Atlassian’s third quarter results were met with a positive market reaction, reflecting management’s emphasis on accelerating cloud migrations and expanding AI capabilities as core drivers of growth. CEO Michael Cannon-Brookes noted that customer adoption of Atlassian’s AI-powered cloud platform continues to rise, with over 3.5 million monthly active users engaging with its AI features. Management emphasized that the transition from data center to cloud offerings is not only broadening the company’s value proposition for customers but also fueling demand for higher-value product tiers and deeper platform integration. On the call, leadership highlighted that the strategic push into AI and a robust partner ecosystem have led to double-digit increases in user upgrades and migration activity.

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While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Atlassian’s Q3 Earnings Call

• Keith Weiss (Morgan Stanley) asked why organic revenue growth guidance declined excluding the impact of cloud migrations. CFO Joe Binz explained the adjustment was due to revenue timing differences and a conservative approach to non-migration growth drivers.

• Kasthuri Rangan (Goldman Sachs) sought details on the cloud migration playbook. CEO Michael Cannon-Brookes described long-term investments in technical readiness and partner enablement, emphasizing that migration strategies are continuously refined.

• Arjun Bhatia (William Blair) inquired about the timing for accelerated cloud migrations post data center end-of-life. Management stated they expect the majority of migrations closer to the 2029 deadline, with variability in interim quarters.

• Fatima Boolani (Citi) asked about the monetization of AI and the adoption of consumption-based pricing. Cannon-Brookes highlighted multiple AI monetization approaches, including credits and agent-based pricing, noting customer interest and cautiousness.

• Brent Thill (Jefferies) questioned Chief Revenue Officer Brian Duffy’s impact on sales execution. Cannon-Brookes credited Duffy with driving large enterprise deals and deepening relationships across sectors, with a continued focus on Fortune 500 expansion.

Catalysts in Upcoming Quarters

In upcoming quarters, our analyst team will closely monitor (1) the pace and quality of cloud migrations, especially among large enterprise customers, (2) the monetization and adoption of new AI-powered products and consumption-based pricing models, and (3) progress integrating recent acquisitions like DX and the browser company to enhance platform capabilities. Execution on these initiatives and continued partner channel expansion will be key signposts for Atlassian’s strategic progress.

Atlassian currently trades at $161.69, in line with $160.77 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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