Atlassian Corporation Plc (NASDAQ:TEAM) Q4 2023 Earnings Call Transcript

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Cameron Deatsch: Cameron here. I’ll call out what’s driving the enterprise success in IT service management largely comes off the back of many of our enterprise investments broadly at the Atlassian cloud platform level, whether that was data residency, whether that’s certifications, all the same benefits that we had for driving migrations in large enterprise automatically get translated to Jira Service Management. However, the Jira Service Management team has also been exceedingly focused on knocking down the specific IT requirements of those larger customers. And you see that largely show up the validation of that as we are in the leadership quadrant in the Gartner IT Magic Quadrant, which basically shows that, hey, yes, we check all the boxes that those customers require while maintaining that unique value of bringing dev and IT closer together at a at a relatively competitive price point.

So it’s really the investment across the board in IT service management. As we said a few years ago now, we’re going to double down this area. And as we paid off those R&D investments, and focused our go-to-market efforts as we reach out to our larger customers, and we’re talking to them about migrating the cloud. We’re not just talking about getting what they already have over to the cloud. We talked about expanding the overall Atlassian value prop as they move to the Atlassian cloud platform, and that’s also helped us expand the Jira Service Management offerings. Mike?

Mike Cannon-Brookes: Yes. I just wanted to add on one thing. I was talking to an enterprise customer maybe a month, 1.5 months ago. And one of the things that was coming through to them was the value of the Atlassian platform. And one of the reasons why they opted for JSM. In particular, in this case, they used Atlassian in their Agile and DevOps, the Jira software and other products. The combination of development teams and IT teams is increasingly important. We have an incredibly unique value advantage there as every customer every company becomes a software company, that connectivity between development teams and IT teams is incredibly important. That’s powered by our investments in the Atlassian platform over time. You’re seeing that come through in Atlassian Intelligence and a whole host of other ways.

But it’s really gratifying to us to see that resonating with customers, especially the large customers, and it’s a big differentiator. The same actually applies on the connectivity between IT and service teams in an organization and the work management space. So on the other side of our market combinations, as enterprise service management continues to roll out, our virtual agent technologies using Atlassian Intelligence, I think will be a huge boon to larger enterprises in trying to take service management more broadly from IT into HR, finance, marketing and other capabilities. This all relies on the power of the Atlassian cloud platform. It will continue to drive migrations of our largest customers there and I think be a differentiator in the ITSM space.

Operator: Thank you. That’s all the questions we have time for today. I will now turn the call over to Scott for closing remarks.

Scott Farquhar: So thank you to everyone for joining our call today. As always, we appreciate your thoughtful questions and continued support and a special thank you to the Atlassian team for your resilience and closing the year out with strong momentum. Also want to say a special thank you for Cameron, that was his last earnings call, I just want to say a huge thank you for the revenues you’ve given to Atlassian so far. Thank you all, and I’ll see you next quarter.

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