$TEAM Main Products Performance and Updates in the Last Quarter Cloud Services Cloud revenue continues to drive Atlassian’s growth, crossing$5 billion in ARRwith30% YoY subscription revenue growth. Cloud gross margin improved to85%, supported by engineering-led efficiencies. Upsell to premium and enterprise SKUs rose 40% YoY, highlighting growing enterprise trust. Over1 million monthly active usersnow engage with Atlassian Intelligence, marking a major milestone in AI adoption and retention. Paid seat expansion in SMB stabilized. Enterprise migrations and multi-year deal activity remain strong. Jira Jira remains the flagship product. Jira Service Management (JSM) has grown into a$500M businesswith over55,000 customers. Growth is fueled by platform leverage, AI enhancements, and tight integration across the toolset. Atlassian’s end-to-end visibility across the software lifecycle cements Jira as a central workflow engine. The rollout of Jira Product Discovery in premium and enterprise tiers expands reach into product workflows. Demand remains strong for enterprise-grade features and automation. Confluence Confluence is benefiting from broader cloud and AI momentum. Loom is now integrated into collaboration workflows, adding value. Atlassian Intelligence and AI-generated meeting summaries are expected to deepen user engagement across documentation layers. Trello No new updates were provided. It continues to integrate within the Atlassian suite. AI-powered automation and summarization are likely improving its utility, but Trello is not a key focus for enterprise expansion right now. Bitbucket Bitbucket Pipelines supports a hybrid monetization model—seat-based and usage-based. It’s strategic to Atlassian’s developer operations strategy and integrated with AutoDev. Bitbucket showcases Atlassian’s flexible pricing capabilities already live in core workflows. AI Agents & Rovo AI is scaling fast. AI feature usage is up25x YoY, andover 1 million usersinteract monthly with Atlassian Intelligence. Rovo and AutoDev are still early-stage but position Atlassian ahead of the curve withvirtual agentsthat go beyond chat—they execute tasks, navigate access permissions, and take structured actions. Rovo supports both first-party and user-defined agents. Developers reporthours saved weekly. Use cases are growing in service, HR, and support. Atlassian’smulti-model AI strategy—30 models from 7 vendors—combined with its proprietaryteamwork graphcreates a clear moat. Over50 discrete AI capabilitiesare live across the product suite. AI is already nudging customers to higher-tier SKUs, driving 40% YoY growthin upgrades. Data Center Q3 guidance implies 7% YoY revenue growth, supported by pricing, seat expansion, and cross-sell. Large deals are increasingly structured as hybrid ELAs, giving rights to both Cloud and Data Center. Many customers still run50–100 instances, delaying full cloud migration, but most are on a path forward. No technical blockers cited. Strong multi-year contract attach rates are improving billings even as revenue recognition lags. Innovation & Product Updates Key product launches include Rovo, Compass, and the premium tiers of Jira Product Discovery. Atlassian is executing on its “system of work” vision—becoming the operating layer for modern, tech-driven companies. It is building an enterprise-ready teamwork graph that powers AI, search, and agent functionality across the stack. Internal usage of AI agents has already saved thousands of hours. Loom is now AI-enhanced, with 38 million videos edited by AI in 2024 alone. Enterprise Search is now deeper and more connected. The company is pushing forward in agentic computing, maintaining a leadership position in the virtual teammate category. AI capabilities are deployed at scale and continuously updated under a rigorous multi-model framework.