EX-99.1 2 ex991-01182018.htm EXHIBIT 99.1 Exhibit


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Atlassian Announces Second Quarter Fiscal Year 2018 Results

Quarterly revenue of $212.6 million, up 43% year-over-year
Quarterly IFRS operating margin of (7%) and non-IFRS operating margin of 21%
Quarterly free cash flow of $67.8 million

SAN FRANCISCO (January 18, 2018) — Atlassian Corporation Plc (NASDAQ: TEAM), a leading provider of team collaboration and productivity software, today announced financial results for its second quarter of fiscal 2018 ended December 31, 2017 and released a shareholder letter on the Investor Relations section of its website at https://investors.atlassian.com.

“We finished calendar year 2017 with another great quarter. Our Cloud, Server and Data Center products delivered strong results, and the Atlassian Marketplace, which plays an important role in our continued growth, passed $350 million in lifetime sales,” said Scott Farquhar, Atlassian’s co-CEO and co-founder. “We are also thrilled that James Beer will be joining Atlassian as our new CFO in February, and look forward to the leadership and experience he brings scaling global businesses.”

Second Quarter Fiscal Year 2018 Financial Highlights:
On an IFRS basis, Atlassian reported: 
Revenue: Total revenue was $212.6 million for the second quarter of fiscal 2018, up 43% from $148.9 million for the second quarter of fiscal 2017.
Operating Loss and Operating Margin: Operating loss was $15.3 million for the second quarter of fiscal 2018, compared with $2.6 million for the second quarter of fiscal 2017. Operating margin was (7%) for the second quarter of fiscal 2018, compared with (2%) for the second quarter of fiscal 2017.
Net Loss and Net Loss Per Diluted Share: Net loss was $65.2 million for the second quarter of fiscal 2018, compared with $1.7 million for the second quarter of fiscal 2017. Net loss per diluted share was $0.28 for the second quarter of fiscal 2018, compared with $0.01 for the second quarter of fiscal 2017. 
Net loss for the second quarter of fiscal 2018 included a non-cash charge to income tax expense of $47.3 million as a result of the write-down of Atlassian’s deferred tax assets. The charge was driven by the reduction in the U.S. corporate income tax rate from 35% to 21% and Atlassian’s assessment of the realizability of its deferred tax assets. 
Balance Sheet: Cash and cash equivalents and short-term investments at the end of the second quarter of fiscal 2018 totaled $679.1 million.
On a non-IFRS basis, Atlassian reported: 
Operating Income and Operating Margin: Operating income was $44.4 million for the second quarter of fiscal 2018, compared with $27.6 million for the second quarter of fiscal 2017. Operating margin was 21% for the second quarter of fiscal 2018, compared with 19% for the second quarter of fiscal 2017.
Net Income and Net Income Per Diluted Share: Net income was $31.0 million for the second quarter of fiscal 2018, compared with $21.7 million for the second quarter of fiscal 2017. Net income per diluted share was $0.13 for the second quarter of fiscal 2018, compared with $0.09 per diluted share for the second quarter of fiscal 2017. 
Free Cash Flow: Cash flow from operations for the second quarter of fiscal 2018 was $72.3 million, while capital expenditures totaled $4.5 million, resulting in free cash flow of $67.8 million, an increase of 52% year-over-year.  
A reconciliation of IFRS to non-IFRS financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below, under the heading “About Non-IFRS Financial Measures.”


