Atlassian Corporation (NASDAQ:TEAM) Q2 2023 Earnings Call Transcript

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So we believe those are still the two headwinds that we are looking forward in the second half of the year and we have plenty of telemetry across our customer segments, geographies, industries and so on to understand if any of those trends are changing going forward.

Kash Rangan: Got it. I mean how close are we to stability in those leading indicators you are looking at if you have a view? That’s it for me.

Joe Binz: Listen, there’s plenty of variability in the business overall today. On the top of funnel, people coming to our site and converted. I feel they are very stable between Q1 and Q2. The end user growth is much harder to predict and it might be hard to basically say whether that’s going to be leveling out or that we will see some change in the variability in the future.

Operator: Your next question comes from Brent Thill from Jefferies. Please go ahead.

Luv Sodha: Hi. This is Luv Sodha on for Brent Thill. Thank you for taking my question. Just wanted to ask, thank you, Scott, for laying out those top four growth priorities going forward. I guess where does Jira Work Management and Atlassian Together rank in those priorities and what traction have you seen with that product suite? Thank you.

Mike Cannon-Brookes: Yeah. Luv, I can take that one. Look, we maintain incredible bullishness on our position in the Work Management space. Trello continues to be a monster. Confluence continues to grow really, really strongly. You see that with all of the enterprise improvements in the cloud, as well as automation and also of other things we shipped during the quarter. So we are very confident in the overall position we have in Work Management and especially with its connection to both the software and ITSM spaces as companies increasingly get more digital, it’s a very unique position that we play. A part of that Work Management strategy, as you pointed out, is to have multiple leading vectors, in terms of Trello, Confluence and Jira Work Management, depending on the structure people are looking for and where they are coming from and what they already have.

We see great traction for Jira Work Management in terms of usage in people who are heavily into the Jira role already. If you are into the Jira family, you have Jira Software, Jira Service Management. It’s an entirely logical step for you to add Jira Work Management, and obviously, integrates with all the rest of our products very well. Thanks to the Jira platform and the Atlassian platform. It’s very early days in that product evolution. We are sort of a year and a bit in, and we continue to work with customers. It’s increasingly gratifying to see forms of standardization where people are moving off other project management vendors and collaboration vendors to standardize on Jira and Confluence and the Atlassian suite. And that’s why you see us investing in two things.

One is the platform story, things like Smartlink that I have mentioned beforehand, analytics, automation, being able to automate across our product set is a big part of what customers are turning to Atlassian for. And secondly, you mentioned Atlassian Together. For those who are new, again, Atlassian Together is a packaging offering, which allows our customers to choose to take Atlassian wall-to-wall for Work Management in exchange for getting a series of different products being Jira Wealth Management, Trello, Confluence and Atlassian Access, all in the one package. It’s extremely early days for Atlassian Together, I would say. It is still in beta testing with our customers, but the reception so far has been has been really good, largely for all the customer reasons that we talked about earlier in terms of the platform and the product set.

Luv Sodha: Great. Thank you.

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