Hello, everybody. How is everybody doing? Good? Okay, day three, and there's one more day. So this is the fourth year that we've been in the process of the relaunched Combined Communacopia and Technology Conference, and it's been absolutely incredible. I think you've been with us for two years, not quite back to back. We missed you last year. So we're up 3,000+ registered attendees. I know by tech industry standards, that may sound like it's very small, but by our industry standards, that's actually a big year.
Amazing. Congratulations.
Thank you. Thank you very much. It's because our clients value the access that they get with companies and presenters like yourself so welcome back.
You're the moderator?
No, thank you. I mean, I try. I try. I'm the prompt engineer, but the elements are very accurate, so welcome, big welcome, Anu Bharadwaj, who is President of Atlassian, and we have a first-timer to Atlassian from a public markets perspective, Brian Duffy. Yeah?
Yeah.
So, why don't we just introduce? Have you talked about what made you join Atlassian, and we'll jump to Anu and what life looks like at Atlassian currently, and then beyond as well.
Sure. So Brian Duffy is the CRO at Atlassian. I had spent 18 years of my career at SAP. While I was at SAP, I had run the European business. And then my last role, I ran the launch and ran the RISE with SAP, which was the ERP and the Cloud business, which is quite helpful with our recent announcements as well. And particularly attracted to Atlassian, one with, based on the fact of our customer loyalty, how sticky our product is, the unique nature of the product-led growth model that we have, also the momentum that we really have around the enterprise. I think a lot of people sometimes say, "Oh, we're going to move into the enterprise." But actually, we've been in the enterprise for a very long time.
And now the desire from Mike, our CEO and founder, to continue to invest further and further into the enterprise, for me, is really exciting and attractive. And just overall, the customer-centric focus that the entire company has is something that is, one, really important to me and very exciting as well.
That's great. So back to Anu. You've been at Atlassian for a number of years. You've been an integral part of the company's product evolution, the culture of the company. As you prepare to step back, what are the things that you look back over your tenure at Atlassian that you're most proud of? What are the key milestones that you've accomplished? And how do you see Atlassian carrying the ball forward?
Yeah, it's kind of surreal to think about it because Atlassian's been home for over a decade. And when I joined the company, we were about $200 million in revenue, 30,000 customers. And over my tenure of a decade here, we've gotten to over $5 billion in run rate from $200 million and 10x customers to over 300,000 customers. And also grown the company from a few hundred people to 14,000 people. So it's been an amazing journey of company building. And if I had to think back about what are the things I'm most proud of, I would start with it's really the people who've been with me on the journey. And it's very inspiring to see how values-led and how very much the OG culture of thinking for yourself, first-principles thinking, we've been able to retain as a company.
If I have to think back about what are the moments of inflection points, I would say, one, just our ability to have introduced newer businesses. I remember I was hired to platformize Jira to go from one product to multiple products and diversify revenue before we went public. We've consistently introduced new businesses: JSM, Jira Service Management is a case in point, grown to well over $500 million, zero-to-one product. JPD, which is Jira Product Discovery, which has 20,000 customers. And now Rovo, which we introduced Rovo and Atlassian Intelligence a couple of years ago. And now we're at about $2.3 million AI MAU. And very gratifying to see the consistent track record of innovation. Second, the OGs of product-led growth. So like Brian mentioned, we're very much product-led growth.
But over my tenure, I've had the opportunity to really expand the enterprise and tell the message of Atlassian's platform for large enterprises and how it can help with their mission-critical work, all of which culminates in the final thing of what we call the System of Work. So I remember the Atlassian System of Work was really an idea, a vision a few years ago. And now it's very gratifying to see how many large customers are adopting it. Infosys was the latest customer that went wall-to-wall with our System of Work. Why does the System of Work matter?
