Atlassian Reports Accelerated AI Adoption and Cloud Growth
Atlassian Corporation PLC (NASDAQ:TEAM) is experiencing a growing tailwind from artificial intelligence as adoption of its Rovo capabilities accelerates. CFO James Chuong highlighted at Citi's TMT conference that agentic automations have tripled in six months, with over 80% of Fortune 500 companies using Rovo. The company plans to begin charging for certain metered AI features by December. Cloud growth remains robust, with fiscal fourth-quarter revenue rising 28% year-over-year to $1.8 billion and cloud revenue growing at a faster pace than previously reported (31%). Atlassian is also capitalizing on Data Center-to-cloud migrations, where customers spend significantly more after transitioning. Management aims for a positive GAAP operating margin of 4.5% in fiscal 2027 while continuing to invest heavily in AI and enterprise expansion. Chuong emphasized the company's focus areas: AI integration via its Teamwork Graph, cross-selling across product collections like Jira and Service Collection, and durable profitable growth.
Tickers: $TEAM
Topics: AI adoption Cloud growth Enterprise expansion Financial outlook Rovo AI capabilities