Atlassian Corporation

Good afternoon, and thank you for joining Atlassian's earnings conference call for the first quarter of fiscal year 2024. As a reminder, this conference call is being recorded and will be available for replay on 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.

Welcome to Atlassian's first quarter of fiscal year 2024 earnings call. Thank you for joining us today. Joining me on the call today, we have Atlassian's co-founders and co-CEOs, Scott Farquhar and Mike Cannon-Brooke, Chief Revenue Officer Cameron Deesh, and Chief Financial Officer Joe Bin. Earlier today, we published a shareholder letter and press release with our financial results and commentary for our first quarter of fiscal year 2024. 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 material, including the earnings press release Supplemental Investor Data, please. As always, our shareholder letter contains management's insight and commentary for the quarter. 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 include known and unknown risks, uncertainties, and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. 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. We undertake no obligation to update or revise such statements should they change or cease to be current. Further information on these or other factors that could affect our business performance and 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 filed annual and quarterly reports. During today's call, we will also discuss non-GAAP financial measures. These non-GAAP financial measures are in addition to and are not a substitute for or superior to measures of financial performance prepared in accordance with GAAP. The reconciliation between GAAP and non-GAAP financial measures is available in our shareholder letter, earnings release, and investor issues on the investor relations section of our website. We'd like to allow as many of you to participate in Q&A as possible. Out of respect for others on the call, we'll take one question at a time. With that, I'll turn the call over to Scott for opening remarks.

Thank you for joining us today. As you've already read in our shareholder letter, we've been busy. We kicked off FY24 by executing well and playing the fence. We continue to push hard on our biggest bets, cloud, enterprise, and IPFM, and those bets continue to pay off. We're also shipping ever more new products and innovation to our customers. This quarter, we launched Compass into general availability, This is on the heels of launching Jira product discovery last quarter, which is off to a fantastic start with several thousand customers already. I was just at our high velocity IT service management event here in Sydney when we announced the general availability of virtual agents in Jira service management and debuted a host of additional AI capabilities. We heard from some of our incredible customers who shared how they migrated their legacy ICSM solutions to Jira service management and are now delivering exceptional service experiences faster than ever. Through our cloud platform, Thousands of customers through our early access program are already realizing value from the AI capability to be introduced across our cloud products powered by Atlassian intelligence. The early feedback has been terrific and we're incredibly excited by the opportunities that AI presents us. Along with the organic innovation happening here at Atlassian, we've also announced our acquisitions of AirTrack and Loom. AirTrack builds on our previous investments in IT service management and will enable enterprises to better account for and trust all their critical assets within their organizations. Loom, which has a passionate customer base of 200,000, will bring the power of asynchronous video messaging to the Atlassian platform. We firmly believe distributed work is here to stay, and Loom will allow teams across the globe, or even in the same building, to collaborate seamlessly in deeply human ways. People are increasingly turning to video as a way to collaborate and consume information, and we're incredibly excited about the opportunities that video can be applied across our platform. Our customers are looking to Atlassian to provide them solutions in the collaboration space, and Loom gives us an incredible opportunity to further unleash the potential of their team. We're also playing offense on talent. Atlassian is at the cornerstone of our success, and we're focused on adding and retaining amazing talent across the company, including great senior leaders. We recently welcomed Zeynep Ozdemir as our Chief Marketing Officer and Vikram Rowe as our Chief Trust Officer. And we promoted Kevin Egan to Chief Sales Officer, all of whom bring great experience to our leadership team. I also want to acknowledge Cameron, as this will be his last earnings call with us. Mike and I are incredibly grateful for his 11 years of dedication, impact, and most of all, friendship. With that, I'll pass the call to the operator for Q&A.