Atlassian Corporation

Good afternoon. Thank you for joining Atlassian's earnings conference call for the second quarter of fiscal year 2022. 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 Lam, Atlassian's head of investor relations.

Welcome to Atlassian's second 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, our Chief Financial Officer, James Beer, and our Chief Revenue Officer, Cameron Deitch. Earlier today, we published a shareholder letter and press release with our financial results and commentary for our second 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 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 the rest of our time on Q&A. This call will include forward-looking statements. Forward-looking statements include 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. 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 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 not a substitute for or superior to measures of 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 our IR website. During Q&A, please ask your full question up front so that we can be fair and be able to accommodate the next speaker. With that, I'll turn the call over to Scott for opening remarks.

Thank you for joining us today. Happy New Year to everyone. Q2 is another strong quarter as we continue to see great momentum. It's extremely encouraging to see many of our past long-term investments reflected in our Q2 results. The Atlassian Marketplace, which we started in 2012, recently surpassed $2 billion in lifetime sales. Cloud apps now make up nearly half of all marketplace apps, and the rate at which customers are adopting cloud apps is outpacing our own cloud products. It's exciting to see our ecosystem grow at such a rapid pace and for us to be able to expand the economy around Atlassian. IT was an area we were committed to doubling down on three years ago. Recently, Jira Service Management was recognised as a leader in the Forrester Enterprise Service Management wave, with our strategy for ESM receiving the highest possible score. We also recently added percept.ai to bring AI-powered virtual agent technology to expand JSM's frontline support capabilities. Our continued investment and innovation in our cloud platform are driving great results. This quarter, we added more than 10,000 net new customers, nearly all landing in cloud, and quarterly cloud revenue grew 58% year over year. As you've already read in our shareholder letter, we're looking forward and laser-focused on investing in the future. Hiring is our top priority. We deeply believe in the massive market opportunity in front of us, and investing in people is our path to seize these opportunities. Lastly, we hope you can join us for Team 22 in April. We're cautiously optimistic to be back in person with our customers and partners. We hope to see many of you there. But we're thrilled to also be able to host viewing parties around the globe and offer virtual options as well. With that, I'll pass the call to the operator for Q&A.