Atlassian (TEAM) 25 Apr 242024 Q3 Earnings call transcript

Company Profile

Participants

Martin Lam	executive
Scott Farquhar	executive
Michael Cannon-Brookes	executive
Ryan MacWilliams	analyst
Joe Binz	executive
Frederick Havemeyer	analyst
Sanjit Singh	analyst
Gregg Moskowitz	analyst
Michael Turrin	analyst
Aleksandr Zukin	analyst
Keith Bachman	analyst
Brent Thill	analyst
Nicholas Altmann	analyst
Kasthuri Rangan	analyst
Fatima Boolani	analyst
Arjun Bhatia	analyst

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and thank you for joining Atlassian's earnings conference call for the third quarter of fiscal year 2024.

As a reminder, this conference call is being recorded and will be available for replay on the Investor Relations section of Atlassian's website following this call. I will now hand the call over to Martin Lam, Atlassian's Head of Investor Relations.

Martin Lam

Welcome to Atlassian's Third Quarter of Fiscal Year 2024 Earnings Call. Thank you for joining us today.

call and have Financial Mike Binz. the co-CEOs, co-founders Officer, on Farquhar Scott Cannon-Brookes, me today, Atlassian's we and Joe Joining and Chief today, quarter of press year 'XX. letter results Earlier commentary fiscal a our and third with financial and our for published we release shareholder Shareholder available earnings investor other find earnings-related work including the on life Investor supplemental and the also letter section you of sheet. will release is press data and Relations our Atlassian's blog website, where materials,

insight management's contains commentary letter for shareholder our always, quarter. and the As

call during remarks statements. So will Q&A. have and then today, forward-looking the we'll This brief focus include on opening our time call

could Forward-looking statements results expressed materially implied such if Any materialize from by involve assumptions. or or we statements the and results known any of uncertainties prove make. differ and or assumptions uncertainties risks, the risks the forward-looking unknown our incorrect,

forward-looking rely predictions You upon future should statements events. as not of

only statements on obligation Forward-looking or or and our the should they information be assumptions beliefs cease no undertake and of We change to such statements current. management's to such made. statements Further as date these revise represent Securities section update that Exchange to our business could affect the financial from quarterly and is Commission most in titled reports. the Risk factors filed filings Factors make time, recently with performance including included time we other results our and in are

one possible. I'd Q&A over at Relations allow a With call section sheet you many I'll available or shareholder of a on we'll for in to reconciliation for that, time. data financial measures. an like others financials as prepared opening is respect in are to non-GAAP take GAAP. substitute remarks. A non-GAAP the call, as participate the to Scott the in of financial These call, and letter, and today's between financial also turn our to are will our non-GAAP to question of with investor for During Investor not discuss we measures measures accordance website. in addition GAAP performance superior Out of on

Scott Farquhar

shareholder Thank you June. was for majority joining truly a us today. Today, our quarter company. a last We've milestone Atlassian is cloud read letter, QX in already for

our We announced cloud down cloud for ago. a winding paid had thrilled many products, of using to lower we we've are churn date. consistently among across seats server multiyear the is migrated since and been from our paid we with more we fees moment in And XXX,XXX base. our achieved journey, over initially in cloud has the X.X just We server have to support cloud what Xx this projected, customers expected while one significant our years than increase than

opportunity play originally This large [ medical value cloud about even products ] We desire and the the now realize products. believed. have big our the an innovation in deliver rollout customers' cloud our volumes they than to in

step I there at. while be XX is to is Atlassian time to of to technology but passions the where time investing after away, to decision, some industry. never years, and other grow a difficult perfect You'll of the more to against see the map as It's XXst down durable continue that Co-CEO pay stepping to this also us our I'll been innovation past year. execute August road and future be announcing Atlassian we drive, We're growth. it's a pursue And help confident and of on I'm have global build supremely [indiscernible] have.

