Atlassian Marks Milestone as Cloud-Majority Company, Co-CEO Farquhar to Step Down

Atlassian has long been among the vendors at the forefront of modern DevOps and IT collaboration technologies. While the company has helped many organizations modernize, it has now finally completed a core part of its own modernization.

As part of the company's third-quarter fiscal 2024 earnings call this week, Atlassian revealed that it is now a "cloud-majority" company, meaning the majority of its services are now delivered from the cloud, not on-premises.

Overall, it was a strong quarter, with Atlassian reporting quarterly revenue of $1.2 billion for a 30% year-over-year gain.

"Today, Atlassian is a cloud-majority company — we have over 300,000 customers using our cloud products," co-founder and co-CEO Scott Farquhar said during the earnings call.

"While this is just one significant moment among many across our multiyear cloud journey, we are thrilled with what we've achieved to date," said Farquhar, who will be stepping down from his CEO role later this year.

Investing in Cloud Innovation While Continuing to Support On-Premises

Atlassian continues to execute on its cloud roadmap, with plans for more innovation to help its data center customers transition to the cloud in the coming years. The company is focused on delivering a cloud platform that provides the best customer experience and value through analytics, automation, and AI.

Atlassian's product portfolio includes the popular Jira suite of DevOps and IT work management tools, Compass developer experience, and Loom and Confluence collaboration platforms.

According to CFO Joe Binz, Atlassian is investing in new and highly valuable product innovation.

"To drive migrations, we're delivering a cloud platform that provides the best customer experience and value with analytics and automation and AI as well as better TCO [total cost of ownership] for the customer," Binz said.

The company is also working on scalability, certifications, app integration, and extensibility to support its largest customers in their move from data centers to the cloud.

Despite the shift to the cloud, Atlassian remains committed to its data center offerings. The company has seen strong renewals and demand, indicating the continued relevance and importance of its data center products.

Atlassian Braces for Leadership Transition

Atlassian also announced that Farquhar will be stepping down as co-CEO on Aug. 31, after 23 years with the company. Farquhar will remain an active board member and assume a special advisor role, while co-founder Mike Cannon-Brookes will continue as sole CEO. Farquhar expressed his confidence in the company's position and leadership during the earning calls.

"While there is never a perfect time to step away, I'm supremely confident of where Atlassian is at," Farquhar said. "We've got one of the best cloud platforms in the industry, our new products are gaining real traction with customers and revenue, AI is providing new and exciting opportunities, and our customers are increasingly choosing to consolidate around Atlassian."

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