Atlassian Q3 Revenue Climbs 32% to $1.8B as AI Usage Surges
Atlassian reported Q3 revenue of $1.8 billion, up 32% Y/Y, with cloud revenue at $1.1 billion (+29%) and RPO up 37% to $4 billion. Rovo AI usage rose over 20% month-over-month and Service Collection ARR topped $1 billion, though data center pull-forward and AI token costs may pressure margins.
1. Revenue and Cloud Growth
Atlassian delivered record Q3 results with total revenue of $1.8 billion, marking a 32% year-over-year increase. Cloud revenue jumped 29% to $1.1 billion, while remaining performance obligations reached $4 billion, up 37%, reflecting strong subscription demand and multi-year contract visibility.
2. AI Momentum and Service Collection
Rovo AI platform usage expanded over 20% month-over-month as the Teamwork Graph reduced token consumption and improved AI output quality. Competitive displacements accelerated, and Service Collection ARR surpassed $1 billion, driven by broader non-IT adoption and value-added AI features.
3. Data Center Pull-Forward and Cost Risks
Management flagged a pull-forward effect in data center license revenue that may cause lumpy recognition in upcoming quarters. The multi-year migration of large customers to cloud and rising AI token costs could also weigh on future margin expansion under Atlassian’s seat-based pricing model.