Atlassian reported fourth quarter revenue of $1.77 billion, significantly exceeding consensus estimates as enterprise demand for cloud and AI capabilities intensified. The company achieved GAAP profitability for the quarter with a 12% operating margin, while subscription ARR grew 23% year-over-year to $6.6 billion, highlighting strong adoption of the "System of Work" platform.
Key Highlights
- Cloud revenue reached $1.21 billion, representing 31% year-over-year growth and outperforming the $728.5 million estimate.
- Remaining performance obligations (RPO) grew 44% to $4.8 billion, driven by record numbers of $1M+ and $5M+ enterprise deals.
- Fiscal 2027 revenue growth is guided at 13%, reflecting a projected 17% decline in Data Center revenue due to cloud migration and timing impacts.
- CEO and co-founder Mike Cannon-Brookes announced a 10b5-1 trading plan to purchase up to $250 million in Atlassian common stock.