Q1 2026 Atlassian Corp Earnings Call Transcript
Key Points
- Atlassian Corp (TEAM) reported a strong start to FY26 with total revenue growing 21% year over year to $1.4 billion.
- Cloud revenue grew 26% year over year to $998 million, driven by strong execution and strategic priorities.
- The company has over 300,000 customers, including major enterprises like Data Bricks, Expedia, Ford, and Wells Fargo, relying on its AI-enabled cloud platform.
- AI capabilities have seen significant adoption, with over 3.5 million monthly active users, up over 50% since the last quarter.
- The launch of the Teamwork collection has driven a double-digit percentage increase in users, showcasing successful product innovation.
- The transition from data center to cloud impacts revenue recognition timing, as cloud revenue is recognized ratably compared to upfront recognition for data center.
- Marketplace revenue is affected by a lower take rate on cloud app sales compared to data center apps.
- Despite strong cloud migration, the full-year revenue guidance excluding data center end-of-life impact was effectively lowered by 50 basis points.
- There is expected variability in the pace of cloud migrations quarter to quarter, with most migrations anticipated closer to the data center end-of-life date in March 2029.
- Concerns around governance, controls, auditability, and permissions in AI technology are emerging, requiring careful management.
Good afternoon and thank you for joining at Latian's earnings conference call for the first 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 Martin Lam, Atlassian's head of investor relations.
Welcome to Atlassian's first quarter fiscal year 2026 earnings call.
Thank you for joining us today.
On the call with me today, we have Atlassian CEO and co-founder, Mike Cannon Brooks, and Chief Financial Officer, Joe Bins.
Earlier today we published a shareholder letter and press release with our financial results and commentary for our first quarter of fiscal year 2026. The shareholder letter is available on the investor relations section of our website where you will also find other earnings related materials including the earnings press release and supplemental investor data sheets.
As always, our
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