Good afternoon, ladies and gentlemen. Thank you for joining Atlassian's earnings conference call for the first quarter of fiscal 2017. As a reminder, this conference call is being recorded and will be available for replay from the investor relations section of Atlassian's website following this call. I will now hand the call over to Ian Lee, Atlassian's Head of Investor Relations.
Good afternoon and welcome to Atlassian's first quarter fiscal 2017 earnings conference call. On the call today, we have Atlassian's Co-Founders and Co-CEOs, Scott Farquhar and Mike Cannon-Brookes, our Chief Financial Officer, Murray Demo, and our President, Jay Simons. Earlier today, we issued a press release and a shareholder letter with our results and commentary for the first quarter of fiscal 2017. These items are also posted on the investor relations section of Atlassian's website at investors.atlassian.com. On our IR website, there's also an accompanying presentation and datasheet available. As we noted last quarter, we're moving to a new earnings call format today. We'll make some brief opening remarks and then spend the rest of the call on Q&A. Statements made on this call include forward-looking statements.
Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management's beliefs and assumptions only as of the date such statements are made. During today's call, we will discuss non-IFRS financial measures. These non-IFRS financial measures are in addition to and are not a substitute for or superior to measures of financial performance prepared in accordance with IFRS. There are a number of limitations related to the use of these non-IFRS financial measures versus their nearest IFRS equivalents and may be different from non-IFRS measures used by other companies.
A reconciliation between IFRS and non-IFRS financial measures is available in our earnings release, our shareholder letter, and our updated investor data sheet on our investor relations website. Further information on these and other factors that could affect company's financial results is included in filings we make with the Securities and Exchange Commission from time to time, including our Form 20-F report that was filed on August 17th, 2016. I'll now turn the call over to Scott for his brief opening remarks before we move to Q&A.
Good afternoon. Thanks, everyone, for joining today. We had another great quarter and a strong start to fiscal 2017, ending the first quarter with more than 65,000 customers. The highlight for me over the last few months was definitely Atlassian Summit, our annual user conference. Mike and I personally got to speak with many dozens of our customers and partners. This is our eighth summit. I always leave energized with customer stories and excitement about how Atlassian is helping unleash the potential of teams across their organizations. We heard so many great stories about how our customers are using our products to make their teams more effective and their daily work lives easier. We are also pleased to see and hear how many of our customers have expanded the use of our products across their organizations, often starting small and then spreading to a range of different teams.
Contributing to this success of the summit were the many customers sharing their Atlassian stories and perspective with other customers. Among the amazing group of companies who presented at Summit were BMW, VMware, Netflix, DocuSign, Rockwell Collins, Xero, and GoPro, to name a few. We also showcased a number of innovations across our product portfolio at Summit, such as Jira Service Desk for external customer support, Bitbucket Pipelines, and the beta launch of HipChat Data Center. We have provided more details on these product announcements in the shareholder letter that we have published on our investor relations website. Overall, it was a great event and we can't wait for next year's summit. With that, I will turn the call over to the operator for Q&A.
Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. Our first question comes from the location of Heather Bellini with Goldman Sachs. Please go ahead.
Hey, thank you. This is Jack Hilgen on, filling in for Heather. It was a nice acceleration in customer count growth. Traditionally, I think Jira and Confluence have been the products that new customers would adopt first. I know other parts of the portfolio, like Service Desk and HipChat, have seen great uptake within the installed base. Can you share any stats about how these other parts of the portfolio are sort of leading the way in landing new customers on their own and how they are competing with the competition on a standalone basis?
Yeah, hey, great question. You saw with the Jira 7 launch and Jira Renaissance, where we basically packaged Jira Software specifically for software teams, Jira Service Desk specifically for IT team, and Jira Core for business teams. We've seen both nice expansion from the technical team stronghold that we've established over 14 years. In addition, we've seen nice expansion, both to IT teams with Jira Service Desk, but also beginning to land IT teams with Jira Service Desk as the first product they start with. We've also seen historically, customers start with Confluence as a product to begin content collaboration and then move deeper, both to technical teams with Jira Service Desk and then across the organization with both the Jira, Confluence, and HipChat product families.
Great. If I could just get one follow-up. Sales and marketing spend continues to be extremely efficient. I know the messaging market is a huge opportunity, and it's in its early days. Are there any plans to maybe accelerate some of the marketing spend and pursue more of a land grab strategy here?
