Everyone, please welcome to the stage Head of Investor Relations, Martin Lam. Welcome, everyone. Thank you for joining our FY 2022 Investor Day. It's really good to see everyone here in person, and for those of you joining virtually, it's good to have you and thanks for joining. Before we begin, I'll share a brief legal disclosure. Today's session is being webcast and is available for viewing on the investor relations section of Atlassian's website. A recording of today's webcast will also be made available on the IR website, along with the materials from today's session. Statements made during today's session include forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. These statements represents our management's beliefs and assumptions only as of the date such statements are made. Further information on these and other factors that could affect the company's 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 recent Forms 20-F and 6-K. Here's the agenda for what we'll cover today. There'll be three sections to today's event. Section One, where we cover our three markets, the global secular trends driving the needs for our products and our competitive advantages. Section Two, where we cover the Atlassian platform and why it positions us in the long term to win. Section Three, where we talk about building an iconic 100-year company. In each section, we'll issue a six-page memo. This is a peek inside the culture here at Atlassian. We run our meetings at Atlassian with six pagers, which were made famous by Amazon. We believe writing helps us focus on what's the most important. As you heard yesterday in the work management keynote, we run our company on Confluence to stay connected and share our information. Sharing information in this format really helps the reader focus on what's most important and be an active participant in all the discussion. This is how we run all our meetings, from business updates to strategy updates, to our board of director meetings. With that, we'll open with our first section, covering our three markets. Belong is Australia's first carbon neutral mobile and internet provider, launched by Telstra in 2013. Our purpose is about making our world a more inclusive place by giving Australians the tools to reach across the planet at the touch of a button. At Belong, we have a model where the teams who build new features and products run those features and products in production. Our teams are building features. They're busy delivering new products, but they're also supporting production at the same time. We wanted the tools that they use to be really easy, intuitive, and integrated into their ways of working as well. We're going away from the traditional ops model, where everyone comes to us for service requests or for incidents or for monitoring. We're trying to empower teams to take ownership of the processes and of their operations, whether that's in their development environments or whether that's a customer facing environment. Using something like Jira Service Management, it was a great fit in our culture, and we've already seen massive improvements with that cultural uptake from frontline teams and technology teams. With Jira Service Management, it's so easy to create a dashboard and monitor it without coming to the operations team. For us in technology operations, it's been about how we transform the way traditional IT ops is done into a much more modern, agile, and DevOps mindset led way of working. We've been working over the last couple of years to uplift our processes, to uplift our tools that we use, the technology that we use, and critically, the way that we work, led by principles taken from site reliability engineering, bringing engineering led mindsets into operations, and using that to really drive highly reliable, highly available systems that serve our customers in the best way possible. We already have other Atlassian tools in our development and engineering environment, and so it was a really logical choice in terms of ease of integration and use for our teams. That's what we've been really focused on doing from a tooling perspective, transforming the way that we work as well. We really saw that it had the ability to be customized and tailored to the way we work, the processes we have, and therefore would be easy for us as an operations team as well to set up in the way that we need it to be used within the organization. One of our big measurements is looking at the really important processes like change management and incident management. How fast does a delivery team or a development team take to actually pick up the ticket and look at it and respond to it? We saw a massive improvement from last month. It was 57% of MTTA, mean time to acknowledge, and this month it's 85%. We put that down to the fact that Jira Service Management is such a simple tool to use. It's integrated so well with our systems as well. Our teams are just uptaking those processes, and it just means it's better for our customers at the end of the day. Hope you enjoyed that video. Now we'll jump into our first pre-read of section one, our three markets. The document is now available on our investor relations website. You can also access it via the QR code shown on the screen. We'll give you 20 minutes to read this first document. Our investor day has a Q&A section that will follow this pre-read, and you can start pre-submitting questions online, or we'll come back for a live Q&A session right after this. All right, see you back here in 20 minutes. All right, hope you enjoyed reading section one. Now joining us will be our cofounders, Scott Farquhar and Mike Cannon-Brookes. We also have our Chief Financial Officer, James Beer, our Chief Revenue Officer, Cameron Deatsch, and our Chief Product Officer, Joff Redfern. We'll take questions from people in the audience while and as well as people watching virtually online. Just if you're here in person, raise your hand and someone will come around with a mic. If you're watching virtually, please submit questions via the Slido online on the Investor Day landing page. We'll spend 25 minutes on Q&A in this section. Please ask that you keep your questions pertaining to the topics of this particular section. We'll have plenty of time later to go over other topics in later sections. Why don't we go with you first, Keith? Good afternoon. Keith Bachman from Bank of Montreal. Thanks very much for hosting this. It's great to see everybody live, in person, or almost live in person. I just wanted to ask a question on strategic competitive question on Confluence in particular. As we think about, you know, over the next three years, how do you see the overlap versus partnership with some of the Slacks of the world and Teams versus Confluence and how that might, you know, what behavior those competitors may emulate of the current, you know, advantages you have. How do you see the frenemy versus competition versus partnership between Confluence in particular and some of the leaders in the chat field of Slack and Teams? Actually, Mike, that might be a really good one for you to handle, and we can also test the tech support at the same time. Sure. I can take that. Thanks, Scott. Hi, Keith. Hi, everyone. Sorry to not be there in person. The pandemic continues to rage on, but thank you to everyone for dealing with the virtualness. Keith, I'm not sure I quite understand the question, to be honest. I don't think we would consider the chat tools to be competition per se for Confluence. There's obviously lots of ways an organization can record text in a company, and Confluence is doing extremely well as a product and has done for 18+ years now and continues to power along. It's had some of its best years over the last couple of years. Our broader strategy of integrating all of the products that you have together through, as we've talked about, Smart Links and the platform and other stuff that we'll get to in the second section and you've seen in the keynotes. We're taking a very honest view with our customers that we understand you have lots of products. We understand you need to tie them together and thread them together better. Confluence is a fantastic aggregation surface for those customers. You often see Confluence documents that have spreadsheets embedded and designs embedded and other things, which is a uniqueness of Confluence. You can do all of that, I guess, in a chat channel. You can put documents into a chat channel, et cetera, but it's not quite the same as a reading experience for the communication. We work extremely well with all the chat and messaging tools and have done for a long time, but I don't think we would see them as competition or vice versa, actually. It's not something that we really consider in that way. Yeah. Can I add to that? Which is that if you think of the tools, like, you know, a lot of what people do in collaboration inside companies, what we're doing today is, you know, get context from some person, one person's head into other people's head and heads. If you think about Slack, it's very much on a push mechanism, right? Like, "Hey, I'm deciding you need to get this information. I will push it to you." You never find something in Slack, like, unless someone's pushed it to you. Like, you may have open channels, they may be public. No one I've ever met has said, "Oh, yeah, let me check Slack." Maybe someone's written something in Slack once or sometime about this thing. Like, it is sort of a. It doesn't do that. Whereas in Confluence, it is a knowledge repository. It is a store. You will actually find inside companies, people will actively go find stuff in that. Yes, you do share information in both of them. Very different in terms of the ways they do. Slack, because you don't find anything, it's very ephemeral. You know, kind of it is one-to-one or one-to-many, but it is like, "Hey, if it's more than 24 hours, like ago," and there's a reason Slack can delete stuff that, you know, beyond a certain other message limit or a certain time period ago, is much more ephemeral. If I went through and sent and deleted all the old documents in Confluence, you'd get uproar amongst our customers because it is much more timeless. The only thing I would add to that is if you look at our product integration team, some of the most popular apps that are in both Slack and Microsoft Teams are Atlassian apps. You're seeing us embrace that ecosystem and work pretty harmoniously with them. We spend a lot of time with their product team and their partner development team. Tamar, like, the CPO over at Slack, I talk to Tamar all the time. We have a good, healthy relationship. How about Alex? Hey guys, thanks. Alex Zukin from Wolfe Research. I wanna ask about if I think about Jira Service Management and I think about Jira Work Management, there's obviously a couple of other big companies in these spaces, and as we were talking to partners, it very much feels like you're starting to see some really strong adoption and attach rates, you know, on those products within your customer base. Maybe just talk through both the how do you see the evolution of that competitively? Is there a way to think about the unit economics of a customer that's spending a dollar today with you on the core Jira products that over time, a percentage of them that you believe are gonna ultimately move to those products? And is it a replacement or is it a surround the opportunity? Apologize for the multi-part question. Let me take Jira Service Management first probably. We announced today, you know, at the conference, we have 40,000 customers using that product. You know, it's been a big evolution as we've added more features over time. We find that market really attractive because there are both very long-term legacy players in that space. Then there are some newer players, but they operate at a much larger enterprise scale out there. We've done really well at much smaller scale, bottoms up, growing our base there. You know, we're not at the enterprise scale with hundreds of thousands of people. That's not where we're playing at the moment, but we've got a history of building a product that over time gets there as we build out the features and functionality. Now, talk about expansion, you know, into adjacent products, and one of the advantages of moving our customers to the Cloud is that you can much more easily sell them a second and third product. You can much more easily sell them a premium and an enterprise version of the products. It's easy to give them marketplace apps to run, you know. There's a lot more opportunities for us to do that there. There's also products we haven't built yet that we will sell in the future. It's hard for me to say, "Okay, a dollar in today, you know, of what a new customer gets me this in the future," because all those vectors we're getting better at every single year, including cross-selling the stuff we've already got, you know, that we have. I'd hate to put it some sort of number out there. Also, 'cause I think that we're kinda pretty early in what is possible in those areas. On Jira Work Management, like we have Trello, we have Jira Work Management, we have Confluence. There's a lot of, you know, products we have in that space. If I think about, if