Financial Data and Key Metrics - Cloud revenue increased by 31% YoY, exceeding expectations of 27% growth [38] - Paid seat expansion and migrations were key drivers of cloud revenue outperformance [38][39] - Atlassian Intelligence usage increased more than 10 times since the start of the year [19] Business Line Data and Key Metrics - Jira Service Management (JSM) has over 55,000 customers, with strong growth in both DevOps and employee service management [66][68] - New AI-powered products like Rovo and Atlassian Intelligence are driving customer adoption and premium edition upgrades [12][19] - Jira Product Discovery Premium, Compass Premium, and Guard Premium were introduced, adding advanced capabilities to cloud offerings [13] Market Data and Key Metrics - Enterprise trends were healthy, with solid results on annual and multi-year deals, migrations, and upsell to premium enterprise editions [24] - SMB customer segment showed signs of stabilization, with stable paid seat expansion rates and healthy top-of-funnel metrics [24] Company Strategy and Industry Competition - Atlassian is focusing on serving the enterprise, delivering AI innovation, and empowering teams through its system of work [14] - The company is leveraging its cloud platform and AI capabilities to break down silos between software, IT, and business teams [10][11] - Atlassian is well-positioned in the AI era with its R&D engine and over 20 years of data on team workflows [11][12] Management Commentary on Operating Environment and Future Outlook - The macro environment remains stable, with continued stabilization in the SMB segment and healthy enterprise trends [24][25] - AI is seen as a tool to enhance human creativity and business efficiency, with no signs of seat cannibalization [20][21] - The company is confident in its ability to drive results despite a challenging macro environment [28] Other Important Information - Atlassian introduced Atlassian Focus, a new product in its enterprise strategy and planning solution [13] - The company is integrating Loom into its platform faster than any previous acquisition [61] Q&A Session Summary Question: AI Product Releases and Proof Points [16] - Atlassian has a two-pronged AI strategy: Atlassian Intelligence threaded throughout the platform and Rovo as a separate AI product [18] - Customers have seen significant time savings and increased ROI from AI products, driving premium and enterprise edition upgrades [19][20] Question: Cloud Platform Upsell and Cross-Sell Effectiveness [23] - Cloud platform outperformance was driven by stable macro environment, good sales execution, and fundamental business health [24][25] - Consolidation onto the Atlassian cloud platform and AI capabilities are driving growth [26][27] Question: AI Strategy and Pricing [30] - Atlassian Intelligence is embedded in existing products, while Rovo is a standalone AI product built for the AI era [31][32] - Rovo revenue will be included in cloud results, with modest revenue expected in FY25 [36] Question: Cloud Revenue Outperformance and Sales Go-to-Market [37] - Cloud revenue beat was driven by better-than-expected paid seat expansion and migrations [38] - New CRO Brian Duffy is expected to help mature the sales go-to-market function [41][42] Question: AI Differentiation and User Base Addressability [44] - Atlassian is differentiated in AI with its cloud platform, Teamwork Graph, and enterprise search engine [45][46] - Rovo is built on years of investment and delivers significant value to customers [47][48] Question: Consumption Pricing Strategy [51] - Atlassian has a defensive consumption-based pricing strategy, with AI and virtual service agents driving new opportunities [52][53] - Consumption pricing is modestly included in guidance, with a conservative approach to scaling [55] Question: R&D and Product Innovation [57] - Atlassian's R&D focus on developer productivity and platform maturity has led to a flurry of product innovation [58][59] - The cloud platform enables faster and more mature product development [60][61] Question: Jira Service Management Competitive Dynamics [64] - JSM continues to grow strongly, with AI enhancing its capabilities in DevOps and employee service management [66][68] - Atlassian is outperforming competitors in AI-driven virtual service agents and automation [69][70] Question: Data Center to Cloud Migration Timing [74] - Larger data center customers are moving to the cloud, with some adopting hybrid deployments before full migration [75][76] - Migration projects are multi-year journeys, with macro factors potentially affecting timing [77][78] Question: Macro Environment and Guidance [82] - Atlassian's guidance remains conservative due to macro uncertainty and execution risks in enterprise go-to-market evolution [83][84] - The company is taking a long-term view while navigating short-term challenges [85] Question: Cloud Deal Timing and Pricing Increases [87] - Deal timing was not a factor in Q1, with healthy deal flow throughout the quarter [88] - Atlassian takes a disciplined approach to pricing and concessions, focusing on long-term value [89][90]

For the quarter ended September 2024, Atlassian (TEAM) reported revenue of $1.19 billion, up 21.5% over the same period last year. EPS came in at $0.77, compared to $0.65 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $1.15 billion, representing a surprise of +3.08%. The company delivered an EPS surprise of +22.22%, with the consensus EPS estimate being $0.63. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ho ...

