Atlassian passes $5 billion ARR in Q2 FY25, targets enterprise growth

A strong Q2 saw Atlassian pass the milestone of $5 billion annual run-rate revenue, in its earnings report released after market close last Thursday. Revenue of $1.29 billion in Q2 surpassed analyst expectations as well as the company's own guidance, and the stock responded on Friday by rising sharply to a new all-time high, before closing up 15% on the day. Although adoption of Atlassian's AI products contributed to the quarter's performance, Mike Cannon-Brookes, its CEO, focused on enterprise expansion in his commentary on the results, saying:

Currently, we have more than 500 customers spending over a million [dollars annually]. So we have a scaled enterprise business, but we think we can do a lot more. So we're continuing to evolve and change to grow and better serve this cohort.

For example, he believes Atlassian should have a bigger slice of what the company estimates ...