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5 Attention-grabbing Learnings from Atlassian at $3.2 Billion in ARR

So we’ve lined hero firm Atlassian many instances on this collection.  First, it’s an epic bootstrapping success story. Second, it confirmed early you possibly can construct a SaaS and enterprise chief from anyplace.  And third, it’s a SaaS and Cloud chief all of us have opinions on.  We now have a way of.

And Atlassian has been saying one thing for fairly some time — that whereas issues have gotten tougher the previous 18 months or so, patrons are nonetheless shopping for.  Atlassian has seen some modest macro impacts, however they’ve simply stored promoting.  By way of PLG motions, by way of partner-led motions, and thru a modest gross sales staff as effectively.

5 Attention-grabbing Learnings:

#1.  Income Up 31%, However New Buyer Rely Up Simply 8%

That is maybe the place you possibly can see the challenges of scale and macro impacts hitting Atlassian a bit.  Sure, 31% progress at $3.2 Billion in ARR is epic.  Epic.  However they needed to monetize the bottom a good quantity to get there.  New prospects grew considerably, however extra modestly at +8%.

#2.  Massive Prospects Have Helped Gas the Spectacular Development

The brand new emblem depend has been modest, however $500k+ and $1m+ prospects are outpacing the remainder, rising 44%-52%.

#3.  Atlassian’s Mannequin Was Already Fairly Environment friendly.  However It Acquired Even Extra Environment friendly The Final 12 Months, Like Nearly Everybody Else.

Atlassian already spent much less on gross sales and advertising than nearly ever different public SaaS firm.  However that doesn’t imply it couldn’t get much more environment friendly — and it did.  It held heacount principally flat like many different Cloud leaders and noticed Working Margins expan from 14% to a wholesome 22%.

#4.  Free-to-Paid Conversions Down / Powerful in Present Macro, However NRR and Utilization Steady

Atlassian’s largest macro affect is that the low-end, Free customers, aren’t changing on the identical price to Paid as they did within the go-go Days of 2021.  However upsells, NRR, and progress into $1m+ accounts stays robust.

#5.  Nonetheless Hiring and Hiring Quicker Than Prior Quarters —  However Nonetheless Pretty Slowly.

Atlassian remains to be hiring and a bit greater than the previous couple of quarters, but it surely’s going to proceed to keep up a cautious tempo right here.  That is the story with most public SaaS leaders, and most of how they’ve gotten extra environment friendly over the previous 12-18 months.  And regardless of spectacular progress, Atlassian remains to be slicing non-discretionary spending themselves.

 

And our nice current CRO Confidential with Atlassian CRO Cameron Deatsch and Founders Fund Sam Blond right here:

 

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