Because fundamentally, we think about what does teamwork mean, both in a post-AI world, but also in terms of just when you run a company and you have to grow revenue and you have to be profitable and you have to really construct a long-term mission, how can Atlassian help your teams thrive? And the System of Work has really helped construct that platform for taking work forward. And that is very gratifying to see. And I can see how all three of these missions, the enterprise, AI adoption, and System of Work, continue to grow and thrive for the company. So I'm excited to see what Atlassian does over the next few years.
Great. So on that, the platformization of Jira that you talked about, the application platform landscape is changing quite a bit with AI. How do you see the opportunities and risks, perhaps, for a platform company like Atlassian in the three to four years ahead?
Yeah. So fundamentally, the way we see it, Kash, I mean, I think you asked this question in our earnings call also. I think the.
You're paying attention to what I ask. I've got to be careful what I ask.
The belief around what does AI mean for our platforms. Because there's one school of thought which worries a lot about, oh, will AI put developers out of work and what happens to seats, et cetera. And then there's another school of thought around what is actually happening on the ground and how is work evolving and what role can companies play in that. At Atlassian, fundamentally, we think about it as AI is going to cause more software to be created. And more software being created is a good thing for us as a business because we are in the business of serving teams that build software. Now, the way that teams build software is changing rapidly. Who gets to create software is changing rapidly. So it's no longer the technical developer, but also the non-technical consumer that can create software.
So for Atlassian, that's a good thing in terms of how do we serve these non-technical customers in addition to the traditional technical developer that creates software. The good thing for us is that well over half our business has been serving non-technical users over the last couple of decades. And so for us, we think about the opportunities really in terms of how do we build these brand new workflows that serve these non-technical audiences, which is what we do with Rovo Studio, with Rovo Agents. And how do you really unlock knowledge from various different silos and bring it in service of these new people who are creating a lot of software? In terms of the risk that creates, there is a risk that given all the froth in the market, there is a risk of fragmentation where enterprises end up trying various different tools.
But we see it mostly as a cycle. So as people try out new different tools and see what's in it for them and how to use it, typically, enterprises come back to consolidating on a platform. And the fact that we can serve different kinds of teams: customer support teams, developer teams, marketing teams, HR teams, we are able to provide that one consolidated platform at Atlassian. So that's the reason we keep focusing on what is that plane of orchestration we can deliver for enterprises to consolidate on one connected data platform.
Got it. When you look at the core platform, Jira, where you started out with, how is AI and AI-code, AI-induced code development changing the way developers work with each other? And how does that reflect in the way the Jira platform is evolving with the need of a different set of needs that are being forced upon the developer because of AI?
Yeah, it's a great question. It's something that we think about a lot and see a lot because we have thousands.
How relevant is it still relative to the initial founding value proposition in 2002?
Yeah. So Jira is extremely valuable in the context of any company that's deployed it, not because it's a project management tool, but because it's a workflow tool. So Jira has access to so many different workflows along how work happens. For example, what's the customer reporting in terms of issues? And how is that issue getting resolved? What's the pull request that went into production? What was the incident in production? And how did we manage that incident? All of those workflows get captured in Jira. So in the context of AI-induced software development, what changes is a lot of those cycles of software development now are getting compressed. So earlier, where you used to have one developer, one designer, one program manager, one DevOps engineer, and do all these handoffs, a lot of that power is now getting diffused and concentrated with generalists, so to speak.
So Jira, therefore, becomes less of a project management tracking tool in terms of, let me write down what's on the roadmap, but more an orchestration engine. So irrespective of what kind of software you're building, as long as it's sophisticated enough and it's used in the real world, it will involve more than one person doing the job. And how do you coordinate that work when there's more than one person? The unit of coordination may not look like a bug or a story point. The unit of coordination might look like AI agents kicking off workflows. So now how do you orchestrate these multiple agents working together? Where do they start and stop? How do you push notifications and control all of those? And Jira is the perfect point for that. It's the perfect surface area for it because it has visibility across all of your teams.
