Atlassian Corporation

Good afternoon. Thank you for joining Atlassian's earnings conference call for the third quarter fiscal year 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 Martin Lamb, Atlassian's head of investor relations.

Good afternoon, and welcome to Atlassian's third quarter of fiscal year 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 our Chief Financial Officer, James Beer. Earlier today, we issued a shareholder letter and press release with our financial results and commentary for our third quarter of fiscal year 2021. The shareholder letter is available on Atlassian's work-life blog and the investor relations section of our website, where you will also find other earnings-related materials, including the earnings press release and supplemental investor data sheet. During the call today, 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. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management's beliefs and assumptions only as of the date such statements are made. and we assume no obligation to update or revise such statements should they change or cease to be current. Further information on these and other factors that could affect 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 form 20F and quarterly form 6K. During today's call, we will also discuss non-IFRS financial measures. These non-IFRS financial measures are in addition to and are not a substitute for or superior to measures of financial performance prepared in accordance with IFRS. Reconciliation between IFRS and non-IFRS financial measures is available in a shareholder letter, earnings release, and investor data sheet on the IR website. During Q&A, please ask your full question up front so that we can be fair and easily move through to the next speaker. We also invite you to check out sessions from Team 21, our annual virtual customer conference, which runs through tomorrow, April 30th. We've included a link to Team 21 in our shareholder letter and our earnings release. Lastly, I want to thank Mike and Scott, James and Matt, and all of Atlassian for the opportunity to lead investor relations at this incredible long-term and customer-focused company. With that, I'll turn the call over to Mike for opening remarks.

Thanks, Martin, and thank you for joining today from wherever you are in the world. As I sit in Australia, I'm reminded that our national coat of arms displays the kangaroo and the emu. Why those two specific animals, you might ask? Because they are unable to walk backwards. They can only move forwards. Australia as a nation must continue to move forward. True to our Australian heritage, Atlassian only moves forward. And we continue to do so at great pace through a strong Q3. We hope that you've read the shareholder letter where we describe our long-term focus on delivering that innovation to customers. Our investment in our world-class cloud platform makes it possible to develop and deploy this innovation at an ever faster pace. Highlights from the quarter include doubling customer cloud migrations versus last year, right in line with our expectations, launching Point A, our new product development program. Yesterday, we announced five initial products from Point A for technical and non-technical teams of all sizes. and continuing continuous investment in leading edge innovation we announced amazing updates for the jira family of products we're extremely excited about initiatives like open devops and the whole new trello that shift during the quarter as well as acquisitions of think tilt and chart io we also posted strong results in q3 we saw significant short-term demand for on-premises products as a result of customers purchasing ahead of both the discontinuation of new server license sales and price changes to on-premises products that went into effect during the quarter. More importantly, we made continued progress to our long-term goal of becoming a cloud-first company. During the quarter, cloud revenue grew 35% year-over-year, and overall subscription revenue grew by 43% year-over-year. Before we move to Q&A, Scott and I want to thank the more than 6,000 Atlassians whose resilience, passion and commitment to drive that innovation that we deliver to our customers and who continue to move forward every day. Check out our sessions from Team 21 to see how we're building a future of modern teamwork to unleash the potential of every team. With that, I'll pass the call over to the operator for your questions.