Atlassian Corporation

the first quarter of fiscal year 2025. 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 2025 earnings call. Thank you for joining us today. On the call with me today, we have Atlassian's CEO and co-founder, Mike Cannon-Brooks, and Chief Financial Officer Joe Binns. Earlier today, we published a shareholder letter and press release with our financial results and commentary for our first quarter of fiscal year 2025. 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 our time on Q&A. This call will include forward-looking statements. Forward-looking statements involve 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. 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 undertake 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 our business performance in the 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 recently filed annual report 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. A reconciliation between GAAP and non-GAAP financial measures is available in our shareholder letter, earnings release, and investor data sheet 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 Mike for opening remarks.

Thank you all for joining us here today. As you've read in our shareholder letter, FY25 is off to a good start. We're fresh off our Team24 Europe event in Barcelona, where we heard how customers like Vodafone, Lloyds Banking Group, and Mercedes-Benz are leveraging our products in powerful ways to drive team productivity and deliver superior service. We are really energized by the excitement from our customers and partners in response to the innovation that we're delivering. Over the last few months, I've met with dozens of CIOs and CEOs from our largest customers and listened to the challenges that they face. Technology is increasingly becoming critical to the success of every single organization. And with a platform that now spans software, IT and business teams, I think Atlassian is uniquely positioned to break down the silos between those teams through our system of work. If you're interested in hearing more about the system of work, We are always innovating here at Atlassian. Check out the Loom I just posted to our IR website to give you all a sense of how Loom works and give us any feedback on how you liked it. AI, of course, is also going to play a pivotal role in how work gets done. With the power of our R&D engine and more than 20 years' worth of data and how teams plan, track, and deliver work, we have incredible competitive advantages in the AI era. And we're not just marketing AI, we're shipping it. We've made Rovo, our newest AI-powered product, generally available for all customers just five months after announcing it at Team24 in Las Vegas. Rovo is delivering differentiated value to our customers through our powerful teamwork graph, allowing customers to unlock their existing organizational knowledge at ever-increasing scale and pace. We also continue to thread our AI capabilities throughout the entire cloud platform with Atlassian intelligence across premium and enterprise editions of all our existing products. This is driving increased customer adoption of high value additions, and of course, driving migrations to the cloud. To build on this momentum, we've introduced Jira Product Discovery Premium, Compass Premium, and Guard Premium, adding even more advanced and enterprise-grade capabilities to our newest cloud offerings. And lastly, with our increased focus on serving enterprise, we introduced Atlassian Focus, the newest product in our enterprise strategy and planning solution. This continued product innovation is paving the way for our largest and most complex customers to unlock incredible value from the Atlassian Cloud Platform. Our customers understand that the ultimate Atlassian experience is in the cloud and are increasingly expressing their desire to adopt our cloud offerings. The progress we're making against our top strategic priorities of serving the enterprise, delivering on AI innovation, and empowering teams to work better together with our system of work is resonating incredibly well with our customers. We look forward to building on this momentum in order to seize the incredible opportunities that lie ahead of Atlassian and make further progress on our mission to unleash the potential of every team. With that, I'll pass to the operator for Q&A.