Atlassian Corp
SWB:48D
Atlassian Corp
Atlassian Corporation was born out of an ambitious vision of two university friends, Mike Cannon-Brookes and Scott Farquhar, who launched the company in 2002 from Sydney, Australia. Unlike many tech startups that focus on a single, groundbreaking product, Atlassian set its sights on the broader goal of revolutionizing how teams collaborate, communicate, and manage projects. From day one, the company embraced an unconventional business model, eschewing a large sales force and instead letting their software speak for itself. This approach not only cultivated a loyal customer base but also allowed Atlassian to innovate continuously, creating tools that became staple assets for teams worldwide. Its flagship products, Jira and Confluence, became synonymous with project management and collaboration across diverse industries, from tech startups to Fortune 500 companies. With its cloud-first strategy, Atlassian capitalized on the growing demand for SaaS (Software as a Service), providing scalable solutions that cater to the evolving needs of modern workforces.
At its core, Atlassian generates revenue through a subscription-based model, selling licenses to users who rely on its suite of products to streamline workflows and enhance productivity. Its cloud offerings have increasingly become the centerpiece of its financial growth strategy, as businesses transition away from on-premises solutions. This shift not only aligns with global IT trends but also positions Atlassian to tap into a recurring revenue stream that scales predictably with customer expansion. In addition, Atlassian supplements its revenue through enterprise agreements, which offer tailored solutions to its largest clients. While the company prides itself on minimal marketing expenditures, focusing instead on customer-driven expansion and community engagements, its commitment to R&D ensures that it remains at the cutting edge of collaborative technology. As a result, Atlassian continues to thrive as it empowers agile teams and fosters a culture of innovation in organizations around the world.
Atlassian Corporation was born out of an ambitious vision of two university friends, Mike Cannon-Brookes and Scott Farquhar, who launched the company in 2002 from Sydney, Australia. Unlike many tech startups that focus on a single, groundbreaking product, Atlassian set its sights on the broader goal of revolutionizing how teams collaborate, communicate, and manage projects. From day one, the company embraced an unconventional business model, eschewing a large sales force and instead letting their software speak for itself. This approach not only cultivated a loyal customer base but also allowed Atlassian to innovate continuously, creating tools that became staple assets for teams worldwide. Its flagship products, Jira and Confluence, became synonymous with project management and collaboration across diverse industries, from tech startups to Fortune 500 companies. With its cloud-first strategy, Atlassian capitalized on the growing demand for SaaS (Software as a Service), providing scalable solutions that cater to the evolving needs of modern workforces.
At its core, Atlassian generates revenue through a subscription-based model, selling licenses to users who rely on its suite of products to streamline workflows and enhance productivity. Its cloud offerings have increasingly become the centerpiece of its financial growth strategy, as businesses transition away from on-premises solutions. This shift not only aligns with global IT trends but also positions Atlassian to tap into a recurring revenue stream that scales predictably with customer expansion. In addition, Atlassian supplements its revenue through enterprise agreements, which offer tailored solutions to its largest clients. While the company prides itself on minimal marketing expenditures, focusing instead on customer-driven expansion and community engagements, its commitment to R&D ensures that it remains at the cutting edge of collaborative technology. As a result, Atlassian continues to thrive as it empowers agile teams and fosters a culture of innovation in organizations around the world.
Cloud Milestone: Atlassian delivered its first-ever $1 billion cloud revenue quarter, up 26% year-over-year.
Enterprise Strength: Strong enterprise sales momentum with a record number of deals over $1 million ACV, nearly doubling year-over-year.
AI Adoption: Over 5 million monthly active users of Atlassian's AI capabilities; AI is driving customer upgrades and platform adoption.
RPO Acceleration: Remaining Performance Obligations (RPO) grew 44% year-over-year to $3.8 billion, with acceleration for the third consecutive quarter.
Pricing Confidence: Management reiterated preference for seat-based pricing and sees current model delivering value with stable and improving gross margins.
Migration Impact: Data Center to cloud migrations contributed a mid- to high single-digit boost to cloud revenue growth in the quarter.
Long-term Guidance: Management reiterated its midterm outlook for 20%+ annual revenue growth and 25%+ operating margin through FY27.
Service Management Growth: Atlassian Service Management surpassed 65,000 customers, with enterprise growth over 60% year-over-year, and strong non-IT use case expansion.
