From Atlassian with us here today. Martin, as you know, runs IR for Atlassian, thanks so much for being here with us. Yeah, of course. Good to be here, Gregg. Yeah. Good to be here with you. Martin, you're coming off of a tremendous Q3, which I would say really surprised a lot of folks. Yes, there were data center pull forwards that you guys spoke about. Regardless, the cloud revenue upside was really strong, and some have asked how you were able to deliver such outperformance. Be great if you could sort of talk about the key drivers of that strength. Yeah. We had a really great quarter. As Gregg mentioned, I think importantly, cloud revenue showed a lot of strength this quarter. The driver of that cloud outperformance was driven by two primary factors. One was cross-sell into Teamwork Collection, as well as the second factor being seat expansion within core Jira. Those are great things to see, especially I think in the face of people having doubts about the durability of seat expansion. We actually recently showed a chart about seat expansion at our user or investor forum at our user conference, Team '26 in Anaheim. We showed kind of that seat expansion or seat growth ex migrations continues to grow, continues to compound over time. That really played out in Q3, right? Seeing that seat expansion across both developers as well as knowledge workers drove that outperformance. Going back to Teamwork Collection, the other primary driver, the number one reason why customers are upgraded to Teamwork Collection, where you get the whole Atlassian platform, as well as 10X the amount of Rovo credits with that. You get a certain amount of Rovo credits with the paid Jira subscription or any standard subscription, when you upgrade to Teamwork Collection, you get 10X the amount of credits. That's really resonating with customers as they value that predictability as they kind of go forward and see their increase of Rovo usage. Okay. That's great. Any change, Martin, quarter-over-quarter in your SMB business and/or your enterprise business, or was that just very steady on both counts? No, we continue to grow well across both. I would say we are traditionally known for our flywheel business. We have 350,000 customers, we have growing enterprise segment, right? Our CRO, Brian Duffy, spoke at our investor forum recently. He continues to execute really well. I think you see this on the enterprise side play out in RPO growth growing 37% year-over-year, we continue to see customers kind of voting for their wallets in this environment, right? They're signing larger dollar contracts than ever, signing larger duration contracts than ever. It's a great thing to see. I think the value of that Atlassian platform, which I mentioned earlier, that that's what customers want to sign up for, that strategic partnership with us is an important factor. All right. Terrific. The Teamwork Graph seems to be an underappreciated asset as it relates to Atlassian's differentiation. I think it might be helpful if you could just walk through the key attributes of Teamwork Graph for everyone. Yeah. Our Teamwork Graph, as we call it, which is basically underlying knowledge graph, which provides the contextual relationships of who's working on what teams are using what tools. The relationships between those, how do these workflows ladder up to the overall company strategy. It's this kind of connection point within an organization that provides that context. In this environment, not all AI is built equally. You need the intelligence, but you need the context to actually deliver good results. At our investor forum, we actually showed a side-by-side demo of Claude Code, same prompt on both sides, one connected to Teamwork Graph, one without, same repo that they had access to. The one connected Teamwork Graph delivered 48% better results at 44% less token usage. Which I think resonates, especially in this environment where people want to make sure that they're getting good results and of course being efficient with their token spend. I think that really resonated. That was a big part of our keynote presentation that Mike delivered at the user conference in the morning. That really resonated with customers as well. As we spoke with our product teams, spoke with our sales teams after our conference, that seemed to really resonate with customers. When you think about it, you don't want to send AI just kind of blindly throughout your organization searching for things. You want to allow it the guardrails to traverse with their instruction manual to understand how to pull things in a more efficient manner. I think that's going to be an important part as we kind of progress on. It's very early with AI. As customers understand this and as they get that additional context, they're going to be able to get better results at a better more efficient rate. Yeah, that's terrific. I would back up just that demo because it did really resonate with investors as well. With me, I would also say that when I was at Team '26 at your customer conference, one person was telling me that by seeing all of the Teamwork Graphs, seeing all the relationships, all the connections, et cetera, that it made it easier for practitioners to now be informed on how to build more effective agents. I thought that was another interesting aspect as well. Oh, interesting. Yep. Yeah. Let's talk about Rovo so your AI tech because it now has over 5 million MAU. Usage is growing rapidly, and what I'm wondering, Martin, is were there any meaningful functional improvements to Rovo over the last six to 12 months that are helping to spark such an uptick in adoption? Or is this just there was just a period of time that we had to just kind of wade through and now you're really kind of seeing the fruits of your labor? Just kind of curious again, if anything has changed technologically, if you will, more recently. I don't