Atlassian
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Atlassian (TEAM) investor relations material

Atlassian Q1 2027 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 2027 earnings summary5 Nov, 2026

Executive summary

  • Q1 FY27 revenue was $1.772B, up 24% YoY; Cloud revenue rose 31% to $1.302B and Subscription ARR increased 23% to $6.812B.

  • RPO increased 44% to $4.746B; GAAP operating margin reached 11%, versus (7%) a year earlier.

  • Growth priorities included enterprise, AI, and System of Work initiatives; Teamwork Collection customers increased 7x YoY.

Financial highlights

  • Revenue was $1.772B, versus $1.433B in Q1 FY26; subscription revenue was $1.698B and other revenue was $74.3M.

  • GAAP operating income was $188.8M and GAAP net income was $90.7M, versus losses of $96.3M and $51.9M, respectively, a year earlier.

  • GAAP diluted EPS was $0.35; non-GAAP diluted EPS was $1.65, versus $1.04 in Q1 FY26.

  • Non-GAAP operating income was $575.8M and non-GAAP net income was $423.5M, versus $322.7M and $275.7M, respectively.

  • Operating cash flow was $468.5M; free cash flow was $462.6M, with a 26% margin.

Outlook and guidance

  • Q2 FY27 revenue target is $1.825B–$1.835B; Cloud growth ~27%, Data Center revenue decline ~14%, and Marketplace and other growth ~20% YoY.

  • FY27 targets: Subscription ARR growth ~18.5%, total revenue growth ~13.75%, Cloud growth ~26%, Data Center decline ~16%, and Marketplace and other growth ~15%.

  • FY27 gross margin targets are 84.5% GAAP and 86.5% non-GAAP; operating margin targets are 5.0% GAAP and 25.5% non-GAAP.

  • Guidance balances business momentum with macro, fiscal policy, and geopolitical uncertainty; Q2 begins lapping the DX acquisition, while H2 faces tougher comparisons against H2 FY26 acceleration.

  • No meaningful FY27 revenue contribution from usage-based pricing is assumed; enforcement begins in early December. Enterprise sales capacity remains an investment priority, with annual and multi-year deals supporting predictability.

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Frequently asked questions

Project Management Tools

Atlassian Corporation is an Australian company that develops software products for developers, project managers, and production teams. The company's portfolio includes Jira, an issue-tracking and project management tool, and Confluence, a team collaboration and wiki product. Atlassian's products enable collaboration and improve workflow management in both software development and various business project environments. Atlassian has dual global headquarters in both Sydney, Australia, and San Francisco, California. Its shares are traded on the Nasdaq.

Initial Funding on Credit

Atlassian was founded in 2002 by Mike Cannon-Brookes and Scott Farquhar in Sydney, Australia. Starting with an initial investment of $10,000 on credit cards, the company aimed to create affordable software for the burgeoning number of software developers. Atlassian's first product, Jira, was released in 2002 as an issue-tracking tool for software teams and the company’s second product, Confluence, followed in 2004. The company rapidly saw adoption of its products across the industry, and growth was both organic and fueled by larger acquisitions of other companies in the industry.

The Core Products

Atlassian anchors its suite of products with Jira and Confluence, two robust tools aimed at improving team productivity and project transparency. Jira, the cornerstone of Atlassian's offerings, provides teams with a powerful project management platform. It enables issue tracking, allowing users to report and monitor bugs, tasks, and feature requests, making it a valuable tool for software development teams and project managers. Jira's customizable workflows enable teams to move projects forward from conception to launch in a way that suits the team. Complementing Jira, Confluence acts as a collaborative content creation and management space. It provides an intuitive workspace where teams can create, share, and organize documentation, meeting notes, and project plans. Besides these two aforementioned products, the company also provides the services Bitbucket and Trello.

A Subscription-Based Model

Atlassian operates a subscription-based business model, offering a tiered pricing strategy that caters to everything from small startups to large enterprises. The company provides free, limited versions of its core products, with the option to upgrade to a paid version with additional features. Revenue is generated through monthly or annual subscriptions, with additional services and add-ons available for purchase.