Atlassian Corporation

Good afternoon and thank you for joining Atlassian's earnings conference call for the first quarter of fiscal 2021. As a reminder, this conference call is being recorded and will be available for replay from the investor relations section of Atlassian's website following this call. I will now hand the call over to Matt Sonfault, Atlassian's head of investor relations. Please go ahead.

Good afternoon and welcome to our Q1 of fiscal 2021 earnings call. Thank you for joining us today. On the call today, we have Atlassian's co-founders and co-CEOs, Scott Farquhar and Mike Cannon-Brooks, and Chief Financial Officer James Beer. Earlier today, we issued a press release and a shareholder letter with our financial results and commentary for our first quarter of fiscal 2021. These items were also posted on the investor relations section of our website. On our IR site, we have also posted a supplemental data sheet. During the call, we'll make brief opening remarks and then spend the remainder of time on Q&A. This call will include forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. We should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management's beliefs and assumptions only as of the date such statements are made and we disclaim any obligation to update or revise them should they change or cease to be up to date. Further information on these and other factors that could affect companies' 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 Form 20F and Quarterly Form 6K. In addition, during today's call, we will discuss non-IFRS financial measures. These non-IFRS financial measures are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with IFRS. There are a number of limitations related to the use of these non-IFRS financial measures versus their nearest IFRS equivalents, and they may be different from non-IFRS and non-GAAP measures used by other companies. A reconciliation between IFRS and non-IFRS financial measures is available in our earnings release, our shareholder letter, and on our updated investor sheet on the IR website. During Q&A, please ask your full question up front so that we can easily move through to the next speaker. Also, please be patient if we encounter any disruptions or challenges. Lastly, we've announced two additional items in conjunction with our financial results this quarter. First, we have filed a form 6K announcing a successful close of a $1 billion senior unsecured delayed draw term loan and a $500 million senior unsecured revolving credit facility. Second, we've announced that we will host a fiscal 21 virtual investor day on Tuesday, November 17th at 2 p.m. Pacific time. We'll be able to RSVP for that over the next 24 hours through our IR website. We hope to see you there. With that, I'll turn the call to Mike for opening remarks.

Thank you everyone for joining today and for your continued support. We hope you and your loved ones are healthy during what continues to be a dynamic time for everyone, including our customers, partners, and employees. We hope you've taken the time to read the shareholder letter. This quarter, we've been transparent in describing the many different long-term initiatives that we're focused on as a company. This includes a recent announcement focused on migrating our customers from server products to the cloud. In Q1, we posted strong results, adding over 8,600 net new customers, generated $460 million in revenue, up 26% year-over-year, and realizing solid non-IFRS profitability of $61 million in free cash flow. We scored several product wins as well, including achieving FedRAMP certification for Trello Enterprise, strengthening our partnership with Slack, launching Atlassian Ventures, and closing the Mineville acquisition, which accelerates our ability to offer customers a comprehensive ITSM experience. Looking forward to the rest of fiscal 2021, we will continue to focus on playing offense for the long term. All of our choices and actions focus on making our customers successful and drive us through $5 billion and beyond. Before we move to Q&A, Scott and I both want to thank our employees who continue to be an inspiration for us in these challenging times. Thank you for sharing your passion with our customers, especially as they move to the cloud. You make unleashing the potential of all teams possible. With that, I'll pass the call to the operator for Q&A.