Atlassian (TEAM) 30 Apr 212021 Q3 Earnings call transcript

Good afternoon. Thank you for joining Atlassian's Earnings Conference Call for the Third Quarter Of Fiscal Year 2021.

As a reminder, this conference call is being recorded and will be available for replay from 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

Good afternoon, and welcome to Atlassian's Third Quarter of Fiscal Year 2021 Earnings Call. us joining for you today. Thank

we today, On our Co-CEOs, Officer, financial Atlassian's letter today, materials, and results and and our have Farquhar the James press and third press XXXX. you'll with Earlier section Relations Financial call Scott Chief Mike of and Co-Founders our shareholder website, for we where Cannon-Brookes; release a year The issued available data commentary fiscal Beer. and Investor letter of sheet. is earnings Atlassian's the on find including other supplemental investor earnings-related also quarter release shareholder work and the life blog our

During the on opening time Q&A. and call This call then forward-looking brief remarks spend will the of we'll today, remainder include make statements.

risks, cause that unknown the to implied other Forward-looking forward-looking results, or any achievements or known uncertainties actual materially performance or statements may different from performance by statements. be future and factors results, expressed and achievements involve

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

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

superior reconciliation financial letter, IFRS in on addition earnings IFRS. shareholder a investor are sheet call, in financial non-IFRS measures. also measures website. our available During substitute to measures are the between These A performance of not we in with prepared non-IFRS financial and non-IFRS and IR measures release accordance will and data is today's for or discuss to financial

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Wells Instructions] [Operator from comes question of Turrin Michael Fargo. Your first line from the

open. line Your is

with the innovation like, in it like side, for Busy the that product looked a which seems particular, good week up. showcase for opens on the team conference, of everyone, some cloud,

you on enabling maybe maybe, with hoping our what touch recent the view year your those also mid-XX So growth center program Work Point like showing things you've you're looks then and in could this innovations come out, whether data of it things on there comment here as you're the above on like that, the customers And for could James, very as cloud first least. A target well and was some strength you enterprise the given laid you'll at subscription like alter Management.

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the there, about thought and have products, large value talk to they get me talk that for off once obviously, for in, and very that us to they the we already moved both of any platform good James it the other can to there of we've existing innovation in terms they build customers our but the as a the our anyone just today. customers it's I was So example that's and the questions, more into new can or much if hand cloud, of are been existing in for that but things of your they of we moving can are if numbers growth not continue terms creating part if the for advantages building in very question. let subscription has things

Certainly, the building ongoing we cloud our with pleased were Mike. very momentum right Thanks, Sure. across business. Yes.

mentioned around good as that that for revenue very in how additions would premium the very You their be of to pleased in preannouncement continuing by ago. pleased nice that then certainly mentioned few our really encouraging partners, really developing the a And press our center But That's start, for we I'm a material business. early very weeks discussed their to We're very for early are momentum. cloud you it's data to our point group, volume addition. enterprise, also but And a a contributor. event-driven I our release off question, that future. days business as practices activity our

growth we yes, that, growth target, in 'XX, subscription all would FY beat address days' in 'XX we'll previous year-over-year. projecting XX the given that for FY the that revenue subscription of are percent And then So time. we the revenue target mid-XXs

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Robert, Scott I question. appreciate it's here. the

tens data still offerings center expect we've customers a to across As the as the years. before, we in the multiyear of of it's And mentioned our of server majority process. have our customers of thousands kind we move from largest and cloud subsequent migrating

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line next question Your Weiss comes Keith from the of from Morgan Stanley.

open. Your line is

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at our a numbers to It's customer quarter-to-quarter because just there's variation a of lot just You've internally. little much to been quarter very time around spend manage basis that at start don't quarter-to-quarter. we Atlassian, so we brings at on looking a revenue something not enough customer know long the in and

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the of Mizuho. from next Moskowitz question Your Gregg from comes line

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Fred comes question line with Havemeyer of Your from the Macquarie Research. next

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perhaps are churn the seen in a that magnitude shaped? unhappy given then sense you that do And about you've effect, get your pull-in of lastly, the How is down I guess the I understand this just conversion? that customers in guys. you set double the cloud. Clearly, really cloud pricing? transition the actually question quarter, in makes Does you've for massive that pricing you decrease? your customers I talk of it back to make that the server quarter this a to rather to pull up magnitude Nice or over historical sure than past guess can Has increased And and the feel question kind to more XX,XXX about quarter perhaps that customers want comfortable this transition you transition purchases. going is time. of falling relative cloud you you had make talked to about where to the I products? number with

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you basic like early question Or within on? to ask second Chartio. around into that a functionality to is ask planning -- get cloud Jira to about question one just acquisitions maybe are I BI wanted enterprise the how dig as giving customers migration. bit the of might to decision last enterprise not one whether the quick their bit some the to on a around you some that to cm cloud family? reporting this who little waiting space? the comfort they -- a on And make commit wanted larger I transition then deeper or maybe are you to little and talk the cloud give the Could the

the do one. one, Okay. and on chime in Scott Mike here. I'll the can first

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residency I into the De and We who there. for they data European to particularly shareholder move about in something and think who's we Netherlands and in data residency one, saw largest other across are that chosen fourth customer Europe, our Volksbank, you -- obviously consider the have over talked letter and their bank customers

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to that ways. in customers different various exposing are We

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lake and So just all knowledge work that to in broader data software, in that Scott principles about. management of management talked the operations IT through and

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you life of you strong thinking help kind non-cloud data Kind weren't how the us about number understand data and Could end customers how and heading only you're ready QX QX? Obviously, cloud. of understand QX, just just have server, just help of that centers thinking into you're when that the expect center with into growth they're continuing go Maybe us into of to really strength to in a we would growth overall options. obviously, QX. subscription about

was, part And This address customers QX. the course, price a did that of this implemented in we that stepping event-driven of is in that James. outsized Clearly, volumes. increases of we front see QX, in I'll center data one.

playing out So dynamic QX. of won't have a in you that sort

when on for we growth are And little call As had that a previously the then been data say, said very cloud as to though, we're this now. going the our that discussing confident beat remains by mid-XXs well. I on look we the year-over-year. business momentum subscription at 'XX, We're now revenue target strong much we're center that as we fiscal encouraged percent seeing business. you mentioned And growth as earlier, we've

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up lock In in that XX% my you've And discount expect wins the Is QX? cloud June, forward should something expect we more heard into level. minute base? across they're checks, to so, or broadly that while to customers picked are new in planning to some pulled to I the last that some convert cloud still if able get

this Well, is James again.

scale, do to to server customers the we've loyalty cloud. right. We so to looking been migrate have users, discount over offering enterprise that You're X,XXX-plus the

in scale drive activity sort the could not QX. there But of be some mind that ahead saw additional of discount volume there rate. certainly of reduction the we the of event-driven would that So that, that we're in

really unusual licenses I in Atlassian the prices terms event on center raising side server then the data think ceasing of us both sale QX and the business. also of new was server of maybe

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Dan quarter ask impacted to on But Keith. lower data for benefited will about take continue center next some marketplace from dynamics. is business. This be the by wanted and quickly sounds Obviously, to like the this rates. I it quarter, it server

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no for to time. call are remarks. over turn Farquhar further back Scott questions There this I the at closing

Australia. on joining next your a Just earnings with thank for huge tracking across maybe support. appreciate our call some everyone, I'll today, my be ongoing we call, family you, emus holiday

James be down for and Mike ones the hope the will so your you QX healthy. and and holding And safe I loved remain fort call.

conference This you Thank concludes call. for today's participating.

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