So we see Jira very much going in that direction. And that's what we keep building inside of Rovo.
That's a fascinating way in which you explained it. We had Bill Staples, the CEO of GitLab, also talk about how SDLC cycles is changing and how they're using an agentic world to toggle between the different stages: CI/ CD, testing, authentication, et cetera. How has Jira as a product changed to accommodate that new view of what the developer, with the help of AI, is going to be doing?
Yeah. So we see Jira as a platform, not as a product. So we have different aspects of Jira, with Jira Product Discovery for PMs, Jira Service Management for IT pros, Jira Customer Support, the newest product we introduced for customer support reps. The way that Jira has evolved is fundamentally by being a platform. We're able to collect context from across all of these different teams. And then we're able to tie together that context in a powerful way with what we call the Teamwork Graph. What the Teamwork Graph does is effectively it tracks what work is happening in multiple different teams and connects that together. So you're able to say, you know what, overall, when I look across the system, the bottleneck is in the customer support team. The bottleneck is in this particular front-end development team, which seems to have no capacity all the time.
So having the intelligence across the end-to-end system and then figuring out how to optimize the whole end-to-end, that's the thing that Jira has evolved to do more and more of. And that gets even more powerful as we introduce more non-technical workflows into the mix. And this is precisely where we're taking Jira.
Got it.
And maybe, Kash, over that line.
Yes, please.
What we've done maybe a little bit different than everybody else is we've launched Teamwork Collection at our team event earlier in April this year. So we took Jira, Confluence, and Loom and consolidated that into one bundle called Teamwork Collection. And then included Rovo in that and gave our customers 10 times the Rovo or AI credits that they would have received if they just bought the product standalone. So from a go-to-market perspective, in order to increase our AI consumption, we've given, one, our customers basically the right to use these products as opposed to focusing our sellers on purely going out selling standalone AI. And now we are really using our customer success organization to drive the consumption of these products, which is a very different model than what others in the market are doing.
So when we're out there and you're talking about the 2.3 million monthly active users, that is really 2.3 million monthly active users, which will be a number that's going to ramp up. And then from a go-to-market perspective to monetizing these opportunities, our focus is on, number one, the cloud migration, which is clearly going to accelerate our AI usage. And secondly, Teamwork Collection, which is a huge component of everything related to AI for us. And then upgrade to our enterprise and our premium editions, which is also going to be fueling additional usage and consumption of our AI credit.
Got it. We're going to get into that even more deeper. So more on a high-level System of Work tied to AI. If you project out System of Work as a vision or becomes more of a product suite in the way it manifests itself, what do you want Atlassian to look like four to five years from now? What does the System of Work do to your customers? What does it do to the business? And how does it manifest itself in the financials?
Yeah. At a very foundational level, the System of Work is basically how work gets done across an enterprise and what we can do to help you ultimately grow your business. So for us, the ultimate test of success is companies that have deployed the System of Work are able to grow their revenue, are able to meet their business metrics in a lot more efficient way. And this is exactly what we track as we roll out the System of Work across multiple companies as well. And typically, this takes the form of tool consolidation. For instance, Lendi Group, one of our recent Teamwork Collection customers, consolidated six-plus tools onto one single Atlassian platform. And when they do that, they get the kind of visibility across the system, across an enterprise-wide situation that they couldn't have had before.
So that takes the form of productivity in terms of hours saved. That takes the form of dollars saved purely through consolidation as well as reduction of our spend doing certain tasks, et cetera. So if I had to project out the System of Work, the ultimate proof point is going to be the entire company, not just one kind of team, not just a software-producing team or a marketing team or an HR team, but really how do all teams get together in order to deliver the business objective of the company? And this is exactly why we introduced Strategy Collection, which really gives you this one pane of glass to say, ultimately, the company's strategic goals are the following. How is it actually happening on the ground? And how much of your capacity are you applying against those strategic goals? And how are they performing?
