Our Q4 FY25 letter to shareholders

From the CEO

FY25 was another big step forward in Atlassian’s mission to unleash the potential of every team. We closed out the year with strong execution, vaulting past $5.2 billion in revenue, generating $1.4 billion in free cash flow, and we are hitting our stride in executing against our three strategic priorities: Enterprise, AI, and System of Work.

During Q4, we signed a record number of deals greater than $1 million in annual contract value (ACV), up more than 2x year-over-year, surged to 2.3 million AI monthly active users (MAU) powering their workflows across the Atlassian platform, and the initial momentum with Teamwork Collection has exceeded our expectations. Our three strategic priorities are becoming increasingly interconnected under our cloud platform, with its powerful AI functionality, seamless collaboration, and enterprise-grade capabilities amplifying each other.

The Atlassian platform unlocks multiple growth vectors across our business and grounds our confidence in our ability to drive long-term, durable growth in the years to come. It allows us to bring products and features to market faster, drive cross-sell of additional apps and new collections, upgrade customers to higher-value editions, and tightly integrate our solutions to create a unified experience for all teams across any organization. For example, Jira Product Discovery has already amassed over 20,000 customers, Loom MAU is growing more than 30% year-over-year, and Jira Service Management Premium and Enterprise edition sales are up over 50% year-over-year. The result is a Net Revenue Retention (NRR) rate in the cloud of approximately 120%.

To further fuel these growth vectors, we’ve entered into a multi-year strategic partnership with Google Cloud, bringing together our enterprise-grade, AI-powered teamwork platform with Google Cloud’s AI-optimized infrastructure to accelerate cloud transformation and deliver advanced AI solutions to millions of users worldwide. This partnership marks a major milestone in Atlassian’s multi-cloud strategy and lays the foundation for the next generation of human and AI teamwork experiences.

Looking ahead, Atlassian is well-positioned to benefit from AI, as it strengthens the value of our platform and enables more Atlassian customers to realize its powerful capabilities, in turn creating tailwinds for our business.

Let me explain.

#1 Collaboration creates opportunity

For two decades, our focus has been helping customers solve human problems, not technology problems. This is why we chose TEAM as our ticker symbol – because, at our core, Atlassian is a collaboration company. We power collaboration across 300,000+ customers by helping them align work to goals, plan and track work together, and unleash collective knowledge. In the AI era, we believe more collaboration will be necessary as the velocity and complexity of problems to solve increase, and new challenges are born.

Today, approximately 50% of users of our core apps are business users, underscoring the mission-critical role our platform plays in coordinating workflows and business processes across an organization. That’s where the Atlassian System of Work comes in – connecting technology teams with business teams, like HR, finance, legal, marketing, and many others. Because of this, more enterprises are realizing the power of going wall-to-wall with our System of Work, consolidating from a multitude of other tools onto the Atlassian platform and fueling growth across our at-scale apps: Jira, Confluence, Jira Service Management, and Loom – all of which continue to see revenue growth in line with or faster than that of the total company – with significant runway ahead.

#2 AI democratizes the ability to create and collaborate

As we expand further into enterprises and reach more teams, AI is extending our reach by democratizing the ability to create. More people than ever can bring extraordinary ideas to reality, presenting a massive opportunity for Atlassian. Gartner estimates that, “The percentage of citizen developers contributing to digital initiatives will rise from 10% in 2025 to 70% in 2029.”¹ Throughout history, the rise of new technologies has always led to new ideas, freeing up humans to take on higher-value work, and creating new jobs and economies. In the AI era, every function, field, and industry is empowered to create agents to help them automate the rote work to be done. Collaboration across teams will become more imperative, and Atlassian has a huge opportunity to be the platform for human and AI collaboration. Data shows increased cross-functional collaboration in Jira since the rise of AI developer tools, with business users in Jira instances growing faster than before – demonstrating that Jira continues to be the center of gravity in how work gets done.

#3 AI is Atlassian’s tailwind

AI allows us to create amazing products and deliver powerful new capabilities, furthering our mission to unleash the potential of every team. We’re investing heavily in AI in order to capture the huge opportunity ahead of us, leveraging our key advantages:

• Strong R&D innovation engine,
• World-class unified platform,
• Rich Teamwork Graph with unique breadth and depth of data on how teams work,
• Domain expertise on how teams collaborate, and
• Distribution power with over 300,000 customers.

