Atlassian Q2 2022: Key Takeaways

February 2, 2022

On January 27th Atlassian released their earnings report for Q2 2022. Following on from announcement heavy quarters in Q4 2021 and Q1 2022, Atlassian didn’t try to invent the wheel this time around. Instead, Atlassian opted to take stock of past developments and, indeed as we can see from the key figures, reap the rewards of what they’ve sown.

10,000 New Customers

Over the past 3 months, Atlassian has netted 10,000 additional customers. This means Atlassian’s total customer count across all of its products is now a whopping 226,000.

Often Jira (quite understandably) is lauded significantly as the backbone of Atlassian’s growth, however, it is worth noting that there are now over 75,000 customers on Confluence and 35,000+ on Jira Service Management.

Where these new customers are landing is also very interesting…

It’s All About Cloud

98% of the 10,000 new customers in Q2 opted for Atlassian Cloud.

This, along with significant numbers of customers upgrading to Premium and increasing numbers of customers migrating to the Cloud, meant that Cloud revenue was up 58% year-over-year.

Naturally, most of these migrations were from Server to Cloud with the end of life of Server nearing. However, approximately one-third of total Cloud migrations in Q2 came from Data Center–an interesting development that only spells good news for the future of Atlassian Cloud.

For many larger Atlassian customers, the biggest barrier to moving to the Cloud is various compliance regulations that they have to abide by. In Q2 Atlassian went some way to overcoming this issue in the financial services industry. Atlassian Cloud achieved compliance for the financial services industry in EMEA–this should make it easier for many in this industry to begin their journeys to the Cloud.

If you’re interested in learning more about migrating to the Cloud, then check out what we can offer you here.

End of Server

Figure 1: Server End of Life

The Atlassian Marketplace

This quarter the Atlassian Marketplace reached an important milestone, passing $2 billion in total revenue.

At Blended Perspectives, we are big believers in the incredible value that the Atlassian Marketplace provides customers and Atlassian’s figures are bearing this out.

Atlassian notes that customers add 28,000 apps to their Atlassian products each year while the Cloud figures are particularly encouraging. Cloud sales from the Marketplace were up 131% year-over-year in Q2 with Cloud apps now making up nearly 50% of Marketplace listings.

At Blended Perspectives, our MARS database of 3rd party applications means that we are uniquely situated to help Atlassian customers get the most out of the incredible value available on the Atlassian Marketplace. You can read more about MARS here.

December 2021 500 Club

Figure 2: MARS 500 Club

JSM Continues Going Strong

In Q2 Forrester recognized Jira Service Management as a Leader in Enterprise Service Management. More importantly, perhaps, was the fact that Forrester also gave Atlassisan the highest possible score for enterprise service management strategy–the only organization to achieve this feat.

Atlassian also continued to improve its service management offering this quarter by acquiring Percept.ai. Percept.ai’s virtual agent technology can help automate day-to-day support interactions through its AI that analyzes intent, sentiment, and context to personalize interactions while transitioning conversations to human agents when necessary.

Figure 3: Forrester Enterprise Service Management

The Growing Atlassian Family

As Atlassian continues to grow its customer count, it has to keep up with the increased pressure to scale and innovate. Atlassian now has over 7,000 employees around the world with the rate of hiring only increasing.

Atlassian is also committed to a flexible employment approach with over 40% of new Atlassians hired in 2021 living more than two hours away from the nearest office. Atlassian believes that this approach helps them overcome many of the hiring difficulties that other organizations have faced over the past year or so as well as allows them to attract the best talent from all over the world.