The ability to get all of that organically is going to be the magic of the system.
So Brian, back to the System of Work. How is the go-to-market engine positioning this to the enterprise as something relatively new versus the installed base of products? How do they articulate the value? And what activity are you seeing in your customer base for System of Work, indications of interest, pipeline build, that sort of thing?
Yeah. Great question. So firstly, a huge level of interest from our customers. I think the evolution that we've made as a go-to-market sales organization is we've really pivoted on the value conversation, which I would say has been something that we've invested heavily in since I've arrived. Now we're focused on really a new touchdown at like 50% of our users are actually in the business, which for me, coming into Atlassian, was a real surprise. I'm sure it's a surprise for many people out there as well, and actually, what a great position of strength to be in is that actually the fastest growing pool of our users is actually in the business as well, so where we're spending our time and our focus is on really understanding what is the value that our business users are deriving from the usage of our software.
So now when we look at Teamwork Collection, before we even start pitching System of Work, it's to really understand what is the.
Teamwork Collection is the product SKU or the super SKU. System of Work is the concept that you use to articulate [crosstalk].
Execution by the product, basically, by which they will use it. So to really understand what's the value that they're getting from this solution. And that's going to be an area that we continue to invest in more and more. It's certainly a great conversation starter with our customers. And obviously, with our recent announcements, we expect to see more and more interest and obviously a pipeline build over the coming weeks and months.
Got it. We were intrigued by The Browser Company acquisition. Tell us, if you take a step back, I'm sure there's a lot of things that are going on in the browser today, the caching of intent, how the LLM companies, the foundation models, companies that have a chat application also want to build a web-based front-end. You've seen Perplexity building something. And the other LLMs might build variations of the browsers. There's a lot going on all of a sudden in a product that's been around for 30 years, right? What is your assessment of what's going on? Why has that become one of the strategic battlegrounds in software? And what is Atlassian's intent behind the intent to do this Browser Company?
Yeah. It's definitely at an interesting point of time in market because I think the capabilities that AI has introduced have brought into focus the question of what is the user interface going to be, so if you think about earlier technological evolutions, with the internet, the browser became pretty much the prime surface area where people operated, and with mobile, it was on your device, and so with AI, you can do a lot of things with LLM, but currently, it's sitting in a chat box. Everybody can see that as it evolves, it's not going to just sit around in a chat box. It's going to evolve to the next level of how can I experience the power of this in the context of my work, in the context of my day, and the browser is the natural home for that evolution to occur.
The reason behind why Atlassian bought The Browser Company is we strongly believe that the browser experience is going to be the best place to collect context about what you're trying to do.
Assuming that somebody works on ChatGPT through a browser, right?
Not just ChatGPT. So let's say for a typical knowledge worker, they spend about 85% of their time on a browser today because a lot of services they use are delivered via the browser. But only 10% of people have access to an enterprise browser. As a result, what's happening is a lot of context, a lot of where work happens, yeah, that context gets lost. Whereas our thesis with the Browser Company is Atlassian has invested heavily in R&D to make enterprise-grade products before. Atlassian has a really strong Teamwork Graph, which has well over 80 billion objects and connections already. So in addition to the context that we capture through AI agents and the surface area of our own applications, there's work happening outside the Atlassian universe whose context is helpful for a knowledge worker to be able to use.
Our thesis with Arc is that we want to build that enterprise browser where all of your work can happen. You have one home for work to happen, but you're able to use AI-native skills inside of that context.
Inside the browser.
Exactly. So a very concrete example is if Kash has a thesis on Atlassian's business and you've written that over a Confluence document or a Google Doc or something like that. Then you saw an interview on YouTube that Anu did about the evolution of Atlassian's business. Then you have a third browser tab open with the earnings letter of Atlassian. Now you want to ask the question of how does Kash's thesis change based on what Anu said in her interview, based on what the earnings letter said about the latest new releases they've made? You can go to the browser and ask that question directly because it has context as these three tabs.