1



Recent Business Highlights:
Customer growth: Atlassian ended the second quarter of fiscal 2018 with a total customer count on an active subscription or maintenance agreement basis of 112,571, having added 4,825 net new customers during the quarter. 
Atlassian Marketplace: With more than 3,500 apps designed to enhance Atlassian products, the Atlassian Marketplace is one of the largest enterprise app stores. It continues to see excellent growth and surpassed a new milestone during the quarter, with more than $350 million in lifetime sales since its inception in 2012. 
Atlassian Team Tour: Atlassian will soon be getting on the road to unveil new product updates, share the latest in team practices, and discuss the future of teamwork. The Atlassian Team Tour is a series of live events starting February 8, 2018 in Amsterdam, and will cross the globe with a total of ten stops on three continents. You can find out more at: https://www.atlassian.com/company/events/teamtour.
Financial Targets:
Atlassian is providing its financial targets for the third quarter and full fiscal year 2018. The company’s financial targets are as follows:
Third Quarter Fiscal Year 2018: 
Total revenue is expected to be in the range of $217 million to $219 million.
Gross margin is expected to be approximately 80% on an IFRS basis and approximately 83% on a non-IFRS basis. 
Operating margin is expected to be approximately (5%) on an IFRS basis and approximately 17% on a non-IFRS basis. 
Net loss per diluted share is expected to be approximately ($0.08) on an IFRS basis, and net income per diluted share is expected to be approximately $0.08 on a non-IFRS basis.
Weighted-average share count is expected to be in the range of 231 million to 233 million shares when calculating diluted IFRS net loss per share and in the range of 244 million to 246 million shares when calculating diluted non-IFRS net income per share. 
Fiscal Year 2018: 
Total revenue is expected to be in the range of $853 million to $857 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 (8%) on an IFRS basis and approximately 19% on a non-IFRS basis. 
Net loss per diluted share is expected to be in the range of ($0.48) to ($0.47) on an IFRS basis, and net income per diluted share is expected to be in the range of $0.47 to $0.48 on a non-IFRS basis. 
Weighted-average share count is expected to be in the range of 231 million to 233 million shares when calculating diluted IFRS net loss per share and in the range of 242 million to 244 million shares when calculating diluted non-IFRS net income per share. 
Free cash flow is expected to be in the range of $260 million to $270 million, which includes capital expenditures that are expected to be in the range of $25 million to $30 million.

With respect to Atlassian’s expectations under “Financial Targets” above, a reconciliation of IFRS to non-IFRS gross margin, operating margin, net income per diluted share, and free cash flow have been provided in the financial statement tables included in this press release.


2



Shareholder Letter and Webcast/Conference Call Details
A detailed shareholder letter is available on the Investor Relations section of Atlassian’s website at: https://investors.atlassian.com. Atlassian will host a webcast and conference call to answer questions today:
When: Thursday, January 18, 2018 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).
Webcast: A live webcast of the call can be accessed from the Investor Relations section of Atlassian’s website at: https://investors.atlassian.com. Following the call, a replay will be available on the same website.
Dial in: To access the call via telephone in North America, please dial 1-888-346-0688. For international callers, please dial 1-412-902-4250. Participants should request the “Atlassian call” after dialing in.
Audio replay: An audio replay of the call will be available via telephone for seven days, beginning two hours after the call. To listen to the replay in North America, please dial 1-877-344-7529 (access code 10114838). International callers, please dial 1-412-317-0088 (access code 10114838).
Atlassian has used, and will continue to use, its Investor Relations website at https://investors.atlassian.com as a means of making material information public and for complying with its disclosure obligations.
About Atlassian
Atlassian unleashes the potential of every team. Our collaboration software helps teams organize, discuss and complete shared work. Teams at more than 112,000 customers, across large and small organizations - including Citigroup, eBay, Coca-Cola, Visa, BMW and NASA - use Atlassian's project tracking, content creation and sharing, real-time communication and service management products to work better together and deliver quality results on time. Learn more about products including Jira Software, Confluence, Stride, Trello, Bitbucket and Jira Service Desk at https://atlassian.com.

Investor Relations Contact
Ian Lee
IR@atlassian.com
Media Contact
Paul Loeffler
press@atlassian.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which statements involve substantial risks and uncertainties. All statements other than statements of historical fact could be deemed forward looking, including risks and uncertainties related to statements about our products, customers, ecosystem, technology and other key strategic areas, and our financial targets such as revenue, share count and IFRS and non-IFRS financial measures including gross margin, operating margin, net income (loss) per diluted share and free cash flow.
We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
The achievement or success of the matters covered by such forward-looking statements involves known and unknown risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management’s beliefs and assumptions only as of the date such statements are made.
Further information on these and other factors that could affect our financial results is included in filings we make with the Securities and Exchange Commission from time to time, including the section titled “Risk Factors” in our most recent Forms 20-F and 6-K (reporting our quarterly results). These documents are available on the SEC Filings section of the Investor Relations section of our website at: https://investors.atlassian.com/.



