Atlassian (TEAM) 31 Oct 242025 Q1 Earnings call transcript

Good afternoon, and thank you for joining Atlassian earnings conference call for the first quarter of fiscal year 2025.

As a reminder, this conference call is being recorded and will be available for replay on 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 First Quarter Fiscal Year 2025 Earnings Call. us joining for you today. Thank

a with On results CEO Binz. and we press published materials, Atlassian commentary The for quarter today, Co-Founder; the Earlier with Mike financial press letter will we Joe available Investor call and Officer, Cannon-Brookes; have our and Financial and first where me and you our letter shareholder on section our fiscal data today, Relations release Work Life of sheet. of earnings shareholder year Atlassian's find including other supplemental investor earnings-related also XXXX. release the is Chief the blog and website,

As always, for commentary our and shareholder contains insight quarter. management's the letter

call brief remarks we'll So during focus today, the statements. and opening call include will forward-looking Q&A. our have This then time on

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

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

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

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

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[Operator Instructions] Kash first Your Sachs. Rangan from question Goldman from comes

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Kash.

think the I start that missed I of question.

points very the a we around me can product releases and I let behind It's largely could totally proof Look, in was the it AI of question. think relevant tell both and I terms step a you offer that. -- thoughtful back.

strategy, two-pronged a all AI probably have aware. We as you're

the offer. we product Rovo, have cloud all platform a through is built for the have which products and in for that separate era. to single capabilities our AI existing We And Atlassian we product AI brings threaded every Intelligence

every keep and R&D building general iterating on all And with and is availability, that it single engine. of now quarter we our in

tell business, and benefits terms In the customers proof Rovo access can faster points, seen every incredible much right, move. the their can early week, for I can in terms people in both time you that have how save and Atlassian of how business that program they Intelligence of much

these ROI So that investments. on yields just high

they're Atlassian not but premium those only start edition a Intelligence which that. to has of our for of, adopt the increased year. Atlassian And result, And it's migrations, than increased business. ROI enterprise the us obviously, their customers XXx upgrades usage from evolution as since a and a part driving of products seeing also as is continue more more continued big

Investment world's management years. for It's a huge their agreement cited and companies primary signed Analytics. center Atlassian the agreement of Intelligence to over from recently data an for move to the as One moving largest us X reasons next the cloud and

question I that think of -- opposite is the the will takeaway jobs. an do implication from it and

adoption more businesses that businesses, the enable compete enable to more It I correct. this is unlimited. of effectively think the that and efficiency. entirely And that to with will our faster. out a of sort and adopt everyone we to amount and that have adopt get is tool that's other fantastic gain products creativity And of will I'm AI of to us have force it some big a that human creativity largely believer

working with We're playing certainly is cannibalization. increase this these customer I carry they're but seeing use excitement, out adoption, tools seeing the at Again, any moment velocity at learning to a time. see all to not their moment business highly in how constrained customer would and how really -- and we're [indiscernible], them the

also series pricing elements pricing, So of Atlassian as capabilities. you consumption-based see maintain from and and of of we virtual the have excitement. can we Intelligence high And our agents service Rovo of some a do

well the we're high any but achieve AI placed us for moment mission. is customers at So our emerge, confidence I and maintain future helping how might that about the changing think

Weiss Morgan question Stanley. next from Keith comes Your from

being me selfish Congratulations my quarter. guys hoping completely on a help here. was solid could with really research I like process you

I my moving just my the is platform and for topic. to upsell thesis And So a better cross-sell. Atlassian made was cloud

going You and NRR help guys have that's a broader expand. solution to portfolio,

at look seat about you talked ] [ the this outperformance we when So quarter, expansion. cloud

marketing cross-sell the migration is slightly will or improving or can of the you much platform, NRR more and are how your effective? -- is upsell from how us that maybe activity do of the this versus Is that of Like on driven how has initiatives that cloud the talked platform proactive cloud this benefit. like understand much by guys driven for you're now by much on market? expand proving stabilized help environment versus this now You just is about you're like stemming think the you