think anything has changed technologically. I think it's the steady progress that we make across kind of all of our three priorities and especially in advancing Rovo. When I think about Rovo, very early on when we introduced it several years ago, it was centered around enterprise search and then, of course, then chat functionality, and now there's more agentic usage. That, of course, is driving the increased Rovo credit usage. You're seeing Rovo credits consumption grow 20% month-over-month, which is incredibly fast and really good to see. You're also seeing, interestingly, those customers that actively use Rovo versus those that don't actively use it or don't light it up grow their ARR at about 2x the rate of those that don't. That's a good proof point. I think that when customers utilize Rovo, they get incremental value that delivers more workflows through the Atlassian platform, and that then leads over time to more usage, more users, and then more monetization opportunities down the line. Okay. Getting back to Teamwork Collection, which you mentioned earlier, are the 10X AI credits for Rovo, is that the primary driver of Teamwork Collection adoption, or is it also just the additional products that can be attained at a more favorable unit price? Yeah. I think that lot of premise of this cloud bundle is probably a misconception. Teamwork Collection for everyone that's a little less familiar, you do get Jira, Confluence, Loom. Really when we think about it's the value of the whole Atlassian platform. I think that's probably the biggest thing when I think about the evolution of our company over the past several years. It's we've built a unified platform with a unified data layer, we talked about the Teamwork Graph underlying that. You get the whole value of the platform with Teamwork Collection. When we talk to customers, they do call out the increased AI credits as the number 1 driver, but they say, "Okay, what's resonating with me is I understand the value of the whole Atlassian platform, all the automation capability, of course, the Teamwork Graph, which we talked about, the analytics underlying it, and then the kind of a unified AI layer underneath all that. Especially when I add additional users, add additional teams, then I get compounding effects to this because, again, you're adding more, enriching the Teamwork Graph over time as I add more users, more workflows, understanding their tools, their priorities." That's, I think, what companies understand. When they adopt Teamwork Collection, you actually see them expand above and beyond even their initial Jira footprint. You tend to see them consolidate from other point solutions. They're adding about 10% more users when they do so. When you look at the Teamwork Collection customer behavior, those customers are driving 2X more Rovo credit consumption than those that are in standalone products and have 2X more active agents, not just built agents, but active agents versus those on standalone products. Okay. Yeah, that's great. Martin, if we take a step back, it's very clear that many investors continue to worry about AI significantly disrupting Atlassian's business, even if it hasn't done so today. Maybe just sort of talk about why you believe Atlassian is a durable growth business. Yeah. I think, certainly Q3 numbers kind of back up a lot of what we certainly have believed. I think when you think about the complexity of the world and the speed in which AI evolves things, the need for collaboration, coordination raises more than ever, right? You need to coordinate more across what are we doing across the organization, especially as the speed and throughput increases. Certainly not just coordinating between humans, but also coordinating between humans and agents. Are we doing the right things? Are those agents actually delivering what we want them to? If Gregg and I are on the same team, are we making sure that as we deploy agents, we're not overlapping, having kind of conflicting things that we're working on? Are we actually progressing against our strategic results as a company? That coordination aspect becomes more important than ever. I think we see more people needing to be added to the Atlassian platform to coordinate that. You see things like our innovation of adding or being able to manage and orchestrate agents in Jira. That's a prime example. Jira today is already the orchestration workflow platform for work. Right now, I can assign work to my colleagues and team, and now I can assign work to agents directly in Jira, and the agents can take action directly from there. Managing what are our teams working on managing now, what are those agents working on? Are they delivering actual tangible results for us and advancing our strategic priorities as a company? Because that's actually what matters, right? Not just the volume of work. Right. Okay. Very helpful. Thanks, Martin. Back in March, Atlassian, as I think all investors are aware, Atlassian announced a RIF of approximately 10%. Maybe just sort of talk through the rationale for making this change at this time as well as the magnitude of that change. Yeah. We took out some action back in March, as Gregg mentioned. I think we're still digesting some of that. I think we're very clear that the two primary objectives of that were, one, to help us be able to self-fund more quota-carrying enterprise sales reps, where we're seeing a lot of traction, as well as being able to self-fund key AI talent. Obviously, that's going to be an important part in the years to come. The other aspect is to accelerate GAAP profitability. We talked about in this past quarter, our key strategic priorities as a company have been serving enterprises, delivering AI to customers, and delivering our system of work, which we call it to our customers. Those are our top three priorities. We elevated a 4th strategic priority of driving