Not materially. We spend on demand generation and brand advertising to generate demand, again, word of mouth and that high velocity, low touch model, is what we're going to continue to invest in going forward.
Great. Thank you.
The next question comes from the location of Bhavan Suri with William Blair. Please go ahead.
Hey, guys. Congrats and thanks for taking my question. Just touching on Jira Service Desk. You started to attack the customer support market. You announced that obviously a couple of weeks ago at the conference rather than the internal Service Desk. Can you just talk about how easy it is for current customers to begin using Jira Service Desk to handle external customer support? Who do you run up in that market? I've got a quick follow-up for Murray.
Yeah. Good day, Bhavan. It's Mike. I think it's important to note that the move for Jira Service Desk into customer support is part of a long journey for that product. Obviously we started very hyper-targeted on IT teams and IT Service Desks. Over the past two years, it's obviously expanded heavily into business teams. For legal, HR, all sorts of other service-driven teams inside organizations for all sorts of business and functional use cases, often replacing email and other systems that weren't really good for managing their workflows. What we've definitely noticed over the last 12 months is a lot of customers using Service Desk and requesting features around external customer support.
That's really why you've seen us take that move in the last year, obviously launching at Summit, with customer organizations and a whole bunch of other features inside Service Desk to allow them to do that for external customer support. Obviously, it's not designed for large-scale consumer support as you might do with Twitter or Facebook or those sorts of things. For a lot of organizations with all sorts of external customers, it's a fantastic solution, and it's been really well-received so far.
Great. That's great color. Just one quick one for Murray. Obviously, just good numbers in the quarter, sort of as you look at the full year guidance and the raise and everything else, you just didn't let that flow through. I was just wondering if the linearity of the quarters and the linearity and percentage is done online, has any of that changed? Does that remain consistent?
Hey, Bhavan. Yeah. At this point, in the first quarter, we had some summer seasonality. We also had the last sort of full quarter of our pricing benefit that we've talked about for a long period of time. It's immaterial for the full year, but we did see some benefit as the last full quarter in Q1 is. Now we move into Q2, there's just a little bit left of that. We've talked ad nauseam about that it sort of ends in November for the maintenance piece. For the most part, that's just about out of the system. For the rest of the year, it just tends again to be in our sort of predictable linear model, given that we have such a high level of recurring revenue, through our various subscription lines and a high level of maintenance revenue.
The only thing I guess I'd add, maybe one other item in terms of seasonality is that typically in our third quarter, we tend to see the highest level of renewals on maintenance. It's one of those things, just historically over the years, we tend to see more of that. We'll end up sort of driving more deferred revenue and bookings around just that sort of annual maintenance subscription that happens more in our third and in some cases, into the fourth quarter.
That's great. Thanks for my questions, guys. Appreciate it.
The next question comes from the location of John DiFucci with Jefferies. Please go ahead.
Thank you. Nice job on the quarter, guys. I have a question that sort of looks out a little bit. At the core of Jira is workflow, and it's why we hear of it being used beyond its original purposes of software development. You've capitalized on that sort of informally with Jira Core, also directly with Jira Service Desk. Just wondering if you can talk about any other, what I'll call direct opportunities, to automate other processes with specific applications built on top of Jira. Are there any that you can actually talk about that may be in the works, or is there anything we should expect anytime soon?
Yes, it's Scott Farquhar here. The way I think about this, well, obviously we can't talk about things we haven't released yet. The way we think about the market is there's already a lot of long-tail use cases of Jira in many other departments in an organization, whether it's using it for a financial close process or a legal help desk or marketing, actually adopting some of the agile practices to run their marketing rhythms. We see that a lot, what we have to choose is where do we want to then add marketing energy and other things around there to target specific markets where they're large enough. I don't think that one of those long-term markets, we won't ever put marketing energy around because they're too expensive to try and target directly. Because we're already inside the organization, we've spread horizontally into those markets.
We'll use all that feedback we get from people using it already to then give us direction on where we should invest in the future.
Scott, are there any sort of upside outliers in Atlassian Marketplace? It's something, we see that number, and it's pretty impressive, the growth there. Is there anything there that you can point out that seems to be outliers on the upside? Even areas or specific application type areas.