Yes. I'll Mike Thanks chime in. for the question, and then start Keith. will

quarter level, carried largely environment trends from from a stable this QX into just we from So QX. high a our macro and business benefited in

we remains continued rates customer So were see lower to stable QX sales and seat stabilization SMB, did signs in prior top healthy. our expansion and funnel of low in than touch year, Paid channel. segment although of SMB health

a that multiyear and results our trends build also to premium stable felt SKUs. on. additions to macroeconomic and upsell overall that migrations all So . Enterprise environment were solid to prerequisite enterprise good on consistent and delivered QX. healthy We for with that and was deals, a have annual of

would we say also saw. macroeconomic And also that our we the is was really that stable sales Mike? did that I carried to then the steady So influenced through execution by thing and quarter, that have results. in other the environment

look, selfish you're Thanks, I say, Yes. would very a Keith, think Joe. I person.

macro, is think The their that, I tend heavy macro of to the There's SMB. proportion still And more no companies to be continue right? on yourselves. we scrutinize factor. tighten about to try budgets, to SMBs sensitive very have The a belts, that's fair still doubt right?

still that that there's environment the doubt So exists. way that's The is we going on. no that's take

execute through We to have that.

continue that. We grow have to to through

to have that. with deal We

did really of both strategic I a Atlassian the the are always just time do for And really drive working of message Atlassian consolidation businesses, partner which platform onto our we're a we and the of work that's as doubt consolidation customers. philosophy lot system also of in demand Joe them We their world. see through what can our it. resonating is as spending no increasingly trying mention is and factor you in both also tell really that our part helping great to their do the to cloud a favor, that is with

medium are over growth that the to clear the long levers key though, pretty term, in control. our of We're

these I factors Atlassian's are short thinking. sometimes think like of term scale time relatively in the macro the

work paid strong motion, customers, largest is our working businesses go which to continue to well workers there's seat of really in We they companies. that to our are biggest as world we evolve strong some really driving wall to are and enterprise Joe organization, doubt, customer more far also the with in knowledge really those to mentioned, now. opportunity technology adoption facilitate business continued in as go-to-market conversations, the teams wall we continue in System of the and connect big wall-to-wall and expansion as and teams teams business those an no

that AI, mentioned, continues as we drive growth. to

across And in and our ability So Atlassian solutions. there's us set of of top provide it's series doubt, on products together the a coming whole Revo value growth across continued of things Intelligence to huge coming customers cross-selling connect those. to a for interest our migrations, capabilities. consolidate from of whole no third-party and new momentum driving

which over as emerging at and along [ to It's encouraging their products what done of continues early for traction along but Obviously, this years of Rovo, start last lot every to growth have Management customer year product, all Product time. a just the Service are or fantastic and an the quarter. Discovery, Jira mention really organization and continuing how Jira shipped Compass really power that X whom fantastic feedback. long at we've crank well, That's in and to journeys, keep single learning adoption, at Loom, not of we pace], do we've to a

results moment there incredible drive despite world. challenging continue the ability on to at our environment to So the out a in bullishness

James. Raymond Your next from comes from question Adam Tindle

ask we're price and did with agents about break Atlassian point. how that, the Intelligence here. the for of to on from to to move call want try to Rovo. this embedded the as Mike, I'll question monetize since point. product return here. your it healthy I in now out an a unselfish product to kind more of core with what you team AI, pivot strategy pricing And relative AI it uncommon portfolio, the was the topic to did you own twofold not AI point think it is fairly a But at price separately

So is if cloud you the in to things. report real could contemplated Rovo and anything from guidance walk Rovo. quick, us confirming going through for And that's in Joe, just those X that

take all of to I can over per here. Adam, se. know, part that question. hand the point end I'll I that it team Look, call for I first would Joe and the don't a appreciate we're pivot

it's here. happening I about strategy. There really That's think important. X why it as X-point think forces we are different a

