Atlassian (TEAM) 3 Aug 232023 Q4 Earnings call transcript

Good afternoon and thank you for joining Atlassian’s Earnings Conference Call for the Fourth Quarter of Fiscal Year 2023.

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.

Welcome to Atlassian’s fourth quarter of fiscal year 2023 earnings call. Thank you for joining us today.

Officer, call and have Revenue Mike Deatsch; Chief the Co-CEOs, Co-Founders Officer, on and Farquhar Scott Cannon-Brookes; Financial me today, Atlassian’s we and Cameron Joining Binz. Joe our Chief

financial find The section published blog we also and Work you earnings fourth and with for shareholder Earlier of is materials, where including results year available will today, commentary XXXX. a and fiscal Life Relations our letter related press website, the letter earnings supplemental other release Investor our shareholder release press quarter investor Atlassian’s our on sheet. data the and

always, quarter. contains As management’s the commentary for letter shareholder insights our and

the then during opening today, time brief have remarks focus So and we on call will our Q&A.

This call will include statements. forward-looking

known any or unknown the assumptions. incorrect, or and we uncertainties materialize our and uncertainties from make. such expressed implied materially any differ or the involve of assumptions If if risks, results results by Forward-looking the prove statements risks statements forward-looking could

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

assumptions to we statements our date made are Forward-looking statements to statements such current. or belief and the of only no change cease they or management’s revise as should update obligation such be undertake represent and

quarterly results in Factors in factors our other could information these the Risk titled Exchange including reports. on and section Securities Further and Commission most filings with and filed affect is our the that make financial included we from annual time-to-time, recently

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

rejoin do mind best you at session. in we the to Please Please To as one back a that will take question of to as a to allow Q&A question follow-up, have later you like our that, we another come participate we many the time. in or would will queue in possible. if keep you facilitate and to

the With Scott opening over call will that, remarks. I turn for to

Thank today. you all joining us for

strong results. generated our letter, closed now As you've we in out over migrations, a billion FY world-class read We our of their great year, momentum cloud XXX,XXX financial in XXXX cloud customers shareholder $X.X delivered three in our across and over collaboration and quarter We markets. with already on revenue this in all power platform. enterprise,

of new and changing data said proud platform, our that launched Germany in in to locations we what Amidst of cloud FY innovations users unlock built such Jira world-class We We like scale base. we migrated offense like new a extremely game year, and we've accomplished. Intelligence, millions challenging products our play increased we cloud all our ’XX as on Singapore delivered we're and that’ platform, exactly for Discovery, Product customer Atlassian residency global did.

models, our deeply Intelligence the more three combined advancements each in unleash all two with about deliver driven will of with customers, across teams and cloud excited our able language potential decades world-class with data work, our to we'll our customer's into by more and platform, leveraging our be Atlassian large the Working data, latest each further insights customers' how of markets. unique we're value

conviction strategy. our that’s strengthening our bets our off seeing in we're pay Today, and

stronger. the we're year FY come after even out opportunities eager ‘XX, positioned of we those believe As enter large well we're get and to to

call that, operator pass With Q&A. I'll to for the the

Please from ahead. will from go Wells Fargo begin first We our comes now session. question-and-answer question Instructions] Turrin Your Securities. [Operator Michael

Joe. you appreciate Thanks, taking great. the I question, Hey,

cloud the there, center data call. useful targets into details think and in Given and walking start cloud us there, to around visibility the it's ‘XX, the framing through there's just fiscal by in letter and the some the can between maybe front you for commentary process I those of and it first expecting your to confidence full-year some you're bring guide, and proportions just to the

on the signals watching just end life useful. the very account, taken how of into is anything Thanks. So you're and all event

question. Great. Thanks for the

to headwinds from I ’XX points. think that the cloud to I'd server contributors growth data into that our persist guide approximately be and and with XX%, like cloud revenue assumes will to migrations to ’XX start of center XX% macro FY FY continue XX strong in

our macro continue. in expect do upsell as to churn, guidance areas we throughout that on macro up continued low-end some range FY ‘XX, ‘XX, momentum of cloud assumes held and well migrations. the well impact FY seen that The weakness we've that really like front So have in ‘XX as

we in growth have we Finally, driven rates to improve year, the the prior second-half revenue gradually the year cloud throughout do easier the year. by comparables that expect of

