Atlassian Achieves $5.4 Billion in Annual Recurring Revenue

Atlassian, the leading developer software provider, continues its impressive growth trajectory, reaching $5.4 billion in annual recurring revenue (ARR).

  • $5.4 Billion ARR
  • 14% YoY growth with a projected 19% growth for Q4 2025
  • Over 500 customers contributing $1 million+ each
  • Over 300,000 total customers

Key Takeaways from Atlassian's Success

AI Integration is Core

Atlassian has integrated AI into its core applications. This signifies a shift from AI as an upsell to a fundamental component of their product offerings. This strategy is likely to become a standard for many SaaS and B2B companies.

Source: Atlassian Shareholder Letter

Enterprise Expansion Accelerates

While Atlassian boasts a large number of smaller customers, its enterprise segment is a key driver of growth. Customers spending $10,000+ annually increased by 14%.

Source: Atlassian Shareholder Letter

Balancing Enterprise and Long Tail

Despite the focus on enterprise growth, Atlassian maintains a significant base of over 250,000 smaller customers (under $10k ARR). This demonstrates their ability to serve a diverse customer base, including over 500 customers contributing $1 million or more in ARR.

Source: Atlassian Shareholder Letter

Targeting Government Sales

Atlassian launched its Government Cloud platform with FedRAMP Moderate authorization. This strategic move targets U.S. government agencies and partners, with plans to achieve higher compliance standards like FedRAMP High and DoD Impact Level.

Source: Atlassian Shareholder Letter

Strong Profitability

Atlassian demonstrates impressive profitability with 22% non-GAAP operating margins and a remarkable 47% free cash flow margin. This strong financial performance is notable considering their continued investment in product development.

Source: Atlassian Shareholder Letter

Learn more about Atlassian's scaling strategy with former CRO Cameron Deatsch.