I roll all the way back to when we started Atlassian, we originally thought we were helping software developers to, you know, work better. We rolled forward a couple years, and we realized actually we don't help them write code. We don't help them, you know, in sort of software IDEs or anything like that. What we help is we help teams of people to collaborate. Those teams of people who collaborate, well, they want their products. That's what we do. We improve that. It just turns out that software developers were in the most highly collaborative cross-functional heterogeneous teams, like, and so they were the ones that adopted our products first. But what we're seeing now is both software developers touching more of the organization. You know, digital transformation, every company is becoming a software company. I can go on and on. You know, HR teams, legal teams, marketing teams, support teams are all tied into software in ways they weren't before. Even teams that don't touch software have now realized that they're also heterogeneous teams, like, you know, with specialization, working in tighter timelines and deadlines. They're now looking for solutions, you know, that solve that problem. Kinda that's the reason why we get really excited about sort of that larger TAM opportunity out there of helping collaboration well beyond software. Why don't we go with Itay next? Thanks. Itay from Oppenheimer, and great to see you in person. It's been a long time. Over there. I hope you're feeling well. My question was for Jira Work Management. Really appreciate the number of customers on IT Service Management. Maybe we could get some more transparency on the work management side, how many customers you have on the work management side. Also, maybe you can parse it a little bit more. You know, when I talk to investors about your work management business, there's a sense that the product is still very technical, at least when it gets to Confluence and Jira Work Management. Whereas companies like Asana and Monday feel like a better match against a Trello one-for-one from a capability, but also from a user standpoint, much more marketing team, sales teams. I'm trying to gauge how much of your progress in that category overall is really top-down driven because you have presence on the IT, on the technical side that influences the purchasing decision on the non technical side as well, versus truly a bottoms up born at a marketing team, born in the sales team. Are you able to land there effectively? Are you able to compete effectively against an Asana, Monday, specifically in those areas where you're not coming with a technical edge into the sale itself? I'll answer that first, and then Mike might wanna or Joff actually wanna add on to that. In terms of like landing a new customer is a relatively expensive thing to do in the market, right? Some people need to put billboards on the 101 in San Francisco. Some people, if you look at many of our competitors and peers, they spend a lot more money on sales and marketing in order to get that new customer out there. We could do that, but we sort of, we've historically looked at what are the most efficient ways to get people, you know, to use our products. The existing 225,000 customers we have today is a way more efficient way to touch other parts of an organization than it is to go and try and find that, you know, other part of an organization via a billboard. Like, obviously going from our existing customer base out is very, very efficient. If you look at Trello, one of its advantages has been that, it's really spread by word of mouth rather than sort of any outbound advertising in Google and stuff like that. We've actually built up a huge user base of Trello, an amazing brand, without having to spend that money on sales and marketing. That's sort of just a background on the customer acquisition side. I might pass to Joff then for the product. Yeah, I was gonna double down on where Scott started to take that. If you look at our product portfolio, we've got multiple land vectors that are emerging in the work management front, and that's exactly where we wanna be. You have Jira as a land machine. You go from Jira Software, you start to move out inside of the organization. That's why two years ago, we made an investment in Jira Work Management to really make that the kinder and gentler version of Jira. We've got that one land mechanism working. It works really well for companies that are already behind Jira, or if they want more structure, top-down governance, those kinds of. That's the basics behind that. The Trello machine is another land vector. We came out and we said yesterday that we have 95 million registered users there. When you talk about some of these competitors that you're seeing, we're coming at that with multiple products, right? You've got the Jira thing, you've got the Trello thing, and then as well, we have Confluence. Confluence, when we made that free recently, what we started to see is that too is becoming a great land vector. When I look at the competitive set who have a single product, and then you look at our positioning in that market where we have multiple products that they're allowing us to land, that's one benefit. The other benefit is that these really are differentiated markets, right? Sometimes I use this example with folks on my team. You go into a Home Depot and you see a power drill, and you're like, "Oh, a drill is a drill." There's multiple lines, multiple product lines, and it winds up that those multiple product lines are predominantly owned by just a couple of companies. One of the advantages that we have with the Jira Work Management and Trello is they're attracting different parts of the market. Trello, as Scott said, is really that bottoms-up adoption. A marketing team is out there, someone on the team starts to use the product, and then it starts to balloon up and become a team product. Whereas Jira Work Management, its strength is in the power of Jira. It's particularly strong where we have a Jira presence in organizations, which is a massive number of organizations. We like the fact that we're coming at this market from multiple angles, and we think that's a feature of how we're approaching it. I'm gonna switch it up and take one from the virtual audience. Michael Turrin from Wells Fargo. The materials discuss Open DevOps framework not trying to be the end-to-end tool chain. Can you expand on what makes the core products the central nervous system and how that creates opportunity for Atlassian to sell packaged additional products? Scott, do you wanna take that one? I may have just missed that 'cause the microphone's hearing. What you said DevOps and now- It's about Open DevOps and how that creates opportunity for Atlassian to sell additional products. There are some companies who try and be all things to their customers, right? Solve every use case. There are other companies who play a very small part of, you know, they're very specialized in what they solve for customers, one very small piece of it. What we have found, particularly in the dev market or we're seeing it more broadly as well, is that there's so many different tools needed to solve solutions now. Like you have, you know, even in security, then you end up with, you know, supply chain security, you've got security scanning. Like, there's a list of security products, and every couple of years, there's a new list of security startups out there. At Atlassian, what we've always tried to solve is teamwork problems, not necessarily try and solve the technical problems that are involved with anything out there. Remember Jeff Bezos said, like, "Work on the things that won't change rather than the things that are gonna change every couple of years. That's the way to build an enduring company." What we wanna do is that still needs to happen. This network still needs to be put together, but there's a coordination approach that needs to happen to bring those products together. If I take source code kind of as maybe a more specific example, there's GitHub, there's GitLab, there's Bitbucket, there's three players in that space. What we have done is build integrations with all of them and said, "Right, if you have source code, we don't really care what you've got, how you use it, but if you have source code, we can use that information to give you higher level reports, higher level, you know, kind of insight into how your source code is working with your deployments, is working with your builds, working with your security software." If we can be that coordination layer across all these different point products, I think we play a pretty valuable part in the ecosystem. From a philosophical perspective, we partner really well. We have a history of doing that over a long period of time. Like, we allow people to put higher value experiences in our products. When we say, "Well, we'll partner, we'll actually let you put your pixels in our product," and that makes a richer customer experience. It's a little harder to do, but many other companies are not willing to sort of allow a third party to put things inside their product. We believe, you know, Open DevOps, we started that term and that movement, I don't know, a year or so ago. We believe that that's the way these products are gonna evolve, and we don't have any desire to go into some of the small specific niche verticals to try and solve them for our customers. Thanks. Why don't we go with Arjun up front? Thank you. Arjun Bhatia from William Blair. Three years ago, I think you called out IT as a market that you were gonna invest a lot in and double down in. As you look at the next three years and where you will allocate R&D resources across your three markets. Does that change at all? Is work management the next phase of investment for Atlassian, or is there still room in Agile, DevOps and IT, in your IT markets? Jeff or Mike, do you wanna take that one? Mike, do you wanna start or you want me to start? Sure. Yeah, go ahead. I can start. Look, we have a whole session on that coming up, Arjun, so I don't wanna give away too much of session three. Suffice to say, obviously, we believe all three of the markets we have at the moment are incredibly large opportunities for us. I'm glad you highlighted the ITSM example. I hope a decade from now people look back and say, "Man, Atlassian's that company that keeps telling us they're gonna go do something, and then they go do it. And it's even better when they did it than when we first heard it." I think in the public market arena, ITSM is probably the first example where we said three and a bit years ago, we're gonna double down. I remember being on earnings calls, and people were like, "What exactly does that mean? What are we gonna see from that?" Et cetera. Three years on, I think from an investor point of view, you can see we've had huge success at delivering on that promise. We'll continue to do so. I think we're as excited about it today as we were three years ago in terms of its future possibilities for us and our ability to deliver unique and differentiated products at the price and the, you know, model and continue to grow that way. I think what you're hearing from us is all three of our markets at the moment, we believe have great opportunity to continue to grow and go forward. Why don't we go with Steve Koenig? That's me. Thanks. It's Steve Koenig with SMBC. Thanks, guys. I'm wondering, maybe just two questions that are kinda tied together. One is, you know, you've got a currently addressable opportunity of $29 billion, but the broader opportunity is so much bigger, $176 billion. You know, what are the things that allow you to address the broader opportunity that aren't in the more narrow opportunity? Maybe just linked to that, I'll toss this out there as well. Is there an opportunity for you all, to extend your your product reach and your go-to-market from a, from a sort of a bottom-up motion to an, like, an enterprise class sale? Does Atlas play into that? You know, does Jira Align play into that, or does that get surpassed by Atlas, you know, et cetera? Just some kind of random thoughts that maybe you guys can comment on. Thank you. Maybe we'll take the second one first. Cannon, do you wanna take the second one? Cannon. Thank you for the question. As far as doing an enterprise class sale, we've been doing it for quite a few years now. We've still been able to do that. As we've gotten closer to our largest customers over the last few years, we have invested more, but while keeping our go-to-market in a kind of leading efficient in the industry by partnering with our solution partners. We also have invested in direct account teams, whether it's technical account managers, customer success managers, our strategic enterprise advocates, and our acquisition of AgileCraft, now Jira Align, really upped our game, 'cause that was actually one of the first products in our portfolio that was only for our largest enterprise customers. You know, I'd tell you, four or five years ago, I couldn't pick up the phone and call a CIO. We didn't know any, right? They were probably calling us, and we weren't picking up the phone. Like, it was just the nature of that bottoms-up adoption. You know, yesterday