Q2 2026 Atlassian Corp Earnings Call Transcript
Key Points
- Atlassian Corp (TEAM) surpassed $6 billion in annual run rate revenue and delivered its first-ever $1 billion cloud revenue quarter, marking a 26% year-over-year increase.
- The company experienced a 44% year-over-year growth in remaining performance obligations (RPO), reaching $3.8 billion.
- Atlassian's AI capabilities, such as Rovo, have over 5 million monthly active users, demonstrating strong adoption and integration into customer workflows.
- The company closed a record number of deals greater than $1 million in annual contract value (ACV), nearly doubling year over year.
- Atlassian's Teamwork collection, a key AI monetization driver, has seen over 1,000 customers upgrade, purchasing more than 1 million seats in less than three quarters.
- There is significant market noise and fear around software, impacting Atlassian's stock performance despite strong financial results.
- Concerns exist about the sustainability of seat-based pricing models amidst market shifts towards consumption-based pricing.
- The company anticipates a meaningful decline in its Data Center segment next year due to tough comparisons.
- Despite strong performance, Atlassian's stock has faced a decline of almost 40% in five weeks, with an additional 10% drop indicated post-earnings.
- There is ongoing uncertainty about the competitive landscape, particularly with new AI tools like Anthropic Co-Work potentially challenging Jira.
Good afternoon and thank you for joining Atlassian's earnings conference call for the second quarter of fiscal year 2026.
As a reminder, this conference call is being recorded and will be available for replay on the investor relations section of Atlassian's website following this call. I will now hand the call over to Marvin Lamb, Atlassian's head of investor relations.
Welcome to Atlassian's second quarter fiscal year 2026 earnings call.
Thank you for joining us today.
On the call with me today, we have Atlassian's CEO and co-founder, Mike Cannon-Brooks, and Chief Financial Officer, Joe Binz.
Earlier today, we published the shareholder letter and press release with our financial results and commentary for our second quarter of fiscal year 2026.
The shareholder letter is available on the investor relations section of our website where you will also find our other earnings related materials including the earnings press release and supplemental investor data
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