Atlassian Corporation Plc (NASDAQ:TEAM) Q3 2018 Earnings Conference Call - Preliminary Transcript

Apr 19, 2018 • 05:00 pm ET


Atlassian Corporation Plc (NASDAQ:TEAM) Q3 2018 Earnings Conference Call - Preliminary Transcript


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Good afternoon, ladies and gentlemen. Thank you for joining Atlassian's earnings conference call for the third quarter of fiscal 2018. As a reminder, this conference call is being recorded and will be available for replay from the Investor Relations section of Atlassian's website following this call. I will now hand the call over to Ian Lee, Atlassian's head of investor relations.

Ian Lee

Good afternoon, and welcome to Atlassian's third-quarter fiscal 2018 earnings conference call. On the call today, we have Atlassian's co-founders and CEOs, Scott Farquhar and Michael Cannon-Brookes; our chief financial officer, James Beer; and our president, Jay Simons. Earlier today, we issued a press release and a shareholder letter with our financial results and commentary for our third quarter fiscal year 2018. These items are also posted on the Investor Relations section of Atlassian's website at

On our IR website, there's also an accompanying presentation and data sheet available. We'll make some brief opening remarks and then spend the rest of the call on Q&A. Statements made on this call include forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management's beliefs and assumptions only as of the date such statements are made. Further information on these and other factors that could affect the company's financial results, including filings we make with the Securities and Exchange Commission from time to time, including the section titled Risk Factors in our most recent forms 20-F and 6-K. In addition, during today's call, we'll discuss non-IFRS financial measures.

These non-IFRS financial measures are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with IFRS. There are a number of limitations related to the use of these non-IFRS financial measures versus their nearest IFRS equivalents, and they may be different from non-IFRS measures used by other companies. A reconciliation between IFRS and non-IFRS financial measures is available in our earnings release, our shareholder letter, and our updated investor data sheet on our IR website. I will now turn the call over to Mike for his brief opening remarks before we move to Q&A.

Michael Cannon-Brookes

Good afternoon. Thanks, everyone, for joining today. We had a great start to 2018. This quarter, we grew revenue 40% year over year and generated over $86 million of free cash flow. We also added 6,587 net new customers, the most we've ever added in a single quarter and a big step toward our goal of serving the Fortune 500,000. In February, we kicked off the Atlassian Team Tour, where we've been unveiling product updates, sharing the latest in team practices and discussing the future of teamwork with almost 3,000 users and partners. We've almost completed our tour across 11 cities worldwide, and it's