Now data you mentioned center.

cloud and data data things: center growth few difficult prior terms a lower and of has do rates from end as and of driven migration FY do We following enhance we server year comparables then expect blockers In by of we in data migrations our ‘XX, the year. revenue of expect the first support. server course, center to remove migrations foremost, decelerating the in center, greater from second-half cloud offering,

point further of steep to support end And revenue at February decrease longer then no expect revenue. in which a XXXX, our recognize up we'll finally, we in server any

that that's So thinking year. about general next we're outline a for how of

Weiss Morgan comes Your next Keith from question ahead. go Stanley. Please from

of again quarters questions. this conversion. pay of, quarter. still, couple the How impact an for is taking the suggested is sort does, Keith. sort Singh for you Sanjit letter that the to was of The you know, screen one last Thank in the This of challenges

help create something of funnel bigger could it that Is side, we go next rates or to that part sense would macro, segment there's reignite the on into in of a of execution get growth wanted just base. what -- sort better the as wanted the that get things side, to a take Just to year, it a side customer of, in sales just this. the

Yes. This number. speak the to new is Cameron. I'll customer

largely service QX, we've although simply customers that software, been the increase pool in fine. is over out longer and to on do are we to speaking and card those of that customers paid last we which our customers continued continue period And there to total conversion can take patient downward quarters in free year-on-year, be free about through so. a slower So of purchase those four the convert number them definitely the or saw, pressure out credit and time. our We

of. actually and bigger The saw was QX due had that something that shift QX we between to full we control

we towards ROI to very diligent marketing budgets, paid of the spend all -- and went customers in we spend. But customers. funnel of deep The campaign we longer we with budgets our it into of really or on in marketing investments. some able customers the longer were and this was higher marketing term here convert funnel top higher year, customers our and value, that customers overall budgets those to be ROI by that and Based result value, redirect will our we As are higher bring for term of at the the spend dive QX. look in looked got less actually that campaign did but of analysis, to our we

optimizing Going the highest continue, will that we free marketing be the forward, macroeconomic it. to but will put pressure continue paid will against investment as ROI, spend possible. more see And Joe already believe always for mentioned, we where good ROI we our to do behind the we

go Bhatia comes from William Arjun next ahead. Please from Your Blair. question

for guys you taking thank Hey, Maybe the Joe. for one Cameron or questions.

And, how we Thank that this are they Cameron, super left ‘XX as Just tend how give would are life? that think on skew as be are should customers the the you're there, the end but out, one's cadence to February thinking larger? about of Do who we of Anything the about you guys. plays fiscal approach still left us maybe you for more smaller, helpful. can server? migrations

Cam Thanks, I'll We, first we Joe, XXXX. then at end. it support in chime February the server Arjun. for in you our as This ended can products is and take

in our customers to server to center we migrating and remaining how or our cloud choose on when uncertainty our obviously customers migrate. that variability on is expect there be quarter-to-quarter either server focus offerings, will ultimately there Our data based

we ’XX directionally FY in server with and ’XX FY to of migrate how the continue respect end We'll assuming are seats many saw in now, to. through trends we where For support. they migrate

end quarter. able in support guidance, related dynamics our for end our choose FY QX and next to that when guidance provide we customers support, appropriately seats And also then server the migrate at not data of built assumptions we've center, share on we ‘XX migrate most will to we'll of remaining server expect assumptions into of Cam? prudent quarter-to-quarter who to migrate will to and be that more

Yes.