The way you categorize the Marketplace, we have integrations with third parties. We have areas of functionality that is generic across a lot of different domains, and we also have functionality that's specific to a domain. I think what you're asking about is, in a specific domain, is there any outliers there? You can go to our Marketplace, and it's pretty easy to see what the by using download stats and other ones for you to get a good color on where there's over-performance there. We're not going to break that on the call. We always want to, also, in terms of acquiring or anything out of the Marketplace, we always want to encourage a vibrant ecosystem, and I think we've done that really well by making sure that we play agnostically with everyone in the ecosystem.
Okay, great. Thank you.
The next question comes from the location of Steve Ashley with Robert W. Baird. Please go ahead.
Terrific. I was just wondering if, as you go to market, if you've been able to identify any use cases within other department line of business, within legal department, within marketing, that are just common use cases that you are able to market to and drive your awareness and your adoption into departments outside of the IT department.
Yeah. Hi, Steve. It's Mike. Look, there's just hundreds and hundreds of use cases. We do market, you can see from our website and from some of the other things too, sort of broad bucket use cases. If you look at the HR department, for example, you see a lot of people using us for recruiting and all sorts of other functions. We don't use Jira for recruiting anymore. We used to. As we've gotten bigger, you sort of move out of some of those use cases. There's other use cases in a large corporation, there's thousands and thousands of possible use cases for our products, right? The marketplace solves some of those.
We have a feature called Blueprints, both in Confluence and Jira, that sort of helps you get started with some of the possible use cases that you might want, be it from the HR department, the legal department, in finance. We see a lot of people using it for quarter close. The other thing that's worth noting there is we have an extremely strong community around the company, of users and of user groups in hundreds of cities around the world. One of the things you see them talking about is these use cases and passing that back and forth. Increasingly, we have user groups within individual industries or communities.
We had a life science user group, for example, meet at Summit to talk about different usages of Jira and Confluence in a highly compliant environment like life sciences, and exchanging with each other how they use the products to get that sort of thing done. We obviously try to foster and promote that community-driven activity for the customers to find the use cases of our products.
Great. Murray, I don't know if you were going to give this metric one last time, but the benefit from pricing optimization, you said it would be modest this quarter. I was just wondering if you could maybe quantify that for us.
Yes, Steve, we haven't provided a specific number. It's immaterial in the full year. We did have some benefit in Q1. We're just trying to move on from that at this point. Yes, there was some benefit. You could probably look at the Q1 actual, kind of look at the guidance for Q2, and I know we got a little bit of benefit in Q2, and put some thoughts around that. At this point, it's behind us, and we're moving forward. Hopefully, that makes sense.
Yeah. Thank you.
The next question comes from the location of Brent Thill with UBS. Please go ahead.
Thanks. Murray, the op margin was a lot better than the Street had anticipated. What were you seeing in terms of where the sources of upside relative to plan? Secondarily, can you just talk about the U.S. business? The growth rate actually faded pretty hard. Is that just the law of large numbers, or was there something that you saw more pronounced outside the U.S. that may have had some impact there from running close to 50%? I think this quarter you ran in the low 30s on growth rate.
Yeah. Brent, on the first question regarding op margin, yes. Obviously, we've got a terrific leverage model here, and with solid, strong revenue growth in the quarter, that obviously contributes to higher margin. If you look at the gross margin as it was in our shareholder letter, we had lower depreciation expense. We talked last quarter about this accelerated depreciation. It did begin, but the assets were placed in service a little later in the quarter than we anticipated. That led to less depreciation expense than we were expecting in Q1. It's all going to get made up in Q2 through Q4. By the end of the year, it'll be neutral, but we did sort of get this benefit in Q1.
The combination of those two drove the 86, and we had targeted 84. That kind of flows down to the operating margin. In operating expenses, there were two areas that we came in lower. One was in consulting. We had some projects that we were focused on that we've just sort of moved out later in the year. We probably had too ambitious of a hiring plan in the quarter, and so that led to us coming in lower in head count than planned, so the employer-related expenses associated with that came in lower. It's really those two factors in operating expense, the better gross margin and then the sort of the higher revenue contributed to the high op margin.
In terms of the U.S. revenue, the U.S. is where we're seeing a faster adoption of Data Center, and so more and more moving toward into cloud. They're both kind of moving more to the subscription model and not getting that revenue up front relative to what we see in other geos around the world. That's really kind of driving this transition to more subscription away from upfront revenue. That's slowing it, as well as, obviously, the Americas is a larger number than the other geos.