We've industry. got platforms in of the the cloud one best

it continuing adviser And Mike around traction for on in AI customers trust with exciting I new gaining leading way with turn choosing [indiscernible]. member Mike assume to and our special to the role Board and most will customers to in the I'm leadership you, have [indiscernible] I'll history. I products remain consolidate CEO. and an real Atlassian. our Mike. as .X active a are experienced complete over of proud are increasingly team and opportunities, Our revenue,

Michael Cannon-Brookes

number Scott. milestone for a of reasons. quarter Thanks, Yes,

celebrations of and this his be want time not news is plenty do there'll touch farewells briefly. Now call, Scott's as to on for but last I earnings

As decades and X day the milestone by simply have major Scott. side you have years. other Scott and XX him thankful life known truly I for not for This know, be each all would every last I'm have And nearly Atlassian had experienced my without together. company every to

glad as professional sure support and professionally next CEO. through can we this won focus. mates and decades, him chapter, #X development both I partners, I'm been trusted full over will we last always has I'm massive I'm as company. and management. in and the front us responsibility I Atlassian of incredibly X continue lead about remain software management, priority excited of my in Atlassian hat every over this In great the our markets forward that the across confident that service X both in and and personally I to Scott opportunities have taking work have

are our unique and [indiscernible] We team customers' offer and our allow to insights certain us where data potential. unique and unleash AI, capabilities

attack to over to term, long while the we to that reiterate returning to continue our opportunities, levels. commitments I historical grow continue want to our the As we've margin made

agile that, revenue our while and enterprise good for strategic With key We really Q&A. thoughtful to pass in have we continue future. about we NII, be about scale, call behind plan I'll durable as the to we to place operator to leverage a approach the more excited appraise and like couldn't growth, driving the areas drive feel

Operator

Instructions]. [Operator

Your from first Ryan from Barclays. question MacWilliams comes

Ryan MacWilliams

trends powering to cloud one What developers? you hiring, revenue Just loan for maybe like Joe. was to develop separately, then housekeeping contribution at overall IT noticed growth fourth And for about its budgets you're the this the quarter? like about macro just of to trends have green or hear And contribution quick growth the the in quarter? third for shoots any the around thinking [indiscernible] item point. how

Joe Binz

of annual very with expectations. in in was growth Enterprise were perspective, Yes. much and multiyear both across trends that drove data in healthy start. From premium and center, in migration with in through rolling that you agreements. continued the other The expansion. significant record cloud and be part saw I'll macro within enterprise good we although And Strong headwind see sales and momentum in line Thanks, our line paid Ryan. cloud, of impact on the additions and what billings, our macro lands it QX macro with strong that products a in SMB, hand, up in results. also revenue to that of primarily And makes challenging, business. macro lands seat on primarily SMB our line expectations. a SMB cloud, given in

levels, with in the expectations our very quarter. below expansion cloud, well consistent paid within into as moderate decelerating QX but seat were QX. rates QX trends continue quarter-to-quarter as did broadly more back prior stepping from So coming the trend well to then the remained year And

So that's a positive sign.

Those the migrations, perspective, our from innovations into to the were pleased provide to new on et stable revenue All customers, we terms growth usage, -- of Loom's cetera. by then line of upsell, AI been we're with seeing other not reaction active customer growth product quarter specifics introducing the with drivers all we're or going excited expectations a the line. recent and we've and basically, rate. We Loom, cross-sell, monthly churn, were in growth overall. And in

our 'XX the guidance, our and our in we guidance in fiscal FY have Loom points line 'XX and In slightly impact performance FY to expectations. revenue revenue in terms X.X be And for dilutive FY the Loom terms year operating overall year of to QX in Loom was terms of revenue the for of expect operating quarter, of with year, growth continue margin to to on 'XX margins. about squarely for in cloud and

Operator

next question Fred from Havemeyer The from comes Macquarie.

Frederick Havemeyer

and be much. customers time calls. data I that respect missed on some certainly transition expected very transitioned to have to along But wanted might point a you're left the make know very period super that it's in limping than -- at are leaving of that we lower you immediately, much at any on for this are to ask, primarily here? Scott, after these time churn encouraging looking there this customers was but hear those Thank over future the not point, to migration quite center. will with

Joe Binz

to unsupported server certainly center running either than We growth operationally, to our cloud would or move small and smaller cohort from the moving be is how forward a Fred, this center point. number remain believe squarely to cloud. entering revenue material Joe. it data our it's exactly data thought many customers to assuming guidance. the know contribution It's this we on is enabling of difficult focus any this customers at not the customers And We're in quarter. now

Operator

Stanley. Weiss The comes Morgan next from Keith question from

Sanjit Singh

letter. customer about This Singh ask that on you had Keith. to question Sanjit the want I in shareholder is actually call out for a

pretty was ]. interventions ] FanDuel XX%, require [ [ result fantastic by tickets Fanduel for is that which to mentioned guys that You a able human cut

and And gains? do a on In with terms the of Elastin some of seat achieve think you you that efficiency customer, with are of pricing [indiscernible] that contract about how the types think basis? products. when revenue How opportunity those about they the would you