Atlassian (TEAM) came out with quarterly earnings of $0.77 per share, beating the Zacks Consensus Estimate of $0.63 per share. This compares to earnings of $0.65 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 22.22%. A quarter ago, it was expected that this company would post earnings of $0.59 per share when it actually produced earnings of $0.66, delivering a surprise of 11.86%.Over the last four quarters, the company has su ...

Revenue and Growth - Revenue of $1,188 million, up 21% year-over-year[1] - Subscription revenue of $1,132 million, up 33% year-over-year[1] - Total revenue expected to be $1,233 million to $1,241 million in Q2 FY2025[8] - Total revenue growth expected to be 16.5% to 17.0% year-over-year for FY2025[10] - Total revenues for Q3 2024 were $1,187,781 thousand, a 21.5% increase from $977,775 thousand in Q3 2023[20] - Cloud revenues for Q3 2024 were $792,306 thousand, a 31% increase from $604,647 thousand in Q3 2023[27] - Data Center revenues for Q3 2024 were $335,594 thousand, a 38.1% increase from $242,943 thousand in Q3 2023[27] Profitability and Margins - GAAP operating margin of (3)% and non-GAAP operating margin of 23%[1] - GAAP gross profit for Q3 2024 was $970.157 million, compared to $799.746 million in Q3 2023[29] - Non-GAAP gross margin remained stable at 84% for both Q3 2024 and Q3 2023[29] - GAAP operating loss increased to $(31.978) million in Q3 2024 from $(18.869) million in Q3 2023[29] - Non-GAAP operating income rose to $268.050 million in Q3 2024 from $224.943 million in Q3 2023[29] - Non-GAAP gross margin for Q4 2024 is expected to be 84%[30] - Non-GAAP operating margin for fiscal year 2025 is forecasted to be between 22.0% and 22.5%[31] Cash Flow and Financial Position - Cash flow from operations of $80 million and free cash flow of $74 million[1] - Cash and cash equivalents decreased to $2,055,597 thousand as of September 30, 2024, from $2,176,930 thousand as of June 30, 2024[23] - Free cash flow decreased to $74.341 million in Q3 2024 from $163.287 million in Q3 2023[29] Expenses - Total operating expenses for Q3 2024 were $1,002,135 thousand, a 22.4% increase from $818,615 thousand in Q3 2023[20] - Research and development expenses for Q3 2024 were $603,101 thousand, a 25.2% increase from $481,738 thousand in Q3 2023[20] - Marketing and sales expenses for Q3 2024 were $252,393 thousand, a 30.4% increase from $193,567 thousand in Q3 2023[20] - General and administrative expenses for Q3 2024 were $146,641 thousand, a 2.3% increase from $143,310 thousand in Q3 2023[20] Net Income and Loss - Net loss for Q3 2024 was $123,769 thousand, compared to a net loss of $31,883 thousand in Q3 2023[20] - GAAP net loss widened to $(123.769) million in Q3 2024 from $(31.883) million in Q3 2023[29] - Non-GAAP net income increased to $199.700 million in Q3 2024 from $168.980 million in Q3 2023[29] Cloud and Data Center Performance - 46,844 customers with >$10,000 in Cloud ARR, up 17% year-over-year[4] - Cloud revenue growth expected to be 25.5% year-over-year in Q2 FY2025[8] - Data Center revenue growth expected to be 27.5% year-over-year in Q2 FY2025[8] - Cloud ARR is defined as the annualized recurring revenue run-rate of Cloud subscription agreements, calculated by multiplying Cloud MRR by 12[18] Product Launches and Innovations - Launch of Rovo, an AI-powered product for organizational knowledge[4] Tax Rate Projections - Projected Non-GAAP tax rate for fiscal year 2025 is 26%[29]

Analysts on Wall Street project that Atlassian (TEAM) will announce quarterly earnings of $0.63 per share in its forthcoming report, representing a decline of 3.1% year over year. Revenues are projected to reach $1.15 billion, increasing 17.9% from the same quarter last year. Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe. Before a co ...