3



About Non-IFRS Financial Measures
Our reported results and financial targets include certain non-IFRS financial measures, including non-IFRS gross profit, non-IFRS operating income, non-IFRS net income, non-IFRS net income per diluted share, and free cash flow. Management believes that the use of these non-IFRS financial measures provides consistency and comparability with our past financial performance, facilitates period-to-period comparisons of our results of operations, and also facilitates comparisons with peer companies, many of which use similar non-IFRS or non-GAAP financial measures to supplement their IFRS or GAAP results. Non-IFRS results are presented for supplemental informational purposes only to aid in understanding our operating results. The non-IFRS results should not be considered a substitute for financial information presented in accordance with IFRS, and may be different from non-IFRS or non-GAAP measures used by other companies.
Our non-IFRS financial measures reflect adjustments based on the items below:
Non-IFRS gross profit. Excludes expenses related to share-based compensation and amortization of acquired intangible assets.
Non-IFRS operating income. Excludes expenses related to share-based compensation and amortization of acquired intangible assets.
Non-IFRS net income and non-IFRS net income per diluted share. Excludes expenses related to share- based compensation, amortization of acquired intangible assets, the related income tax effects on these items and changes in our assessment regarding the realizability of our deferred tax assets.
Free cash flow. Free cash flow is defined as net cash provided by operating activities less capital expenditures, which consists of purchases of property and equipment and acquired intangible assets.
We exclude expenses related to share-based compensation, amortization of acquired intangible assets, the related income tax effects on these items and changes in our assessment regarding the realizability of our deferred tax assets from certain of our non-IFRS financial measures as we believe this helps investors understand our operational performance. In addition, share-based compensation expense can be difficult to predict and varies from period to period and company to company due to differing valuation methodologies, subjective assumptions and the variety of equity instruments, as well as changes in stock price. Management believes that providing non-IFRS financial measures that exclude share-based compensation expense, amortization of acquired intangible assets, the related income tax effects on these items and changes in our assessment regarding the realizability of our deferred tax assets allow for more meaningful comparisons between our operating results from period to period.
Management considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic opportunities, including investing in our business, making strategic acquisitions and strengthening our statement of financial position.
Management uses non-IFRS gross profit, non-IFRS operating income, non-IFRS net income, non-IFRS net income per diluted share and free cash flow:
As measures of operating performance, because these financial measures do not include the impact of items not directly resulting from our core operations; 
For planning purposes, including the preparation of our annual operating budget; 
To allocate resources to enhance the financial performance of our business; 
To evaluate the effectiveness of our business strategies; and 
In communications with our board of directors concerning our financial performance.
The tables in this press release titled “Reconciliation of IFRS to Non-IFRS Results” and “Reconciliation of IFRS to Non-IFRS Financial Targets” provide reconciliations of non-IFRS financial measures to the most recent directly comparable financial measures calculated and presented in accordance with IFRS.
We understand that although non-IFRS gross profit, non-IFRS operating income, non-IFRS net income, non-IFRS net income per diluted share and free cash flow are frequently used by investors and securities analysts in their evaluation of companies, these measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results of operations as reported under IFRS.


4




Atlassian Corporation Plc
Consolidated Statements of Operations
(U.S. $ and shares in thousands, except per share data)
(unaudited)

 
Three Months Ended December 31,
 
Six Months Ended December 31,
 
2017
 
2016
 
2017
 
2016
Revenues:
 

 
 

 
 

 
 

Subscription
$
95,793

 
$
56,326

 
$
180,171

 
$
106,257

Maintenance
80,362

 
65,060

 
156,677

 
126,801

Perpetual license
21,764

 
18,210

 
41,694

 
35,711

Other
14,707

 
9,313

 
27,902

 
16,927

Total revenues
212,626

 
148,909

 
406,444

 
285,696

Cost of revenues (1) (2)
43,164

 
26,899

 
83,254

 
49,461

Gross profit
169,462

 
122,010

 
323,190

 
236,235

Operating expenses:
 

 
 

 
 
 
 
Research and development (1)
101,324

 
69,758

 
196,186

 
137,215

Marketing and sales (1) (2)
44,810

 
27,416

 
90,276

 
52,396

General and administrative (1)
38,584

 
27,475

 
74,309

 
54,391

Total operating expenses
184,718

 
124,649

 
360,771

 
244,002

Operating loss
(15,256
)
 
(2,639
)
 
(37,581
)
 
(7,767
)
Other non-operating expense, net
(493
)
 
(251
)
 
(1,158
)
 
(314
)
Finance income
1,568

 
1,441

 
2,823

 
2,763

Finance costs
(7
)
 