Jira Firstly, the well. growing existing products. our of things that capabilities searching value fantastically more around, built Atlassian existing we've have through and through Confluence capabilities products, smarter through as in of been text Atlassian existing XX still generation sorts all those products, and deliver of in Cloud platform different can all increased years AI products Intelligence through the than

product, of and aggressively we deliver The increased of as lower that we're at features. to monetization that deliver the those the them That separate a is AI as and something product. on of capabilities managing not get It's capabilities better, cost, side. was margins we're Intelligence of the increasingly from, those add-on core not how of We've away learned the though opposite. Atlassian delivery capabilities as costs pace we've pivoting quite pretty our we own more

have in I customers good given the existing the of XX their we cloud X that Atlassian. And more moving in those the said, use Rovo, which last only up for built we've built the usage to great We're not over capabilities subscriptions last to build term, from is With never boost certainly And of we've new products efficiency XXx. given additions. features platform, months or could have all. premium Graph at built away is Atlassian over for the Teamwork X Rovo as with pivoting than years, Their long before. ability those those the existing we products, that reporting

to we AI it So the but very could It's product's other different additive We a is the say built have here. the the an Rovo thing. for AI. that's core not why without built not It's to product product, things.

chat talk Docx applications the Sigma, obviously, GitHub, to knowledge to there et customers Atlassian's increasingly, using in across cetera. other and Google have all and Our applications Slack, are they

set powerful is a this built we feature So have really couldn't beforehand.

of a as other things we're we like of to virtual take team. their of And the investing from them It's those allowing in one X terms have wonderful in secondly, to with aggressively obviously, agents, areas their both bandwidth have increasing teammates not actually the action, pretty pivot team Atlassian as of and the in Intelligence. the efficiency that much tools

assume although I a pricing. meaning also for which about capability. service there, consumption-based obviously pricing talked Rovo agents in Management, Jira Service You have you're we particularly, virtual have the

pretty though customer an in SMB we doubt Rovo think moving enterprise evolve the to both strategy. it's continue that. our important segments that's area terms that the and of appeal of learn to I about This is and fast, base. the sales Rovo no about does

motion the flywheel both in application Atlassian motion. enterprise driven, classical and sides, large-scale high-touch a is the It product-led growth

We'll with very, value and customers to of learn but the very adapt delivered We accordingly, trying those to is do continue large. Rovo. are both from

could we monetization, a pricing while early our So are ahead pipeline feedback, the initial pragmatic to take The the and expectations hear demand at always moment. approach signals is customer strong. I of

So but only some high time, there. weeks give maintain excitement released Joe? ago, product we a few us

our as question. across with the in focus And Rovo and And many big Adam, engagement included is as said we Mike revenue Yes. in thanks the for usage, Thanks, results. on be cloud possible. the when deployment, conversation, Mike. customers product earlier driving report value now our will as

of be those is success an on things. monetization to So outcome going

in over early revenue prudent at from gradual believe see Rovo the a our assumes there guidance approach the we . product. very right 'XX, then of build growth which and is this modest stage level So FY of now And time. we'll from

comes Your Alex Research. question . Wolfe next from from Zukin

stack conservative guide guys you maybe I out other revenue deeper drove room, Can since little this more bit outperformance? just beat, elephant drilling cloud it parse started your is cross-sell derisked? given kind function? then get -- providing to your Was expansions, in in, investors that of migrations, for And what much really better the hire, the think just go-to-market Maybe you again, CRO of just to prudent the you largest initial a guidance. opportunities a in maybe on new was those what the just the are have specifically coming was to the And just the better what than expectations Brian understanding. sales maybe new you about excited Duffy, terms mature continue

it then Alex. Thanks, Mike and up. start, will pick Yes. I'll

but our in revenue, growth. That's you So line certainly XX% XX%. was mentioned, earlier with than in I year-over-year QX, call much mentioned cloud Keith's up as of better expectation in Keith's . better-than-expected -- to into continued QX. One other our and X driven The question, QX is trends really factors. seat expectation expansion paid by variance from the was migrations. is

