Atlassian (TEAM) investor relations material

Key business drivers and performance

• Cloud revenue outperformance in Q3 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 driven by increased AI (Rovo) credits and the value of the unified platform, leading to user consolidation and higher Rovo usage.

• Customers using Rovo grow ARR at twice the rate of non-users, with Rovo credit consumption up 20% month-over-month.

• Jira Service Management (Service Collection) is a billion-dollar ARR business, growing over 30% year-over-year, with 60% of instances serving non-IT workflows.

Technology and product innovation

• Teamwork Graph, the underlying knowledge graph, enhances AI results by providing context, improving output quality and efficiency, and resonating with customers.

• Rovo has evolved from enterprise search to chat and agentic usage, driving increased credit consumption and workflow automation.

• The platform enables orchestration of both human and agent work, with Jira now supporting direct assignment and management of agent tasks.

• Teamwork Collection customers show 2x more Rovo credit consumption and active agents compared to standalone product users.

• Service Collection sees 40% of agentic invocations, highlighting Rovo's role in automating workflows for non-IT teams.

Strategic priorities and organizational changes

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

• R&D investment growth will slow, with headcount growth expected to be modest, as the platform build-out phase concludes.

• Stock-based compensation moderation is a priority, with hiring focused on enterprise sales and AI.

• Go-to-market strategy is evolving to supplement product-led growth with higher-touch enterprise engagement, targeting deeper penetration in existing large customers.

• Flex program introduced to provide large customers with predictable, value-based contracts, reducing procurement friction and supporting platform adoption.