

Exchange differences arising on translation of foreign subsidiaries are recognized in other comprehensive income and accumulated in a separate reserve within equity. The cumulative amount is reclassified to the consolidated statements of operations when the net investment is disposed.

Investments at fair value through other comprehensive income reserve

The change in fair value for the Group’s financial instruments classified at fair value through other comprehensive income are recognized in other comprehensive income and accumulated in a separate reserve within equity. The cumulative amount related to the Group’s debt investments is reclassified to the consolidated statements of operations upon the sale of the investment. In contrast, the cumulative amount related to the Group’s equity investments will remain in other comprehensive income upon the sale of the investments.

Earnings Per Share

12 Months Ended

Jun. 30, 2022

Earnings per share [abstract]

Earnings Per Share

Basic earnings per share is computed by dividing the net income attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Diluted earnings per share is computed by giving effect to all potential weighted-average dilutive shares. The dilutive effect of outstanding awards is reflected in diluted earnings per share by application of the treasury stock method.

A reconciliation of the calculation of basic and diluted loss per share is as follows:


	Fiscal Year Ended June 30,
	2022		2021		2020
	(U.S. $ and shares in thousands, except per share data)
Numerator:
Net loss attributable to ordinary shareholders	$	(614,124)	$	(696,315)	$	(350,654)




Denominator:
Weighted-average ordinary shares outstanding—basic and diluted	253,312		249,679		244,844



Net loss per share attributable to ordinary shareholders:
Basic and diluted net loss per share	$	(2.42)	$	(2.79)	$	(1.43)

The computed net loss per share for fiscal years ended June 30, 2022, 2021 and 2020 does not assume conversion of securities that would have an antidilutive effect on earnings per share. For fiscal years ended June 30, 2022, 2021 and 2020, there were 4.8 million, 5.0 million and 6.8 million shares excluded as conversion of such securities would have an antidilutive effect on net loss per share, respectively.

Commitments

12 Months Ended

Jun. 30, 2022

Disclosure of commitments [Abstract]

Commitments

The Group has contractual commitments for services with third-parties related to its cloud services platform and other infrastructure services. These commitments are non-cancellable and expire within one to five years . The Group also has capital purchase obligations for the construction or purchase of property and equipment. Additionally, there is lease commitment that the Group has entered but the lease has not yet commenced.

The following table sets forth contractual commitments as of June 30, 2022 and 2021:


	Fiscal Year Ended June 30,
	2022		2021
	(U.S. $ in thousands)
Capital purchase obligations	$	9,028	$	11,076
Other purchase obligations	143,907		114,060
Obligations for leases that have not yet commenced	956,118		88,855
Total purchase obligation	$	1,109,053	$	213,991

Maturities of purchase obligations as of June 30, 2022 were as follows:


	Capital purchase obligations		Other purchase obligations		Obligations for leases that have not yet commenced		Total
	(U.S. $ in thousands)
Fiscal Period:
Year ending 2023	$	9,028	$	98,847	$	—	$	107,875
Year ending 2024 - 2025	—		35,816		—		35,816
Year ending 2026 - 2027	—		9,244		35,812		45,056
Thereafter	—		—		920,306		920,306
Total commitments	$	9,028	$	143,907	$	956,118	1,109,053

Related Party Transactions

12 Months Ended

Jun. 30, 2022

Related Party Transactions

Key management personnel compensation

All directors and executive management have authority and responsibility for planning, directing and controlling the activities of the Group, and are considered to be key management personnel.

Compensation for the Group’s key management personnel is as follows:


	Fiscal Year Ended June 30,
	2022		2021		2020
	(U.S. $ in thousands)
Executive management:
Short-term compensation and benefits	$	4,986	$	3,303	$	3,334
Post-employment benefits	81		71		68
Share-based payments	58,531		12,053		15,509
	$	63,598	$	15,427	$	18,911

Board of directors:
Cash remuneration	$	585	$	480	$	455
Share-based payments	2,040		1,780		1,741
	$	2,625	$	2,260	$	2,196

Geographic Information

12 Months Ended

Jun. 30, 2022

Disclosure of geographical areas [abstract]

Geographic Information

Geographic InformationThe Group’s non-current operating assets by geographic regions are as follows:


	Fiscal Year Ended June 30,
	2022		2021
	(U.S. $ in thousands)
Non-current operating assets:
United States	$	1,066,260	$	1,002,992
Australia	127,418		107,015
India	7,367		125
Total non-current operating assets	$	1,201,045	$	1,110,132

Non-current operating assets for this purpose consist of property and equipment, right-of-use assets, goodwill, intangible assets and other non-current assets.

