So Atlassian is on a bit of a tear.
Revenue growth is up 21% overall, and subscription growth is up 33% — at almost $5 Billion in ARR. Wall Street is happy. It’s driven Atlassian stock up +28% after the results:
Is SaaS back?
Let’s dig in.
5 Interesting Learnings:
#1. Raising Guidance and Growth Rate for Cloud Revenue To +24% a Year
That’s pretty darn impressive growth at almost $5B in ARR, and just as importantly, they’re raising their prediction here.
#2. 500 $1M+ Customers
Atlassian is going more and more enterprise, which has become key to maintaining growth. It now has 500 $1M+ customers.
#3. 51% of Revenue From Outside North America
A reminder to go global as early as practical.
#4. 50% of Users on Business “Side”, 50% Technical
An interesting breakdown across their core products. Yes, Atlassian’s roots are selling to developers. But as you go more upmarket, and more enterprise, the business users become critical stakeholders and users, too. It’s split 50/50 at Atlassian.
#5. Seat Expansion Driving Growth, Along with Cross-Sell of New Products
Long live per-seat models and pricing! Atlassian, HubSpot, GitLab and more are seeing growth fueled by classic account expansion of more seats.
And a few other interesting leanings:
#6. $10k+ Customers Still Growing +17% a Year
Just below the +20% a year in new customer growth SaaStr defines as being in true high growth mode, but still very impressive at almost $5B ARR. Combine this with triple digit NRR, and Atlassian has a strong 5+ year run ahead of it. At least. New customers keep coming, even now.
#7. A Big AI Push, But Being Very Conservative on Consumption Pricing
For now, Atlassian is sticking mainly to per-seat pricing. It’s working for them.
#8. Even as They Go More and More Enterprise, The Long Tail Still Matters
Yes, Atlassian has 500 $1M+ customers now, and 46,000+ $10k customers. But it has 300,000+ customers overall. By customer count, the smallest ones still make up 85% of all Atlassian customers.
#9. Rolling Out More Premium Versions of Its Products
To drive up deal sizes, they’re charging more for newer editions with more.
The Atlassian engine just keeps on running. Even at almost $5 Billion in ARR. Pretty impressive. Pretty, pretty impressive.
And a great SaaStr classic deep dive with co-founder Michael Cannon Brookes here:
