Atlassian (TEAM) investor relations material

Key business drivers and performance

• Cloud revenue growth was driven by cross-sell into Teamwork Collection and seat expansion within core Jira, with seat growth compounding over time across both developers and knowledge workers.

• Enterprise segment saw strong growth, with RPO up 37% year-over-year and customers signing larger, longer contracts, reflecting the value of the unified platform.

• Teamwork Collection adoption is primarily motivated by increased AI credits, but customers also value the unified platform, automation, analytics, and Teamwork Graph.

• Customers consolidating from point solutions to Teamwork Collection add about 10% more users and drive 2x more Rovo credit consumption and active agents.

• Jira Service Management (Service Collection) surpassed $1B ARR, growing over 30% year-over-year, with 60% of instances serving non-IT workflows and strong competitive displacement.

AI and platform innovation

• Teamwork Graph provides contextual relationships across teams and tools, enabling more effective AI results, as demonstrated by a 48% improvement in output and 44% reduction in token usage.

• Rovo AI usage is growing rapidly, with 5M+ MAU and 20% month-over-month credit consumption growth; customers using Rovo grow ARR at 2x the rate of non-users.

• The platform enables orchestration of both human and agent workflows, with Jira now supporting direct assignment of work to agents.

• Over two-thirds of Forbes AI 50 companies are customers, and their ARR is growing at over 100% year-over-year.

• 40% of agentic invocations occur within Service Collection, highlighting early adoption of AI-driven workflows in non-IT teams.

Strategic priorities and organizational changes

• March's 10% workforce reduction aimed to self-fund more enterprise sales reps and AI talent, and accelerate GAAP profitability, now a top strategic priority.

• No discernible negative impact on growth or pipeline from the reduction; focus remains on execution and durable, profitable growth.

• Go-to-market strategy is evolving to supplement product-led growth with higher-touch enterprise engagement, expanding quota-carrying sales and deepening relationships with large customers.

• R&D headcount growth will slow significantly, with investments moderating as the platform build-out phase concludes.

• Stock-based compensation is being moderated, with hiring focused on enterprise sales and AI.