Atlassian Corporation Q2 FY2026 earnings call

• Strong enterprise sales execution with momentum across business. - Surpassed $6B annual run rate revenue, $1B cloud revenue quarter (+26% YOY), RPO at $3.8B (+44% YOY). - Customers like Cisco, Expedia, Reddit, and Synchrony Financial rely on Atlassian. - Robo AI capabilities passed 5 million monthly active users. - AI is transforming work, with software team using AI code generation tools showing 5% more tasks in Jira, 5% higher MAU, and 5% faster seat expansion. - Investments in product, R&D, GTM, Teamwork graph (over 100 billion objects/connections), enterprise-grade security, compliance, and unique distribution engine. - Over 350,000 customers, including >80% of Fortune 500 and 60% of Forbes AI 50.

Atlassian Corporation closed Q2 with very strong enterprise sales execution. They surpassed $6 billion in annual run rate revenue, delivered a first-ever $1 billion cloud revenue quarter up 26% year over year, and grew RPO 44% year over year to $3.8 billion. However, detailed revenue contribution by specific product segments isn't explicitly broken down beyond cloud and data center (DC) mentions.

• Midterm outlook: 20% plus compounded annual revenue growth through FY 2027. - FY 2027 non-GAAP operating margin commitment of 25% plus. - Short-term guidance for FY 2026 is taken with a conservative and risk-adjusted approach.

Forward-looking statements involve known and unknown risks, uncertainties, and assumptions. Further information on factors affecting business performance and financial results is in SEC filings, including 'Risk Factors' in annual and quarterly reports. No specific detailed operational failures discussed in the Q&A beyond general market uncertainties.

Q: Rob Oliver asked about buyer conversations and what's driving motion towards Atlassian.

A: Michael Cannon-Brookes said customer conversations are at a higher level, customers see AI as a reason to move, value delivery is key, and enterprise customers want trusted, compliant, secure platforms with great ROI.

Q: Sanjit Singh for Keith Weiss asked about pricing evolution.

A: Michael Cannon-Brookes said current pricing is delivering, price isn't a big factor in customer conversations, philosophy is to deliver best value, seat-based model is still preferred, and there are consumption-based offerings like Forge and extra AI credits.

Q: Gregg Moskowitz asked about Anthropic's CoWork.

A: Michael Cannon-Brookes said there's partnership, integration is part of philosophy, Teamwork graph is differentiated, and human-AI collaboration is important.

Q: Karl Keirstead asked about DC segment impact on medium-term guide.

A: Joe Binz said continue to have confidence in long-term cloud guide, cloud growth drivers are consistent with enterprise AI and system of work strategies.

Q: Aleksandr Zukin asked about monetization increase.

A: Michael Cannon-Brookes said RPO and NRR numbers show confidence in long-term guide, acceleration is seen today with multi-year deals and AI being a key driver.

Q: Ryan McWilliams asked about using models from multiple labs.

A: Michael Cannon-Brookes said Atlassian is good at adapting models, customers use apps, AI team is world-class in adopting models, and agents can integrate with multiple platforms.

Q: Jason Celino asked about DC to cloud migration.

A: Joe Binz said healthy cloud migrations in Q2 contributed mid- to high single-digit impact to cloud revenue growth, expecting same for full year.

Q: Ittai Kidron asked about seat expansion breakdown.

A: Joe Binz said broad-based, across tech and non-tech users, stable expansion rates for Teamwork Collection. Michael Cannon-Brookes added focus on system of work and growth in non-tech users.

Q: Koji Ikeda asked about AI usage and Jira growth.

A: Michael Cannon-Brookes said it's a subset of user base, cutting-edge companies are driving it, more efficiency leads to more tasks and collaboration.

Q: Keith Bachman asked about JSM.

A: Michael Cannon-Brookes said service collection is doing fantastically, over 65,000 customers, >50% Fortune 500, enterprise growth over 60% YOY, growth on like-for-like customers, strong in HR, finance, and other areas, and new customer service app launched.

Q: Raimo Lenschow asked about DC price increases and midterm revenue growth.

A: Joe Binz said cloud pricing reflects innovation and value, DC price changes are planned to incentivize cloud migration, midterm outlook is 20% plus annual revenue growth through FY 2027