(38
)
 
(16
)
 
(45
)
Loss before income tax benefit (expense)
(14,188
)
 
(1,487
)
 
(35,932
)
 
(5,363
)
Income tax benefit (expense)
(51,042
)
 
(211
)
 
(43,292
)
 
1,028

Net loss
$
(65,230
)
 
$
(1,698
)
 
$
(79,224
)
 
$
(4,335
)
Net loss per share attributable to ordinary shareholders:
 

 
 

 
 
 
 
Basic
$
(0.28
)
 
$
(0.01
)
 
$
(0.35
)
 
$
(0.02
)
Diluted
$
(0.28
)
 
$
(0.01
)
 
$
(0.35
)
 
$
(0.02
)
Weighted-average shares outstanding used to compute net loss per share attributable to ordinary shareholders:
 

 
 

 
 
 
 
Basic
230,208

 
221,316

 
229,182

 
219,910

Diluted
230,208

 
221,316

 
229,182

 
219,910

 
(1)Amounts include share-based payment expense, as follows:
 
Three Months Ended December 31,
 
Six Months Ended December 31,
 
2017
 
2016
 
2017
 
2016
Cost of revenues
$
3,180

 
$
1,505

 
$
6,172

 
$
2,844

Research and development
27,020

 
16,159

 
52,991

 
33,158

Marketing and sales
6,136

 
3,089

 
12,345

 
6,604

General and administrative
9,015

 
7,053

 
17,968

 
15,723


(2)Amounts include amortization of acquired intangible assets, as follows:
 
Three Months Ended December 31,
 
Six Months Ended December 31,
 
2017
 
2016
 
2017
 
2016
Cost of revenues
$
5,294

 
$
2,198

 
$
10,587

 
$
4,400

Marketing and sales
9,023

 
219

 
18,045

 
415



5



Atlassian Corporation Plc
Consolidated Statements of Financial Position
(U.S. $ in thousands)
(unaudited)
 
 
December 31, 2017
 
June 30, 2017
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
310,905


$
244,420

Short-term investments
368,194


305,499

Trade receivables
35,273


26,807

Current tax receivables
12,832


12,445

Prepaid expenses and other current assets
22,204


23,317

Total current assets
749,408


612,488

Non-current assets:
 
 
 
Property and equipment, net
37,792


41,173

Deferred tax assets
102,980


188,239

Goodwill
311,996


311,900

Intangible assets, net
92,255


120,789

Other non-current assets
12,094


9,269

Total non-current assets
557,117


671,370

Total assets
$
1,306,525


$
1,283,858

Liabilities
 
 
 
Current liabilities:
 
 
 
Trade and other payables
$
79,768


$
73,192

Current tax liabilities
1,178


2,207

Provisions
6,426


6,162

Deferred revenue
284,231


245,306

Total current liabilities
371,603


326,867

Non-current liabilities:
 
 
 
Deferred tax liabilities
43,585


43,950

Provisions
3,952


3,333

Deferred revenue
17,468


10,691

Other non-current liabilities
6,493


4,969

Total non-current liabilities
71,498


62,943

Total liabilities
443,101


389,810

Equity
 
 
 
Share capital
23,121


22,726

Share premium
453,016


450,959

Other capital reserves
483,936


437,346

Other components of equity
5,804


6,246

Accumulated deficit
(102,453
)

(23,229
)
Total equity
863,424


894,048

Total liabilities and equity
$
1,306,525


$
1,283,858


6



Atlassian Corporation Plc
Consolidated Statements of Cash Flows
(U.S. $ in thousands)
(unaudited)

 
Three Months Ended December 31,
 
Six Months Ended December 31,
 
2017
 
2016
 
2017
 
2016
Operating activities
 
 
 
 
 

 
 

Loss before income tax benefit (expense)
$
(14,188
)

$
(1,487
)

$
(35,932
)

$
(5,363
)
Adjustments to reconcile loss before income tax benefit (expense) to net cash provided by operating activities:











Depreciation and amortization
20,990


11,253


41,570


19,295

Gain on sale of investments and other assets
(16
)

(65
)

(32
)

(407
)
Net unrealized foreign currency gain
(142
)

(115
)

(162
)

(208
)
Share-based payment expense
45,351


27,806


89,476


58,329

Interest income
(1,568
)

(1,441
)

(2,823
)