Scott Farquhar

great and historically priced we're produce on And one experiences Sanjit, softener almost That's minds seeing people's have at moment, question, base. Yes. that we our across that the helps and the usage on we've ROI incredible BitBucket a think in these is I increasingly AI products product for stuff like that. our has of some to of that build basis with areas sort as basis seat of happened all pipelines units some charged certain such --

are seats [ ]. more forward private going We experimenting usage-based with

in to some -- around think customers. have that world with a the from get it's ROI we interactions into the but of there usage customer, I specific is where back future don't pricing we do So these sort want one

with so that And experimentation more but we'll forward, going [indiscernible]. see

Operator

Mizuho Gregg comes Securities. next Your Moskowitz question from from

Gregg Moskowitz

future your be for Scott, with endeavors, best us you'll all little fortunately. I though the longer, said, as while even Mike a in know,

in data Having coming have and question as revenue this server is also itself clearly, recent given of there think going upside big migrations. the the data the quarter all to center was all and But quarter. And is quarter I tied center pull my sustainability. with decent cloud of guidance marketplace forward said The question an well. never amount upside a one of we're So that, is increase. line obviously, in center with marketplace from the of to price another was is, the just data

question the continue next fact, so beyond, is into show and can And year we look to in last, it good as growth. ahead

Joe Binz

question, for Gregg. Great asking. Thanks Yes.

perspective giving specific Let growth by our opportunities company top a At level, 'XX. highest we is software is every and critical Mike touched the around company. three large of in have trends to of transformation markets factor at the secular success and digital a call. little things on me without high-growth of share that FY for driven revenue the the long-term bit the try and really of numbers on the that like the

drivers From there, growth center. data there are several cloud across and

the we growth of base, In several center gradually [ of of continue data to migrations cloud, cloud terms size to key do over given ] years, be although revenue the expect installed driver we that wane expect time. impact to over a do

experience migrations, customer Now AI automation platform for that we're to better with cloud improve customer. delivering well grow best factors analytics time. provides as only TCO and drive will the over And the a as and those stronger and

we products, and investing of our that, enterprise of valuable currently available our that highly is of part much innovation As well, product products. on new as in premium only cloud and are additions

extensibility, and help and working all on and data very cloud app relevant good on which are our customers and deploy are and certifications migrate unblock largest progress our to of we scalability centers. in making integration and And to customers

paid lot we of you the over customers within space. know, additional the our enterprise products. expansion migration we've upselling additions premium have seat and opportunity of our as products in past, our drivers to to discussed confidence XXX,XXX in growth cloud From there in there, to a existing like the multiple customer are base, things our So cross-sell

discovery cloud the then the customer other course, in model. [indiscernible] final time, drivers smaller lever growing like Loom. pricing over high-growth adds the proms, are with Jira is and new and new And product of And

on given organic we the to of lot we're positioned with intelligence space more with data of drivers of renewal base. terms durable, rates [ there's are in pricing well. ] to as data center, with enterprise And data the with graphs that we way. the solid high-value high that the nature on Atlassian center and start be AI agreements and a expect And unique well around workloads, and In off a opportunity expansion customer long-term AI,

deliver our then confident for on period of in overall, we've last significant penetration add behind opportunity further a a that. and momentum And revenue multiyear feel we great enterprise, had where invest finally, we all up, and ability healthy to over signal year. have over the And growth result as

Michael Cannon-Brookes

at a chime Gregg, wanted to just high level. I in

there. a think very and there's answer fantastic comprehensive I -- given

think those long-term in arc any is the that time. the cloud I of data customers for center we upside terms long over the remember should upside in of destination for

server I X-year you number it's to overall, think right? view, mentioned, with of have that we seats as period. that the we thought we than X huge original our of overall end from ended success, point migrate would Over our the churn journey, of less paid last cloud, for over been migration or X- a years, expectations we a we beat

tripled years seats period that in paid the of since announced number since the X during We've we -- cloud we ago.

hybrid the a deployments, and goal company, generally journey. as that are things, way the in we an to requirements, way do then have is, get largest time different team we the customers. that but this middle of is all them hard executing as long-term which We there. through against to things. Atlassian our most These can they and Data and think different moving complex the out They zoom a different internally. will center cloud. and is go the customers a say example I It's I and see would

on mission, And against quarters the execute Atlassian years the data a will if this quarters up how cloud that a the way of we next were basis. X-X, the on that's year-on-year against over in We to you first I same X to that last again, of XX%, X singular the year migrations statistic first mission going, that. year, executed center over do in confidence have few last want the of

the So cloud. we to are already migrating customers data center

good overperformance for sign is long-term So that us. a

Operator

question from next comes Turrin Your from Wells Michael Fargo Securities.