Share-based Payments

12 Months Ended

Jun. 30, 2022

Disclosure of share-based payment arrangements [Abstract]

Share-based Payments

The Group maintains three share-based employee compensation plans: the 2015 Share Incentive Plan (“2015 Plan”); the Atlassian Corporation Plc 2013 U.S. Share Option Plan (“2013 U.S. Option Plan”); and the Atlassian UK Employee Share Option Plan (together with the 2013 U.S. Option Plan, the “Option Plans”). In October 2015, the Company’s board of directors approved the 2015 Plan, and in November 2015, our shareholders adopted the 2015 Plan, effective on the date of our IPO, which serves as the successor to the Option Plans, and provides for the issuance of incentive and non-statutory share options, share appreciation rights, restricted share awards, RSUs, unrestricted share awards, cash-based awards, performance share awards, performance-based awards to covered employees, and dividend equivalent rights to qualified employees, directors and consultants. Under the 2015 Plan, a total of 20.7 million Class A ordinary shares were initially reserved for the issuance of awards, subject to automatic annual increases.

RSU grants generally vest over four years with 25% vesting on the one year anniversary of the date of grant and 1/12th of the remaining RSUs vest over the remaining three years, on a quarterly basis thereafter. Effective from April 2021, new RSU grants to existing employees vest evenly over four years on a quarterly basis. Performance-based RSUs have non-market performance vesting conditions. Individuals must continue to provide services to a Group entity in order to vest.

The Option Plans allowed for the issuance of options to purchase restricted shares. Effective upon our IPO, the shares underlying the options converted to Class A ordinary shares. Although no future awards will be granted under the Option Plans, they will continue to govern outstanding awards granted thereunder.

Under the Option Plans, share options have a contractual life of seven to ten years and typically follow a standard vesting schedule over a four year period: 25% vest on the one year anniversary and 1/48th monthly vesting for the 36 months thereafter. Individuals must continue to provide services to a Group entity in order to vest. Upon termination, all unvested options are forfeited and vested options must generally be exercised within three months.

RSU and Class A ordinary share option activity was as follows:


		Share Options
	Shares Available for Grant	Outstanding	Weighted Average Exercise Price		RSUs Outstanding






























Balance as of June 30, 2020	35,911,586	458,174	2.65		7,371,743
RSUs granted	(2,415,324)	—	—		2,415,324
RSUs canceled	777,183	—	—		(777,183)
RSUs settled	—	—	—		(3,468,136)
Share options exercised	—	(390,802)	2.98		—
Share options canceled	—	—			—
Balance as of June 30, 2021	34,273,445	67,372	$	0.75	5,541,748
RSUs granted	(4,093,600)	—	—		4,093,600
RSUs canceled	653,161	—	—		(653,161)
RSUs settled	—	—	—		(2,958,190)
Share options exercised	—	(42,973)	0.76		—
Balance as of June 30, 2022	30,833,006	24,399	$	0.73	6,023,997
Share options vested and exercisable as of June 30, 2022		24,399	$	0.73
Share options vested and exercisable as of June 30, 2021		67,372	$	0.75

The weighted-average remaining contractual life for options outstanding as of June 30, 2022 and 2021 was 2.8 and 3.9 years, respectively. Options exercisable as of June 30, 2022 and 2021, had a weighted-average remaining contractual life of approximately 2.7 and 3.9 years, respectively.

The following table summarizes information about share options outstanding as of June 30, 2022:


	Options Outstanding and Exercisable
Range of Exercise Prices	Number Outstanding and Exercisable	Weighted Average Exercise Price		Weighted Average Remaining Years
$0.59 - 0.66	21,997	$	0.62	2.66
$1.14	1,673	1.14		4.07
$3.18	729	3.18		1.33
	24,399	$	0.73	2.72

The following table summarizes information about share options outstanding as of June 30, 2021:


	Options Outstanding and Exercisable
Range of Exercise Prices		Number Outstanding and Exercisable	Weighted Average Exercise Price		Weighted Average Remaining Years
$0.59 - 0.66		53,037	$	0.61	3.64
$1.14		13,606	1.14		5.07
$3.18		729	3.18		2.33
		67,372	$	0.75	3.92

The weighted-average grant date fair value of the RSUs issued during the fiscal years ended June 30, 2022 and 2021 was $332.4 and $192.6 per share, respectively. There were no share options granted during the fiscal year ended June 30, 2022 and 2021.