Our philosophy of delivering customer value first means we consistently ship powerful platform features like AI, analytics, and automation, and then recoup value through monetization over time. Two years ago, we added AI capabilities to the Premium and Enterprise editions of our products, and today, it’s one of the factors driving Premium and Enterprise annualized recurring revenue (ARR) growth of over 40% year-over-year. We’ve also layered in consumption-based pricing (CBP) across our portfolio in multiple areas over the past several years, including Rovo. We have been steadily building this muscle, which allows us to deliver increased customer value and monetize commensurately for the benefits they realize.

As we move into FY26, we’re laser-focused on executing against our three strategic priorities: Enterprise, System of Work, and of course, AI.

Atlassian’s AI achievements

These AI tailwinds are showing up across our business, as customers realize the power of the Atlassian Platform and the incredible AI innovation we’ve infused throughout.

The number of AI interactions on our platform has increased nearly 20x year-over-year. We now have 2.3 million AI MAU (up >50% since last quarter), and this will continue to grow as we progressively roll out Rovo. We’re helping our customers quickly find contextualized information across their organization, making it easier to unleash knowledge and supercharge their workflows.

With every new work item added, link pasted, or teammate connected with, the Teamwork Graph gets smarter and more personalized. In fact, our Teamwork Graph now has over 80 billion data objects and connections. With a vast amount of contextualized, connected first and third-party data, customers are able to put agents to work. Since our U.S. customer event Team ’25 in early April, customers have created thousands of Rovo agents, deploying them to work on critical projects and automate tasks across their organizations.

Analysts are also taking note of our strong position with AI. Atlassian was recognized as an Emerging Leader in the 2025 Gartner® Innovation Guide for Generative AI Technologies². We see AI as a force multiplier for all our big bets, not a separate track. And with a world-class R&D machine, world-class platform, and 300,000+ customers, we believe we’re uniquely positioned to get Atlassian AI into the hands of millions of users.

Playing offense with the Atlassian System of Work

Our platform and the contextualized data of the Teamwork Graph enable us to unlock knowledge and power workflows across the enterprise through the Atlassian System of Work. And it’s not just our customers who recognize this – industry analysts across every market we play in have too. Atlassian was named a Leader in the Forrester Wave™: DevOps Platforms, Q2 2025, receiving the highest possible scores (5/5) across Vision, Innovation, and Roadmap. This quarter, Atlassian was also named a Leader in the Forrester Wave™: Value Stream Management Solutions, Q2 2025. We believe this recognition reflects our commitment to helping organizations connect strategy to execution at scale. This is in addition to being named a Leader in:

• The Forrester Wave™: Knowledge Management Solutions, Q4 2024,
• The Forrester Wave™: Enterprise Service Management, Q4 2023,
• the Gartner® Magic Quadrant™ for Marketing Work Management Platforms³, and
• the IDC MarketScape: Worldwide IT Service Management Software 2024 Vendor Assessment⁴.

Customers like Infosys, a global leader in next-generation digital services and consulting, are standardizing on the Atlassian System of Work to connect their technology and business teams on a single platform. This is unlocking powerful AI experiences across their organization and enabling new levels of productivity.

Earlier this quarter, we took a big step forward in delivering on our System of Work vision by shifting from standalone products to apps, agents, and Collections. We introduced Teamwork Collection, the foundation of our System of Work, giving every user a common set of collaboration apps to use across their organization. In the first few months, uptake is exceeding our expectations with significant wins in our enterprise customer base. In particular, enterprises see the value of consolidating on our platform and are expanding their seat counts to a wider set of users, underscoring our strategic focus on driving wall-to-wall adoption as the go-to collaboration solution.

One of the world’s largest automotive manufacturers immediately understood the value of Teamwork Collection and standardized on the Atlassian Platform, going wall-to-wall with over 50,000 employees using Jira, Confluence, and Loom, while consolidating a number of point solutions in the process. Our System of Work vision is resonating with customers like BHP, CHG Healthcare, Globant, and many more, who are already adopting Teamwork Collection. It is also driving Data Center to Cloud migrations, as customers, including a leading global financial institution and one of the world’s largest technology companies, take advantage of our world-class platform with Rovo’s AI capabilities at its core.