durable, profitable growth. I think that profitability aspect has clearly come into focus. You hear that in our shareholder letter, as we talked about elevating this as a key strategic priority. We do want to accelerate our path to GAAP profitability and then, of course, grow that from there. Martin, has there been any discernible impact on growth or pipeline generation since making it? No. I think Q3, we obviously executed well. We're tracking well from a Q4 perspective, but nothing to call out. I think we will measure it in terms of making sure that there's no business disruption. Of course, we're still digesting it, as I mentioned earlier. We want to obviously continue to make sure that you're executing well. Yes. Perfect. You mentioned Brian Duffy a few moments ago, your CRO. He seems to really be putting his stamp on the go-to market, including a significant emphasis on driving more enterprise revenue. How is this going from your perspective? Yeah, I think he's doing incredibly well. He continues to make changes. I think of that as evolution of the business, right? We've built an incredible business driven by our product-led growth kind of flywheel motion, and it's now about how do we supplement that motion with more of a higher touch motion, as we call it. How do we serve those customers that need a little more hand-holding? We have 350,000 customers already, and it's now how do we better serve those enterprises that we already in that existing customer base? We've always shared the stat of we have 85% of the Fortune 500 as existing customers already, yet they only represent 10% of our overall business. That, I think, applies not only to the Fortune 500, but the mass of enterprise customers within that 350,000 customer base. It's how do we continue to better serve them. Brian continues to make changes, continues to grow that quota-carrying sales group, as I mentioned earlier. I think we're delivering on what customers want because a lot of this is customer pull. It's not us pushing that Atlassian platform. I think a lot of our customers would say, "I want more of a strategic relationship with Atlassian. Help me partner with you better." I think we're meeting customers where they want. Great. Thanks. What's your confidence level, Martin, in continuing to drive strong cloud migrations over the next couple of years, including for large customers that operate in highly regulated environments? Yeah. We announced the end of life of our data center or our on-premise platform, which will end of life in March of 2029. Even next to that, I think we feel really good about being able to serve those customers with our cloud platform. We obviously have built an enterprise-grade unified cloud platform, as I mentioned earlier. I feel good that a lot of that is behind us, we're now better able to serve these enterprises that are on our data center deployment. There's still some work that we have to do between now and March of 2029, which is great because there's that long runway, and it's about having that open dialogue with customers that may not be able to move now and understanding our roadmap between now and then so that, hey, can we deliver what you need between now and then? When we think about migrations, we've obviously had a lot of migration success, and we've learned from the end of life of our server product several years ago. We continue to see those migrations tick up in the more recent years. More importantly, you're seeing those data center customers when they migrate to cloud. They're migrating to our cloud premium and cloud enterprise SKUs. 93% of those data center customers, when they migrate, they migrate to the higher level editions. Actually what's more important, once they land in cloud, we have significantly more products to cross-sell them to. We have higher level editions, which we can kind of upgrade them to over time or upsell them to over time. It's significantly easier to add users in the cloud, right? I don't have to ping my IT admin and say, "Hey, can you add Gregg into my instance?" I can actually, with little friction, click and add Gregg immediately, bring in more users. Again, you get the benefit of the whole platform underlying Teamwork Graph. You get this compounding effect, and that's why I think you see such strong user growth continue on the Atlassian platform in spite of, I think, investor concerns. We shared more recently at our investor forum another cut. Again, we serve all teams on the Atlassian platform. I think sometimes we have this misconception that we're just a developer company, we showed two-thirds of the active users on our platform are knowledge workers, non-developers, non-engineers. That's an important aspect that we have the ability to serve increasingly non-technical teams, these knowledge workers. Certainly that have to work in conjunction with those software developers that kind of are our heritage. Increasingly, that's a big part of it. I feel that's why we have a lot of confidence, earlier to your question on why do you have so much confidence around kind of durability of things like user growth, cross-sell? It's because first of all, it's really early on, we feel it's early on in our opportunity, we're seeing these proof points as we grow into those non-technical users over time. Yeah, very interesting. Does Brian and Mike and the leadership team overall, is there a line of sight to some of these bigger customers that are really committed to the Atlassian platform going wall to wall, just to your point on more non-technical user adoption? Yeah. I think that's been one of our big strategic priorities. That's obviously the grand prize in terms of oftentimes we land in an organization with their technically oriented teams, whether it's their software team or their IT team. But the expansion opportunity then becomes, hey, how can we serve increasingly the marketing