Even though they're happening in entirely different work apps, the browser is the place where you can integrate context across those three tabs and make sense of what's happening in all of those areas, and that context also has personal memory, which basically means Kash was doing this analysis on Atlassian three months later, when you open it and see the next quarterly earnings call and transcript, it remembers what your thesis was before.
Got it. Got it. The end user has to be on the same browser with multiple windows open, accessing multiple applications for this to happen, right? How do you ensure that I'm not on a Chrome browser when it comes to watching YouTube and I'm not on The Browser Company browser when I'm working on Atlassian?
Yeah, so this is why I think the enterprise and consumer contexts are very different. In an enterprise context, typically IT orgs will want you to access your work apps through a browser that they believe is secure and trustworthy.
That's Edge in our case.
And so typically IT organizations choose a set of browsers that are capable. Now the thing that sets The Browser Company apart from all the million other browsers out there in market is their sense of taste. So they've been able to develop this really beloved product used by over a million users. I'm a big fan of Arc, and I wouldn't part with it for anything.
I got to download it and check it out.
So I've been using it for years. And it really makes the knowledge workers' workflow very productive. So it's very sticky and earns a lot of loyalty. So it plays very well with the Atlassian playbook of where we first optimize for usage and adoption and then use that to go wall to wall, similar to the Teamwork Collection story that Brian was describing.
Then the opportunity will be very early days still, clearly, right? Then the opportunity to monetize for us will obviously be via our collections as we go to market to embed the browser into our collections as opposed to having at least our enterprise sales team being a standalone motion for a browser. That's not the vision. It would actually be to embed it into our.
Loom and also run on the browser on The Browser Company.
Loom.
Right.
Yeah.
Exactly. Yeah.
Interesting. We could spend the whole discussion on what AI is going to do to the front end. But I'm curious, do you see and you hinted this that browser changed the face of enterprise software. And that's exactly been my view. Sridhar, CEO of Snowflake, was here on Monday. And we just found out that he and I went to school in the same city, either side of the street, two different colleges. He went to IIT, I went to Guindy. And I opened up saying, you know, it's a story of 1985- 1989. One guy went to IIT, the other guy went to the top 10 college, but not IIT. And we got into this conversation. Towards the end, we had a couple of minutes.
I said, "Sridhar, do you have any question for me?" He said, "So what's going to happen with AI and software?" I said, "You know, the browser changed the face of enterprise software." We thought at that point in time when Salesforce got going with the browser front end that a consumer tech company like Netscape, et cetera, could ruin enterprise software and create, "Hey, this looks so good. And people don't like software. So let's just bring in a Yahoo or somebody." That didn't happen. The converse happened that companies like Salesforce, NetSuite, Workday, et cetera, they used the browser front end as a way to engineer the UI. One thing led to another. The application presentation layer changed. Then the whole SaaS thing got going, right?
When you take a step back, you've been in the tech industry for long enough to understand these cycles. How does AI change? How does AI change the way enterprise software works? The front end, the back end.
Yeah, so fundamentally, what is enterprise software? It serves a set of needs that people within an enterprise want to get to, which is typically some set of business workflows. I think fundamentally what AI unlocks is the ability for enterprises to now reevaluate what does it take to do those workflows. Earlier, what used to take eight hours, does it have to take eight hours now. And earlier, the kind of skill set that I required to produce this application that tracks devices, laptops across my enterprise, does the application have to look like that? And does the developer have to have that skill set? Given all of those are evolving, this is why at Atlassian we think a lot about teams, and those teams then constituting the enterprise.
How does teamwork actually change when you have AI agents being capable of doing the work of what human beings used to do in the past and being able to do it a lot faster and potentially at a much lower cost? So when that happens, I think what we imagine as the constraint today, software is very much supply constraint, not demand constraint, right?