And if Teamwork Collection is the foundation of Atlassian’s System of Work, think of Strategy Collection as the apex. We’ve introduced a powerful set of new apps and agents built specifically for enterprise strategy and planning as organizations become increasingly technology-driven. We are uniquely positioned to help business leaders align on their most important priorities and drive outcomes, giving them a full view of goals, work, talent, investments, systems, and updates, enabling complex, data-driven strategic decision-making.

This allows leaders to make informed trade-offs and allocate resources with confidence. Initially built by Atlassian for Atlassian, we’ve since shipped the Talent app in response to customers’ needs for a solution that gives more granular detail about their workforce and enables their leaders to assign the right people to the right priorities, at the right time, at scale.

Unleashing the Enterprise

This quarter I continued meeting with customers from nearly every industry across the globe, and from these meetings, it’s abundantly clear: enterprises see Atlassian as a strategic partner. They’re turning to us to help them unlock their enterprise knowledge at scale, and further their collaboration across their technology and business teams. Our investments in building out the enterprise-grade capabilities of our platform and go-to-market teams are paying off, and we’ll continue to build on this momentum to capture the significant opportunity in front of us.

All of the progress we are making to drive our System of Work vision and deliver rapid advancements in AI is translating to strong enterprise momentum. We closed a record number of deals greater than $1 million in ACV in Q4, up over 2x year-over-year, including several of the largest semiconductor manufacturing and design companies in the world, several of the world’s largest financial institutions, the biggest technology companies in the world, and others across nearly every sector and industry vertical.

This enterprise momentum is also driving Cloud migrations, which continue to pick up pace, with Data Center to Cloud migrations for the year up over 60% from last year. Customers are increasingly looking to adopt the incredible innovation we are delivering like AI, analytics, and automation. And once customers reach the cloud, we’re seeing them expand their usage, further enabling them to unleash the potential of their teams.

A new chapter for our President

After almost 12 years, countless products built, and thousands of customers touched, Anu Bharadwaj is stepping away from her role as Atlassian President to pursue new opportunities, come December 31, 2025.

Anu joined Atlassian in 2014 and has held a variety of leadership roles across her tenure, including Head of Product, Chief Operating Officer, and her current role as President. From driving Atlassian’s shift from on-premise to cloud, to spearheading our cloud platform strategy, and most recently playing a key role in shaping Atlassian’s System of Work strategy, her legacy will long be felt within the incredible product and platform experiences our customers enjoy each day.

Anu is a truly transformational leader, known for leading with a full heart and a hell of a lot of courage, building an amazing tapestry of talent and an incredible leadership team. While we’re saddened to see her leave, like everything we do at Atlassian, we are long-term in our thinking, and I will be leaning in to support a smooth transition.

This is an incredibly exciting time to be at Atlassian, and I look forward to leading the company for years to come.

~

We close out FY25 with a huge sense of pride and optimism. Our position is strengthening across our three strategic priorities. We’ll keep investing in these, following the momentum we’re seeing, while continuing to ruthlessly innovate quarter in, quarter out, delivering maximum value for our ever-growing customer base.

As always, we are playing offense and doubling down on our unique differentiators that will make the decision to go all-in with Atlassian a no-brainer for current and future customers. We can’t wait to share more innovations at our upcoming Team ’25 Europe event in October.

-Mike

 ^Footnotes:

^{1- Gartner, Market Guide for Citizen Application Development Platforms, Sohail Majumdar, Kelli Smith, Oleksandr Matvitskyy, Jason Wong, 22 April 2025}

^{2- Gartner, Innovation Guide for Generative AI Technologies, 7 May, 2025 Gartner}

^{3- Gartner, Magic Quadrant for Marketing Work Management Platforms, Michael McCune, Lacretia Marsh, et al., 17 December 2024}

^{4- IDC MarketScape: Worldwide IT Service Management Software 2024 Vendor
Assessment (US51813224, December 2024)}

^{GARTNER is a registered trademark and service mark of Gartner and Magic Quadrant is a registered trademark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved.}

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