team, the HR team? We're seeing more and more of those teams, I think, added on the Atlassian platform. AndThat's a big play of ours, right? So we talked about our strategic priorities earlier in serving enterprises. It's penetrating and reaching more of these knowledge workers. Yep, absolutely. And then at your investor forum about a month ago, in conjunction with Team 26. So you said that the three-year, 20% +revenue CAGR through fiscal 2027 no longer a relevant target. You also disclosed subscription ARR for the first time, which encompasses both cloud and data center, and also discussed high-level growth expectations for both FY 2027 and FY 2028. So maybe just kind of refresh everyone on that, if you wouldn't mind. Yeah. As I mentioned earlier, as with the announcement back in September when we announced the end of life of our data center product, I think that that did a couple things, right? That drew a line in the sand for those data center customers of a timeline of when they need to migrate over to cloud. With that, it also introduced ASC 606 changes of revenue recognition on the data center line because now that kind of useful life of the data center product has shortened or with that definitive end of life date. With that brought forward a lot more upfront term license revenue into 2026. It's just mechanical math of more upfront term license revenue. This is all specific to data center again. Therefore, that creates a meaningfully tough comp for 2027 as well. Again, just mechanical math. We do now expect data center to have negative growth next year as that business contracts, as more customers migrate over to cloud as well. That negative data center growth will be a drag on overall revenue growth next year. To help bridge investors through that, we thought it was important to introduce subscription ARR for you to understand the health of the overall book of business, right? That normalizes for all the ASC 606 noise. It also helps investors kind of focus less on probably the migration economics in terms of like, hey, how much uplift on cloud is coming from migrations? How much of the headwind is on data center? Now you get a picture of the full book of business on a normalized ARR basis. Then you can understand the overall health of the business better. To be specific about it, we have three quarters of disclosure. Three quarters ago, which was your September quarter, the growth on subscription ARR, I believe, was 20%. In December it was 22%, this past March was 23%. We've seen acceleration in that metric. Yeah, that's right. Yep. Okay. Maybe switching gears a bit. In early May, you guys introduced a Flex program. Aimed towards large customers. We had Burt Podbere, CrowdStrike's CFO, earlier today, and a lot of people sort of associate them with kind of the genesis of Flex. We've seen a lot of companies that have adopted. I would say it's been additive every time in terms of what we've seen for the software companies that we track but to varying degrees. I guess as it pertains to Atlassian, what are your expectations in terms of what Flex will do for you? As Gregg Moskowitz mentioned, we introduced Flex. It's very early on. We only have a handful of customers in a beta program as we kind of work with them through this. It's basically think of it as better serving those enterprise customers and the theme of what we discussed earlier of removing friction, of how we can better serve and partner with those enterprise customers. With a fixed wallet kind of contract or value-based contract, then customers can add on another collection or add on additional products or SKUs over time without the friction of going back to procurement every single time you add a new SKU or add a new department into your mix. I think it's kind of in the theme of meeting customers of where they're at, removing friction, helping them adopt more of the Atlassian platform over time. I think that theme of meeting customers where they're at is applicable, especially AI, so topical right now, and we touched on it very briefly earlier. Teamwork Collection with the 10x more credits just gives customers so much more predictability. In this environment, and you hear in the zeitgeist right now of token maxing and especially consumption-based pricing is a question we get quite a lot from investors. Customers value predictability. They want to understand, hey, how much am I spending with Atlassian? Flex gives them that, right? Like a fixed wallet contract of understanding how much they're going to spend with Atlassian, and they can adopt over time without having to kind of burst through and be caught off guard. Right. Okay, great. Then with that, are there any questions in the room? If you do have a question, please raise your hand. Yes Great operating business. Congrats on the shift, stock comp rates high. Maybe speak to that a bit. Yeah. I think the earliest one is probably what Gregg mentioned earlier, the action that we took back in March. Number one thing when you address headcount, I think that obviously has an impact on stock-based comp early on. I think the other aspect is growing and maturing as a business as we moderate the pace of SBC. We've been, I think, quite open about that as a top priority for next year as we moderate that level of SBC, looking at different things within our overall comp program over time. Beyond the immediate action in March, we have moderated the pace of hiring quite considerably, right? We talked about hiring certainly in kind of enterprise sales and in AI. Beyond that, I would expect kind of overall headcount growth to be very modest overall. We talked more recently at our investor forum about that level of growth in R&D will grow significantly slower than overall top-line growth. A big part of that is we went through a heavy investment cycle to build out this platform over the past several years that we