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

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Cameron Deatsch: Yeah. We do not break out the split of SMB versus enterprise. As I mentioned before, the one uptick in headwinds we saw in Q2 was the SMB user expansion. Our enterprise business continues to remain strong.

Alex Zukin: Perfect. Thank you, guys.

Operator: Your next question comes from Michael Turits from KeyBanc. Please go ahead.

Michael Turits: Yeah. I think — well, I think, I will just take a question regarding developer headcount, because obviously, there’s been large numbers of headcount cuts in tech. For the most part, you don’t hear any discussion of it being better or worse for development engineering. But what are you seeing out there since where you came from is still on developer side? What are you seeing in terms of your selling into that user case of the development team? Is that getting impacted the same or disproportionately than others as people maybe slow down on new development projects I think that’s what we are seeing?

Cameron Deatsch: Yeah. We have taken — so as I mentioned, back to the one primary headwind we have seen that was different in Q2, which is user expansion within our smaller customer base. When we look into that, there’s no competitive differentiation, there’s no competitive dynamic that’s changed. So it’s not like people are choosing other options or turning to other products that we see that some new competitive offering. It’s largely these customers slowing down their hiring, potentially trying to consolidate some of their licensing and the software that they over the last couple of years. But we believe long-term, technology is still a major driver of growth across many different companies and many different industries, and that will only continue to grow across all geographies.

So we look across our entire customer base. We see it’s not just the tech or engineering-focused companies, but it’s in the companies in every industry, every geography have adopted technology and we see that why whenever we look at these trends that are happening, that happens broadly across all these different customer bases. So long-term, we believe, is there going to be more technology, more developers in the future that are going to use our products to get their work on and collaborate with the rest of the business? Absolutely and we are set up with our multiple offerings to take advantage of that growth.

Michael Turits: Okay. But no relative difference in the decele between serving teams for software developers versus for IT versus for work for enterprise for business, is that correct?

Scott Farquhar: Yeah. This is Scott, obviously, talking, Michael, on that one. Look, just a reminder, we always started early on serving just the developer in an organization, the person writing code. We have around helping those developers, collaborate with the rest of the organization. And so I believe that our latest number is something like a quarter of the users into software ops, developers writing code and the rest of it is product managers all the way through to designers and we — a lot of our benefit we get exactly coordinating the work of the broader software and technology organizations through our ITSM offering that now go broader into the IT teams out there. And so whilst we sort of core of what we do is helping developers like the broader problem we solve is actually how people get work done across their organizations.

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