Restricted stock

During the fiscal years 2022 and 2021, the Company granted 8,821 and 95,499 shares of restricted stock that were subject to forfeiture, respectively. The weighted average grant fair values of these restricted shares was $313.8 and $200.5, with a weighted average vesting period of 3.0 years and 1.7 years, respectively. As of June 30, 2022 and 2021, there were 72,484 and 270,251 shares of restricted stock outstanding, respectively. These outstanding shares of restricted stock are subject to forfeiture or repurchase at the original exercise price during the repurchase period following employee termination, as applicable.

All share-based payments are measured based on the grant date fair value of the awards and recognized in the consolidated statements of operations over the period during which the employee is required to perform services in exchange for the award (generally the four-year vesting period of the award, with the exception of Restricted Stock, as shown above). As of June 30, 2022, the Group had an aggregate of $675.8 million of future period share-based payment expense related to all equity awards outstanding, net of estimated forfeitures, to be amortized over a weighted-average remaining period of 1.5 years.

Events after reporting period	12 Months Ended
Events after reporting period	Jun. 30, 2022
Disclosure of non-adjusting events after reporting period [abstract]
Events after the reporting period	Events after the reporting periodAs discussed in Note 14, “Other balance Sheet Accounts,” in July 2022, the Group completed the sale of a controlling interest of our subsidiary, Vertical First Trust (“VFT”), which was established for the construction project associated with the Australian HQ Property. The Group retained a minority equity interest of 13.2% in the form of ordinary shares and has significant influence in VFT. The Group’s interest in VFT will be accounted for using the equity method in the consolidated financial statements. The Group is finalizing the valuation of its retained interest and expects the recoverable amount of the held for sale assets to exceed its carrying value.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Jun. 30, 2022

Significant Accounting Policies [Abstract]

Statement of IFRS compliance

The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (“IFRS”), which includes all standards issued by the International Accounting Standards Board (“IASB”) and related interpretations issued by the IFRS Interpretations Committee.

Critical accounting estimates and judgments

The consolidated financial statements have been prepared on a historical cost basis, except for debt and equity financial assets and derivative financial instruments that have been measured at fair value.

Use of estimates

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgments and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgments and estimates on historical experience and on other various factors it believes to be reasonable under the circumstances, the result of which forms the basis of the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions and may materially affect the financial results or the financial position reported in future periods. Significant estimates, assumptions and judgments made by management include revenue recognition and impairment of non-financial assets (see Note 3, “Critical Accounting Estimates and Judgments”). Other estimates, assumptions and judgments made by management include business combinations, fair value measurement of financial instruments and accounting for income taxes.

In March 2020, the World Health Organization declared a novel coronavirus (“COVID-19”) a pandemic. The impact of COVID-19 has been difficult to predict and the full extent of the impact will depend on a number of factors, including the continued duration and spread of the outbreak and related variants, its severity, the actions taken by governments and authorities to contain the virus or treat its impact, the effectiveness of current vaccines and therapeutic treatments, and the extent to which normal economic and operating conditions continue to resume. The Group considered the impact of COVID-19 on the assumptions and estimates used, including the allowance for credit losses for accounts receivable, the creditworthiness of customers entering into revenue arrangements, our impairment assessment of assets, the fair values of our financial instruments, and income taxes, which require increased judgement and carry a higher degree of estimate uncertainty. The Group determined that there were no material adverse impacts on the consolidated financial statements for the fiscal years ended June 30, 2022 and 2021. As events continue to evolve and additional information becomes available, the Group’s assumptions and estimates may change in future periods.

Current versus non-current classification

The Group presents assets and liabilities in the consolidated statements of financial position based on current or non-current classification. An asset is current when it is expected to be realized or intended to be sold or consumed in the normal operating cycle; expected to be realized within twelve months after the reporting period; or cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. A liability is current when it is due to be settled within twelve months after the reporting period. The Group classifies all other liabilities as non-current.

Critical Accounting Estimates and JudgmentsManagement has identified the following critical accounting policies for which significant judgments, estimates and assumptions are made.