we had a CIO executive advisory board. We have CIOs of the largest companies in the world meeting with us on a quarterly basis, reviewing our roadmaps, talking about strategy, and largely they're standardizing on our products. We have plenty more to do there, but, you know, we are definitely. As far as our ability, like, we have, you know, thousands of enterprise customers. We're still just, you know, starting to build those relationships with the biggest ones, but we've set a good foundation to do that with the entire customer base. You'll see that continue to drive growth while preserving the SMB flywheel thing that, you know, feeds the beast, so to speak. Yes, we continue to do that. Jira Align obviously was, you know, a critical part of this story for most organizations that largely need the structure, the compliance, the requirements of their software development teams, as they wanna roll that all up to their company goals and objectives, and have the ability or culture by nature to provide that type of structure. That is one way to attack the problem of tracking all work inside of an organization to your business outcomes. Not every organization has that culture or structure. Many organizations want much more autonomy in their teams, but still wanna drive alignment in a different way. That's where Atlas comes up. Atlas isn't all about standardizing on one tool or one structure. It's about let everyone work in the tools they want and provide a layer on top of that that is simple, easy to use, that can drive alignment on goals, dependencies, and projects. It's two different solutions to the same problem, but largely there's different types of companies and different cultures, and we can answer either one. On the TAM expansion side of things, sort of addressable versus total, there's no one thing I think there. Like, you know, we're gonna get better at reaching, you know, as we add products, as we build more products, as we do more marketplace. There's no sort of one tipping point where I'd say, "Oh, we need to acquire something to make a larger part of the market. I just wanna comment one thing on Atlas if I can, 'cause I think it's been picked up by a few people, but I think it's apparent. As you watch our longer journey over the decades, you see us starting to add, as we did in IT, relationships with different parts of the customer's company, and different data objects that we can play with and deliver value on. Atlas is a teamwork directory, so at some point, it's the first time we've had a manager object in the Atlassian platform where you can see someone's manager, you can see the org chart. That doesn't mean. We're not necessarily going into HR type directories. What we're trying to really do is take the HR information, the org chart, and show it to you in the context of knowledge that we have about the work projects, and as Cameron mentioned, very importantly, goals that the organization is doing. That's a truly unique position. Yes, on the building block levels, we are continuing to build out high-level enterprise functionality like an org chart, which exactly as you said, goes to the sorts of things the CIO wants to see. That now exists in the Atlassian platform, so we can use that in other places, again, to further differentiate other products that we have. For example, in JSM, you can automate things based on the manager now that you couldn't beforehand, which very few of our competitors can do, et cetera. Just goes to our long-term expansion. All right. We probably have time for just one more. How about, Fatima? Thank you. Fatima Boolani from Citi. Appreciate you guys hosting us in person today. Maybe a question for Cameron. In the context of the accolades that the JSM product has been receiving within the context of the ITSM market, I'm curious what it is that the product needs or what you need to do from a go-to-market perspective to really start punching above your weight and maybe go head-to-head with some of the very larger gorillas in the ITSM proper space. I like that. Thank you for not calling out said gorillas. Listen, everything that we're doing with JSM, I call this like it's just the heart of the Atlassian model, right? High velocity. I mean, we talk about 40,000 customers. We don't talk about the thousands of free JSM customers that only have three agents running, right? That time to value, overall cost of ownership, completeness of solution, and ability to innovate. You look how much, how quickly we've been delivering features over the last two years. Like, every quarter there's something sizable where even if a customer, large enterprise, maybe we don't hit all, we've got 80%, they just see that velocity and they go, "Okay. If we're not there now, we're gonna be there." We have teams that are meeting them. From a R&D product perspective, three years ago when we staked that claim, we've been driving on it. Just you see us knock off those new capabilities, and more importantly, that new customer acquisition is largely expansion into our base. Right? I'd say we, you know, why does JSM win? Like, two big questions. One is, do you believe dev teams and IT teams are gonna come closer together in the future? Like, just about every CIO is gonna be like, "Yep." They're like, "Well, if you believe that, they should be working on one platform." Atlassian is the only platform that can support both your development teams and IT teams' needs, you know, while keeping those teams aligned. The second question is, with every other vendor in the market, is there another vendor that can give you the time to value, the completeness of the feature set, the out-of-the-box integrations, core integration with your development teams, and overall total cost of ownership profile that Atlassian has? We haven't seen it. That allows us to drive our absolutely incredibly flywheel motion. Then we also, of course, our enterprise advocates. We have dedicated enterprise advocate motions going in and talking to IT operations managers and CIOs about those expansions. Like I said, it's been, well, working swimmingly. 'Cause I just came from a lunch, and I was meeting with a bunch of CIOs, and one of the things that you also find compared to some incumbents in that arena is that we really are an and story. While you have won't name names, but this person was saying that, "Well, we have this very large investment with another company here. In order to get a marketing team on to that other installation, it was gonna take us eight months. In addition to that eight months, then they're gonna be in this queue where it's a far more complicated product for them to actually implement. What you see cropping up in a lot of these organizations is JSM continues to be, it has these outcroppings that are growing up, and we love that because it gives people familiarity with them. Come renewal time, we hope that you understand just the power of all those teams getting onto JSM. All right. Thanks, everyone, for your thoughtful questions. That will close out the first Q&A. We'll jump into section two, where we talk about the Atlassian platform and how it benefits both our customers and Atlassian. Before we jump into the pre-read, we'll share a brief video about how Sprout Social is using our products to work differently together. Sprout Social is a social media marketing analytics company. We provide a platform for our customers to keep an eye on the analytics of their social media marketing. We encourage them to connect with their customers on a deeper level, which is what we actually try to do as a company as well. We have grown 35% in the past two years. Between shifting our operations to hybrid work, to the global supply chain shortage, to the overall experience of the virus, it's been a rollercoaster. That being said, Sprout Social did what it does best in the face of adversity. We came together to understand and problem solve the challenges that we faced. Once Atlassian was implemented, Confluence helped us ensure that our employee and team resources were centralized and accessible, which improved the overall user experience. In addition, Jira was absolutely critical in helping us prioritize and plan our project work in a more tactical and holistic way through the use of things like roadmaps, et cetera. Finally, Jira Service Management helped us provide a simplified way for our individual employees to request help from various departments. Some teams use Confluence for collaboration and project documentation and meeting notes, while others just use it for team process and visibility. It can really vary how teams are using it, but we do have some really useful templates for project briefs and intake forms that are used company-wide. In terms of the most helpful Atlassian tool that we utilize here at Sprout Social, I would have to give a shout-out to Jira Service Management. We've streamlined workflows and improved transparency for our support team members. We have reporting capabilities to help us track allocation of resources, and we're able to provide self-service to our organization. We have a quote in our company, "Jira didn't happen." What that basically means is if you have a conversation, document it in Jira. If you have an approval on something, document it in Jira. Just really make sure that everything kind of gets back to Jira. My productivity has definitely increased and improved with Trello. I find myself having a clear understanding of the steps that I need to take to accomplish my tasks, to accomplish my goals. Trello has essentially become the space where I track my to-do list and backlog. It's always rewarding to be able to move a card over to the done column that I've created as well. That's a good feeling for me personally. By using Atlassian tools, we have been able to reduce the amount of time that is necessary in order to solve hard problems. We've reduced the amount of meeting time that is necessary. We have been able to track records for compliance sake, and it has helped us provide a better support structure for our employees. Because these tools connect with one another, it allows us to streamline our communications in the way that we work. Leading with the needs and the choices of our employees, how that makes everything, the culture stronger, as it makes people love working for us, and it makes people work even harder, but in a sincere way and in an authentic way. We use Atlassian products so that we can work differently together. All right. Hope you enjoyed that video. We'll go now into our pre-read for section two, the Atlassian platform. The link is now available on our site, and as well, you can access it via the QR code on the screen. We'll give you 20 minutes to read through this document. If you'd like to start dropping questions into the Q&A, go ahead and do so. I'll see you back here in 20 minutes. All right. We're gonna begin section two, and this time we'll be joined by our Chief Operating Officer, Anu Bharadwaj. Again, we'll take 25 minutes for this Q&A session. Again, we ask that you keep your questions focused on the materials in this section two, and we'll appoint your time in the next session to address any other questions. This, again, we'll take questions from the audience here as well as questions virtually. We'll start with Anouk. Hey, thank you so much for having me. Anouk from Durable Capital. My question for you is, obviously, you guys have doubled down on Cloud. You talked about 40% of your R&D going to Cloud over the last few years. Just with the geopolitical environment changing, I'm wondering if it's changed your view philosophically about, you know, in many ways Cloud is kind of synonymous with globalization, and whether in a world in which there's potentially less globalization or forces against that, whether your philosophical approach to Cloud versus Data Center server has changed? Thanks. Anouk, I think we say 40% of it goes to platform, maybe not Cloud, but your question still stands. I think it's too early to make any call on the geopolitical implications of the things we've seen recently and how they might affect, you know, global trade and globalization out there. We're in a fortunate situation that we have both Cloud and on-premises deployments of our products. We have the Data Center versions of our products that our customers can still purchase and buy. We've told our customers that's not the long-term, you know, destination. Our customers wanna go to Cloud overwhelmingly. They wanna get there. I hope for everyone's sake that, you know, there's not a new world order that is anti-globalization. I certainly believe in the benefits for society for that. I think it's way too early to make any call there. Why don't we go with Jackie? Thanks. It's Jackie Glynn from Glynn Capital. You all spent a number of years really perfecting the platform and investing in the platform, and it's nice to see last year with Point A, you started to see a little bit more in the R&D coming out. I have to say my great takeaway from the keynotes yesterday was just a lot more, you know, a lot more features and a couple of new products. What do you think? Over the next couple years is the right cadence for new products and new features. How do you guys decide, like, this is, you