Atlassian Corporation Plc reported unaudited consolidated earnings results for the second quarter and six months ended December 31, 2016. For the quarter, total revenues were $148,909,000 against $109,706,000 a year ago. Operating loss was $2,639,000 against income of $3,367,000 a year ago. Loss before income tax benefit was $1,487,000 against income of $3,260,000 a year ago. Net loss was $1,698,000 against income of $5,065,000 a year ago. Net loss per basic and diluted share attributable to ordinary shareholders was $0.01 against income of $0.03 a year ago. Net cash provided by operating activities was $47,399,000 against $31,899,000 a year ago. Purchases of property and equipment were $2,907,000 against $3,133,000 a year ago. Non-IFRS operating income was $27,584,000 against $20,271,000 a year ago. Non-IFRS net income was $21,664,000 against $19,110,000 a year ago. Non-IFRS net income per share – diluted was $0.09 against $0.11 a year ago.

For six months, total revenues were $285,696,000 against $211,528,000 a year ago. Operating loss was $7,767,000 against income of $10,445,000 a year ago. Loss before income tax benefit was $5,363,000 against income of $9,773,000 a year ago. Net loss was $4,335,000 against income of $10,147,000 a year ago. Net loss per basic and diluted share attributable to ordinary shareholders was $0.02 against income of $0.06 a year ago. Net cash provided by operating activities was $75,861,000 against $46,303,000 a year ago. Purchases of property and equipment were $5,298,000 against $9,288,000 a year ago. Non-IFRS operating income was $55,377,000 against $43,211,000 a year ago. Non-IFRS net income was $44,384,000 against $37,489,000 a year ago. Non-IFRS net income per share – diluted was $0.19 against $0.22 a year ago.

The company is providing its financial targets for the third quarter and full fiscal year 2017. For the third quarter fiscal year 2017, total revenue is expected to be in the range of $155 million to $157 million. Gross margin is expected to be approximately 80% on an IFRS basis and approximately 84% on a non-IFRS basis. Operating margin is expected to be approximately negative 24% on an IFRS basis and approximately 12% on a non-IFRS basis. Net loss per diluted share is expected to be approximately $0.15 on an IFRS basis, and net income per diluted share is expected to be approximately $0.06 on a non-IFRS basis.

For fiscal year 2017, total revenue is expected to be in the range of $611 million to $615 million. Gross margin is expected to be in the range of 81% to 82% on an IFRS basis and in the range of 84% to 85% on a non-IFRS basis. Operating margin is expected to be approximately negative 16% on an IFRS basis and approximately 15% on a non-IFRS basis. Net loss per diluted share is expected to be in the range of $0.30 to $0.29 on an IFRS basis, and net income per diluted share is expected to be in the range of $0.32 to $0.33 on a non-IFRS basis. Free cash flow is expected to be in the range of $160 million to $165 million, which factors in capital expenditures that are expected to be approximately $15 million in fiscal 2017.