announced Just certifications, R&D compelling of And we've it. And transition the a highlight adding multi-year go cloud all scale and blockers, that just support this the February. discounts. of eliminating factions that, multi-year the investment event course, I market, it’s been it's up of a this end we you has to end whether to to price server with programs to delivering in of getting three from course, our support across almost name whether out large entire to journey Atlassian, variety want in customers, years of teams, rolled changes server ago, closer coming since loyalty

data very we've multiyear with getting to saying, been large very a of performance cloud happy way. very that's our been customers along as choose So and our portion We've or retain customers, it’s it. able been we're journey, server the consistent our and appropriately, very a to while center been

more to months up six as we come February. about have We

latest position last base say, waited the we've all is those fine. We are there, perfectly make sizes, shapes to but good have there than the to to all ever the part we'll is customer been company choice this I they a for cloud. our help first a The there who and to to incentivize are who as option ones and significant is we in as they're data to conversations, better a but Obviously, to which customers center server make those of out simply customers the are of choice, some still course cloud in and quickly choose there. out customers for possible. move not foremost still transition ready their great honestly, of And right have

line easy over with minute, choose as of awake they prem. will for far we as see As a we who for last on data what customer's to kind falling largely course, definitely them of seen center the choice in want as year. path the the stay that what, have migration And Joe customer will last said, if

comes Please go Your question from Ryan from ahead. next MacWilliams Barclays.

about think XQ was quarter? contribution Thanks. from around the contribution A you the migration maybe provide the how discount question growth? the cloud should to we what And Thanks cloud also in loyalty that context results. program Could on for cloud to fourth the taking the question. here two-part growth from of expiration some quarter

for thanks the question. Yes,

The very migrations, in first growth the to part quarter contribution with past. what of the it's of consistent in the question the been migrations was in terms

about QX. I was talked in think FY ’XX, it approximately a in we've XX that outcome being similar points

of contract outperformance guide, and in outperformance of expansion value strong our to the enterprise and to by cloud loyalty seed and versions there. and deals was purchasing ahead of primarily results expiration stronger-than-expected products in both over per center terms our across that our revenue came in of the In discount the businesses June in outperformance better the and higher both data the form premium and migration, of drove it deal more driven and upsell enterprise and program

I renewals that sizes. app and server the marketplace larger And stronger Hope was outperformance cloud quarter data then earlier. is The in stronger-than-expected through helps. strictly and noted driven by finally by pull sales on outperformance driven center the deal

Yes.

And Cameron. this is

was to the Just none for I just of from surprise customer a perspective, customers. really this a want say that

them few open the on away gave loyalty these event would openness working that for Xst. with years bigger was over over for large staging we've months entirely be Now there to date with these down them many largely, for that years, how sometimes we've customers, the been knowing three way, a out customers choice. compelling years discount And make program July last that along the going this very and and that about it's been

another on still customers, big between there Of we'll course, as with have our remain out I still next to with February, already mentioned, yet continue date now server who work that. and we

from Kash ahead. go next from Sachs. comes Rangan Your Please question Goldman

considerations the hiring approaching the on Hi, had, curious you you transition, I you are the very transition you comment year's the are on thank so new outside, much. SAARs of a the company was what within company next with Are if transition? that leader much. in to you looking planning? the for and just Thank the a we’ve that zero could transition how

to and to Cameron Hey, is thank Kash, every Atlassian, know, the and sales done migrations and it's incredible his job Cameron know, eventually, the now to because of he's say And, after just just Cameron when running you life done, done know, marketing, a back, here. of well. at our, time Scott And, for for presales huge of marketing right we you chatted you cloud the you been, so and this, XX-years I about Atlassian. has at you want job. are going an know, he's which server are all end get

skiing for spent given out the was right So, Cameron at of moment. time Tahoe that's, he you know, in time bit turned it up to a the

under inside Cameron happens really I most got just of business, has going at a the strong the leader side. leaders him, the organization sales the a what moment. of that In terms sales runs some on particularly forward,

expect And we've changes from strong to stage, what role be I be the not in exactly there of replaced refilled, that done significant At so but, continuity, we don't expect a how past. will to be there this we're, or saying leadership. that

from Your Securities. from go Please ahead. Mizuho Gregg next question Moskowitz comes

wishes for to the Thank Okay. best you taking and question Cameron.