whether related Some macro our of All is top-of-funnel growth from execution into expectations part our sales other those good but the drivers business, in quarter. on perspective. it's additions is of part or slightly just it adoption in and or additional the customer a of the to of retention, products execution question of that our earlier, than high-value performance some are this going line cross-sell better or either

gave sort cloud that's we on performance. breakdown of So you the the

good business. Mike? think I sales in it's mix macro, health a execution just and fundamental of both then the

on It's excited super thorough, to and broad great, very different lot a pragmatic quarter. we're a but try have is Brian, that. points, do whole to him I would to and time. in quarter, a the continue search, a very environment join. of but scale. come agree big look of executed On which not lot Yes, been about comprehensive, different we're whole every that we a well of highlighted across He's Joe we're It's with -- series this factors

I learn experience think thing set is great has the Atlassian's sales of motions. first across business. a Brian to of series different a

complex from scale mentioned very motion. a a SMB Atlassian a have sales As company is I've large flywheel product-led perspective, we growth

an trying we is what touch challenge. these to do. also increasing together and We business enterprise no thread player machines X have small It's

So he's a big learner.

study on think in he's the driving the from sales opportunity how about the continually of and has that At excited continue experience same to huge and works obviously, deliver and I the super transformations learn leadership, time, Atlassian in that. inside. it front in he'll

more as than of we the we us, we continue to having evolve. have executive team, the are will the We've company cohort to to be path business a have X As X customers super continue and to public and very that opportunity. getting fast-growing from a continue experience million, of he mentioned, no help continues big on will big XXX $X to And I'm north as CEO that. add that called accelerate doubt, on power our transformations we're excited in going those it sure the be him. to all team, enterprise

. So looking forward to it.

Your next comes from Michael question from Fargo. Wells Turrin

maybe the I wanted time. I just a of much AI through address over of view fiscal software. just back come Atlassian help of but A and [indiscernible], it's [indiscernible] differentiation all. the just could Rovo, eventually to versus year on Nice think out there also tools longer we're period to the And user of points think seeing much some other how on help this base topic us chance across your level to useful start set go it to Mike Atlassian's to a give

of Well, a do. asking questions get in Rovo. think lot I are I going really differentiated that massively the we're me Michael, to here. you're Look, trouble in

access built many real building are we that with that years think journey today and well is actually and actually customers many, in value delivers on investment. R&D the of of lands I can ahead a product

technical teamwork I that the and is cloud the Graph, of platform extensions and Forge data tied build all the we built you mentioned, over of Teamwork have organizing that as the think Teamwork we've add-ons, which I opinionated highly the platform, to years, way have. many strongly Graph,

hard have a And portfolio well combined model and and run, the get data as access enterprise search organized, that added many from that that with Atlassian world-class not how and LLMs, features right about great managed. and and why of we we built products through [indiscernible] really the data to which the the Atlassian's is the then models of right? large series different as Intelligence part. choose It's different AI top we've a we language thoughtfully on extensibility Getting data you structured getting engine we've have vendors

get having intelligence that extensibility organization. same so value that to engine action agents in or the It's ways features and autonomous data happen, user at those understand an able then but platform actually going and search are a take and search what's time, to that go can the for to they allow having your create it's controlled, capability to to

why see That's the excitement. base. customer massive our excitement So you in

investments the A whole Intelligence into the of multi-multiyear together series Atlassian top. with Rovo on coming

can Atlassian's will a R&D across example, So with teams, teams what breadth teams, in classic I very agents terms customers software it. strong, very agents long-term focus really very, of over and and I XX years differentiated, is our of right? IT think, and business those are to X the together tell resonating coming you the last do, of that

that absolutely And products world-class a when with comes able driving is products program put their Atlassian to -- do of then business their is from a do to it be super have The Rovo existing program customers. amount and action building access third-party that It's and things, and and exciting early things achieving platform, that. an data product. exciting delight with starts actually we amazing business and inside when start be access time they products I would together It's of taking playing. just super things technical data our say, value. what seen or they doing when faces like seeing in own can some their We've on I

fair differentiated. journey for a while a this So going had now. We've

investing far on got R&D ahead We've on So to time, we're side. done happy to to keep And from stay the same we're this. be ahead to going ahead practical. the stay -- at

to do coming more a lot -- a lot things more out. there's So

BoolanI comes question from Citi. Your next Fatima from

of you threaded you some in earlier. to in But strategy. wanted Mike, remarks commentary I some to in opening alluded and answers your this on the the your of pricing throw

