Atlassian Corporation Plc (NASDAQ:TEAM) Q2 2024 Earnings Call Transcript
Atlassian Corporation Plc (NASDAQ:TEAM) Q2 2024 Earnings Call Transcript February 1, 2024
Atlassian Corporation Plc beats earnings expectations. Reported EPS is $0.73, expectations were $0.62. Atlassian Corporation Plc isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good afternoon, and thank you for joining Atlassian's Earnings Conference Call for the Second Quarter of Fiscal Year 2024. 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.
Martin Lam: Welcome to Atlassian's second quarter of fiscal year 2024 earnings call. Thank you for joining us today. Joining me on the call today, we have Atlassian's Co-Founders and Co-CEOs, Scott Farquhar and Mike Cannon-Brookes; Chief Financial Officer, Joe Binz. Earlier today, we published a shareholder letter and press release with our financial results and commentary for our second quarter of fiscal year 2024. The shareholder letter is available on Atlassian's Work Life blog and the Investor Relations section of our website, where you will also find other earnings-related materials, including the earnings press release and supplemental investor datasheet. As always, our shareholder letter contains management's insights and commentary for the quarter.
So during the call today, we'll have brief opening remarks and then focus our time on Q&A. This call will include forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we have. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management's beliefs and assumptions only as of the date such statements are made, and we undertake no obligation to update or revise such statements should they change or cease to be current.
Further information on these and other factors that could affect our business performance and financial results is included in filings we make with the Securities and Exchange Commission from time to time, including the section titled Risk Factors in our most recently filed Annual and Quarterly reports. During today's call, we will also include non-GAAP financial measures. These non-GAAP financial measures are in addition to and are not a substitute for or superior to measures of financial performance prepared in accordance with GAAP. A reconciliation between GAAP and non-GAAP financial measures is available in our Shareholder Letter, earnings release, and investor data sheet on the Investor Relations section of our website. We'd like to allow as many of you to participate in Q&A as possible.
Out of respect for others on the call, we'll take one question at a time. With that, I'll turn the call over to Scott for opening remarks.
Scott Farquhar: Thank you for joining us today. As you've already read in our shareholder letter, Q2 was full of significant milestones for Atlassian. When we first went public eight years ago, we had just over $100 million in quarterly revenue and supported 54,000 customers. Fast forward to today, and we just posted our first $1 billion revenue quarter, Jira Software crossed $1 billion in Cloud ARR, and we surpassed 300,000 customers. These accomplishments are a true testament to our amazing team, our diverse and passionate customer base, and the high-value mission-critical products we deliver. Mike and I are extremely proud and thankful for every single Atlassian who's helped to get us here. In Q2, our R&D engine continued to deliver incredible innovation across our cloud platforms.
We rolled out Compass, Virtual Agent capabilities in Jira Service Management, and our first wave of Atlassian Intelligence capabilities into general availability. We also welcomed Loom to the Atlassian family and have been thrilled to see the team deliver on their ambitious AI vision with many new features, including an enhanced editing experience that makes updating a video as easy as editing a text document. Customers see the value we're delivering in the cloud and are turning to us for strategic guidance on how we can unleash the potential for their teams. We're excited about the momentum we're seeing across the business and remain laser-focused on executing against our key strategic priorities, cloud migration, serving the enterprise, ITSM, and now AI, and we're in a great position to get after them with massive market opportunities, strong customer commitments to the Atlassian platform, our unique ability to combine over 20 years of insights with the immense power of AI, and most importantly, a world-class team.
With that, I'll pass the call to the operator for Q&A.
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