(2,763
)
Changes in assets and liabilities:
 
 
 
 
 
 
 
Trade receivables
(4,668
)

(12,695
)

(8,387
)

(12,068
)
Prepaid expenses and other assets
(2,624
)

2,416


1,143


(2,770
)
Trade and other payables, provisions and other non-current liabilities
5,105


5,135


6,258


(3,399
)
Deferred revenue
23,497


16,629


45,702


24,317

Interest received
1,361


1,381


2,791


3,677

Income tax paid, net of refunds
(770
)

(1,418
)

(2,027
)

(2,779
)
Net cash provided by operating activities
72,328


47,399


137,577


75,861

Investing activities






 


 

Business combinations, net of cash acquired






(18,295
)
Purchases of property and equipment
(4,550
)

(2,907
)

(7,114
)

(5,298
)
Proceeds from sale of other assets






342

Purchases of investments
(124,787
)

(81,628
)

(227,128
)

(233,364
)
Proceeds from maturities of investments
31,119


22,250


81,887


57,100

Proceeds from sales of investments
32,674


86,706


82,058


198,588

Increase in restricted cash
(3,009
)

(3,369
)

(3,141
)

(3,369
)
Payment of deferred consideration


(750
)



(935
)
Net cash provided by (used in) investing activities
(68,553
)

20,302


(73,438
)

(5,231
)
Financing activities
 
 
 
 
 

 
 

Proceeds from exercise of share options
1,278


2,151


2,155


5,868

Net cash provided by financing activities
1,278


2,151


2,155


5,868

Effect of exchange rate changes on cash and cash equivalents
(19
)

(435
)

191


(45
)
Net increase in cash and cash equivalents
5,034

 
69,417

 
66,485

 
76,453

Cash and cash equivalents at beginning of period
305,871

 
266,745

 
244,420

 
259,709

Cash and cash equivalents at end of period
$
310,905

 
$
336,162

 
$
310,905

 
$
336,162



7



Atlassian Corporation Plc
Reconciliation of IFRS to Non-IFRS Results
(U.S. $ and shares in thousands, except per share data)
(unaudited)
 
Three Months Ended December 31,
 
Six Months Ended December 31,
 
2017
 
2016
 
2017
 
2016
Gross profit
 

 
 

 
 

 
 

IFRS gross profit
$
169,462

 
$
122,010

 
$
323,190

 
$
236,235

Plus: Share-based payment expense
3,180

 
1,505

 
6,172

 
2,844

Plus: Amortization of acquired intangible assets
5,294

 
2,198

 
10,587

 
4,400

Non-IFRS gross profit
$
177,936

 
$
125,713

 
$
339,949

 
$
243,479

Operating income
 

 
 

 
 

 
 

IFRS operating loss
$
(15,256
)
 
$
(2,639
)
 
$
(37,581
)
 
$
(7,767
)
Plus: Share-based payment expense
45,351

 
27,806

 
89,476

 
58,329

Plus: Amortization of acquired intangible assets
14,317

 
2,417

 
28,632

 
4,815

Non-IFRS operating income
$
44,412

 
$
27,584

 
$
80,527

 
$
55,377

Net income
 

 
 

 
 

 
 

IFRS net loss
$
(65,230
)
 
$
(1,698
)
 
$
(79,224
)
 
$
(4,335
)
Plus: Share-based payment expense
45,351

 
27,806

 
89,476

 
58,329

Plus: Amortization of acquired intangible assets
14,317

 
2,417

 
28,632

 
4,815

Less: Income tax effects and adjustments (1)
36,564

 
(6,861
)
 
22,062

 
(14,425
)
Non-IFRS net income
$
31,002

 
$
21,664

 
$
60,946

 
$
44,384

Net income per share
 

 
 

 
 

 
 

IFRS net loss per share - basic
$
(0.28
)
 
$
(0.01
)
 
$
(0.35
)
 
$
(0.02
)
Plus: Share-based payment expense
0.19

 
0.13

 
0.40

 
0.27

Plus: Amortization of acquired intangible assets
0.06

 
0.01

 
0.12

 
0.02

Less: Income tax effects and adjustments
0.16

 
(0.03
)
 
0.10

 
(0.07
)
Non-IFRS net income per share - basic
$
0.13

 
$
0.10

 
$
0.27

 
$
0.20

 
 
 
 
 
 
 
 