Critical accounting estimates and assumptions

The Group based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

Revenue recognition

Determining the SSP for products and services requires estimates and assumptions. We typically determine a SSP range for our products and services which is reassessed on a periodic basis or when facts and circumstances change. For all performance obligations other than perpetual and term licenses, we are able to determine SSP based on the observable prices of products or services sold separately in comparable circumstances to similar customers. In instances where performance obligations do not have observable standalone sales, we utilize available information that may include market conditions, pricing strategies, the economic life of the software, and other observable inputs to estimate the price we would charge if the products and services were sold separately.

Critical accounting judgments

Impairment of non-financial assets

For assets excluding goodwill, and CGUs, impairment assessments are made at each reporting date by evaluating conditions specific to the Group and to the particular asset that may lead to impairment. Goodwill is tested for impairment annually during the fourth quarter of the Group's fiscal year and when circumstances indicate that the carrying value may be impaired. These include product performance, technology, economic and political environments, and future product expectations. If an impairment trigger exists or when annual impairment testing for an asset is required, the recoverable amount of the asset is determined.

The Group operates as a single operating segment and the Group performs the goodwill impairment test at the level of its operating segment as there are no lower levels within the Group at which goodwill is monitored. The recoverable amount of goodwill was assessed by comparing the market capitalization of the Group to its book value, among other qualitative factors, when reviewing for impairment. There was no impairment of goodwill during the fiscal years 2022, 2021 and 2020.

During fiscal year 2021, the Group elected to early terminate one of its office leases. The Group did not have any rights to sublease the facility. The recoverable amount of the related lease assets including right-of-use assets and leasehold improvement was determined to be zero. An impairment charge of $7.4 million was recorded to profit or loss in fiscal year 2021. For details of the office lease impairment, please refer to Note 7, “Expenses.” Other than the lease-related assets discussed above, no indicators of impairment existed that were significant enough to warrant non-financial assets to be tested for impairment in the fiscal years 2022, 2021 and 2020. For details of non-financial assets, please refer to Note 10, “Property and Equipment”, Note 11, “Goodwill and Intangible assets” and Note 12, “Leases.”

Impairment of non-marketable debt and equity investments

We assess our privately held debt and equity securities strategic investment portfolio quarterly for impairment. Our impairment analysis encompasses an assessment of both qualitative and quantitative analyses of key factors including the investee’s financial metrics, market acceptance of the product or technology, and any similar new rounds of financing. If the investment is considered to be impaired, we record any privately held equity investments at fair value by recognizing an impairment through the Statement of Financial Position and establishing a new carrying value for the investment. Any adjustments to privately held debt securities are recorded through the Consolidated Statement of Operations.

Functional currency

All amounts included in the consolidated financial statements are reported in thousands of U.S. dollars (U.S. $ in thousands) except where otherwise stated. Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

Principles of consolidation

Principles of consolidationThe consolidated financial statements incorporate the financial positions and the results of operations of the Group. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The financial statements of the subsidiaries are prepared for the same reporting period as the Company, using consistent accounting policies. Intercompany transactions, balances and unrealized gains on transactions between Group companies are eliminated.

Segment

The Group operates as a single operating segment, which is also its reporting segment. An operating segment is defined as a component of an entity for which discrete financial information is available and whose results of operations are regularly reviewed by the chief operating decision maker. The Group's chief operating decision makers are the Group's Co-Chief Executive Officers, who review results of operations to make decisions about allocating resources and assessing performance based on consolidated financial information. Accordingly, the Group has determined it operates in one operating segment.

Foreign currency

The Group's consolidated financial statements are presented using the U.S. dollar, which is the Company's functional currency. Some of the Group’s foreign subsidiaries’ functional currency is the local currency. We translate the financial statements of these subsidiaries to U.S. dollars using month-end exchange rates for assets and liabilities, and average exchange rates for revenue, costs, and expenses. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component on the consolidated statements of comprehensive loss.

Foreign currency transaction gains and losses from re-measurement of monetary assets and liabilities that are denominated in currencies other than the respective functional currencies are included in other non-operating expense, net in the consolidated statements of operations for the period.