Thank you.
The next question comes from the location of Sanjit Singh with Morgan Stanley. Please go ahead.
All right. Thank you for taking the question. I wanted to talk a little bit about some of the trends in average revenue per customer. If I back out sort of the contribution from Statuspage in terms of your customer count this quarter, really healthy adds there still. If I look at sort of average revenue per customer, it did decelerate, so I wanted to get some context around that, whether that reflects sort of a mix shift in sort of your product mix or does it reflect some of the fading benefits from the pricing benefits that we saw last year?
Yes, Sanjit. What happens here is that we've said in the past that approximately three-quarters of our new customers that are coming in are going to cloud, and those initial purchase prices, if you will, on cloud tend to be lower than they would be on the server side. And as cloud continues to increase as a larger percentage of our overall business, it's having somewhat of a mitigating effect on that. If we had no new customers in the quarter, then the average revenue per customer would go up. It's really related a lot to that mix, more and more cloud. They tend to be smaller customers, sort of start out with lower amounts and build from there.
Understood. That makes a lot of sense. For Scott or Mike, I sort of had a conceptual question for you. I attended the Atlassian Summit, and there's obviously a lot of healthy innovation going on in the product portfolio. I wanted to get a sense of how you guys think about mapping the goals that you guys have as a company, which is to get your software in the hands of all different types of teams, target 500,000 customers over the life of the company, and how investors should track your progress against those goals. Anecdotally, we certainly hear a lot of positive feedback from your partners and your customers. How should investors think about tracking your progress against those goals? Maybe not necessarily on a quarterly basis, but over time.
Sure. It's a great question. I think obviously in terms of the Fortune 500,000 targeting, I mean, obviously we've passed 65,000 customers there, we're making really good progress towards that from a, I guess, a longitudinal tracking sense, if you like. We've said that we put in place large goals sort of targeting the decade time span. That's probably not going to be tracking on a quarterly basis, right? In terms of the product portfolio and the customer mix, probably what's interesting to watch is over time, if you zoom out to sort of the five- and ten-year time span, you can see us continually simplifying and broadening the appeal of our products at a high level. Jira, we're continually working on the interface and simplification to appeal to an ever greater number of users across different types of teams.
You can see the same thing in Confluence. The focusing of some of those products and parts of the portfolio. Obviously, Renaissance in Jira 7 was a huge shift for us in not just pulling out Jira Core for business users and separating Jira into pieces, but allowing us to get more dedicated interfaces for software teams in Jira Software, right? We actually kind of went both ways on that, which is really important to note. You can see the same thing with Service Desk as we go after service teams there. I think at the long arc of time, you'll see the product portfolio continue to go in those sort of two directions.
As just a quick follow-up, what are your thoughts in terms of the importance of metrics such as monthly active users or the number of customers adopting more than one product, those types of product adoption cross-sell metrics? Is that sort of relevant in sort of tracking your progress? Is that how you guys look at it internally?
It's Scott here. Over the long term, obviously moving those numbers is really important to us, and we do increase the number of active users. We increase all those metrics. There's unfortunately so much variation quarter to quarter, that we don't really look at them on the short term because we add more new customers that averages higher $ per customer and add the number of products per customer is down. We add a few less, and we get more. It bounces around too much on a quarter-by-quarter basis. Obviously all those longitudinal metrics over long term are headed in the right direction, and we look at them closely.
I think the other thing, Sanjit, just to chip in one thing from Mike, I think that's really important to understand is our products are adopted team by team. We'll land in a single team and then a second team and a third team. That's really important for the economics of our model. It's really important for how we build products and how we think about the best way to get software into enterprises to make those teams effective. What you often see, though, is we'll land, for example, in a software and IT team, and there may be marketing users added to that to interact with that software team. We kind of will get the marketing users into Jira, and then they'll go and run marketing projects. Now, when did we move into marketing? Well, the first people there were really still a software project.
It was just marketing people participating. The second shift into a marketing project actually didn't get us any economic benefit because they'd already paid for those users. Long-term, it gets us great economic benefit because they'll start running more and more marketing projects. It's quite a complicated thing to think through the paths through a big organization like that.
Appreciate the thoughts, guys. Thanks.
