TEAM Q2 2024 Earnings

Call Details

• Call Title: Atlassian Corporation Q2 2024 Earnings Call
• Date: February 1, 2024 at 10:00 PM UTC
• Management Team:
  • Scott Farquhar (Chief Executive Officer)
  • Mike Cannon-Brookes (Chief Executive Officer)
  • Joe Binz (Chief Financial Officer)
  • Martin Lam (Head of Investor Relations)

Call Summary

Financial Performance

• Cloud revenue in Q2 grew up 27.5% year-over-year.
• Loom contributed about one point of cloud growth in the quarter.
• The company achieved its first $1B revenue quarter and reported surpassing $1B in cloud ARR.
• Customers exceeded 300,000 total reported customer relationships during the quarter.
• Deferred revenue grew up 30% year-over-year and remaining performance obligations increased by over $1.9B.
• Data center revenue was reported to be up roughly 41% year-over-year as cited on the call.

Guidance

• The midpoint of H2 cloud guidance, ex-Loom, assumes slightly accelerating growth rates compared to H1.
• High-end cloud guidance assumes less macro headwinds and improving paid-seed expansion metrics.
• Low-end cloud guidance assumes increasing macro headwinds that would compress paid-seed expansion and migration activity.
• The company continues to assume migrations will be a multi-year tailwind beyond FY24.
• No specific FY25 revenue guidance or numeric migration impact beyond FY24 was provided on the call.
• At the midpoint of guidance the company assumes paid-seed expansion rates remain steady to current levels.