Michael Turrin

strong still quite environment. were tough a Results in

surprise I news is initially Scott. to think more the stock the reacting from

helpful the peek And focus around you or more sole a Mike, can and behind the end CEO or a is perspective. becoming changes Mike maybe divided your of key both to points around Scott scenes would So historically you strategic give how have us a be role? from CEO the all at product hear role on

there useful. just think I detail any is

Scott Farquhar

I We Look, first and have bins Scott years. first here. the I'll taking together [indiscernible]. take to in Thanks, office. our the out Mike worked used for terms, XX

of engineering that. well actual little products. So half time. we've kind run of go-to-market that runs I've for Mike done that Mike's over every engineering time, job period run run over than I've equally less

shared I So those think And of everything them we've ourselves together kind time. unique over period change that kind responsibilities done of time. I give you that's of mean, and relatively actually and over [indiscernible].

it's there. think extremely also unique I

years and at of I I the about over investment there's business picking growth done around spent or how doing to spent together want so you think time lot so do hasn't half be think is how together we time though a dozen we've looking anything that we a that of the and investments where before don't finances the for and run And up to in business Mike of Mike years, the grow like it and lot we'll and we add so. our a to me and is file what last in the Mike, go profile anything? want and philosophy

Michael Cannon-Brookes

forward. point forward. was Scout to But Scott. other going Look, being hope This that out. constant the Thanks, time. a a We'll Thanks, values, I going for Our and clearly last as and view, long-term XX to We the every constant very than point, a the of has going mission better I work on continue it's the our of team a a Michael. long years, bins say for to last the company, right? than of been taking be to unleash eco philosophies from culture. our potential Yes. company Scott want

should I ways of think think them don't do We're do a that no I that change. expect to very long-term would change thinking certain to company, or nor we change Scott being want

we changing Now environment. a highly in live

say and short strategies in our to term, What change. very closer we So to execution. we're sort on our can focus, we can't say of going is the clear nothing's the medium

we executing to the I'm you mentioned, work Scott executive we've get to mall like. ever single had. day, experienced this mini through alongside the As lucky have if project, even super most every team

view, very what strategy our customers, of From migrations. our shareholders, enterprise of We clear. our include the a point have are look, investors, we're terms in we opportunities with our focuses the in and

And continue In seeing and era, the to and there terms invest AI strong the ESM in of we opportunities. market some results. and have ITSM fantastic then strongly

keep So we as we'll change those as doesn't are updated priorities That to current from move and you yesterday we said. today, the forward.

Operator

from question Wolfe next Research. from comes Your Alex Zukin

Aleksandr Zukin

cloud tied trends seen ACV of notion kind of first X terms what deals center from things. next does then center unblocks mean data of to basis tier both of this is that's some quarters more and signing that And where company's ability just in you previously maybe next the kind year, of thought? customers migrating a year, that over this end those customers in in focus the doing the a for a migration more you've mine that to and on terms of perspective, of are and life at context that to server cloud activity Maybe longer-term What the XX growth. data beyond, of to journey lot points to look construct both or the financial of quarter the ARR in if you the

Joe Binz

there, A me back. so them Alex. hit bring if lot all, questions Thanks, of Yes. don't I

server those to Despite we 'XX. some of We size months given our largest start the migrations I'll today key center in customers, installed bigger support, cloud opportunity ago, customers the do we even of it enable center be any expected a to continue QX to driver due post have data very and the into base And to quarter. and with this growth a migrations. significant retention is of move migrations this few to be FY to data expect migrations server is X to So if the to and cloud. the from customer opportunity that than strong revenue

the lack decline we from 'XX, to approximately revenue over the benefit FY growth in Having given migrations. time that, XX-point gradually also said of server expect the cloud

-- earlier to drive we're the talked I things Now about doing.

execute drive to to a our we of and that lot have So ability in confidence on it.