Revenue recognition

Policies, Estimates and Judgments

Revenues are generally recognized upon the transfer of control of promised products or services provided to our customers, reflecting the amount of consideration we expect to receive for those products or services. We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of sales and other similar taxes collected from customers, which are subsequently remitted to governmental authorities. The revenue recognition policy is consistent for sales generated directly with customers and sales generated indirectly through solution partners and resellers.

Revenues are recognized upon the application of the following steps:

1.identification of the contract or contracts with a customer;

2.identification of the performance obligations in the contract;

3.determination of the transaction price;

4.allocation of the transaction price to the performance obligations in the contract; and

5.recognition of revenue when, or as, the performance obligation is satisfied.

The timing of revenue recognition may differ from the timing of billing our customers. We receive payments from customers based on a billing schedule as established in our contracts. Contract assets are recognized when performance is completed in advance of scheduled billings. Deferred revenue is recognized when billings are in advance of performance under the contract. Our revenue arrangements include standard warranty provisions that our products and services will perform and operate in all material respects with the applicable published specifications, the financial impacts of which have historically been, and are expected to continue to be insignificant. Our contracts do not include a significant financing component.

Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require judgment.

We allocate the transaction price for each contract to each performance obligation based on the relative standalone selling price (“SSP”) for each performance obligation. We use judgment in determining the SSP for products and services. We typically determine an SSP range for our products and services which is reassessed on a periodic basis or when facts and circumstances change. For all performance obligations other than perpetual and term licenses, we are able to determine SSP based on the observable prices of products or services sold separately in comparable circumstances to similar customers. In instances where performance obligations do not have observable standalone sales, we utilize available information that may include market conditions, pricing strategies, the economic life of the software, and other observable inputs to estimate the price we would charge if the products and services were sold separately.

Our products are generally sold with a right of return, we may provide other credits or incentives, and in certain instances we estimate customer usage of our services, which are accounted for as variable consideration when determining the amount of revenue to recognize. Returns and credits are estimated at contract inception and updated at the end of each reporting period if additional information becomes available. Variable consideration was not material for the periods presented.

Recognition of revenue

Revenue recognized from contracts with customers is disaggregated into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. We report our revenues in three categories: (i) subscription, (ii) maintenance, and (iii) other. In addition, we present revenue by geographic region in Note 16, “Revenue.”

Subscription revenues

Subscription revenues consist primarily of fees earned from subscription-based arrangements for providing customers the right to use our software in a cloud-based-infrastructure that we provide. We also sell on-premises term license agreements for our Data Center products, which consist of software licensed for a specified period and include support and maintenance services that are bundled with the license for the term of the license period. Subscription revenues also include subscription-based agreements for our premier support services. Subscription revenues are driven primarily by the number and size of active licenses, the type of product and the price of the licenses. Our subscription-based arrangements generally have a contractual term of one to twelve months, with a majority being one month. For cloud-based services, subscription revenue is recognized ratably as services are performed, commencing with the date the service is made available to customers. For on-premises term-based licenses, we recognize revenue upfront for the portion that relates to the delivery of the term license and the support and related revenue is recognized ratably as the services are delivered over the term of the arrangement.

Maintenance revenues

Maintenance revenues represent fees earned from providing customers unspecified future updates, upgrades and enhancements and technical product support for perpetual license products on an if-and-when-available basis. Maintenance revenue is recognized ratably over the term of the support period.

Other revenues

Other revenues include primarily fees received for sales of third-party apps in the Atlassian Marketplace and perpetual license revenues. Technical account management, consulting and training services are also included in other revenues. Revenue from the sale of third-party apps via Atlassian Marketplace is recognized on the date of product delivery on a net basis given that all of our performance obligations have been satisfied at that time and we function as the agent in the relationship. Revenue from technical account management is recognized over the time period that the customer has access to the service. Revenue from consulting and training is recognized over time as the services are performed. Perpetual license revenues represent fees earned from the perpetual licenses of software to customers for use on the customer’s premises. Perpetual license revenues consist of the revenues recognized from sales of licenses to new customers and additional licenses to existing customers. We typically recognize revenue on the license portion of perpetual license arrangements once the customer obtains control of the license, which is generally upon delivery of the license.

Cash and cash equivalents

The Group considers all highly liquid investments purchased with an original maturity of three months or less and subject to an insignificant risk of changes in value to be cash equivalents. Cash equivalents also include

amounts due from third-party credit card processors as they are both short-term and highly liquid in nature and are typically converted to cash within three days of the sales transaction.

Financial instruments