know, how much feels right to you? Mike, do you wanna answer that? Sure. Hi. Hi, Jackie. Look, I don't think there's a right cadence, right? It's not like we sit around and say we wanna ship three products a year or five products a year or anything like that. I would say it depends on certainly where we see opportunities in talking to customers. If you look at Compass and Atlas as two new product examples, both are based on internal systems we've had for a decade, and we have plenty of other internal systems and tools but have taken not just the platform in terms of the underlying innovations to deliver it quickly, but also significant time with customers trying to understand is there a space here and a new thing to create. That makes it a little hard to predict because, you know, we're not trying to ship three things per year. We're trying to deliver customer value. It still goes, though, to the innovation the platform allows us to deliver, I would say. Having a great platform will allow us to take advantage of opportunities we see in the market, and or with customers faster, better, and to deliver products that are more full-featured earlier on. What you see with both Atlas and Compass is an example of our platform delivering products that are at the 1.0 stage, far more full-featured than anything we've ever delivered at a 1.0 stage beforehand because of all the platform capabilities they kind of get for free. Not quite free, but almost free, which, I think has really resonated with customers so far. We don't have to deliver sort of very early on things that don't have all the capabilities our customers expect from an enterprise perspective. Yeah. I'll just add on to that just on the customer demand side of it. I mean, just the fact that we launched three new things yesterday, all part of the Cloud platform. It's really just one of the advantages we have. We're a multi-product company, and usually in our history, when it was all on-prem, customers go run to the website and download the bits and just, you know, get a server going and run, and then get a license key, and then a day and a half later, they could try it. Now all these customers are on the Cloud. I mean, they can go log in while watching the keynote, and it's already turned on on the app switcher. Our ability for. Our customer's ability to consume many more products from us is not limitless, but it's much broader than even the new products that we've launched today. It's one of the advantages of our go to market. Get it in their hands as quickly as possible, and they use it for free, and once they hit certain gates, they start paying. Why don't we go with Gregg? All right. Thank you. Gregg Moskowitz from Mizuho. Further on the platform side, you showed a chart where, and I think many in the audience are well aware of this anyway, your R&D expense as a percentage of revenue and how much larger it is than other companies. When I think about that alongside what this six-page really, I think, emphasized, which is the powerful benefits of your shared services architecture. Does the combination of those two things sort of act as a force multiplier in your opinion as it relates to your overall platform capabilities, advantages versus peers? Then just a very quick clarification on the Cloud net expansion rate over 130%, James. If I recall correctly, last year, small and... Sorry, medium and large customers were at about 130%. I think your total, net expansion rate in Cloud was 121. I just wanted to confirm if it in fact has risen from 121% to over 130% in the span of a little bit more than a year. Thank you. Why don't we start with actually Anu on the platform question, and then maybe Mike can follow up after her. Sure. Thanks. It's a good question, and short answer, yes, it's definitely a virtuous loop, what you call the force multiplier, the combination of our huge investment in R&D, coupled with where we are investing it. On the very simple side, if we had 10 units of dollars to spend, and we would spend that by splitting it across multiple products, that would just be a linear way of developing. Whereas now we are saying instead of 10, we spend more than that. We spend 40% of our revenue on R&D, and we choose to spend it in a way such that it gives us multiple returns. All of the platform, the different layers we've shown you on the page, effectively all of those benefit our existing products, but the kicker is that it also benefits any future new products. To Mike's earlier point, all of the Point A products inherit that. You'll keep seeing us reap those benefits more and more over time such that they compound. It's definitely a force multiplier for us. In terms of the net expansion rate, yes, your math is correct. We're very happy with the 130% overall number. Then for the larger customers, 140%. I think this very much reflects a few of the different dynamics, the strength of our Cloud business generally, but particularly our ability to continue to increase the user base as a customer. The impact of both the premium edition and the enterprise edition now increasingly as well. That's an important part of this overall picture. We shouldn't forget cross-sell, which we've already been talking about this afternoon. I think there's a lot of opportunity there. You know, as we've all been discussing, there's a multiplier type effect here into the coming years. We're pleased by that result. All right. We'll take a question from the virtual audience. Next is Keith Weiss from Morgan Stanley. When considering the 10 points of growth in Cloud coming from migration, how should we think about the reduction in server or Data Center revenues that drive that number? Or asked another way, on average, $1 of server revenues translates into how much Cloud revenue? Do you want to take that one? The way I think about it, you know, is there's so many puts and takes, and the great thing is that all of our pricing is available on our website. We give very limited discounts. You know, we have given some discounts to encourage people to the Cloud. They're also on our website. If you want to go deep for a week and understand the exact puts and takes across, you know, moving someone from server or Data Center to the Cloud, that is all available, all public, you know, go crazy. My rule of thumb on this is at a small customer level, it's roughly a one-to-one dollar basis, and like, there's puts and takes underneath that, you know. Some people consolidate licenses and kind of, you know, instead of buying 25 seats or, you know, 100 seats, they only buy 93 seats in the Cloud because you can buy, you know, per user. Roughly, you end up as one -to-one basis in the small customer size. At the larger customer size, it's kind of a 2:3 ratio. For every $1 we were getting for a, you know, Server Data Center customer, we're getting $2-$3 in the Cloud. That's more of a steady state basis. It may be we've given some discounts to get people across in the short term, so it may not be $2-$3 this year. As some of those discounts roll off, that's kind of my rough rule of thumb. Why don't we go with Alex? This is a follow-up to the question that Keith just asked, which is, if you look at the growth rates you talk about in the letter, the 50% Cloud growth in both fiscal 2023 and fiscal 2024, with only 10 points in those, in both of those years coming from migration, what's the right way to think about both the balance that you assume goes to Data Center and then correspondingly the growth of the Data Center piece in fiscal 2023 and 2024? I won't answer that question perfectly, but one thing I'm thinking about is that we set end of life for our Server business, and so a lot of the focus has been migrating that Server business to the Cloud. Some of them aren't ready to go to the Cloud yet, and so they've chosen to move to our Data Center product, and that's fine because long term, we've, you know, yet to find a customer who long term doesn't want to get to our Cloud. It's either we're not ready for them or they're not ready to make the migrations, but they want to get there. If I look at about a third of our migrations to the Cloud today are already coming from our Data Center products. I don't see these migrations as a thing that finishes in three years' time with our end of life of our server products. I view this as an ongoing thing that's going to happen over a long period of time. Maybe people go directly from server to Cloud, then maybe they go via Data Center. Maybe they've been on Data Center for 10 years. Not quite 10 years, but you know, almost 10 years since we've had that product, and they'll move to Cloud over the next three years. Migrations will be a constant, I guess, feature of the Atlassian story for the coming years. Exactly what that looks like, again, migrations aren't something we can control directly. We can influence it by end-of-lifing something or pricing power or discounts to move people across or make it easy to migrate, like all these sort of carrots and sticks we can use. At the end of the day, a customer has to say that they're gonna move in this particular month, quarter or year. Overall, if I look at how well we forecast that migrations, I feel really good about the forecast versus the actuals that we're getting internally, particularly given how much variability is outside of our control. I don't have a great, you know, I can't give you all the puts and takes there, but well beyond, you know, the end of life of server, you will hear about us migrating customers. Yeah. Just to add on a little bit there. Obviously this past few quarters, we've been talking about our expectation for subscription revenue growth for fiscal 2022, so Data Center plus Cloud. Obviously we'll have an update on that in three weeks' time when we do the earnings call. Current steer was 50%, so we've been pleased by that. We just thought it would be helpful to give you a look into our view of Cloud for the coming two years, given all of the focus here that our customers have on the Cloud and their intention to get over to the Cloud. Why don't we go with Itay again? Thanks. I want to talk about pricing still. You know, few years ago, you've always prided yourself on being the lowest price product in the marketplace, and that was a great value proposition, especially for customers. With the transition to the Cloud, clearly your prices are, in some cases, especially as you go bigger and bigger customers, doubling, tripling, quadrupling for customers. Help me understand, you know, in two years' time when this transition is over and when you kind of settle in, what is your pricing at that point relative to your competitors? How do you maintain that value when your pricing is going up substantially through that timeframe? Then just a follow-up to the question before about the expansion rate is going from 121% to 130%. How much of that is truly seat driven versus price increase driven? I'm guessing, I mean, every vendor right now is pricing, raising prices on everything 'cause of inflation. I'm guessing you've done that as well along the way. I'm trying to parse volume versus price in that equation. Let's start with a comment or two. Yeah. Cannon, you can talk about the- Yeah. Do you want to go ahead of this? Mm-hmm. Yeah, but you can see what we've been doing with pricing for the last few years. It's all on the website. You know, most of our pricing mechanics has been getting the server and Data Center prices up incrementally every year to get up to match our Cloud prices. People weren't choosing on-prem simply 'cause it was the least expensive thing on the website. That said, when you look at our legacy historic prices on server and Data Center, which were quite inexpensive compared to our Cloud prices, yeah, customers were like, "Well, that's actually a big jump. It's still $5 a user a month, $6 a user a month. You compare that to when I talk to CIOs or procurement teams, like, we're still a fraction of what most mission-critical software applications charge. Like, the value we deliver, even with our new Cloud pricing, is easily justifiable. It requires a bigger conversation than we used to have, but we're more than capable of having it. The reality is we stand by it, and compared to our competitors, we're still less expensive. You know, that said, we also give optionality with the editions. You want something cheap, great. Use the free version. You can go to standard version and, like, now you have options to go up and get more capability from us. If you are, you know, want to be financially conservative, you can stay on the standard option. You have options to get up the chain. That gives just more flexibility for our customers. Never do I hear customers go, "Well, you've priced us out." Really, you look to the alternatives, we're still the best value in the market. You see with our Cloud prices, you know, we did a small Cloud price increase last year. You saw all of that, but nothing where it's changing the game. It's something not nearly as sizable as our on-prem ones as we've closed that gap between the two. I think you see that. I think the overwhelming growth continues to be not from price increases in Cloud, but from organic user adoption, addition upgrades, cross sell, you know, and