that's So going growth cloud impact about think how we to migrations forward. from the

the terms number if volume at look similar deal our quarter, a between deal you overall to quarters. multiyear large past we though structure, the absolute and In of mix consistent this annual and were very had even deals, of

overall the the within annual mix the volume of volume, growing same. think So that multiyear and and between being

Michael Cannon-Brookes

I to points just few small a had Alex. that,

in you're more of from obviously, terms data deals hybrid a seeing customer. like Firstly, lot center the deals, type

Atlassian. series hybrid shows fantastic events. more It And shows of have workflows. their This is to their moving our of One of for that up how is of [indiscernible] complex in terms into time This the your app larger in is not more complex migration have and their is we like deployment that the customers cloud they're products. X-day journey They with deep and sort much a over the environment, deployments enmeshed construct. topology value single customer click gradual lots button right? on points of in and a both deal an event of the a clear means phone, changing we

of to of continuing we resources to the with more pride be can agile continuing the to to scale, work the as there's I us need, and of We're we a do, and to slightly new need extensibility the and around residency. largest those that at with data part right? the still business And we in Obviously, move incredibly done R&D X see be. but governance to quarter customers things to ourselves strong this and move move the maintain R&D center work will we it all data in end rolled you'll the and we've that our cloud, and over to we out Atlassian, server, our towards say, forward. ability invest proud journey. lots where coming of year an in in our commitment continue regions performance We

Operator

Keith Your from Capital next Markets. Bachman BMO question,

Keith Bachman

you this think but data I for center I Joe, to is as well, about Yes. growth. talk wanted

for stronger with XX of given the So would I of, -- XX to that net call would kindly help, guidance have points QX it help, you've have it, than anticipated. of even

next us about we that think should top longer-term construct over on if I so Analyst look we step Will center or any looking either a and even you management the to. that's Day takes back, week, analyst puts or growth And say, some frameworks, the out to give margin there the take specifically. is to horizon, just as provide at very look And data model much event, forward construct? how can or line

Joe Binz

Great Keith. question, Thanks. Yes.

growth Let center that frame with and the model. on drivers me data in terms it start question long-term of

server cloud. another we have migration revenue center in migrations to this moment net to expect driven of into lap We HX have to cloud. do flows server Having server data dynamics from that to 'XX that to to migration and unsupported support, the migrations to see accelerating if net out 'XX data decrease through comparables going and to said headwind from the and FY 'XX migration FY FY with over months, wane center growth as will much pronounced customers given data the should from in quarter, into we'll we're in the FY 'XX challenging going have from headwind decelerate course the cloud, And in and earlier, next point migration growth center the center limited a growth server year by from that, from strong server benefited and the to 'XX migrations benefit XX to we expect at of data benefit more likely which in new a given we the data question 'XX. to not support just are FY rates and center FY any

high growth in I our it's of very increases data migration drivers price beyond rates expect mind healthy stories remain and expansion also keep do those other long-term and with enterprise base And that's rates, to important growth key contributors going dynamics. think center those you think we customer to renewal sort is as to are So here migration forward. about predominantly the the

opportunities Analyst interest appreciate really to going the have share than seeing together. looking and whole the around I'm of that. how of week our we forward durable get a not making rest optimism we'll say the next and long-term I we we in to Day, think lot the of deliver we be about to the of will that, to other growth share us And you your plan many to areas colleagues share that investment terms enable next drivers In today when week. on key I'll

Operator

Thill Jefferies. comes from Brent Next from question

Brent Thill

restrain Joe, to forward guide. your this would about growth the actually we Is easier maybe hung big. mean you Is up expectations on much? the is accelerate most think growing as But D.C. you something maybe that's too felt I of to it faster on? going I what and still the curious been differential why going else on know cloud I accelerate are are can just some was I holding your cloud many what think of on for what right a when forward. think migration? Because make going is is thoughts back kind or seeing, expectation know the think side buy just get the little going expecting like has you're versus And of to now. But to our just faster, it's move there what you're

