Revenue

3 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

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 September 30, 2022, approximately $1.3 billion of revenue is expected to be recognized from transaction price allocated to remaining performance obligations. The Company expects to recognize revenue on approximately 85% 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 our products or services are as follows (in thousands):

	Three Months Ended September 30,
	2022		2021
Americas
United States	$	357,748	$	269,962
Other Americas	52,173		38,762
Total Americas	$	409,921	$	308,724
EMEA	304,278		235,014
Asia Pacific	93,193		70,286
Total revenues	$	807,392	$	614,024

The Company provides different deployment options for our product offerings. Cloud offerings provide customers the right to use our software in a cloud-based infrastructure that the Company provides. 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 condensed consolidated statements of operations. For the three months ended September 30, 2022 and 2021, premier support revenues were $4.7 million and $6.2 million, respectively.

The Company’s revenues by deployment options are as follows (in thousands):

	Three Months Ended September 30,
	2022		2021
Cloud	$	475,043	$	317,903
Data Center	171,228		111,195
Server	113,813		139,547
Marketplace and services	47,308		45,379
Total revenues	$	807,392	$	614,024

Deferred Revenue

The Company records 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 contract balances are as follows (in thousands):

	Three Months Ended September 30,
	2022		2021
Balance, beginning of period	$	1,182,680	$	897,595
Additions	797,546		627,479
Revenue	(807,392)		(614,024)
Balance, end of period	$	1,172,834	$	911,050

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

For the three months ended September 30, 2022 and 2021, approximately 56% and 55% of revenue recognized was from the deferred revenue balances at the beginning of each fiscal year, respectively.

Deferred Contract Acquisition Costs

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.

The changes in the balances of deferred contract acquisition costs are as follows (in thousands):

	Three Months Ended September 30,
	2022		2021
Balance, beginning of period	$	27,141	$	9,011
Additions	5,129		2,726
Amortization expense	(2,541)		(1,015)
Balance, end of period	$	29,729	$	10,722
Deferred contract acquisition costs included in:
Prepaid expenses and other current assets	$	9,932	$	3,880
Other assets	19,797		6,842
Total	$	29,729	$	10,722