Atlassian's cloud revenue grows 31 percent as it raises its outlook

What happened

Atlassian reported revenue of 1.772 billion dollars for the quarter ended Wednesday 30 September, 24 percent more than a year earlier, in results released Thursday 5 November. ^{[1, 7]}

Cloud revenue was 1.302 billion dollars, up 31 percent. Data Center revenue, from the software customers run on their own servers, was 391 million dollars, up 5 percent, the company's quarterly report shows. ^{[1, 2, 3]}

Operating income was 189 million dollars, against a loss of 96 million dollars a year earlier, and net income was 91 million dollars. Chief executive Mike Cannon-Brookes said in the release that 'Enterprise AI has hit an inflection point.' ^{[1, 5]}

Why it matters

The company now targets total revenue growth of about 13.75 percent for fiscal 2027, up from about 13 percent in August. It expects cloud revenue to grow about 26 percent, against 25.5 percent before, and Data Center revenue to decline about 16 percent, against 17 percent. ^{[1, 4, 5]}

Remaining performance obligations, contracted revenue not yet counted as sales, were 4.746 billion dollars, up 44 percent, according to the release. ^{[1, 2, 6]}

Why Data Center shrinks

Atlassian stopped selling Data Center products to new customers in March 2026 and plans to end support for them in March 2029, with limited exceptions, its quarterly report says. ^[3]

The shareholder letter says that announcement pulled customer purchases forward into fiscal 2026, which weighs on the comparison for fiscal 2027. The company said it expects total revenue growth 'to re-accelerate in FY28 as we lap these effects.' ^[2]

The AI figures

More than 87 percent of enterprise cloud customers use Rovo, the company's AI assistant and agent platform, and users of Rovo Agents doubled in six months, the letter says. More than 3,000 customers have upgraded to Teamwork Collection, a bundle of Jira, Confluence, Loom and Rovo, seven times as many as a year earlier. ^{[2, 6]}

Its MCP server, the link that lets outside AI tools work inside its apps, has more than 2 million monthly users and more than 15 million tool calls a day, the release says. Service Collection, its service management software, passed 70,000 customers, with annual recurring revenue above 1 billion dollars growing more than 30 percent. ^{[1, 2]}

What settles it next

For the quarter ending Thursday 31 December, the company targets revenue of 1.825 billion to 1.835 billion dollars and cloud growth of about 27 percent. Chief accounting officer Gene Liu steps down Friday 13 November, and Eli Berkovitch, from Box, takes the post Monday 16 November, the 8-K says. ^{[1, 5, 7]}

Who it reaches

Atlassian (TEAM) is direct: the results, the outlook and the officer change are in its own 8-K and quarterly report. ^{[1, 3, 7]}