Atlassian Corporation

Ladies and gentlemen, today's conference scheduled to begin shortly. Until that time, allow us to again be placed on hold. Thank you for your patience. Again, ladies and gentlemen, today's conference scheduled to begin shortly. Until that time, allow us to again be placed on hold. Thank you for your patience. THE END THE END Good afternoon. Thank you for joining Atlassian's earnings conference call for the first quarter of fiscal year 2022. As a reminder, this conference call is being recorded and will be available for replay from the investor relations sections of Atlassian's website following this call. I'll now hand the call over to Martin Lam, Atlassian's head of investor relations. Please go ahead.

Welcome to Atlassian's first quarter of fiscal year 2022 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 first quarter of fiscal year 2022. The shareholder letter is available on Atlassian's work-life blog and the investor relations section of our website. where you will also find our other earnings-related materials, including the earnings press release and supplemental investor data sheet. As always, our shareholder letter contains management's insight and commentary for the quarter. So during the call today, we'll have brief opening remarks and then focus our 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, and achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statement. 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 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 or financial performance prepared in accordance with IFRS. The reconciliation between IFRS and non-IFRS financial measures is available in our 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. With that, I'll turn the call over to Mike for opening remarks.

Thank you all for joining us today. When Scott and I started Atlassian almost 20 years ago, we wanted to create an amazing company where people love coming to work every day. We were recently named one of the world's best workplaces in 2021 by The Great Place to Work. We're thrilled and humbled to be recognised among the top 25 companies in the world, in any industry, in any country. We've won a lot of trophies over the years, but this recognition is special. It's going straight to the pool room, as we say in Australia. In all seriousness, it's truly one of Scott and my proudest accomplishments. It is a testament to the true stewards of our culture, the many thousands of Atlassians we have around the world who live our values every day. Your resilience, passion and commitment inspire us. For all of you Atlassians listening, thanks for making this possible. As you've already read in our shareholder letter, our momentum continues as we kept winning in Q1 of fiscal 22. We continue to deliver value to our customers and innovate across all three of our core markets. A great example of this innovation is Jira Service Management. In its first year in the market, Jira Service Management was named a visionary in Gartner's magic quadrant for IT service management. And its customer base grew to over 35,000, up from 25,000 just one year ago. This is the result of a steady drumbeat of innovation and R&D investment as we continually make better and better each and every quarter. And we apply this same philosophy to our offerings in agile development and in work management for all. The continual improvement of our cloud platform is also what's driving our progress forward in the cloud. This quarter, cloud revenue was up 53% year over year. We signed on to the trusted cloud principles, joining as initial signatories alongside Amazon, Google, and Microsoft, and making a commitment to protect our customers' rights, privacy, and data in the cloud. Underscoring this commitment to our customers, we shipped data residency in Australia this quarter on the heels of delivering this critical capability in Europe last quarter. With that, I'll pass the call over to the operator for your questions.