their one specific For to micro in that additions several announced tech. Atlassian that be AI Atlassian all embedded for April your would pricing them, in very since of GitLab clear and charge. we've at companies, Scott, were Gen free the But cloud time, be Intelligence you seen software name of of summit

And curious point? direct you that Atlassian hear you to of delivers some this in are the so monetization all industry. it that could potentially developing Also, thoughts your value can, Intelligence I'm your approach the on make plans if to the at rethink customers think

as Thanks and new here would company. That constrained. question. believe Greg. philosophy models We Look, and more are a of with huge AI a is Intelligence our far Yes. It's that enable for I thinking constrained, Mike for Hi, demand supply here. will creation that, the us. think we Atlassian clearly opportunity start long-term and software not software. the

good that to content anything allows is a text that collaboration and business based and very for understand, generate, knowledge text company as are pause, manipulate, We workers. targets us you a

products and valuable for a huge have third-party our products world. best of amount in is set data the We of to the across That products of and incredibly big connections us.

drive believers and huge our potential So Atlassian value customers. we the significant are to change for of in Intelligence AI

may with before Secondly, our care. then philosophy build out is customer's to work other the monetization. to live go about way know price the thinking direction. go way, R&D, we and value there a then build announce that of and you work industry in then others other around don't in something I be We if customer the

in decades execute us So, terms doing exactly you've seen times and over that of play Intelligence. plan we're what that and two many Atlassian that's

feature what had excitement. at set, customers, to announcement of launch the TEAM best of the and We we believe at resonances customer huge one demonstrated customer the are you're I and super excited, XXXX, we've

actually Our actual deliver used, Those every to is that a exactly customer turn job sure value what order features X,XXXs of features working the that hands customers. into now first, we're now we in in usage and manner that the those huge are to and customer make of day single doing. of and are is first.

data that of number product every the they'll we before, economically ways and exist today. We will Atlassian center drive unleash only we've cloud. features and the believe, momentum customers do are significant drive team, Intelligence gain first of to believe server we do canon products the what as There Intelligence competitiveness, hear Atlassian your believe from foremost, and the from to exist Again, we, significant migrations cloud and it of continue is potential we which in and said set. feature a cloud. in

a us is thing further migration anything for a good flow that economically So that to as a carrot is improve business.

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that features are enhance and intelligence leverage into additions. and enterprise Atlassian some packaged features thirdly, And premium

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do for Intelligence building believe with the in can delivering focusing first. over for next set there's philosophically, and value scale core customer summary. deep this R&D we five XX monetization we're on a in as of secondly, capabilities. wave We starting takes opportunities believe years So software. And all Atlassian us to we're But we

about this We single are area company. We incredibly day. doing that every of remain bullish the

Jefferies. next Brent comes Your ahead. Please question from go Thill from

in margin, how about that you to Thanks. Joe, the XXX and year that letter, trend of couple you're through and Thanks. investments you're thinking and And you're after you're guiding Can then shareholder the plays think that tie into maybe going basis thinking how about that cadence how the next expansion out? points expect the year-over-year. operating down on reverse. I you then walk just

and period to wanted really just months about think It's to invest highly And profitable cash flow in has new we set a be and time. we who margins. And we Joe heavy take great we've Well, where of great. have a with get a details. I those identified It's long over very of XX those ago, Scott the Free than remind Atlassian might arm I'll the historically. about business first kicked can here. off behind us opportunities of opportunities that, story. to part successful run