Joe Binz

with to data most And the migrate center than time. there at more data because server majority, customers talk the those were it's not large easier much And little to did server cloud. migration recall center, environments. of right, customers of we end are a we Yes. you'll Brent, With path respect need the to that expected the all to to that a customers complex support, fact vast of that about very customers and support, those of those if

what [indiscernible] up part or year, we has all held and performed of line So in than the well. model better really it's expected

business. back overall the cloud at Stepping

and I continues think paid Everything a the expansion in else not has model well environment. in performed really main pain mixed, entering if hold macroeconomic what we with seat been weakness. the around what year. up in really difficult has point and line the to expected has been

seat SMB terms expansion our year rates beginning below paid trend seat of Within quarter-to-quarter the I paid fact prior of trend, that overall seat the to and earlier. in levels, expansion talked from improving prior I quarter to that rate In expansion, about moderate challenged. be as mentioned continue is quarters. remained But in particularly

And so aspect be that's it. center and to of been, if could delta the expectation pain there point the you want that an

Our enterprise stable. very remain rates

broadly speaking and enterprise. a is believe see more where to tightly than SMB continue driver this costs and we so of impacted, big And trend macro customers as growth we managed headcount

are been So the even and perspective. The to business on whether upsell line. additions coming it's that's drivers, the cloud premium migration the from pain headwind perspective, cross-sell or our a in or primary customers back point from remaining new

expectations. All in our with perform those continue to aspects well line and of

from perspective, been expectation biggest -- our that's the Delta. So that's

Operator

next from Nick comes our Altmann Scotiabank. Next question from

Nicholas Altmann

wondering just you build heightened But churn that I customers with is higher the cloud larger maybe around provide did just why your driving driving guys But significant Wanted about that's about the sort could what about talked or today expectations. above you counts little today of question a cloud than see sort current just can And any expectations. talked initial optimism? And mean more your to you expectations. much if in talk bit. on versus seat other guys several prepared you sort your of was of the color opportunity guys bit. a guys how I your just was what's opportunity versus you around you on last initial remarks, that the cloud upside years are you seeing ago? impact

Scott Farquhar

as Thanks, migration in A expected. first, has asset is the just of Scott migration here. is performed -- reasons. let's Its our models, which One Nick. that couple take everything

cloud. competitors think when the And to double of how we that. expect offering with expect really migrate out. would overall seen people as These these times from companies And and stick haven't on people our terms to to the or be to are to In investment our people down trend allow alternatives seen many pointed there in to I server We've we you customers. researched in Atlassian's What the products. of out market. stickiness

every customers And that of those center. they the step made data I made [indiscernible] have so But speak not They've to -- cloud. the future. by first first one you I tell with may to can

And a particular internally a they schedule it's just on. or want data the when compliance from done. trying either that want to or really, okay, Or working get got that they're they migration they they're a us to feature already project particular we're residency a

is [indiscernible] super If I the opportunity so market week shows, that excitement [indiscernible] by in huge usage pretty to larger is of products take new inside have the they're fast. sort And of real point that our market, revenue usage products up the our and size excited And that around opportunity, and next early around base. gaining I'm coming the kind a for [indiscernible]. that. that that that just what got we've getting of customer migrations. One we But on customer down are are bottoms what growing

like is those in to work of know And we across to sold across every make across move our and that work vendors, looking a And can are our we organization are this, for the they deal less entire customer that then [indiscernible] be times entire sure with system customers across their looking base. department. new seeing are industry. single Two can products

year we are on there's there, we and what built outs switch really side so of on consolidate firmly One is to a of software to that explained. lastly, And things. last with can so far and couple AI do competitive of that us is, is going the And this. get I more seeing believe

so people want is providing charge before customers model, to X.X or dollars use came the much that used last for and more our alive. over can And value years you forth business so are is our broadly the help for tools but And some and than so AI now other who revolution ROI the our time there changing over products whether to going or customers to software we're for our we the they opportunities the build market increase. were

or I if and to on. anything Joe add it's go don't can to I that. Mike know want So on

Michael Cannon-Brookes

covered to some always probably only the exciting thing I next And at terms [ Scott add, all underestimated The of durable We is think We and advantage. hope that Again, XXXX]. as of Equinox would I coming and a and terms across singular just long AI. through think than Solstice is is Yes. and Atlassian there we a more Atlassian thinks goes in Equinox to growth strategically world we the basics. see stuff week. Solstice you in go The got the platform long-term and areas Equinox all very Solstice and around, try up and thoughtfully we're incredibly of of about bullish company one around about that very and quarter. obviously, term and that and

you about of terms world. of think the a R&D engineering, part we have In right? that significant how investments, is we see

advantage. ability amount cloud, is unique, to our automation that the the allows moat in across quickly, multiple the is into future and Atlassian get intelligence teamwork our only is of across goes customers underpins graph advantage Atlassian large platform our a increasingly way, Building fund It to over get differentiator that and and periods. investments and year capital-efficient resonant the a That with and a products be as will adopt the so large them future period, a in R&D out competitive those it that analytics products, out many a long-term And platform. those our to to comes build across as that out products many, unique build allows to, over a lot a capabilities. choose of our continue them from super that more products and a other scale thinking