The next question comes from the location of Michael Turits with Raymond James. Please go ahead.
Michael, are you there?
Oh, sorry. Mute. My apologies. Two questions. First, with regard to the two questions about where you answered that the shift to cloud was both suppressing U.S. sales a bit and then on the revenue side and also ARPU. Is the shift to cloud happening faster than you expected? Do you have enough visibility into how that's going to impact those kinds of numbers on the revenue side going forward at this point? I have a follow-up.
Well, we believe certainly that cloud's the future. I mean, that's obvious. That transition has been ongoing. I don't think we've seen anything that says, hey, that it materially changed one quarter to the other. We definitely are seeing more of that. I think the area that we've seen even a faster uptick than maybe we planned was the move to Data Center, which is a subscription offering. It has the same sort of financial presentation look as the cloud subscription, and we've been really impressed by the way that's been taken up by organizations. At Summit, we heard quite a bit about companies that are moving to Data Center, which is at a higher price from a revenue perspective for us, but also gives them great capabilities that they don't get necessarily just in the standard server product.
We're really excited about where Data Center can go, and that's another factor in terms of the sort of transition from a perpetual plus maintenance to a subscription model.
My follow-up is regarding, margins are down this year because of some currency issues, but also because of this shift to cloud, accelerated depreciation, and the cost that's coming along with the past CapEx. Are you at the point where we can quantify that so we can get some feeling about what kind of margin expansion and leverage we would get into 2018?
Obviously, we've got a great leverage model. We saw what happened this quarter with just some outperformance on revenue and some of the things we had on the spending side and just our ability to sort of hire at that pace. Last year, we were around 17%. We're targeting 16% for the full year this year without that pricing benefit that gave us some great margin results early in fiscal 2016. Great model, but as far as sending any kind of signal for fiscal 2018, we're not providing any numbers there. We did talk, though, about our sort of long-term model for op margin, and that range was 20%-30%. Clearly, we believe that over the longer term, that margins will improve based on our revenue growth opportunities relative to that TAM and our ability to have a leverage model going forward.
Okay, thanks, Murray.
The next question comes from the location of Ittai Kidron with Oppenheimer. Please go ahead.
Thanks, guys. Good quarter. A couple of questions from me. First, on the Statuspage, can you talk about how the integration is going there? Then second, to you, Murray, how should we think about tax rate going forward? I don't think that it was mentioned in the prepared materials.
Hi, Ittai. Look, Statuspage, it's obviously very early in its joining of the Atlassian family now at, what is it? Sort of one to two quarters. Integration's going very well. Team is settled. We shipped our first technical integration with Jira Service Desk, which is obviously the most natural fit for the product, so that when you, as a customer, come to request help or create a ticket, you'll see in the Service Desk portal if there is some sort of a system outage or downtime or maintenance, obviously to stop the request in its tracks. It was extremely well-received at Summit by our customer base from that integration perspective. A lot of people understood the broader incident management story that we're starting to tell there.
It's obviously a critical time to have your teams collaborating in a time of crisis, be it through downtime or something else going on. Statuspage plays a pretty key role there. What's really important is to see how it integrates with all our other products over time. Already people use HipChat in these times of crisis for real-time communications, both with obviously the messaging and then the group video capabilities we also added during the quarter. Both of those are fantastic for the speed of a team communicating. Confluence and Jira have both been used in that incident management process for all sorts of different purposes over time. I think there's a lot of work that the team is doing now and ahead of us on continuing to integrate Statuspage with the rest of our offerings broadly around that incident management story for teams.
Ittai, in terms of the tax rate, our tax rate is really driven because of the mix of where our profits are around the world in different countries because of the different rates, that can move around. When you look at our EPS guidance that we gave at the outset of the year for the full year was 32 to 34, you saw the beat in Q1 of $0.03, you kind of look at our revised guidance of 33 to 34 and trying to rationalize the beat in Q1, how does that flow through in EPS? We have seen a mixed change in where the profits are around the world, and that's led to a higher rate, that's why you see the guidance that we've got for the full year at 33 to 34.
It's assuming an increase in the tax rate because of this profit mix.
Very good. Good luck, guys.
The next question comes from Gregg Moskowitz with Cowen and Company. Please go ahead.