Atlassian (TEAM, Financial)'s stock price has seen a general upward trend since August following positive financial results and positive sentiment from Goldman Sachs' analysts that upgraded Atlassian's rating from Neutral to Buy in August 2024. The increasing demand for collaboration software, driven by remote work trends and digital transformation initiatives, has benefited Atlassian. The company's products, such as Jira and Confluence, are well-positioned to capitalize on this growing market.Despite the i ...

Shares of software companies Atlassian Corp (NASDAQ:TEAM) and Datadog Inc (NASDAQ:DDOG) are both lower today, falling alongside the broader market despite upgrades.Atlassian stock is 1.3% lower to at $156.71, brushing off an upgrade to "outperform" at Raymond James. The analyst hiked its rating on TEAM from "market perform" and set a $200 price target, noting it expects stronger cloud growth in 2025 . According to its bull note, Raymond James sees "a path to mid/high-20% cloud growth and total company growt ...

Atlassian ((TEAM), the $42 billion provider of enterprise software collaboration and workflow tools, has had a rough year as the stock peaked in January above $250.Atlassian's team collaboration software like Jira, Confluence and Trello help teams organize, discuss, and complete shared work, especially software developers who were their first customers over two decades ago at the University of New South Wales.Even as revenues continue their steep high-teens ascent toward $5 billion this year and $6 billion ...

Core Insights - Tabnine has launched two new AI agents integrated with Atlassian Jira, aimed at enhancing software development and maintenance tasks [1][2] - The new agents include the Jira Implementation Agent for code generation and the Jira Validation Agent for code validation, marking a significant advancement in AI-assisted coding [1][3] Company Overview - Tabnine is recognized as the originator of the AI code assistant category and has been utilized by millions of developers globally to improve code quality and developer satisfaction [5] - The company emphasizes privacy and security, adhering to a zero data retention policy and ensuring that no company-specific data is stored or used for training [2][5] Product Features - One-Click Code Generation: The Jira Implementation Agent allows users to generate code from Jira issue requirements with a single click [3] - AI-Driven Code Validation: The Jira Validation Agent reviews and validates code against Jira requirements, providing suggestions and feedback [3] - First-to-Market "Issue-to-Code" AI Agent: Tabnine is the first to offer a fully integrated solution for transforming Jira issues into code [3] - Contextual AI Code Suggestions: The agents utilize details from Jira issues and local project context to provide accurate code recommendations [3] - Enterprise-Ready Configuration: The new agents are available at no additional cost for Tabnine Pro and Enterprise customers, with admin-controlled deployment options [3] Industry Impact - The introduction of these AI agents is expected to automate over 50% of coding tasks, significantly streamlining the software development lifecycle [2] - Tabnine's advancements in AI technology, including the recent AI Test agent and onboarding agent, further enhance its capabilities in automating time-intensive tasks [4]

Core Insights - The AI trend is a significant growth driver for Atlassian, which has seen its stock decline 64% from its 2021 peak due to high valuation and slowing revenue growth [1] - Analysts are optimistic about Atlassian, with no sell recommendations among 27 tracked by The Wall Street Journal [1] Group 1: AI Integration - Atlassian is focused on enhancing its flagship products, Jira and Confluence, with a suite of over 30 AI tools called Atlassian Intelligence, which has seen a threefold increase in monthly active usage in Q4 of fiscal 2024 [2] - The company launched a new AI product, Rovo, which serves as a search tool and chatbot, expected to create a new revenue stream upon its release [3] Group 2: Financial Performance - Atlassian reported a record revenue of $4.4 billion in fiscal 2024, reflecting a 23.3% increase from the previous year, although this growth rate has slowed compared to prior years [4] - The cloud segment has become Atlassian's largest revenue source, growing by 31% in Q4 of fiscal 2024, indicating potential for reaccelerated top-line growth [5] Group 3: Customer Base and Spending - Atlassian ended fiscal 2024 with over 300,000 customers, with 524 spending at least $1 million annually, a 48% increase year-over-year, suggesting strong demand from larger organizations [5] - The company's strategy to leverage AI products like Rovo may further enhance customer spending and engagement [5] Group 4: Market Sentiment and Valuation - Analysts show a bullish sentiment towards Atlassian, with 13 buy ratings and an average price target of $207.84, indicating a potential upside of 27% from current trading levels [6] - The price-to-sales ratio has decreased from around 50 in 2021 to 9.7, suggesting that the stock may be undervalued [6][8] - Atlassian aims to double its annual revenue to $10 billion in the long term, making the stock attractive for long-term investors [8]