"CEO Mike Cannon-Brookes used the company's Thursday earnings call to reveal Atlassian now has five million users of its Rovo agentic AI offering and suggested that investors in the company might worry that costs would blow out as a result. "We're able to deliver those five million Rovo seats and continue to improve gross margin," he reassured. "That's a huge achievement on behalf of our engineering teams, but it shows that we can manage those AI costs inside for the vast majority of customers.""
"Atlassian runs entirely in public clouds, and Cannon-Brookes' remarks suggest optimizing its operations, rather than high prices, is the reason it's kept margins stable. Which isn't great news for cloud operators, as it suggests at least one SaaS giant has found a way to add AI to its offerings without spending much more. The Australian collaborationware company is, however, sending more business to big clouds by ditching its on-prem datacenter products."
"The CEO also batted away suggestions that Atlassian, like other SaaS companies, is susceptible to attack by AI. "I'm convinced AI is great for Atlassian. Others think software is dead," he wrote in his shareholder letter [PDF]. " In this environment, it seems that noise swamps signal, nuance gets lost," he added. On the earnings call, he expanded on that point by saying Atlassian customers still want its wares."
Atlassian has rolled out its Rovo agentic AI to five million users while continuing to improve gross margin. The company operates entirely in public clouds and attributes margin stability to operational optimization rather than higher customer pricing. Atlassian is retiring on-premises datacenter products and accelerating cloud migrations, reaching $1 billion in cloud revenue this quarter. Executives present AI as an asset that helps customers cut through noise and maintain compliance, security, and trust. The company’s engineering efficiencies enabled large-scale AI seat deployment without materially increasing overall costs, while shifting more workload to major cloud providers.
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