Financial Data and Key Metrics Changes - The company reported a $5 billion run rate, with a serviceable addressable market (SAM) of $67 billion, indicating significant growth potential [23][92] - The transition from a perpetual license model to a subscription model has been successful, with over 90% of customers now on the cloud [47][48] Business Line Data and Key Metrics Changes - Atlassian serves approximately 300,000 customers, with 85% of Fortune 500 companies using its products, showcasing broad market penetration [9][10] - The company has a diverse product portfolio, including Jira, Confluence, Trello, and Bitbucket, which are utilized across various teams beyond just development [11][25] Market Data and Key Metrics Changes - Jira holds about two-thirds of the market share for project management tools, with Microsoft Excel being the next closest competitor [20][21] - The company has seen a significant increase in the adoption of its AI features, with a 50% increase in users of its AI tools within a quarter [52] Company Strategy and Development Direction - Atlassian focuses on a "land and expand" model, allowing products to be adopted organically within organizations, which leads to broader usage across different teams [24][32] - The company emphasizes long-term investment in R&D, which has created a technical moat that is difficult for competitors to replicate [26][37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, noting that the shift to cloud services has been smoother than anticipated, with lower churn rates than expected [44][48] - The integration of AI into the platform is seen as a significant opportunity, enhancing productivity and expanding the user base [55][56] Other Important Information - Atlassian has successfully migrated most of its server customers to the cloud, with a focus on enterprise customers who have specific regulatory needs [47][49] - The company has built a robust ecosystem with over 50 connectors to various applications, enhancing its platform's utility [64] Q&A Session Summary Question: How has the transition to cloud impacted customer retention? - Management noted that the transition has resulted in lower churn rates than initially modeled, indicating strong product value and customer satisfaction [48][49] Question: What role does AI play in Atlassian's future? - AI is integrated into all products, enhancing workflows and increasing productivity, with significant adoption rates observed [52][55] Question: How does Atlassian plan to capture new customers? - The company sees a substantial opportunity within its existing customer base, estimating an $18 billion opportunity without acquiring new customers, while also expecting healthy growth in new customer acquisition [92][93]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 reached $1.4 billion, with cloud revenue growing 25% year over year and a free cash flow margin of 47% [6][10]. - Gross margins improved to 86%, exceeding prior guidance, driven by price increases and engineering investments [40][41]. Business Line Data and Key Metrics Changes - Cloud revenue growth was primarily driven by increased adoption of premium enterprise editions, which rose over 40% year on year [14]. - Data center growth was mainly attributed to pricing, offset by strong migrations to cloud and fewer multiyear agreements [24][25]. Market Data and Key Metrics Changes - The company achieved FedRAMP Moderate Authorization for U.S. Federal Government customers, expanding its cloud platform offerings [9]. - Over 300,000 customers, including major enterprises like Mercedes and SAP, utilize Atlassian's solutions [9]. Company Strategy and Development Direction - Atlassian is focusing on integrating AI capabilities into its core products, with Robo being central to this strategy [7][10]. - The company aims to scale to $10 billion in revenue and beyond, leveraging its strategic priorities in enterprise solutions and AI advancements [10]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 20% compound annual growth rate (CAGR) through FY 2027, despite macroeconomic uncertainties [18][19]. - The company is adapting to longer deal cycles due to the complexity of enterprise deals, which is seen as a natural evolution rather than a macroeconomic issue [28]. Other Important Information - The introduction of the Teamwork Collection is expected to simplify purchasing for customers and drive long-term revenue growth [69][70]. - The isolated cloud offering is designed to meet the needs of large and complex organizations, providing dedicated resources [76]. Q&A Session Summary Question: Impact of embedding Robo on near-term revenue growth - Management noted that embedding Robo is expected to enhance user adoption and long-term growth potential, despite potential short-term revenue trade-offs [14][15]. Question: Cloud revenue growth and deal timing - Management acknowledged that enterprise deals were back-end loaded, impacting Q3 cloud revenue growth, but expected recognition in Q4 [23]. Question: Transition to annualized data center agreements - Management indicated that the change in agreement duration would lead to better cloud revenue growth contributions in FY 2026 and FY 2027 [36]. Question: Gross margin and efficiency gains - Management highlighted that gross margins of 86% were driven by price increases and efficient cloud infrastructure management, with expectations for continued improvements [40][41]. Question: Effect of tariffs on customer businesses - Management reported no significant macro impact from tariffs, emphasizing a strong pipeline and customer demand for cloud upgrades [54][55]. Question: CRO transition and go-to-market strategy - Management confirmed that the new CRO is adapting well, and the go-to-market strategy continues to evolve to meet customer needs [86][87].

Financial Data and Key Metrics Changes - The company reported total revenue of $1.4 billion for Q3, with cloud revenue growing by 25% year over year and a free cash flow margin of 47% for the quarter [8][20][41] - Gross margins reached 86%, exceeding prior guidance, driven by price increases and engineering investments [41][43] Business Line Data and Key Metrics Changes - Cloud revenue growth was impacted by enterprise deals landing later than expected, affecting the growth rate recognized in Q3 [25][48] - Data center growth was primarily driven by pricing, offset by strong migrations to cloud and fewer multiyear agreements [26][27] Market Data and Key Metrics Changes - The company achieved FedRAMP Moderate Authorization for U.S. Federal Government customers, expanding its cloud platform offerings [10] - Over 300,000 customers, including major enterprises like Mercedes and SAP, utilize Atlassian's solutions [10] Company Strategy and Development Direction - The company is focusing on embedding AI capabilities into core products, aiming for user expansion and maximizing adoption [15][16] - The strategic goal is to scale to $10 billion in revenue and beyond, leveraging advancements in AI and enterprise solutions [11][20] Management's Comments on Operating Environment and Future Outlook - Management remains confident in achieving a 20% compound annual growth rate (CAGR) through FY '27, despite macroeconomic uncertainties [21][67] - The company is adapting its go-to-market strategy to better serve enterprise customers, reflecting a shift in customer mix and needs [86][88] Other Important Information - The introduction of the Teamwork Collection is seen as a long-term growth driver, simplifying purchasing behavior for customers [68][70] - The company is committed to maintaining structural efficiency gains and optimizing cloud costs while expanding its AI capabilities [42][81] Q&A Session Summary Question: Impact of AI adoption on revenue growth - Management noted that AI adoption is still in early stages, with many enterprises experimenting and cautious about deployment [91][92] Question: Changes in go-to-market strategy with new CRO - The company is continuously evolving its go-to-market strategy to adapt to customer needs and market dynamics, with the new CRO bringing valuable experience [86][89] Question: Effect of tariffs on customer businesses - Management indicated that the business remains healthy and customers are eager to upgrade to the cloud, with no significant macro impacts observed [54][55]