Atlassian Corporation Class A Common Stock Citi Global TMT Conference

Yeah, thanks for having me, Fatima.

Yeah. 5 and a half months, so I must have all the answers at this point. In terms of biggest surprises, honestly, I would say that a lot of it is more about reinforcing the thesis as I came into Atlassian. When we really thought about the opportunity that AI presents, I think there was a lot of questions, a lot of noise in the market about whether that was going to be a headwind or a tailwind for Atlassian. I think we have proven over the last couple of quarters, and really even before that as well, with our strategy, that AI is going to be a tailwind for Atlassian. As customers look to really drive more and more value out of AI, understanding that Atlassian delivers an incredible graph, our Teamwork Graph.

That's what's really going to be powering AI across the enterprise, and I'm excited to get into that today. But again, I would say not a lot of major surprises, but pleasantly surprised at the reaction that we're seeing right now over the last couple of quarters.

Yeah. Like we said, the strategy largely hasn't changed, right? When we talk about the strategic priorities at the company, it starts with AI, system of work, enterprise, and I think one of the areas that Mike and I added was around driving durable, profitable growth. So all of that's continuing to work together and come together over the last couple of quarters here. So I think that's one of the areas I would highlight.

Yeah. Q4 is actually a great place to start with that, right? We posted $1.8 billion in revenue growth, 28% year-over-year. We posted ARR growth of 23% year-over-year, with RPO growing 44% year-on-year. We got a question around what changed overnight, what changed in the quarter. The reality is it was really a lot of consistent innovation and execution across our product teams, our engineering teams, our go-to-market teams, to really deliver and drive those types of results. Two of the areas that really outperformed our expectations was standalone seat growth in our product like Jira, Confluence, and JSM. We saw revenue re-accelerate in our Service Collection in the quarter as well. A lot of opportunities still ahead of us here.

In terms of highlights, I shared a couple of these stats a bit earlier here, but in terms of AI being a driver for us, the growth that we continue to see across our Teamwork Collection. One of the things that has made Atlassian incredibly special over the last two-plus decades is we put the customer first. We want to make sure that we're driving value, number one, and we're seeing that Teamwork Collection is the best way for customers to buy AI with us. Give out 10x Rovo credits, mobile credits, as part of that, and we want to remove that friction of that ability for customers to adopt and use AI with more and more depth. We're beginning to see that 80% of the Fortune 500 use Rovo right now.

As we continue to focus on the depth side of it, we're also seeing Rovo-assisted actions increase 50% quarter-over-quarter. That's really important because it's not just a simple AI search, it's not simple AI chat. Users asking Rovo to take action. That's how you begin to unlock the power of AI across teams and across the board.

Yeah. Really pleased with the momentum that we continue to see on the cloud side of the world. Some of our biggest drivers remains expansion, as well as that cross-sell motion that we talked about. I know there was some concern about cannibalization as it relates to our collection business, but as we saw in the last couple of quarters, the outperformance was driven by standalone seat growth that we saw in our applications as well as continued growth in Teamwork Collection. Teamwork Collection is still relatively early. We only introduced that over the last year, so I believe that's going to continue to compound. If you look at also the Data Center side, right? As we continue to migrate customers over to the cloud, that continues to be a multi-year expansion pipeline.

When we look at cohorts of customers that have since moved from Data Center to cloud, 3 years on, they've spent 1.75x on average more than before. That makes sense because you've got a whole suite of applications and collections that's available in the cloud. You've got Rovo, you've got AI, you've got the Teamwork Graph. A ton of opportunity to drive more value as customers continue to migrate to the cloud.