12. Revenue
Remaining Performance Obligations
Transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred 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, 2025, approximately $3.3 billion of revenue is expected to be recognized from transaction price allocated to remaining performance obligations. The Company expects to recognize revenue on approximately 74% of these remaining performance obligations over the next 12 months, with the balance recognized thereafter.
Disaggregated Revenue
The Company’s revenues by geographic region based on end-users who purchased the Company’s offerings are as follows (in thousands):
| | | | | | | | | | | | | | | | | |
| | Fiscal Year Ended June 30, |
| | 2025 | | 2024 | | 2023 |
| Americas | | | | | |
| United States | $ | 2,182,073 | | | $ | 1,847,194 | | | $ | 1,537,328 | |
| Other Americas | 334,828 | | | 278,240 | | | 227,838 | |
| Total Americas | 2,516,901 | | | 2,125,434 | | | 1,765,166 | |
| EMEA | | | | | |
| Germany | 539,550 | | | 442,063 | | | 330,046 | |
| Other EMEA | 1,584,421 | | | 1,308,847 | | | 1,036,693 | |
| Total EMEA | 2,123,971 | | | 1,750,910 | | | 1,366,739 | |
| Asia Pacific | 574,432 | | | 482,259 | | | 402,742 | |
| Total revenues | $ | 5,215,304 | | | $ | 4,358,603 | | | $ | 3,534,647 | |
The Company provides different deployment options for its offerings. Cloud offerings provide customers the right to use the Company’s software in a cloud-based infrastructure that the Company provides. Data Center offerings are on-premises term license agreements for the Company’s Data Center products, which are 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. Marketplace and other offerings mainly include fees received for sales of third-party apps in the Atlassian Marketplace and services like premier support, advisory services, and training services. 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 the Company’s Consolidated Statements of Operations.
The revenues from Server offerings consists of revenue from maintenance services since the Company no longer sells perpetual licenses for its Server offerings. The Company generally ended maintenance and support for these Server offerings in February 2024.
The Company’s revenues by deployment options are as follows (in thousands):
| | | | | | | | | | | | | | | | | |
| | Fiscal Year Ended June 30, |
| | 2025 | | 2024 | | 2023 |
| Cloud | $ | 3,447,427 | | | $ | 2,698,899 | | | $ | 2,085,498 | |
| Data Center | 1,467,167 | | | 1,208,498 | | | 819,251 | |
| Server | — | | | 177,645 | | | 400,519 | |
| Marketplace and other | 300,710 | | | 273,561 | | | 229,379 | |
| Total revenues | $ | 5,215,304 | | | $ | 4,358,603 | | | $ | 3,534,647 | |
Deferred Revenue
The Company records deferred revenues when cash payments are received or due in advance of the Company satisfying its performance obligations, including amounts that are refundable. The changes in the deferred revenue are as follows (in thousands):
| | | | | | | | | | | |
| Fiscal Year Ended June 30, |
| 2025 | | 2024 |
| Balance, beginning of period | $ | 2,114,736 | | | $ | 1,545,479 | |
| Additions | 5,581,822 | | | 4,927,860 | |
| Revenue | (5,215,304) | | | (4,358,603) | |
| Balance, end of period | $ | 2,481,254 | | | $ | 2,114,736 | |
For fiscal years 2025 and 2024, approximately 34% and 31% of revenue recognized was from the deferred revenue balances at the beginning of each fiscal year, respectively.
Deferred Contract Acquisition Costs
The changes in the balances of deferred contract acquisition costs are as follows (in thousands):
| | | | | | | | | | | |
| Fiscal Year Ended June 30, |
| 2025 | | 2024 |
| Balance, beginning of period | $ | 79,711 | | | $ | 53,604 | |
| Additions | 96,869 | | | 51,326 | |
| Amortization expense | (40,240) | | | (25,219) | |
| Balance, end of period | $ | 136,340 | | | $ | 79,711 | |
| Deferred contract acquisition costs included in: | | | |
| Prepaid expenses and other current assets | $ | 50,233 | | | $ | 29,170 | |
| Other non-current assets | 86,107 | | | 50,541 | |
| Total | $ | 136,340 | | | $ | 79,711 | |
The Company periodically reviews these deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. There were no impairment losses recorded during the periods presented.