Yeah.
So I think what that basically means is we will now enter this world where software is going to be much more custom. Software is going to be a lot more ubiquitous. And therefore, what can companies do, enterprise companies do to serve that universe? How can you curate software? How can you manage software? And how can you really orient it in a way that it serves your business? That's exactly why we talk so much about the AI System of Work because ultimately we believe that if you unleash all of the teams, no matter what work they do, and bring them together on a connected platform, you're able to do a lot more within an enterprise than you were able to do ever before. And that's an exciting place to be in.
And do you see how the Atlassian, Jira, Jira Service Management, Confluence, that front end look and feel of it changes because of AI? Does it all become a prompt? And then you get deep into the application, then you pull in and go layer deep.
I think there's two fundamental ways. One fundamental way is the app surface area remains the same and is powered by AI agents. This is what we do in JSM, where we have an automated resolution agent which is able to take a lot of the tickets. For example, what's the payroll policy in Estonia? Because I have three employees in Estonia. What does that look like? So you're able to answer a lot of those questions automatically and send them to the places where work is happening versus ask users to come to a specific area. It's what we call the universal help desk, and JSM ships that in the form of hubs.
A second place is where using things like MCP server, for example, we released an MCP server built for Claude where you can basically query Claude to say, "Hey, what are the remaining tickets on my backlog for this sprint?" And you're able to get the answer within the context of where you're working. But as soon as you have to go into deep work, you really need some form of specialized surface area. And what is that surface area going to be is really the quest for enterprise software.
I just realized it's been so fascinating. It's only two more minutes, and I had so many questions for Brian, but now we'll get to you. Brian, how is go-to-market changing in the new fiscal year? Not changing in a disruptive way, but you've worked at a massive company, SAP. What are the things that you're bringing from your SAP days to Amplify go-to-market and Amplify the cloud migration sales motion of Atlassian, which we all know is a big opportunity?
Yeah, so firstly, we are increasing our spend this year in sales and marketing. You will see that over the course of the year, which means that we are literally hiring more people, both from a sales perspective and then from a customer success perspective as well, which is great news for us. We have invested heavily in terms of our own internal systems as well. We have revitalized our own leadership across the board, specifically in terms of the ecosystem, where I would say we had a little bit of a distance between ourselves and the ecosystem. Now we clearly have aligned goals between what's important to us and what's important to all of our partners, which is incredibly important because they do a significant portion of our revenue for us as well.
Then at the same time, we have clearly incentivized our field from a sales perspective in the right way. I would say we had some room for improvement there from when I came in. We recently made an announcement around the end of life for Data Center. It feels like a couple of days ago. It was only yesterday. That's obviously a big change for us. We were ready for this one. We have invested heavily around Business Value Advisory, whereby we're going to be partnering with our customers now to really, truly unlock the value of moving to the cloud and what this means for our customers. This is something from my own past with what I did around SAP and RISE. This is something that we had learned a lot from and have some of the scars.
But this is something that we are, I would say, more ready for at Atlassian than in my prior life. And we have invested ahead of the curve, so we're ready to go. And in addition, we have worked very closely with our engineering teams so that we set up a team called FastShift, which helps our customers move quicker to the cloud, which also helps train the ecosystem as well. That, in conjunction with training our sales teams, has set us up for coming out of the gate quicker in FY 2026. And then maybe the last thing that I would just say is that we're really focusing on execution. Execution is the difference between good and really being awesome. And that's something that I've been pleasantly surprised with, how well we have done in Q4 and expecting us to do a lot of good things in FY 2026.
Brian, we wish you well in the years ahead, and Anu, super excited to see what you're going to do next. I'm sure the world is going to open up, whether it's VC, another private company, public company. I'm super excited for you. I think you're a world-class talent. I think you're going to do amazing things.
Thank you so much, Kash.
With that, let's give a round of applause.