actually very high retention. Just to emphasize that last point, in terms of the pricing effect in Cloud, recall several months ago, it was about a 5% increase. Put that 5 points in the context of 130 and 140 that we were just talking about in terms of net expansion rate, I think that gives you a sense for the relative importance. I just wanted to comment one thing, James, if I could, on the philosophy behind Itay's question. Mm-hmm. Our philosophy in the Cloud is no different than it has been in the past. Again, our philosophy is not to be cheap. Our philosophy is to be incredibly good value for what we deliver. You could argue the enterprise prices are no longer cheap in the Cloud. I would say, hang on a sec. If you compare to a competitor that has FedRAMP, data residency, GDPR, BYOK coming, et cetera, all of that for the price that we deliver is incredibly good value compared to getting that level of enterprise service in a Cloud offering from a competitor. We still have the same philosophy of trying to be significantly more price to value ratio competitive than any other vendor. All right. Why don't we go to Luv Sodha in the middle right there? Hi. Thank you for taking my question. Luv Sodha from Jefferies. Just wanted to ask on, you know, the confidence that you have in giving the Cloud growth targets for the upcoming two years, given the macroeconomic uncertainty that we're facing. You know, maybe on a longer term horizon, how do you think of what percentage of revenues could come from Cloud, given that you've seen a third of customer migrations coming from Data Center? Thank you. James, do you wanna take that one? You want to. Yeah. You. You go first. So in terms of the percentage of Cloud for total revenue, I would expect, given what we are hearing from our customers, that they're very clearly saying that they want to be on the Cloud. As we continue to invest in the platform, the product capabilities of our Cloud offerings, we're gonna see an increasing percentage of Cloud revenue as a proportion of the total. So the customers will decide that at the end of the day. But I would expect it will be a very clear upward trajectory of Cloud as a% of total revenue. The macro, do you wanna- Yeah, I'll talk, I'll do the macro. Start? There's a couple of things on the macro side. One is Russia-Ukraine, obviously very topical at the moment. Russia makes about 1% of our global revenue. In our forecasts, we've just taken it to zero. So that's a 1% headwind that we weren't facing previously. We'll just keep it at zero until we see something that, you know, vastly change. For all of our forecasts, like, you know, so you don't have to sort of keep asking us every quarter what our exposure is. We're just gonna take it kind of out. Broader Europe, we haven't seen anything from our discussions with customers, with partners that wanna change our macro kind of view in Europe beyond, say, Belarus, Ukraine and Russia, those three areas that have been heavily impacted. Outside of those areas, you hear a project canceled here or there type of thing, but nothing that's probably, you know, in the normal line of business. That gives us some confidence there. Lastly, you know, Atlassian was a business that was founded in 2001 in the dot-com crash. We went through the 2008, 2009, you know, financial crisis. There's a lot of youthful people in the audience here, maybe like, you know, who didn't even have to go through that. Some other people in the audience who look like they also weathered it like we did. You know, we've seen what that looks like. In those, in 2008 and 2009, we grew significantly. We wish we grew faster, but we, you know, we didn't go negative. It was an opportunity for us to invest in staff. We picked up some of our best staff who are still with us today in that particular time. The reason I think we can do that is, A, we're very price competitive. B, we almost don't hit on any CIO's radar, right? When you go top-down and say you know, my expenses in a business, Atlassian, though it's mission-critical, like I talked to CFOs, you know, and I talked about recently, they don't even know, like, what Atlassian's, you know, what they spend with Atlassian 'cause it doesn't reach their budget. From a trim and spend perspective, we don't hit that. Lastly, you know, though we've got a lot of stuff collaboration across the entire company, a lot of developers and a lot of software teams use us. You know, software teams are not the first thing to get culled in a, you know, a macro contraction. You often see that as discretionary marketing spend, sales, and those types of areas. People are loath to cut back on those sort of R&D investments that have taken so long to build up. All those areas give me confidence in a macro thing. Obviously, you know, we've put out a 50% number for two years. The world blows up, we'll have another conversation around that. We would hate to be too tepid and sort of, you know, try and hem and haw around these things because, you know, you never know what's gonna happen in the coming years. Look, we just had a pandemic, and I don't think we had particular tailwinds through that unlike some companies, but we didn't have headwinds, you know, through that either. All that gives us really good confidence over the coming years. Cannon, I know you've spoken to a lot of customers this week. Actually, you might be able to add some color to that. Yeah, I just wanna call it the first thing that Scott goes to when you have to cull something is sales and marketing. But I'm still up here. No, I talked to a handful of our solution partners this week. What's the demand in different markets. Every single one of them basically said, "Hey, our only problem is hiring skilled people to actually deliver upon our backlog of requests from customers." They haven't seen any slowdown in that. Also the last quarter, I've spoke to 20, 30 big European-based customers, and every single one of them, largely it's just they, it's the digital transformation wave, cultural transformation wave that they've been riding for a couple of years now, you know. You know, many have many years of those products to keep going, and we're a critical component of that. I have yet to see anything even remotely slow down related to the macro environment. All right. We probably have time for just one more question for this section. Why don't we go with Aaron? Thanks. Aaron from Ashler. Correct me if I'm wrong, but I think Atlas and Compass are the first products that you've launched that are Cloud only, so they don't have server and Data Center versions. I'm curious kind of why you made that decision now and how you're thinking about kind of Cloud-only products as kind of a lever to drive an even faster pace of Cloud migrations. Yeah. Anu, do you wanna talk about the benefit of the platform there? Yeah, I can take that. Atlas and Compass are Cloud only. Though I'm not sure they're the first products that are Cloud only. I mean, you know, Trello is Cloud only. A number of our existing products are Cloud only. I guess the larger point is with Point A, we are really trying to make sure that the accelerator is built on top of the existing platform, and the existing platform is all Cloud platform. Of course, the obvious benefits of the Cloud platform is much of what Cameron mentioned, easier go to market, available instantly. We are running all of the products for you, so way easier for customers to try start from free, easily evolve organically across our editions, et cetera. The Cloud platform provides pretty much all of the building blocks for these products. Pretty much everything we build in Point A is going to be Cloud only, and that's intentional. We want it to be that way because we believe that the best experience and innovation is possible using Cloud-only experiences. Just lead on that. I had a dinner with the head of engineering of a large healthcare company yesterday, and he was talking about Compass. They're not on Cloud yet, but he's like, "We better get to Cloud sooner now," because it's one of those, he got really excited 'cause they had built a largely homegrown, you know, poorly used version of Compass. The fact that they saw it's like exactly the use case he needs, it gives that extra, that initiative to move to our Cloud. All right. I think that's all the questions we can take for section two. Now we'll move on to section three. Actually, before that, we'll take a short 10-minute break. Good afternoon, everyone. Please take your seats. The program is about to begin. All right. Welcome back. Now we're moving on to section three, which is all about building an iconic hundred-year company. Now our third six-pager document is available. You can find it on our site. Again, we'll give you 20 minutes, and then we'll reconvene. No, no. Just no video on this one. All right. Hope you enjoyed that last six-pager. Now we'll bring Scott, Mike, James, and Cameron back up for the final Q&A session. For this session, we have a little bit more time. We'll have about 40 minutes. Why don't we start with Keith? Thanks very much. Keith Bachman from Bank of Montreal. First, James, I hope you enjoy your last public analyst event going through the process. I want to direct this to you on some of the margin comments made within this last. First on the gross margins, you said approximately 80% through FY 2025. Your most recent quarter was 86%. Is that kind of a gradual trend towards that 2025? Then secondly, to the mid-teens number in 2023, I think you're saying that sales and marketing will remain relatively consistent in 15%, but where, you know, where do you see an incremental deployments of dollars? You mentioned R&D, but is that? You know, if you could just flesh that out a little bit on how we should be thinking about that journey to mid-teens. You know, finally, is that kind of the bottom, so to speak, as you envision we look further out? Thanks very much. Yeah. Starting off with the gross margin, and then you may wanna have- Okay. the operating margin as well. I would expect it would be a gradual pathway. Obviously, FY 2025 is a long way away, but we felt it was helpful to give you a steer for what the unit economics of the business will look like as we become increasingly Cloud first. I think that will represent work that we'll continue to do as we have in recent years on improving the efficiency of the infrastructure of our Cloud offerings and so forth. We've talked about putting some additional effort into support in this interim, you know, the next two, three years to help with some of the larger companies' migration efforts and that sort of thing. Net-net, I would expect it to be a sort of a gradual slope as we become Cloud revenue as a greater percent of the total revenue base. In terms of OpEx, yeah, it's R&D story, but do you wanna talk a bit more about that? Yeah. In terms of investments, I think our ratio of sales and marketing to R&D will remain roughly the same, but both of them will float higher than where we are today. I don't see any drastic changes in what we're doing. We can just invest more in both that. Some of the migrations that we're moving across for customers is R&D efforts to, you know, tick off all the certifications. If you were at the keynote yesterday, we said we've done some of them, but we, you know, wanna the faster we move to ticking them off, the faster we can bring customers on, and then the quicker we get the uplift of that revenue from people moving across. There's also some hand-holding, you know, for some of those customers, those larger customers to move them across, like, what is done by third parties and our contractor, our sort of channel partners, that are out there, but we'll, you know, we'll need to help out more on that one, that area. In terms of, like, where, you know, kind of what does it look like over the long term, we're keen to sort of tell you know. If I go back, like, Atlassian's track record of investing in things, we're pretty proud of, like, having a very strong capital allocation return, you know, philosophy in terms of how we do that. The reason we wanted to, you know, we wanna bring you all on this journey, like, as investors, is that we see kind of abundance of opportunity right now across all three markets, but particularly things like migrations, which have a very relatively short-term return. Like, we sort of get the dollars back, you know, the day they migrate. That's a pretty short-term return. ITSM, you know, we're still adding features and gaining market share with everything we add in that, you know, market and touching customers. So they're very, you know, kind of. They're the top of the list of the investments, but we have more well below that. What we're looking at, and why now is a good question, A, those returns look, you know, particularly attractive, but B, we're now able to invest in terms of talent acquisition. You know, we've got our talent acquisition engine humming very well, so our ability to attract staff is great. As an aside, we were named a top 25 employer in the world, which, you know, when Mike and I started Atlassian 20 years ago, we never could've picked that, but we are known around the world as somewhere people wanna come work. That is working really well, and we announced some numbers around Team Anywhere as well, that half our staff are now hired outside of our office locations, and we're now tapping into a whole new base. We can get people in. We've got attractive opportunities to go target. What we wanna do is invest over this next year to accelerate the way we can get those. Now long term, there's no... This is not a systemic thing. It's not like our cost of customer acquisition is going up or increased competition in the market, and so we've had to, like, you know, go hammer and tongs against it. Like, you know, and so long term, the margin profile should look like what you've seen historically. Now what is long term and, you know, which cell do I wanna put that in my spreadsheet and so forth, I can't give you a guide on that. Like, but I think sort of, you know, terminal value is like, hey, Atlassian is gonna get back to the margins you've seen historically on a much larger base as we grow faster. When I think about this, we said 50% Cloud growth in 2023, 2024. Some of these investments, like, you know, we hope to then make sure we can continue growing in five and six and seven. You know, like, that's sort of the long-term timeframe we look at these investments over. If I could just add one more thing in terms of the why now, if you will. Yeah, we've got all these opportunities in front of us. We've talked about that. I also think our competitive advantage today is stronger than it has ever been, and that's as a result of the work that's been done in recent years. Yeah, a lot of this discussion that we've had this afternoon around the platform, how that's developed, how that's allowing us to accelerate the pace of new product development, our core products, the way they have evolved in their competitive positioning. We're in a strong position. Yeah. I think it's an excellent time to be going after these large market opportunities. Why don't we go with Arjun up front here? Thank you. On the path to $10 billion in revenue, I think you mentioned your go-to-market strategy is not really gonna change, right? You'll still be reliant on partners and self-serve. What role do you see the larger SIs playing in that path to $10 billion, especially as Cloud takes hold and you move upmarket in Cloud with the larger enterprises? I'll take that one. The global SIs are always fun. I've worked with them for many years, and the reality at Atlassian, just about every single one of them is a massive Atlassian customer. I mean, most of those, when they're doing engagements and projects with their clients, they're using Atlassian tools to do that. We've had that inherent relationship for them, where it's actually part of their actual core delivery has been using Atlassian products to help collaborate with their users. The next conversation comes down to, okay, what those global SIs can they provide from a go-to-market perspective. As you already know, like our Atlassian solution partner network, which has really grown with us, right? Like, you know, when I started here 10 years ago, it was like a 10-person shop, and I'm talking to a couple of the CEOs this week, and they have 300 people or 350, and it's like, oh, man, it's like they've all scaled. Even as that existing solution partner network has scaled, they still don't have the scale that a global SI does when it comes down to true business transformation for a large bank or a large telco. For something, if you are bringing Jira Online or Jira Service Management, the amount of business transformation on top of the tech, like the tech is. Actually tends to be somewhat of the easy part. It's actually how do we build an agile culture? How do we change our practices? How do we run on these new playbooks that requires people to handle those broad challenges? That's where the global SIs increasingly are adding value. Lots of great relationships with all of them. We are increasingly turning that relationship from them as a customer to them as a partner. On top of that CIO relationship that we've increasingly fostered over the last few years. You know, these global SIs obviously can only accelerate that more for us. It's a place we're investing in. We have dedicated teams focused on global SI channel and places we'll continue to make investments. Why don't we go back to Steve over here? Thank you. Just a question I've been curious about in your go-to-market and then maybe more broadly about the company. You know, when we look at employee turnover across software companies, you guys have some of the lowest rates, you know, among dozens of software companies, right? What's interesting to me is there are some other very successful companies that run their sales organizations like very hot, so there's a high amount of forced turnover with an easy selling model, so they can afford turnover. Seems to me you guys can afford turnover 'cause you have a pretty straightforward selling model that, you know, customers buy the product. So why the difference in philosophy with you? And then maybe just a near-term question to tack on to that. You know, are your hiring plans or trends maybe changing as you've caught up from the pandemic and you know, now there's maybe a little more global uncertainty where, you know, as we're maybe seeing job postings level off a little bit across the industry? Thanks very much. I'll handle the go-to-market and then let Scott or James handle the broader hiring. On the go-to-market side, I love this question. I hired Kevin Egan from Slack. He ran American sales at Slack. He came in and runs all of our enterprise advocates and our channel today, and anytime you bring in a new leader, you kinda expect a little bit of turnover in the organization. Like, you know, he made some moves and reorganized and, like, no one left. To the point where I was just like, "Wait a minute, are we being too friendly? Like, maybe we should, like, get more aggressive." The reality is, this is the sales side, but I'll talk about the marketing side too, is one, when you come to Atlassian go-to-market, and I've been in plenty enterprise software companies before coming here, it's a unique beast. Like there's no, we've not run another play that you've seen anywhere else. You come in and we do things differently. Having that ability to do flywheel growth experiments, analytics, performance marketing, big brand, multiple products or go do this increasing enterprise motion. It's like you're never gonna get bored at the go-to-market teams. You know, and so it's always fun, and we have this kind of great culture we've been able to foster. Personally, as we invested in our enterprise sales motions, I was exceedingly concerned that all of a sudden, that culture, that special, quirky, unique place that we have in the market was gonna get, you know, was gonna degrade. The reality is, we brought in a great leader, reinforced with some existing leaders who've been around and been building this with us for quite some time. We have been able to maintain that incredible culture. Last piece is, you know, reps are gonna go where, you know, there's the most value, where the easiest conversations are gonna be, where they're delivering, they're having happy customers. Like I always make the joke, like 90% of the time when we actually reach out to these customers for the first time, you know, the customer's wearing an Atlassian T-shirt, right? As a sales rep, that's like the greatest thing you could possibly have. Our reps only really go after the existing customer base. We rely on the flywheel to curate and grow customers before we even put an expensive sales resource on it. They're largely expanding the existing customer base and bringing them to the better versions of what we already have. "Hey, you've been on Server or Data Center for years. Let's take you to Cloud. You're gonna unlock new value. Hey, you've been using Jira Software for years. Let's take you to Jira Service Management. You're gonna unlock more value." That's something we've been able to repeat over and over again. You're absolutely right. For that reason, our churn's been, our employee retention's been very good. Can you run me through the question around retention, being able to foster culture? Yeah. Well, our employee retention has been fantastic. People have talked about the great resignation, and we haven't seen that. There has been some hyperacceleration in compensation inside the tech industry. You know, like over the last couple of years, you know, there's been, you know, salaries and equity grants and all these things have gone up a lot. I think we've been lucky to be ahead of that and sort of do it, not trying to be chasing employees, you know. I think we did some smart things during the pandemic there. It'll be interesting to see what that looks like globally, you know, as some of the, you know, public markets come off and that, you know, makes its way through there. We don't know how that's gonna play out. Look, top 25 employer in the world, you know, no great resignation, amazing retention. We can hire people all around the world in any time zone, and we've, like, committed that employees don't need to come to the office. We're a very attractive place to work. Why don't we go back to Fatima in the front? Thank you for taking the question. James, for you, just with respect to the operating margin guidance for fiscal 2023, I appreciate that there are some very specific mandates just around doubling down on ITSM and the cloud migration practice that you're scaling up with personnel to just get the customers over. But with respect to what Scott just mentioned around wage inflation, how should we contextualize that magnitude of incremental investment in operating expenses over the course of fiscal 2023? How much of the, I guess, optical output of operating margins being in the mid-teens is a function of some of your in-period revenue recognition sorces diminishing over the course of the next two years? Yeah. I would start by saying I don't expect revenue recognition, say, to have a terribly material impact on things. I think it's very- Much driven by our focus on driving additional Atlassians to join us so that we can get after these opportunities. Yes, we obviously will have a per person compensation item there, as Scott was just saying. We haven't tried to break that out. The significant majority of the increment will really be around bringing additional people into the company so that we can accelerate the rate and pace of our product and platform work. I would also say that because of the global nature of our employee footprint, vis-à-vis many of our peers whose employees live between the 280 and the 101 in California, we have the ability to find people in lower cost locations, like outside of these hyperinflation environments. Even in the U.S., you know, like finding people in different states outside of these high cost of living locations allows us to hire people. Yep. To sidestep some of that. I'm hoping globally that changes, but like I think we have unique advantages versus others. An illustration of that last point is growth in India, which I've been very pleased by over the last three plus years. A remarkably talented group that we've built there really from nothing, what about 4.5 years ago? Yeah. Nothing there, so. Even India, which it's interesting, we're in Bengaluru, because what we found is there are a lot of people who went to America, you know, in their sort of twenties, thirties, and now they're in their forties, and they have elderly parents, and it's for better or worse, it's often the responsibility of the oldest son to take care of the parents. They've all moved back to India, and there was a tech center in Bengaluru, so they all centered in Bengaluru. Even if their parents were in Chennai or Mumbai, like, they all ended up there 'cause that was the tech epicenter. As we've said to people that you don't need to work in the office in Bengaluru, you can work in I think we've got eight states in India now. People are now going back to living with their parents, you know, and we've seen that now, and so we're now opening up much bigger funnel in these environments. Of course, the tenure and so forth of those people is gonna be much higher. We're not competing for talent in Bengaluru now. You know, we've got people that are living with their parents or their friends or where they grew up all over India, and you know, the alternate choices they have are less than they would be. Paul, why don't you take the question right there? Thank you. This is Darren Baker from PRIMECAP. I wanted to bring together a couple of the data points you guys highlighted in here. You emphasized the line of sight to $10 billion in annual revenue. You pointed out on the third page, I guess, kind of just the trend of how the revenue split has gone between Jira and Confluence on the one hand, and then all of the newer products, over a long period of time. Even though obviously, the newer products have added a lot, Jira and Confluence are still, you know, well over half of the revenue that you showed in FY 2021. On the last data point that I wanted to bring you around, this is where the real question is. You mentioned in here the longer term work management opportunity is