Okay. Thank you, and good afternoon, guys. I wanted to go back to Jira Service Desk if I could. The adoption continues to be really impressive with now over 20,000 teams, curious if there are any trends that you'd point out here over the past few months. For instance, are you seeing any change in uptake levels by enterprise versus SMB or anything that might stand out from a geo perspective?
This is Jay, Gregg. Not materially. I think, again, when you see 20,000 organizations for Jira Service Desk, it's pretty wide and broad adoption across teams of all sizes and all geographies. As we mentioned, I think there's just a nice new growth trajectory starting with IT and business service teams and expanding to customer service and support, where customers want to make sure that they're connecting customers and service requests that customers are making with the teams inside of their organizations that are trying to improve the service for their customers. Naturally, I think we see the expansion of Service Desk once we land with one use case like IT. We see Service Desk expanding to a whole bunch of different types of internal service teams within the organization.
Okay, great. At Summit you announced an interesting promotion for your Data Center products with AWS, which includes significant AWS credits to help get customers started. Wondering if there's been any very early customer feedback that you could point to in regard to that.
That was pretty positively received at Summit, and I think what it sort of demonstrates is just our continued support of customer choice and flexibility, where our products are available both in the cloud, if customers want to deploy them that way and have us run them in server or with the Data Center product line for customers that want to manage them on their own infrastructure. That hybrid approach where customers might want to move to a managed service, but actually have the products run on AWS. It's really early, I think there was a lot of customer requests and demand for it, and it was pretty well received at Summit.
If I could ask one last one for Murray. Your subscription revenue growth is very strong in the quarter, but this was the first time that perpetual licenses have declined sequentially for you as a public company. Are there any high-level thoughts that you could share with us on the magnitude of change in perpetual license growth going forward? Do you view this as more reflective of Q1 seasonality than anything else? Thanks.
It could be a number of factors, but probably the most important one is just, again, more customers are choosing to go to Data Center, which is a subscription offering as opposed to the perpetual offering, and they're choosing cloud. Over time, we continue to believe that we're going to see that kind of a switch. Now, we can have some movements quarter-to-quarter that can kind of bounce around, but the long-term trend is customers are adopting Data Center and cloud before they're adopting server.
Thanks very much.
If you have a question, please press star then one. Our next question comes from the location of Jonathan Kees with Summit Redstone. Please go ahead.
Great. Thanks for taking my questions and my congrats also for this quarter. Just wanted to, I guess, have a follow-up, two questions. One is just a follow-up question in regard to Statuspage. I'm sure you are going to integrate, and we saw some of that at Summit in terms of the two lines that was on top of the Service Desk offering. Statuspage was its own product line. It was unique in terms of it already had its own revenues, and it had a substantial number of customers. Are you going to, even though you're integrating, are you still going to be able to offer that separately, like you would some of the other products? Is your plan just to completely integrate that and mesh that with your other products?
Jonathan, it's Mike here. It's still going to be offered as a standalone offering. Like all of our products, a key part of our model is to be able to land with a single team and then expand to other teams. Similarly, to land with a single product and then expand to the other products. There are no plans to stop the standalone offering of Statuspage. You can see from the customer numbers in the shareholder letter, we picked up a substantial number of new customers that we didn't already have, and obviously, there's potential in those for our other products, but Statuspage will continue to bring in its own internal cohort of new customers to us, as well as obviously be very attractive to our existing customer base.
I know it's pretty early, and regarding that set of customers that are coming in from Statuspage, is there any efforts to cross-sell to them the other products, and what's been the reception so far?
Look, just the normal way that our model works, right? We're a patient long-term company, and we'll continue to do all the normal marketing and promotional activities in-app, out-app throughout the customer base. Obviously, there was a fair bit of focus on Statuspage at Summit, being something new for the existing customer base. You'll see us do just the standard things that we do to get every customer to be aware of every product, again, where it makes sense to that customer. We have great insight into the customer base through the engagement engine about what teams they're on, et cetera. Obviously, Statuspage, very applicable to IT teams and software teams and where we see customers using those products and from those teams. We'll certainly make sure they're aware of how Statuspage can help them.
Okay, great. Thanks for that color. Keep up with the good work, guys.
This concludes our question-and-answer session. I'd now like to turn the conference back over to Atlassian's management team for closing remarks.
I just wanted to say thanks, everyone, for joining the call today. We really appreciate your time and look forward to keeping you updated on our progress as we continue.
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.