IFRS net loss per share - diluted
$
(0.28
)
 
$
(0.01
)
 
$
(0.35
)
 
$
(0.02
)
Plus: Share-based payment expense
0.20

 
0.12

 
0.39

 
0.25

Plus: Amortization of acquired intangible assets
0.06

 
0.01

 
0.12

 
0.02

Less: Income tax effects and adjustments
0.15

 
(0.03
)
 
0.09

 
(0.06
)
Non-IFRS net income per share - diluted
$
0.13

 
$
0.09

 
$
0.25

 
$
0.19

Weighted-average diluted shares outstanding
 
 
 
 
 
 
 
Weighted-average shares used in computing diluted IFRS net loss per share
230,208

 
221,316

 
229,182

 
219,910

Plus: Dilution from share options and RSUs (2)
13,170

 
13,288

 
13,124

 
14,487

Weighted-average shares used in computing diluted non-IFRS net income per share
243,378

 
234,604

 
242,306

 
234,397

Free cash flow
 

 
 

 
 

 
 

IFRS net cash provided by operating activities
$
72,328

 
$
47,399

 
$
137,577

 
$
75,861

Less: Capital expenditures
(4,550
)
 
(2,907
)
 
(7,114
)
 
(5,298
)
Free cash flow
$
67,778

 
$
44,492

 
$
130,463

 
$
70,563

(1) Amount includes a non-cash charge of $47.3 million to income tax expense during the three months ended December 31, 2017 as a result of the write-down of Atlassian’s deferred tax assets. The charge was driven by the reduction in the U.S. corporate income tax rate from 35% to 21% and Atlassian’s assessment of the realizability of its deferred tax assets. 
(2) The effects of these dilutive securities were not included in the IFRS calculation of diluted net loss per share for the three and six months ended December 31, 2017 and 2016 because the effect would have been anti-dilutive.

8



Atlassian Corporation Plc
Reconciliation of IFRS to Non-IFRS Results
(as a percentage of total revenues)
(unaudited)

 
Three Months Ended December 31,
 
Six Months Ended December 31,
 
2017
 
2016
 
2017
 
2016
Operating margin
 

 
 

 
 
 
 
IFRS operating margin
(7
%)
 
(2
%)
 
(9
%)
 
(3
%)
Plus: Share-based payment expense
21

 
19

 
22

 
20

Plus: Amortization of acquired intangible assets
7

 
2

 
7

 
2

Non-IFRS operating margin
21
 %
 
19
 %
 
20
 %
 
19
 %


9



Atlassian Corporation Plc
Reconciliation of IFRS to Non-IFRS Financial Targets
(U.S. $)

 
Three Months Ending
March 31, 2018
 
Fiscal Year Ending
June 30, 2018
Revenue
$217 million to $219 million

 
$853 million to $857 million

 
 
 
 
IFRS gross margin
80%

 
80%

Plus: Share-based payment expense
1

 
1

Plus: Amortization of acquired intangible assets
2

 
3

Non-IFRS gross margin
83%

 
84%

 
 
 
 
IFRS operating margin
(5%)

 
(8%)

Plus: Share-based payment expense
15

 
20

Plus: Amortization of acquired intangible assets
7

 
7

Non-IFRS operating margin
17%

 
19%

 
 
 
 
IFRS net loss per share - diluted
($0.08)

 
($0.48) to ($0.47)

Plus: Share-based payment expense
0.14

 
0.72

Plus: Amortization of acquired intangible assets
0.06

 
0.24

Less: Income tax effects and adjustments
(0.04
)
 
(0.01
)
Non-IFRS net income per share - diluted
$0.08

 
$0.47 to $0.48

 
 
 
 
Weighted-average shares used in computing diluted IFRS net loss per share
231 million to 233 million

 
231 million to 233 million

Dilution from share options and RSUs (1)
13 million

 
11 million

Weighted-average shares used in computing diluted non-IFRS net income per share
244 million to 246 million

 
242 million to 244 million

 
 
 
 
IFRS net cash provided by operating activities
 
 
$285 million to $300 million

Less: Capital expenditures
 
 
(25 million) to (30 million)

Free cash flow
 
 
$260 million to $270 million


(1) The effects of these dilutive securities are not included in our IFRS calculation of diluted net loss per share for the three months ending March 31, 2018 and fiscal year ending June 30, 2018 because the effect would be anti-dilutive.


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