the most significant one in front of us. So as we're thinking about kind of that path to $10 billion potential revenue or beyond it, and you're really thinking about that opportunity coming from work management, should we be thinking about Jira and Confluence still sort of, you know, carrying the banner so to speak, to get to that point? Do they fall under your kind of rubric of work management in that sense? Or are you actually thinking that the newer products of Jira Work Management or Trello or things like that are actually going to be kind of the biggest drivers over a long period of time? Mike, do you wanna take that broadly and I can add on anything else? Sure, mate. Look, firstly, just to highlight, that chart I believe is only Jira. I don't actually have it in front of me. I'm sure Jira Software and Confluence, not Jira. It's not the whole Jira family, so I don't think it includes Jira Work Management or Jira Service Management, but maybe someone can double confirm. Mm-hmm. Confluence we put squarely in the work management market. It tends to be as a product, again, it expands often from software and IT teams, which is a strength for their first documents. It has a far larger viral aspect than any of our other products, Jira Software historical products have had in terms of it's a very approachable product by marketing teams, finance teams, HR teams, and there's far more need for them to read the text produced by our software team than the detailed project plan. Confluence has always had a very high expansion rate, virality rate within customers, which is part of our, you know, secret sauce over many years. I would expect that to continue. The work management market, obviously Trello, as Joff Redfern said earlier, it's past 95 million users and continues to grow apace. The fact that there are a billion knowledge workers in the world as we go after 100 million monthly active users as our BHAG, our big goal, clearly of the 100 million, a significant portion are gonna come from work management, right? There you know, 80% of every company is outside the technology team. That continues to be one of our biggest opportunities. It does not mean, as Scott said earlier, that we don't see significant opportunities in both the ITSM and the Agile DevOps markets. One of our challenges actually is being spoiled for opportunity and saying, "We're gonna invest across all of these sets." Yes, we prioritize them. Yes, we're pretty ruthless capital allocators, I think, inside the business and have proven that for 20 years, but every one of the spaces that we have in front of us, we do see great opportunity in. I just wanna add a couple of things to that. One is our platform powers all of this, and we are starting to see- I think it was building a platform is a painful long-term process, right? I got some of my team here, and like, many times we're like, "Oh, man, is it worth it?" We're starting to see, like, the benefits we get and the collaboration and, you know, I was using our Point A product, Atlas, the other day, and I use it religiously. Every Monday, I get a report that shows me all the projects I'm watching. You know, one of them I was really excited about, and it actually linked to the Figma design that's happening there, and I could actually add it and comment and edit it all in line. It's like, wow, this is the platform, you know, that we built out over the last, you know, decade came to the fore. For our ability to touch in work management for all, it's not a clearly defined market. It's not like source code or there's, you know, ITSM. Like, this is how work gets done across organizations. Our heritage in helping collaboration for software teams and broader teams across the company stands us in very good stead here. But it's like, it's not gonna be a linear path to that. I look at Atlas, you know, that is project reporting and so forth and goal setting and, you know, teamwork directory across your entire organization. Is that work management for all? Like, I'd argue it is, but, you know, like, no Gartner analyst is gonna put it in sort of a category like that. But man, that really helps teams coordinate with other teams across an organization, regardless of your marketing or your finance. Like, you know, that's everything. When I go to James' org inside Atlassian, they use Jira of all types religiously, because we do our financial close process, and we have a very tight time in which to close our books, and those tasks can be allocated to multiple different people. You know, it's not sort of one person does it each quarter. It's whoever's available and what needs to get done. Again, those teams use our products to coordinate work well outside of any engineering example. When I think about markets, like agile and DevOps is a very defined market. We're the market leader in that space. I think we win over the long term by being the most integrated in that space. Atlassian's products become a window into integrated experience, right? I think, you know, we're head and shoulders above anyone else doing that. In the ITSM space, we have a clear market opportunity. We have a very distinct value proposition in a very defined market. You know, we're the only one that can bring dev and IT together. We have price, you know, benefits. We have, you know, ease of use and implementation speed benefits. We can coexist with existing large players like, that's ours for the taking. In the work management for all, it's like, it's not as defined as all the other spaces. The opportunity there. I look around the market landscape of who else has an opportunity like we do to take in that space, I don't see anyone else as well positioned as us. I can't point to a Gartner Magic Quadrant that tells me, you know, like we're ticking five of the 17 boxes that we need to tick in that market. We're all working it out as we go. Why don't we go back to Gregg here? Thank you. Gregg Moskowitz from Mizuho. As a company, you have had an extraordinarily high batting average, but it's not a thousand. One such failure that comes to mind was Atlassian Stack. You know, to me, it just seemed like it never got off the ground, and I think in 2019 it was discontinued. When I think about your product portfolio today, how expansive it's become, Scott, as you just indicated, how tightly integrated all of the components are we now at a point where you are or should be considering adding some bundling or suite-based options? Yeah. Let me talk about that. We've got plenty of failures, like, you know, that we've made mistakes. I think that's the nature of innovation. We're totally fine with that. I remember once that, you know, a batting average of 300 is a pretty good batting average in baseball, if I recall. I don't play it, but like, I think that's a pretty good batting average. I think we're well above that. In terms of bundling, when I look at an individual that turns up, they have a need that they need to fulfill. If you're in a bottoms-up model, you can't say, "I'm all things to all people in your organization." If you do that, you need to start tops-down an organization. You're on a golf course somewhere trying to explain, you know, the value proposition you have, and it's a very long sales cycle. To get into a company, we've been very declarative and kind of very clear about we need to solve a problem for a specific user and a specific team. That's got us 225,000 organizations out there. As we then go further afield inside those organizations, more use cases, more users, more seats, like, we then find we are starting to have those conversations with the decision makers in the organization who say, "Wow, I've got your stuff across 60% of my org. I should put it across 100% because that would just be easier." They start, you know, having those conversations with us. We have over time done ELAs, like, you know, across our product portfolio. Many companies that do ELAs are really the initial sale was top down, and there's so much discounting that goes into that particular thing, and you end up in a company where 90% of their sales are ELAs, and I think that breeds bad behavior. Now, at the same time, our ultimate goal over, you know, the long term is that our products should just be kind of free and easy to use inside organizations. That's why we have a cheap pricing policy to make it like a no-brainer to install these products. Over time, as we build a product portfolio, as people adopt more of our products, we want to simplify the purchasing process. I don't say that is an imminent like thing that we do. We experiment with our biggest customers. We do a few of those. In 20 years' time, will we have a totally different bundling structure? Probably. I can't tell you what that looks like at the moment, and it's not something that we are running towards because we have so many land opportunities. I think I saw Steve Enders in the back. Thanks. Awesome. Thanks for taking the question. Steve Enders with KeyBanc. I wanna build on Darren's question earlier around how you're thinking about the opportunity with JWM. I know you just announced the design tab in Jira yesterday. How do you think about targeting additional personas and expanding broader into this kind of general use cases within the organization? Yeah, Mike, do you want to take that? I can add some things as well. Sure. I guess, look, the Design tab, if I start from the inside out, designers and creative professionals, whether they're doing whiteboarding or, you know, Photoshop style designs or whether they're doing just creative work of all types, is a category that we continue to work hard with Jira Software and with all our agile DevOps tools to bring in. Again, I always say to people, the world doesn't start with a set of tasks. The world starts with a set of insights and ideas, and those insights and ideas become more formed until eventually you have a roadmap of things that you're going to build, and then you're writing some code, and then you're deploying them, and you're off. Everything before we have a roadmap of a set of tasks is ideas, insights, designs, mock-ups, sketches, whatever you want to call them. That creative world is certainly something that we wanna help coordinate better and integrate and connect to. It's an example of the open tool chain. Don't worry, we're not gonna go build Photoshop. Lots of people do that well, right? Just like in the software world where we say we solve people problems, not technology problems, the creative world does not have great solutions for helping you manage that work over time. That's what you're starting to see us explore with our customers in the Design tab and in Jira Product Discovery for looking at insights and ideas and those types of things. Jira Work Management is obviously a large investment of ours, and we think it's got a distinct advantage. It's very different than Trello, although it's ostensibly just doing quote-unquote project management. The important difference is it's project management in a modern, very modern way. Extremely happy with what the team's delivered there. It's a fantastic product from sort of day one, due to the platform and all the other things we've talked about, but it's a very structured form of project management. For some projects, if you're doing a finance department's audit close end of quarter books, you have auditors involved, you have lots of rules and regulations and standards, so you must stick to a very strict workflow that's auditable and compliant. Trello, with its free form nature, doesn't work for that sort of project and vice versa. There are different offerings that I think appeal to customers. We want them all to be integrated into the flow, right? I think that's what we talk about in Open DevOps and open toolchain. In the broader integration philosophy, we want our products to be as integrated as everybody else's. I think that's where Atlassian wins, is that openness with our customers about how all this work flows together. One thing I'll add to that is that, you know, if you looked at, we chatted earlier, open toolchain, like, you know, more and more people are getting involved in these highly complicated multidisciplinary projects. As we add personas, as we add design, we put a design tab in there, and with the code, we put a code tab in there. You'll see that happen more and more over time as more different things like security, AI, ML, you know, those types of areas are, you know, areas that are also now getting brought into those development teams. You'll start to see us put those types of things in our product as well. Let's go back to Alex here on the right. Hey, guys. I wanna ask a two-parter about the topic du jour right now, operating margins. I think, Scott, you talked about the, you know, not necessarily giving us the timeline to get back to that historical level of operating leverage, but you also put out the $10 billion target without necessarily a specific timeline. Is it fair to say that those two things happen at a similar pace, meaning at $10 billion, you go back to that historical operating margin that we've seen? With respect to that, the operating margin philosophy and kinda the incremental investment that you're articulating, are you contemplating within that