The company,which is valued at $US56 billion,recorded subscription revenue growth of 36 per cent and total customers rose to 194,000,an increase of more than 11,600 during the quarter.
On a call with analysts,co-founder and co-chief executive Scott Farquhar emphasised Atlassian’s long-term focus on shifting its users from servers to cloud-hosted versions of its software with its server licence sales scheduled to end on February 2.
On a call with analysts,co-founder and co-chief executive Scott Farquhar emphasised Atlassian’s long-term focus on the cloud with its server licence sales scheduled to end on February 2.
“We’re off to a strong start in our multi-year initiatives to migrate our server customers to the cloud,” he said. “While we’re proud of these results there’s plenty of hard work that lies ahead.”
Atlassian forecast a drop in revenue for the next quarter to between $US475 million to $US490 million and said revenue growth would slow through the remainder of the financial year as a result of the company’s slowing server business.
The company said COVID-19 was also affecting revenue with customer churn having an impact on cloud revenue due to the loss of customer’s subscription dollars.
Co-founder and co-chief executive Mike Cannon-Brookes said the coronavirus pandemic had led to increased demand for Atlassian’s workplace software products which include project management tools such as JIRA and Trello and document sharing platform Confluence.