Specifically, is that more into is realm in the more profoundly being maybe Atlassian portfolio. pricing assertive the infused of maybe foray consumption

and can pretty So it's as aware variable be still I'm we're consumption what the and pretty days. wondering strategy the calculus early behind

So on out of we'd are in your that contemplating to the just because you relatively with love your and pricing bring. how get new. us just to about strategizing how Joe, it thoughts pricing some the you consumption could scales embedded rolling that on guidance help And respect it's if how variability much consumption could it's

other We Fatima, there. number first doesn't some because would depend making Bitbucket [ say base I little we part now. the that that, consumption-based sure you a usage hurt philosophy Joe the to X, in of various of storage to where have going I avoiding magnitude, I'll our on while the I our of storage X, margins customer ways on X And do great level. of would part, the follow we strategy pipelines maintains ] terms so burst highly like the a in . Historically, usage we And capability in just in of be question. with a on a overages, across run have defensive an consumption-based more It X% second ideally, downside. pricing your pricing of a let few consumption-based have. the portfolio that on that effectively on been say. up sort can more down. and or pricing a the proxy different can and order developers builds variable. amount something broad be of of else? necessarily that where areas obviously of to would doesn't Lower answer X% sort has for CPU have that's and the you top broad That's places. strategy, be across of a strategies on And have

what consume, learn another over a like a we I that there's where and to works assets. largely as thoughtful in a as be is clear over customer to period where that. where Joe? ROI And pricing will to can AI a Management have employing use service driven. of terms that of thing virtual to does like some very is take to And in long And we're clear posture. me, that of very deploy way consumption-based point would going say things capability return in friction-free we view, -- there. have value I with agents, and it from and service it's I maintain been Or the comes pricing same agents time. is increasingly that coming and is that's Jira do certainly it we logical? for when I make is strategy how I say there pricing, is we'll that? with However, there return same sense? Service it get think The what assets a philosophy it I scale a for we're gain as virtual to clear Where possible? area year to the Where

the Mike mindset some in model, To we'll a there's deliver flexible amount and how on in the have based approach pragmatic deliver to we LRP. We the financial and Fatima, value packaging. modest future, and that. and the we be pricing don't small we customers our pricing a the guidance as about And mentioned, fixed very time Mike. it believe question, in And consumption and you, to Thank will in scale. take on

when the modeling today predominantly we and seat-based this our have. think is long-range year's about So guidance we plan that

seeing to approach taking how very a . things this we So are and develop. conservative

from question Gregg Mizuho. next Your comes from Moskowitz

Mike, has of are of we've its over seeing. is, have And quarter. over product for unveiled But engineering made I wondering a that's revenues good R&D., time explain obviously much any so. nice changes period maybe how what that innovation years. is can't some very But we're certainly, frankly, that flurry very higher teams any on Congratulations spent matches what Okay. you've oriented been right XX% years the circumstantial. Atlassian than innovation peers. around in recall several of that which helps or many to seen just the months I'm the last And now, the

survive I words look, there, would last of changing. developer on is engineering to years hard for appreciate organizations. work the a as a productivity, have require I management couple organization, long us. we we're I time say that And really decades technology world-class great having view there's you've to incredibly for world-class sure. can big nice product continued and the over Gregg, engineering companies a organization that anything thrive design We've organization, don't said structural think that important for

much really one a find spend create time When doesn't I a . We as talk the productivity modern on we spend think of time is from also works, changed. a over own of a time that organization organization. of internal cannot quantitatively. I we drive a spend have lot our productivity. example, of what Compass come how of we how that's good R&D really how on productivity, world we focusing we do on lot You our time of built world-class don't focusing qualitatively tool a lot to organization, engineering productivity, engineering. to the lot productivity to explaining I products, in them both much that spend that And our on and measure have but time customers,

