Atlassian Corporation Q3 FY2026 earnings call

• Delivered incredible Q3 results with total revenue, cloud revenue, and RPO growth. • Strong momentum in enterprise, AI, and System of Work. • Large enterprises deepened commitments to Atlassian. • Rovo added millions of monthly active users, with AI Rovo credit usage growing over 20% month over month. • Teamwork graph as a key differentiator, driving competitive displacements from a major ITSM provider. • Strong cross-sell and seed expansion in cloud, especially in Teamwork and Service Collections.

Total revenue grew 32% year-over-year to $1.8 billion. Cloud revenue surpassed $1.1 billion and accelerated to 29% growth year-over-year. RPO grew again 37% year-over-year to $4 billion. Teamwork Collection customers are growing their ARR at roughly two times the rate of customers who are not using Rovo. The Service Collection passed a billion dollars in ARR, with strength across regions and non-IT use cases.

• Migration to cloud on track, expected to contribute mid to high single digits on cloud growth. • Data center retention rates robust, with pull forward of upfront term license revenue in Q3 due to large expiry base and pricing catalyst. • Multi-year journey for large customers transitioning to cloud. • Will enhance disclosures next week at Team 26 to normalize data center revenue recognition timing.

• 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.

Q: About how the teamwork graph lowers cost of AI investments and data center performance for FY27?

A: Teamwork graph makes AI better, faster, cheaper by using less tokens. Data center migration on track, retention robust, with pull forward of revenue in Q3.

Q: Positioning Rovo against third-party agents?

A: Rovo is AI part of Atlassian platform, available on and off platform, with deep context graph.

Q: Drivers of seed growth in JIRA and durability?

A: Cross-sell in collections, strong expansion numbers, no seed compression, high R&D and context graph.

Q: Competitive displacements in ITSM?

A: Strong in service collection, across regions and non-IT use cases.

Q: Data collection changes and AI product capabilities?

A: Clarification of data use, AI enables powerful features.

Q: What's working best in service and teamwork collections?

A: Teamwork graph, user experience, HRSM, AI-driven connectivity.

Q: Pricing strategies and AI internal efficiencies?

A: Customer-led pricing, multiple usage-based meters; AI driving efficiencies, durable profitable growth.