Operator

from comes Rangan from question next Your Sachs. Kasthuri Goldman

Kasthuri Rangan

given quite like strength is the other. center data stay Yes. in a the question it continued the going call to Toggling from be one My here while. to to this for product, looks is,

fiscal development So respect functionality. when of you map And the is on cloud, how to road the with going placed start are migrations, an curious, to make the the look we forward? at And and in intention cloud the when entity. between to going see migrations incentives going going a the design, being we product and particularly by side to surviving I'm easier by to ahead are see are divergence years also the new we what emphasis on ahead, much those

Michael Cannon-Brookes

it's and Look, customers is the understood can that our our that. from know would of well future say cloud I Kash, customers' our Sure, that. I view, take point

customers I'm earlier, lot the ago, a of mentioned years you Scott said, going not to cloud. As X had that

when, not nature because can't the run who Now or Atlassian we The reasons right? because not this say, say who of to reason it features either reason, reasons. of not to customers will the extent if, they or cloud. of into into now cloud. of I some internal go an that customers a run go I related is the do divergence

LLM Intelligence. need platform features cloud you look them or hence, in an incentive center driven bring the that. they And and can reason reason. data AI requiring completely extra customer, understand a we is for Atlassian to to not So It's foundational teamwork further migrate. Atlassian models no and to large-scale logical than something graph a with that

supporting those things building is to move are other workload continually in helpful it as about tooling of we parts that And to in over way. you Now areas if our customers like think hybrid migration time. their and cloud, those features customers that the

of capabilities and can right, and we center where Beyond to do simultaneously. cloud in terms and customers, in take invest terms center sense the in features, certain the to those continue of in features that, in compliance of scale build of which security, data in their data we terms makes for

customers the understand think I So that.

from point additional DC of of other for financial terms to and In customers incentives a move view.

We to way continue to do as and with our work that. our partners the customers to best

residency to continuing driven, can on all work with be are about it's that and we and financially and compliance ramp much scale things Often, right? as the Fed It and enterprise data not those customers.

Operator

Boolani Next Citi. from question comes from Fatima

Fatima Boolani

congratulations legendary Scott, absolutely run. you to for

in center Just wanted or incentives ask on I a cloud. carats different customers the for the to question way. existing the the of the to your move you to point data

[indiscernible] substantial and for in demands complex some solving other and make security blockers regulated always progress your of residency data You most for customers.

address I'm have I those what alleviate or cloud accelerate, type So a the that this "cloud" most term? curious center standpoint? is to data are going from should will And to blockers presumably of blockers expect what entail ask expectation investment because reason your migrations we that the been of left is in renewed. is to the medium And

So would on a just love front. more I little color bit that

Michael Cannon-Brookes

can today. Look, of think, big some a maturity a test customers that enterprise Sure, Fatima. I cloud highest I the X/X take have that. footprint regulated industries in it's part pretty at of level, our

and So our about gratifying. that's the noticing achievements by you way, for that, talked you very thank

those with place We have is an areas, been it working resonating incredibly hard and and customers, on important to start. that's

road I of take to X on. I I'm a these the is just these the saying, call think referred That piece you we me going Like say most large years. customers. company this second. X get projects a I Second, move have move. map running them to X, for these one about and to I that to would blockers. organizations. about going yes, takes customers, piece X-year cloud first, them years, That them It's it. just things not going is complex year, a as time That's customers, our this lot these largest, complex in of IT that for they're

the customers. natural progression those Some of that's pace of

There things other that improving migration we can we lots and are tooling things are certainly of working do, on.

terms no for FedRAMP the that we will [ customers. Some to continue like we're work of governance, with of process ] And and work we continue things governmental on paces there's to were on as we in the doubt, mentioned, in part customers. Moderate

more data regions roll is to and scale to residency customers. love for kick performance for we that sure. out always [ There We ] can we'd more largest have our

are area, things ship continue work and a to of on. extensibility improvements every to single In to there lot continue quarter. app the that So we have we