of building of I really lot There's about some awful of building we've building The to years. whenever doubt asked evolution, that. no only and platform talked about that top products leverage continued the you in a platform takes lot point, continued over our a the spent time a And R&D cloud point spending platform. a thing componentry can that that probably at as mindset show long growth could It's is time, start there. we've on an

products and can more build, product. if at Rovo your unique Focus, at If featured were faster look cloud at that Discovery are if and say, more the to Teamwork of Graph, the would you than even more value we we able you X I fully Forge you be of spent time look with years platform the of ago, the mature on Product look top building on

no There's that. doubt about

that platform that any the faster migration the another acquisition, platform. centric that looking I that, as as matured, into on the benefiting. is -- if multiyear have suppose tooling and than platform platform view Loom time that data customers integrating We cloud spend to at previous we which are us lets moving is you're And that has way less integrated

We enterprise are cetera. [ more now countries, et live building different [ resident advanced now We're and ever capabilities, in right? data

would to period So say large that investment some platform. that's we're down. top To capabilities organization. that platform on big of certainly had amount But for of not extent, products a and a pivoted a other We're I slowing of that building time.

time. work thoughtful defensible deliver products those patient business, incredible where we do and them how try of We to things We over then and out turn value, with turn we how businesses the really into about and great of that ideas. take co-create view our customers, ideas build. have those lot with prototypes and a same to we can products, we build very and to start that We the learn into we're

Capital comes question from Keith BMO next Your from Bachman Markets.

to and I of question, be particularly JSM different steadily opportunities limited, in are changing. on particularly just been on to customers. think last seem . But XX,XXX you growing, over a but seats, the the have but slide feedback opportunities I some focus than dynamics get your have to the do have changed. based rates you the for wanted which year. deck, dynamics how greater win wanted On competitive I a seat lot underpinning JSM second, think your you perspective do There's try on could. how if to channel

or address, Mike, how X. obviously if previous talks comments over competitive is you context towards of could about the drill their gaining really JSM, In my JSM within addition, was out down that plus to could a ServiceNow wanted your And year changing on pretty might little to traction. be on a how discussion, look the per to aggressively the I'd see AI opportunities particularly the like your question think you channel And you next AI question SKUs this I landscape. may bit you and change as that. if

continues Space. Great expansion there, grow by as Jira there. few say. strongly, to opportunity service do on customers, a fundamentals, management the well sell the XX,XXX you I Service A continues would driven Look, few mentioned, I lot to would in say extremely well. we so questions. through Management continue things It's the a

legacy away we value, a and that delivers incredible of ratio compared of where a to especially product incredible ahead price-to-value an vendors. legacy far the Firstly, vendors lot those are lot of

is on many, the That the cloud many Jira platform, platform. years top built of of of R&D top built on

So reason that. there's a for

JSM, with the in strongly expand DevOps both to space. continue We

the terms Compass continuing rostering of incidents seen development and connecting Opsgenie as strength and their as JSM alerting us the team IT embed operations an of to you've solution. and area real combining in powerful and a anyone capabilities huge some of teams, to together So

above else continue shoulders the our more Service and teams direction employee value. teams service to and at go incredible of marketing time the management, to towards head moment are do adopting teams, with ability We aspects other Jira to and Management, increasingly in in finance that anybody HR

service service configured. function can and running, So desk up the or a ability a to start highly get it

to Our none. automation second engine is

desk is So the service of incredibly our ROI high.

of AI anybody to the and innovations, our the agents terms agents still agents the a number number alerts of to ability is our signal agents, really and terms of outperforming customers of AI top the whole we AI shipped process and well. faster in sort in experience, large of was bit business else job running ability service virtual and we on tickets. Our separate side, both already noise. have number so little virtual of really repetitive their to in that service heritage, you deliver there's in a to make really, the strength add we the of the of AI to helped, ability resolved, a R&D really, the are high of DevOps that tickets operate close on out helped the The volume ability given secondly, of our for to from series that. cream information. When industry-leading of AI in And use And incoming amounts

really strong We feel about how we're doing that.