investing our Investor we're three heavier get enterprise of opportunities articulated at enterprise with you, ITSM, to legacy this $X.X lot And our of set we've migrations seeing cloud, three, all segment that on we investors consolidation super of cloud our seen and time of in and And vendors. investing We've pace as letter, mean, switch migrations, in the people I is in looking heavier some our million the in seen happy great our at cloud in off outs. were or particularly the we were ITSM a number enterprise in in getting products. the our to investing and Day well. million been now And more high-priced like you've we're uptick a deals We competitive continuing shareholder thought. $X returns

are all going well. those So really of three

Now just came you And the as them we our investors years have year, for? the margin we profile the out to today, investment FY we norms. we doing shape sort back of that towards investor lowest to expect How margin, years coming that that historical point look over letter be we and rightly asked, our just this in are well, in what shared climb our ‘XX expect does many of the like? that

Joe, add color any do more you to to that? want

of Thanks, going you to Brent, just walk mechanics. was I through Yes. some the Scott.

we FY 'XX, of highlighted areas and FY savings mind bonus Scott the operating FY the AI. by in high-priority the both benefit like year, lower as expense 'XX, of that expect it's HX have in we'll areas in that Keep driven lapping and had including innovation than also That's be and in margins Scott restructuring lower we 'XX. Mike mentioned. approximately do this XX.X%, we're of investing in So strategic

expense growth happening investment the moderates, continue growth scale. healthy operating FY as with what's revenue like as terms mentioned, of 'XX areas and big operating will is FY cloud of we in 'XX, general our drive leverage expectation In with of expect in we Scott do to particularly there combined efficiency continued migrations improving improvements

that underneath mechanics So of that's some philosophy the articulated. Scott the

question Your comes next Cleveland go ahead. Please Research. Terjanian from Ari from

know on quarter guess run. moving the here strength question a I you're the on Cameron. you, a lot the of congrats year, I Congrats the of in for at on great end but enterprise results, side. a

into like If double-click the go-to-market the you of from think side? and in you partner changed do that's some steady of now as to investments these you. you investments here at side what could is Enterprise larger terms a the Atlassian's about you Or Thank do a And Advocates deals? feel think on there state future? more drive perspective helped go-to-market the come

multiyear Thank very because But of the been we our And has This partners continue of none overnight, teams on enterprise. closer want deliver a in results to honestly, this of migrations really customers, to strategic be. and like focused the more QX to enterprise. for none commitment to the the was and strength they us become Atlassian, largely with that with get to from you -- question. this investment had we largest see go-to-market happened the in the happy and specifically we're yes, just in I said,

and in scale. starts see R&D, you with Now massive this us investments deliver

become enterprise account been advocates, we've commitments and managers strategic extensibility by XX,XXX closely. just including got users go-to-market today, that our much our our investment understanding we unique and of certifications, get success able that more have customers then, customer And products match partners And our as to in largely enterprise our deals, customers' the we larger in needs We cloud technical on. so course, managers, and want. closer, longer-term

to revolution, spend. However, you said, today not and we've as through all sales and see that this we've evolution, marketing our been do able in

very marketing those transactions, close been and So largest get of our I'm team enterprise AI. happy expense, principles going my and understanding I'm of to thinking all is proud with something even customers we're able balance growth how these of earlier Mike to sales great larger great that forward while all and maintaining flywheel and that do industry-leading laid exceedingly that our have something largely we've to do actually to continue product-led largely that out will about

those value that. then, and course, to for and go But our we're of solutions customers, them ready, return to of largest and, get when course, bring

