Atlassian Corporation Plc (NASDAQ:TEAM) Q3 2019 Earnings Conference Call Transcript

Apr 17, 2019 • 05:00 pm ET

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Atlassian Corporation Plc (NASDAQ:TEAM) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, ladies and gentlemen. Thank you for joining Atlassian's Earnings Conference Call for the third quarter of fiscal 2019. 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. Please go ahead.

Executive
Ian Lee

Good afternoon, and welcome to Atlassian's Third Quarter Fiscal 2019 Earnings Conference Call. On the call today with us, Atlassian's Co-Founders and Co-CEOs, Scott Farquhar and Mike 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 of fiscal 2019. These items also posted on the Investor Relations section of Atlassian's website at investors.atlassian.com. On our website, there is 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. For further information on these and other factors that could affect the Company's financial results is included in filings we make with the Securities and Exchange Commission from time to time, including the section titled Risk Factors in the most recent Form 20-F and quarterly report on Form 6-K.

In addition, during today's call, we will 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 the nearest IFRS equivalents and they may be different from non-IFRS and non-GAAP measures used by other companies. A reconciliation between IFRS and non-IFRS financial measures is available in our earnings release, our shareholder letter and then now in the updated Investor Data Sheet on our IR website.

I'll now turn the call over to Scott for his brief opening remarks before we move to Q&A.

Executive
Scott Farquhar

Good day, everyone. Thanks for joining today. We had another great quarter. In Q3, we achieved $309 million in revenue, up 38% year-on-year and also generated more than $127 million of free cash flow. Over last week, we got to share many of our written product innovations and announcement at one of our favorite events of year, Atlassian Summit, our flagship user conference. This was our 12th summit and the first time we've held it in Las Vegas.

When Mike and I had our first summit 10 years ago,