whole We that by service others we're say to sort of series AI things. And down slowing our leadership continue of Forrester position to not and be in there I would It's fantastic management. and have in recognized a for sort us. be about of of from for a surprise We the that really there's growth in that strong position. Day, the one continued know competitive space we're at great think a business Investor to of speed all. continues I

we're just only And started. getting

instead a within in workflows database customers graph-based, their capabilities for modern and configuration is out all organization. assets increasingly applications of management building adopted by relational of being sorts Our that's

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next from Your question MacWilliams comes from Ryan Barclays.

timing you to that around have center you detail customers to to the cloud start deployments do their more data get move hybrid Or larger to the their around renewal? to Atlassian cloud meantime? happen likely do is migration to over the provided the with seats earlier plans think more Well, they features, the their think move could in of contract [indiscernible]

cloud, look we Ryan, may that customers to their customers. some for contract to on look I both stepping earlier how a is look state. depending of doubt bit true. understand is moving more the as in It's of these time happening. into to early early of those that innovation might is little those or more they will a they tends worth can right? so There's The capabilities, back when at a take well. of work that That larger hybrid Intelligence, are certainly one renewals be Atlassian at, no that driving ship renewal when both. renewal for certainly, It

of of They migration Most XX, data first, may largest them may have get FedRAMP instances move into capabilities move running compliance They state some small company, some process. those If hybrid ones they center has into around move instances. them. require a state. first that used XXX some to the of someone of XX, customers, different will may type They certainly, that right? choose to an archival other and to some move or some

conglomerates, into in So a telecommunications and banking to, customers last these customers you series global large the run I've month. of large conglomerate, spoken

for center different Both of instances. geographic different data them have needs

their good project. showing that organizational we're becomes the understand get we their to them a to cloud migration and us time, our value build they it capability over is to from destination, The So that sure the for there. getting they're these capability going large from make run And scale up value key platform is that, migrations.

time. large to is exciting them to have that for again XXX very a it's customers center have This IT or project, these that. XX servers data of more scale over Some migrate do they to but

journey, upon and I point somewhat final to a is It multiyear dependent customers. will X things. those it's

environment affect doubt about can macro the There's right? So no this, that.

with We We're macro internal have customers. of It's environment. that down have an okay. projects those because patient. customers who have long We're project. slowed migration playing internal their That's a game

were that that services mentioned, mentioned the that us I they destination. we're and analytics -- on win innovation the not ultimate financial that Atlassian see through of said, fantastic. for very suspect, just deal signed It's that AI I cloud, we the large multiyear to if COOs they best the that the that reasons were of behind management They They importantly, this experience to ahead a going starting the We're explicitly customer the delivering products. managing I in journey. most had choosing continue journey As that's their as be expectation see customers, a that's to they quarter. understand is as X-year cloud. slightly migration to in Joe to their quarter. us. cloud good But movement a are really is large were mentioned, that environment. this of experience. part momentum. speak They We're up It's slightly for quarter. They drive our that And and last do

high center X to add years. data if to to next And just Mike. the just Ryan, rates revenue X then make are a migrations thing, contribution expect confident and single-digit we continue mid- I cloud over a could as reminder, to growth

of So model reflective confidence our in that the motion. that's around financial

next Your Thill comes Brent from from question Jefferies.