framework larger strategic M&A, or is that outside of that? In general, your philosophy, given the contraction in valuation multiples, particularly in the private markets. A couple of things out there. Obviously, you know, if you wanna do strategic M&A, like, and you wanna use the stock as currency, you'd be saying, "Well, let's put as much money into the bottom line and let's, you know, kind of let's use that as our strategic currency to pick up large scale M&A." You know, we look across the market, there's always things out there that are interesting to us. We've considered, you know, kind of all those consequences in terms of deciding to invest internally, you know, over the next couple of years. We're super excited with our platform and Point A and our ability to innovate internally. We're excited about our ecosystem, and we've talked about the economy briefly in terms of our ability to then, you know, bring third parties into Atlassian and the solutions that we're doing. We've definitely gone into this, you know, kind of with our eyes open about like, you know, we want to invest internally because you see so many opportunities there. There's always, you know, very exciting things out there in the market that would be good complements to us. That, you know, as all of you know, things are sold, not bought. You know, kind of when it's the right time for them to, you know, explore something, then it becomes the right time for us, not the other way around. That's on the first part of your question. No, second part. On the first part around margin, you know, it's hard. I wish I could look out two years in the future and tell you we will or will not see, you know, enough opportunities to continue investing at the rate we want to invest. People talk about the law of large numbers. Oh, you just need to add that many staff to keep up those things. We're gonna fight really hard against that because if we see opportunities out there and our ability to hire staff becomes the constraining factor out there. That's not a good spot to be. Like, we wanna overcome that. I try to take that off the table, you know, that sort of law of large numbers or anything like that. It's like we're not. If we see opportunities and we can go after them, let's hire, let's invest, like, and let's do that. I can't tell you sort of, you know, in the spreadsheet where the terminal number, you know, comes down, unfortunately. I just wanted to give you an update sort of on the next year and our philosophy around that. Again, you look over the track record of 20 years of investment, I think we've got good returns, and we've been pretty transparent about where we're gonna invest this money. You can evaluate, you know, what you believe the returns from those will be. I just want to be clear on the first section of Scott's reply there. That $10 billion number that's in the paper, that's a number we have clear line of sight to, firstly. Secondly, that's entirely organic using the current products in the current markets. It's not dependent on entering any new markets. It's not dependent on any inorganic activities. That is organic line of sight with the current products. On the last question, I think one way to phrase this may be helpful. You don't want to invest in growth companies. You want to invest in companies that are growing their ambition. Atlassian has a 20-year track record of growing our ambition of what we're going after, and I think people will look back on this particular time as a time where we've greatly increased that ambition because of the opportunity that's in front of us, right? The ambition is going after the opportunity that we clearly see in our customers and our ability to do that with the platform, Team Anywhere, everything else we've put into this paper. It's really important to note that our ambition is growing here for the current markets and opportunities that we have, and we're gonna play offense to go after that, which is exactly what we're telegraphing here. It looks like there's a question in Luv in the middle. Thank you. I just had a couple questions for maybe Cannon. You know, you've seen. I want to ask about the top of the funnel. It sounds like the free editions have really paid off, and you've seen 70% conversion on those. Could you talk a little bit about the sustainability of that growth in top of funnel? You know, the pathway from like standard or free to premium, it sounds like the premium editions have gotten a lot of adoption, so maybe just talk a little bit about that journey. Yep, they're all related to each other, right? Come sign up. Start with free, move to standard, move to premium, move to enterprise, and we build that nice funnel. It's pretty simple. It's actually almost exactly two years since we launched free. When COVID hit, which was a great thing, the timing both those. What happened when we saw free happen is we tripled the amount of people signing up for our products. For a product like Jira Software had been in market for almost 20 years, to triple the amount of signups was pretty incredible. Obviously, you saw after that, you know, our customer numbers declined because we didn't force them to pay after a seven-day trial. You saw that kinda after two quarters or so, it started skyrocketing back. You see that new customer number being in the highest it's ever been. Now, that fluctuates up and down. It's never been a steady thing, largely due to market trends and customers purchasing and so on. But the reality is there's more people coming in every day and clicking that try button than ever has been. That continues to go up, which means, in general, we'll have more and more free instances, more and more free customers out there, and that'll always end up turning down to more paying customers. Once again, the store just continues to be people coming in the door. Increasingly, we've also been able to, with free, another exciting thing was it actually increased Confluence's land in our business. Like we, you know, Confluence always had a little bit of land, but we expanded a lot from Jira to get to Confluence. When Confluence went free, it actually got a ton more brand-new people staying, like never even used Jira, brand-new land, and we've expanded and built on that. That was one of the other great benefits of free is that it really opened up Confluence as a new land vector. That's something we've continued to build on top of. Once we get them monetized, the other aha we actually had is we kinda set the expectation of, you know, the customers are gonna go from free, then they're gonna hit the 11th user, and they'll pay for standard. Then maybe after a year, they're gonna get something more advanced, and they'll go to premium. We've actually seen two things happen. We've seen people with less than 10 users buy the Standard plan for the additional capabilities that Standard allows, mostly storage, a couple other administration features. We see people with six, seven users buying into Standard, and that's getting to our, increase our overall net new customer. We also see, which I didn't expect at all, customers with 15 users, 20 users going straight to Premium. Mainly 'cause the price is extremely high, highly valuable. The capabilities we put in the Premium edition are very attractive to many of those customers even of the small size. So those are two of the other exciting things. The other part that drives both the Standard to Premium or Premium to Enterprise growth has largely been the stuff we put in the box. Over the last two years, you saw us put, you know, big capabilities that you used to buy separate or we acquired in the premium box. Then we'd largely let the existing customers have both, you know, have a period of time where they didn't have to pay, and then they get to choose out whether they go to premium. That's where we get these step changes in upgrades. Now it's actually, you know, we continue to deliver new capabilities, and it's a very steady, you know, cohort of standard customers upgrading to premium. The interesting part is it's not just based off of size. It's across all different customer cohorts, but it has been a steady growth part of our strategy. I just wanna correct one piece of language I think I heard in the question, just for everyone listening. Free doesn't have a 70% conversion rate. Yeah. We have millions of free instances. Obviously, we only have 225,000 enterprise customers. I think the statistic was that 70% of people that pay us came from free. That's right. Which is different than. That's right. 70% conversion rate of free to paid. That's right. All right. Time. Looks like we have time for one more question. Arjun in the front. Thank you. It seems like, you know, you've obviously accelerated the R&D capabilities that you have. You're launching new features, you're launching new products, and it's happening seemingly at a faster pace than it has in the past. Can you just talk about your monetization philosophy as you think about Atlas and Compass and newer products and features that are gonna be launched in the future? Is that a way to move upmarket to get larger customers, or is that something you plan to monetize right off the bat? Let me talk to that. Between Atlas and Compass and Jira Product Discovery, three products that we launched today, and they've got different monetization strategies. Jira Product Discovery is a very clear add-on to our existing products. If you're using Jira and you've got product managers there, you should be using our product. There's some competitors in the market, and because of the integration and the unique things we've done, we expect incredible growth there. That's a very simple per-user type pricing model. When I look at Atlas and Compass, we've always wanted people to be able to try our products before they buy them and try them successfully. If you're using a Jira or a Confluence or a Trello, you know, you can use them with one single team and get benefits from them. If you look at, say, Atlas is really a team of teams product. You know, you don't have to have many teams, but, like, you get lots of benefit from having multiple teams using the product. A 10-user type of license, you know, is not necessarily the best way to, you know, to have that fit that gate. On a product like that, we'll look at other gates maybe that aren't a 10-user gate, might be a feature gate, it might be those types of areas. We're gonna work that out, like, as we, you know, work with customers in terms of working out what those gates are. With all of us, we've been patient for revenue, like, it's not about right, we launched this and three months later we need to have enterprise sales people. Like if you talk with Kevin or Cameron or someone's come from enterprise sales background, it's like product launched, it's in the bag. The salesperson now is comped on it. Like, even if the product's not ready and the customers aren't ready, like, you know, kind of you end up in that situation. For us, it's like, great, we've got you know, products in the market, huge demand. Let's see what's in there and let's work out what the exact gates are for payment that makes sense. That patience for revenue I think plays out well long term because, you know, you get market adoption, widespread market adoption, which, you know, makes it less attractive for new entrants to sort of compete with us. Again, we've always wanted, you know, great free versions of our product to make sure that we can have a whole bunch of people that, you know, don't wanna monetize. They may be small, they may, you know, for whatever reason, that's a very big sort of competitive mode, I think, like is having those free versions out there. Does that give you sort of a sense of like our pricing? Great. All right, that wraps up our Q&A and concludes our FY 2022 Investor Day. Thank you all for joining us. Scott wants to say some- Yeah, yeah. Some words. Look, it's so good to have you all here in person. I wish we'd actually said at the start, like it's been three years since we've managed to all get you in a room and you know, it's great to see faces to many of the names I get to hear on earnings calls or questions we get. I'm so happy, and I saw people watching from home as well who couldn't make it. You all cover lots of companies, and you could invest your money in lots of companies and I'm so proud that you spend the time to understand our story. Like, that's all I can ask for it. Like, you'll determine how much, you know, whether to buy, sell, whatever. Like, what I really want is investors and analysts that spend the time to understand who we are and what we do. I'm just so thankful that you are all investing that time for us and you know, we're a long-term company. Like, we've been around for 20 years. We wanna be around for, you know, well beyond Mike and I are not here anymore. Like, and, we really want long-term investors that kind of invest in the story and understand what we do. Please give us feedback if there's anything we can ever improve, like on, you know, either as a company or how we interact with all of you. Just on behalf of Mike and myself, I just want to say a huge thank you for your investment of time and coming all out to Vegas to spend time with us. Thank you.