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Your next Markets. comes KeyBanc go ahead. Turits question Michael from Capital from Please

strong, about well places So could cloud. you couple drill the said a to in talked on on as in both that migrations but you migrations you of cloud. were wondering the as if data centers was to specifically I

because mentioned just reason So feels other a sustainable? obstacles as residency but call you we that that the migrations and things position TCO removed. this Is it on-prem, let's that like are being it's were some on data point? people okay are But better or actual where were at whether improving to server in that from cloud macro a

here. Cameron is This

multiyear customers migration the very choosing in put the data in with And we've what a hasn't cloud, program plan, it we like choosing been line expected. been So has much as place. center

can blockers, extensibility data road we very a that's our they make that public all scale, we the eliminate the appropriate to forward. residency, all we are choices down of we going customers, shipping the where show honest, road As so things that cloud be have map whether here's and

customers large to to combination choosing those a move of get of us cloud. things have all It's these allowed to that

prefer customers data a stay would that year, continue that option. we've data the portion center are there cloud on as to for to next will choosing we still plenty out are ready there said, I of course, choosing customers Of premises and are over center, going as large think, see, of and

data We cloud But half proven a investment to again coming we've largely that customers. a our And data move migrated customers in again data into center can of seats that's center with as center further end. from dead see the that Atlassian. not commitment and we

moving with the they center, So from the to We'll it's them, customers cloud we and most value data for continue the that's great. long once throughout Atlassian work choose them again, getting to provide term. optionality if

anything got Mike, you to add?

Nothing, Cameron.

important we now is just you as long-term continue really the this from a half us seats center data migrated that coming think that I for reemphasizing milestone journey.

Your next Please Alex question Wolf Zukin from ahead. Research. from go comes

at new just we and to versus decompose Thanks net taking we the migration Maybe versus new at look Hey, -- guys. ARR first, cloud look we the net growth for question. expansion. if number, revenue into try

bit if You've into a we little like at But metric a later that, like It the would dynamic. much how coming expansion. the as getting -- ask just particularly great -- cloud be migration how about migration? talked is we're NRR much understand to look from we you if the innings the and of

growth And then follow-up, talked about a line to, fiscal maybe as 'XX. you just healthy top for

uncertainty. stay given the get ebb growth range maybe the by for particularly obviously tailwinds wider You rate? to rate likely start the to little a the a bit to which really of XX% gave Is migration life? we durable that of past server end we range growth growth 'XX, XX% kind But appreciate, is the way. that It's durable a macro as as

question. say, the Yes. your with question, last starting I'd Thanks for Alex.

of of that value I on do In that we're delivers To I question, to to that. obviously lot durable. tailwind the value cloud customers, brings opportunity adding any The giving broader guidance your it's think 'XX, FY in business. not that's a the it for terms products that there's very we're specific, believe

server base should goes primarily away speaking, center for growth, the FY 'XX. as driven be mentioned, customers we and revenue will to see migrate I cloud so And very by That data as to directionally increasingly, healthy continue the cloud.

that by rates, say paid impacted seat would terms to be that expansion I business. the net on of would just conversions the impact first question and That continue of seen. In we've area retention your macroeconomic free-to-paid headwinds

Having expansion we our see competitive as terms expansion we to pressures. And know, in of retention that talked fundamentals rates. underlying structural don’t macroeconomic said the very the and no a rate, strong, business our of we In quarterly change position. about however, you remain specific outside and that

picture stabilizes macro retention and do we to rates the expect begins once So to improve. those improve

highlight as cross the healthy all of then valuable migrations our about feed future sell aspects rate will sell and to key our active expansion earlier, and very of also you aspects product speak remain and and I'd business and improvements. like usage. Those critical those up talked also mission of nature highly And other monthly and

outlook on very is going our So forward. that positive

comes Your from Fred question go Havemeyer Macquarie. Please from ahead. next

very you much Hi, thank the question.