Jassy mean, I your conservative. more just be a kind to but at us comment to better, of Andy stable was is seem seem a macro mentioned as cloud guess, demand quarter Brian there? in you things just a on their guess, give EWS Anything how Amazon picture, Maybe letter, understand these you that the demand to of little in bigger negative bit quarter, But lot and into a you're enterprise in taking factors it to factor guidance. in potential a Google your is Joe, I improving. in accelerate. coming I read factors the little as seems sense mentioned like view? saw your you're right being accelerating, commentary, getting Is obviously well. of

that great At highlighted we taken conservative more last our this that risk-adjusted the to given thing and it's Brent. factors. right the a do prudent was approach guidance the believe a We quarter year, and this in Yes, past. time, a X to different had than it question, approach for asking. Thanks we was and

year. that QX First, approach the One, secondarily, in risks the has guidance A changed and bookings lowest, in transformation seasonally to in and absolute quarter FY execution respect is uncertainty for there. factors rest then the the saw our . Nothing evolution macro enterprise environment motion. QX of our related we to go-to-market 'XX. of with our few and updated the

rest want read too the performance don't year the much on of in QX. into based we to So

Secondly, macro U.S. election, remains with upcoming spending and regional military conflicts IT the the tempered outlooks. uncertainty

the lot of And while enterprise excited to early we to and are Brian there's are in still super a the of evolution, work go-to-market left to welcome our do. we days team,

nothing believe do right thing about and months thinking X our changed we the was it to ago, has So in that.

the quarter macro as ago the to as uncertainty future. remain did taken relevant we both X approach now as months factors, they look our same this we've of because execution opinion, in So and risk those

So context hope helps Brent. that

from question KeyBanc. Jason next comes Your Celino from

of cloud impressive results, twofold. very Clearly, kind

cloud any we saw of had a there QX, slipped in the maybe or dynamic deals that closed any some these some pricing month see deals forward Or was maybe you did that of pull increases closing back. some QX? of With ahead

question. Thanks This Yes. for one. Joe. take the I'll that is

reminder, X was time, of with in second, saw large I customers would will throughout quarter, factor that back we slightly in QX, in our high-touch . In in deals we our it slips. was not than impact the And for healthy a channel. as highlighted point not timing a in QX better a over out the expectations. And in deal factors just landing velocity was or that there as sales line Just deal QX, stepping deal a timing the flow be QX. will quarter our deal

targeting than more first In span complex longer and motions. we've within driving The approvals. the up of include we're sales is many larger, customer evolution of large, go-to-market more products, that to more We're that migrations deals high-touch our groups require more cycles cases, and had the in adds complex past. all the

take We certain do oriented as deal willing the and concessions. we Second, to right deal disciplined long-term through not and and patient wait a approach for We're time. we anything to for for at a be deadline not close think deal us. We're economics or with and the pricing driven. customer both a very also do unusual unnatural

we as into for enterprise, to our we've incorporated impact the in factors future. the continue those business grow of outlook both our the so further of And

in to quarter. macro Jason. a complex to doubt, did environment Joe don't flowing There's for And It's of a a prudent trying about, and I It through is that, the that. job we've very job talked lot no just wanted pragmatic. our as execute as excuses mentioned, we to on, add We make be last there's great we're factors and around.

we're We've feeling doing that. that do want got about. to to though, say, keep excited I

The X really positive driving philosophy business it's X, top X them us part long-term You of the forward, pull organization as vendors strategic one feel we that system mentioned resonates us that if and partner, have and change work continue forwards. a to treat are customers. those a is of in or exciting and like to of understand going it in that see focus their If the their they way. enterprise and the

that that the and the as would for these we're that, And that in through for statement, say, navigate that. us the largest conditions, executives single We're a good I in I building investing more That true meet, all conditions a the economic we from long stead every time R&D they term. understand is that puts customers our more long term in.

thing as We sales the side in the well. of same doing world go-to-market are and the

sure, Brian, take I'm and point view. And of will come in that

So We're excited the where waters through orders, and still understanding a we the that we opportunity we we're in. those short-term would just sit customers and that there. about recommend pragmatic our that, I view very really long-term take about feel with

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

feedback and for the Just for short up part call and video have I first on investors as for we that joining you, questions all analysts. any of that. the love the today the you reminder, A everyone, section this wanted ever. in time a for put being our Investors time to Loom will team say thank

appreciate ] we questions always, [ day. and a support. your As continue kicka** thoughtful to Have