Atlassian reported significant milestones in Q2, including reaching $1 billion in quarterly revenue, surpassing 300,000 customers, and Jira Software crossing $1 billion in Cloud ARR.
The company's R&D efforts continue to drive innovation across its cloud platforms, with the launch of Compass, Virtual Agent capabilities in Jira Service Management, and the introduction of Atlassian Intelligence features.
Migration from server and data center to the cloud exceeded expectations, with data center migrations accounting for a majority of the migration activity. Migrations are expected to continue for several years, driven by the large data center installed base.
While cloud growth rates have decelerated, primarily due to lower paid seat expansion, the company remains confident in accelerating cloud revenue growth in the second half of the year. Factors contributing to this confidence include strong enterprise sales execution, increasing momentum on cloud migrations, price increases, and positive trends in customer conversions from free to paid.
Data center business continues to show strength, with solid growth driven by migrations from server, paid seat expansion, and customer retention. However, growth rates are expected to decelerate as server-to-data-center migrations decline and data center-to-cloud migrations accelerate.
Jira Service Management (JSM) is experiencing strong growth and has become one of the company's fastest-growing markets. The strategic positioning of JSM alongside other Atlassian products allows for cross-selling opportunities and deeper partnerships with customers.
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About Atlassian Corporation Plc
Atlassian is a global software company helping teams around the world unleash their potential. The Company builds tools that help teams collaborate, build, and create together. With more than 180,000 customers and team of more than 5,00...