talked about. Had to build that to be able to facilitate the data center to cloud movement, better serve these enterprises in the cloud, and of course, build this unified AI platform. With that kind of in the rear view and us kind of crested those investments now, we'll moderate the level of R&D investments. That will grow or shrink over time as a percentage of revenue. That structurally should help us as well because, in terms of SBC, normally, R&D is a heavier kind of command on that. Yes. Do you see a difference in, particularly AI or agentic engagement between customers in different regions, like West Coast versus the rest of U.S. versus Europe, APAC? Interesting. Haven't drilled down too much, I think one important thing that we tried to look at, of course, is the more AI native kind of bleeding edge companies. We tried to look at a non-subjective list, we went and talked to our data science team and said, "Here's the Forbes AI 50. How many of these are our customers?" Over 2/3 are our customers already, which is great to see. Importantly, the ARR within these AI natives that are the fastest-growing or most innovative companies in the world, they're growing their ARR significantly faster. I think 2x the rate of kind of the overall book of business growing. Over 100% year-over-year is what that cohort is growing. That's good to see. Gregg touched on it earlier, Rovo usage continues to increase. That's probably more broad-based across SMBs and enterprises. It's still very early on. I think people are wanting to identify the platforms that they want to run their agentic workflows on. The platform is so key to this because it offers the security, the governance that enterprises require to run their agentic workflows on. I don't think enterprises will have 20 platforms which they run their workflows on, but normally they have one. I think they're working through, "Okay, which are the platforms I want to standardize on? There'll be five or six kind of platforms that we kind of center on with our overall AI strategy. How do we kind of discern that?" I think Atlassian's really well-positioned with the platform that we've built. Other questions? One thing to ask you, Martin, is that we've seen over the past several years a series of price increases from Atlassian in cloud, in data center. Where do we stand today? How do you think about the value that your average customer is receiving at the current price points? Yeah, I think we take a lot of value in being a high-value provider at a more attractive price point, so that we think of it as almost high value, high volume. Core to our pricing philosophy has always been, let's deliver value to the customer first and foremost, then we can recuperate value through monetization over time. You've seen us at the price of Jira today is like $8 per user per month. It's incredibly affordable. We've been very systematic with pricing. I think that speaks to the predictability aspect that we spoke about earlier. Again, we want to deliver that value. That's why we spend so much on R&D, because we can deliver incremental value to customers every single year. That affords us the ability to then take pricing over time because we are delivering more and more value to customers every single year. Again, I think that's core to our overall monetization model. We want to maintain that kind of high value, lower cost profile, especially because that's an enabler of being able to take share from customers or from other providers, I should say. Earlier, we talked about Teamwork Collection. When they adopt Teamwork Collection, we see a lot of consolidation off of other competing point solutions. That's going to be an important aspect, I think, in the years to come as we see more and more consolidation. Then especially when you think about the shift overall in the industry, I think that positions us really well, as other companies also have to adjust to this landscape. Being a lower cost provider, I think will put us in a very advantageous position. All right, terrific. One last question that I just wanted to ask you from a product standpoint, because we've talked a lot about Jira. Of course, Confluence is a very popular Atlassian product as well. I'd like to ask about JSM, Jira Service Management because it just seems to be a freight train, quite honestly. Tremendous momentum at Atlassian. We hear it very consistently from all of our checks as well when we talk to folks in the field. When you look at the runway sort of associated with this product and the opportunity, how are you thinking about it? What's your confidence level in continued strong growth for JSM? Yeah. Jira Service Management or Service Collection now as we call it, is a north of billion-dollar ARR business growing over 30% year-over-year, doing incredibly well. I think sometimes people ask, "Hey, is there an inflection point with Jira Service Management?" Not really. I think the compounding effects of all the investment that we've done over the past 10 years really continue to mature that product, better serve enterprises. You're seeing more taking share from, I think, competitors in that space. It does well in terms of displacements, competitive displacements. We continue to add functionality to better serve those enterprises, reach more non-IT teams. 60% of the Jira Service Management instances are serving non-IT workflows, which is great to see. Actually really interesting, in terms of agentic invocations, as we call it, 40% of those are within Service Collection. I think that speaks to Rovo's ability to be a first line of defense and kind of triage all the inbounds that a legal team is receiving or that a HR team is receiving. That's a very applicable kind of agentic workflow that people can deploy early on out the gate. All right. Fantastic. Well, with that, we're out of time, but thank you, Martin, for a great discussion.