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    Alex Nguyen • Jefferies Financial Group Inc.

    Alex Nguyen's questions to Atlassian Corp (TEAM) leadership

    Alex Nguyen's questions to Atlassian Corp (TEAM) leadership • Q4 2025

    Question

    Alex Nguyen from Jefferies inquired about the free cash flow trajectory for fiscal 2026, noting that the fiscal 2025 number was broadly flat compared to the prior year.

    Answer

    CFO Joe Binz explained that Q4 free cash flow was impacted by strong collections in the prior year and temporal headwinds from shifting multi-year agreements to annual billing. For the long term, he reiterated that free cash flow is expected to correlate with non-GAAP operating income trends, with an approximate 500 basis point difference between free cash flow margin and non-GAAP operating margin over time, though short-term variability can occur.

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    Alex Nguyen's questions to Atlassian Corp (TEAM) leadership • Q4 2025

    Question

    Alex Nguyen from Jefferies asked about the flat year-over-year free cash flow performance and inquired about the expected trajectory for free cash flow in fiscal 2026.

    Answer

    CFO Joe Binz explained that Q4 free cash flow was down year-over-year due to exceptionally strong collections in the prior year related to the server end-of-support transition. He noted short-term headwinds from a shift to annual billing for multi-year deals and back-loaded sales linearity. For FY26 and beyond, he expects free cash flow margin to track approximately 500 basis points below the non-GAAP operating margin over time, despite potential quarterly variability.

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    Alex Nguyen's questions to Dropbox Inc (DBX) leadership

    Alex Nguyen's questions to Dropbox Inc (DBX) leadership • Q4 2024

    Question

    Alex Nguyen questioned the full-year revenue guidance, noting that after normalizing for FormSwift, the implied decline seemed softer than previous commentary and asked if this was due to conservatism or weaker demand. He also asked for clarification on the free cash flow guidance, including the cash tax rate and how the new unlevered FCF target compares to prior guidance.

    Answer

    CFO Tim Regan clarified that the guidance is consistent with their historical approach and prior commentary, reflecting ongoing pressures on the Teams business and a smaller sales force. Regarding free cash flow, he explained the new $940M+ unlevered guidance accounts for a significant FX headwind of over $30M since November, which is the primary driver of the change from previous thinking, partially offset by savings from the FormSwift decision. He noted no major changes to the cash tax rate.

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