another well a to thank actually as introducing Jira. dark you Firstly, for theme

colleagues is I it, with me right The like question my on that appreciate greatly I'm really think now when tooling of focusing in migration for on the people some Australia have. especially at night. you late

you're As kind you the investments and into of learnings the looking you've tooling? reviewing that and made migration your have at

confident this you you some tools tooling customers any cloud have a that on-ramp have additional capabilities at or center to little of migration wait life versus solved how longer significant of out server are for either risks built point, end server see Just still you enterprise data need there to to out? are to really those like either the larger

our Atlas tokens Mike, done example and can on the Kit. all Jira. and I have. amazing the of It's properly with R&D and we good Fred, using design thanks kudos that. team for of Hey, things take across It's cloud dark platform It's sorts a team

meet for area focus to So other people to us accessible products hand products into accessibility software. that on standards be team in in do Dark which It's have comes it a has works all way already kept to coming when issues you see the across accessibility, huge will of challenging the it for required who is shortly. migrations. that quite to an well with

questions Gets that to you've tooling of some the migration asked.

possible. self-service tools to to tools it, move of the data the will is to huge and what as speed on And on migrate scale We across, those amounts especially larger ones. are continues improve don't again faster largely that They of migrations, migration of tooling and faster make we do quarter-on-quarter. the times. work one-shot work really migrate repeatability to data hard and doing continue as their Our it the tools. multiple that do Customers test the

important to and repeatable becomes So incredibly tooling be the reliable.

years to have XX take own cases, have we to added with or things on-prem. we lastly, database, may cases across. them Jira lots their have lot some of Confluence of family a And edge data that done work whole edge they have may these them move who of to They customers XX of have

bigger tooling We continue get bigger more customers, repeatable. more do can cases, and and how we as to edge more of and the we that on to counter work self-service and is

amazing going And forge be community lastly, the we to they can and as app move on-premise and their themselves data connect bigger with a I'm better is team migrated unique and do at every proud power continuing get systems and tooling. marketplace the plug-in can our how challenge. are And quite to can better migrations. in app from sure do extensibility less the to cloud. We work apps and our say I quarter, migrations. human would to of all this. on We make That's migration that vendors managing of we doing use really that

solved, done it it quarter last at continue question your migrate has as I and we single continuing it's around, better the is and don't and that was more do every more center to data to three server will we'll customers time. years, get So for as it the know improve --

next Peter ahead. question AllianceBernstein. comes from go Weed Your Please from

year-over-year looking great impressive IT us, mind We out And obviously, to It large you on really top you. see Thank it a already should about to business. see of note. that years? service the XX% this do going as much in you are was a XX,XXX going for growth companies the called large the coming forward. additional the opportunity opportunity that how customers Kind here? growth? management largest we the see of think forward too. is of Like the it profile And what headroom over how from upside for of kind will see and X-ish more drive on growth. the And forward, really total

and we Scott such take operate Peter, a large durable markets by one It's We a opportunity huge of have I time. one. in here. Look, for them Thanks, growth along very over think period

market. ITSM. happy about there And is challenger opportunity that in talked large You particular incumbents. there Service large in incumbents putting of Jira there's we're and it plenty and those customers Management The the on

that space. just to there's in particular take massive opportunities so market And share us for

talk say, management for In our all. about wealth me let we migrations,

And they consolidating tools, I you And of So one there's they can development opportunity get do around work the teams. when a get biggest like of can't a when more out the make how just power we -- we throw engineering vendors, out items, if look days around market. but around around of That's large world, the look how other development developers they talk of huge biggest teams. is to and these all rid teams. stronghold the very development the issues there. at their And teams for management at CEOs they productive, have the customers the the do thing

in a for And have opportunity we huge management consolidation for markets. work all our so

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over all for That's have you. now Thank remarks. turn call Scott questions time the the closing for to we today. will I

our you So thank to everyone for joining call today.

the always, a huge and momentum. Thank you you you say special want to want I'll Also Atlassian for for Cameron, Atlassian quarter. that year the a with say all, revenues given and support thoughtful just continued was his last the to your thank As your earnings thank appreciate you've strong call, team so far. to next I see and you you to we a special questions closing resilience for thank out and