They in thing trust other over time. are We to like the trust. center in and subscription our building the the our map offerings. in of cloud in we've especially is quarters, see R&D relationship that customers, continued environments road delivery. is XXX% terms our see last get with can customer X Now We cloud subscribing of future hit demonstrating the about data

that they going what we've is time. certainly deliver are the them over want tell we're a making as or that Atlassian multiyear we deliver So when going these to on, which even say customers to of decade-long period things we're the last to done commitment to on

clear over we conversations, are they customer them, the, see having are that time. said, remove to blockers That call they acknowledge continuing they you cloud and as

So to They up going that progress just seeing you when our is you trust customers. talk are are. as

So hope I helpful. that's

Operator

Arjun from Blair. comes question from next William Your Bhatia

Arjun Bhatia

this a landscape, role role have right? and Perfect. hearing of maybe to code how text the perspective? What mean more how Mike it We're that perspective, does on for developer a of automating manage the sense see to the companies more an start-ups for to developer, Maybe and are that's your these what need from And Atlassian developer about lot one the how maybe more Jira the and lot AI popping you from wanted changing? addressing to process it of you Scott, or but up change the capabilities do agile more. about of just I the means what doing workflow mean that the for it But might or are overall. touch does from role evolve the

Michael Cannon-Brookes

I one. Yes. here. certainly Thanks, Matt. of can Lots take that thoughts

for like is more have is What code, to ability supply position we for does of constraint -- in language demand generate arguably right? Firstly, a We're the built. constraint. demand be sense, that understand the world. number broadest would their that constraint to Large important world to models, in awesome that not the we their has It hit for which the in phenomenal ability supply code, ideas AI software take to development loosens the the not amount going engineers, we of a AI software ceiling. is is

of So we do have people more engineers the to is of think they it. be able will the that with way number

of number for good a reasons. for is us That

of problem of suspect It's we coding it. is they hard the coating. rather and a a the on on and spent years I with that operate spent work how service of next on XX they've spent work teams not and developers and software just and to then sort collaboration than view It's support difficult continuing years a delivering on. working piece software is is activity. classical on, That coordination marketing to most the XX-plus how time developer managers services built most and spend Firstly, product of That spent activities. that teams,

a Secondly, developer for AI, us, things services for tools, especially far software managing software, apps is that we more believe, and which experience, Compass, about like are and thing more far sprawl. and great generate will

with obviously GA, only well resonating Again, on pretty growth our a and already ahead customers strong extremely but path but a few into months of well expectations. taking -- off

programmatic sort is thing fantastic. and allow a to have and a And nondevelopers lastly, code quite the form capabilities great some AI of to Compass is to software. thirdly AI more So more ability in that "right" of

like see activity Atlassian and at a kind it's a but of to your this democrat chart understand You to to where dashboards, natural then in it. analytics analytics, to allows to data language can and SQL the turn into get ability use developer

software be I many of we think as development, way say that, to allow these that that's think it. like the things AI there'll capabilities used more many, maybe -- to to

have if you So follow-ons. know Scott, any I don't

Scott Farquhar

like software, of from. and little the Just where things want I and on what known do A be build to to looks hands how not working it think at just people is keyboard going how writing to code. software the is that come write people data we I think don't spend lot that for requirements is and , may which time actually be first like it well

in much spend a differences customers, lot and that a at make leases on can Confluence of in change an with customers, hands customer's developed they of a percentage of talking in touch way than time our and much it how in writing actually gathering requirements spends And percentage-wise, their huge But time week like because larger so look developer you IDE. their in Jira, keyboard. products you to our doesn't week development that's

time software keyboard opportunity because The us like say same huge so. immense And is for these for there, it's developers time [indiscernible] difference. to a hands-on

And to particularly because suffer known it's so just well if you're developer. want a about not I not

Operator

session. over And call for turn I will closing that question-and-answer concludes to the our now Thank you. Mike remarks.

Michael Cannon-Brookes

Thank you, for today. call our joining everyone,

we share TEAM your customer appreciate and continued questions hopefully, to our announcements can't at Day in hope weekend. mind-blowing there. Las with customers for to We're fantastic Vegas. flagship wait see really fantastic you always, I you. And with that got we also some, 'XX. We'll hosting and speakers, Investor 'XX, As thoughtful next incredible that, be support. conference week incredibly Team excited our We've a some have

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.