Atlassian Corporation Plc (TEAM) Management Presents at Baird 2022 Global Consumer, Technology & Services Conference (Transcript)

Jun. 08, 2022 2:20 PM ETAtlassian Corporation (TEAM)
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Atlassian Corporation Plc (NASDAQ:TEAM) Baird 2022 Global Consumer, Technology & Services Conference June 8, 2022 12:15 PM ET

Company Participants

Cameron Deatsch - Chief Revenue Officer

Conference Call Participants

Rob Oliver - Baird

Good afternoon, everybody. Thank you for joining us for day three of Baird's Global Consumer, Technology and Services Conference. My name is Rob Oliver, I follow the SaaS sector here at Baird. And it's my distinct pleasure to have Cameron Deatsch, the Chief Revenue Officer from Atlassian here. Cameron, good to see you. Thanks for coming.

Cameron Deatsch

Thanks for having me.

Rob Oliver

For those who don't know, our view at Atlassian is one of the most exciting, if not, the most exciting story in software, which I realize is a bold statement, but product like growth story, tremendous innovation, an unparalleled partner network and platform that is extensible. But rather than hearing from me, let's talk about with the guy who was there when you guys were -- how much in revenue? What are you doing when you started it?

Cameron Deatsch

About 500 employees, $150 million in revenue.

Question-and-Answer Session

Q - Rob Oliver

Okay. So you've seen a lot. So there'll be a lot for us to talk about. Before I got ask the question on the macro just to start and I feel like you guys are potentially a little less macro sensitive, just because you guys sell software for $15 dollars per user per month in many cases. But maybe just talk a little bit of what you're seeing in the macro Cameron to start?

Cameron Deatsch

Yes. It's a pretty standard question this week, I think. Yes. Broadly, if you looked at our entire funnel right now from visits to our website, sign ups, free usage, conversion, short of Russia, you would not know that there's anything different in our funnel. You would not know that there's any macroeconomic effect based on what we've seen on just all of our standard organic channels and what have you. So that's good. And we haven't really seen anything today. I was in Europe a month ago, chatting with our teams in Amsterdam, which is our European HQ, and they cover all the markets and they largely felt the same. They felt very confident in the last -- next coming months that businesses as usual, if not getting stronger. So that's fantastic.

Rob Oliver

And just why do you think that is? Because some are feeling it and you've been at other companies with maybe -- with more traditional software sales, is that part of it or what?

Cameron Deatsch

Yes, there's a couple of reasons for this, like, one is, if people are tightening their budgets at Atlassian's products like we are, try to be the value leader. So when you're a CIO trying to cut budget, we're never towards the top of list. We're usually on page three of things. So that's definitely -- we're not getting scrutinized from the cost. In addition to that, while we serve agile software development market, IT service management market and broader collaboration, the core business was that software development, that software developer and the broader trend is regardless of macroeconomic. I don't think there's any unemployment lines filled with developers anytime soon. And as people continue to hire developers and all the people around the organization to support developers, be productive in their businesses, that's largely that core kind of Jira software user base that feeds a lot of our business.

Rob Oliver

You mentioned some of the products that you guys are focused on. Jira is really the legacy of the company, not a legacy product, but really kind of you guys became a global phenomenon really on the back of Jira kind of revolutionizing the way software development is not really, I mean, rally, it was just the old example. That'd be like comparing Jive to Slack, I guess, right? But -- so talk a little bit about the products today. You mentioned IT service management, some of the product focus coming out of your user event. Where are you guys focused right? And then I want to kind of use that general question to drill down a little bit in some of the product lines.

Cameron Deatsch

Yes. And the way we describe this is, we have one big transformation going on, which is our cloud transformation where we obviously started in 2002, shipping on premises software. 2009 we started -- we offered our first cloud offering and now we're very much cloud first, cloud future and have a big initiative to get as many, if not, all of our on premises customers to our cloud offering. So that's a major driver of our business broadly.

As we look to the market as a whole, we really slice it into three different markets, Agile DevOps like core software development, and that's where Jira software plays, Bitbucket plays, a later product that we just announced called Compass, and I can talk about that. And our whole strategy for Agile DevOps is, the software development tool chain is an exceedingly complex thing. An average developer uses between 25 and 40 applications to get their job done. And we are core hypothesis that developers will always want to use the latest and greatest thing. So our open DevOps strategy is to continue to integrate with all of the latest tools in the market, either integrations we build or incentivize other people to come build to have access to our customer base. And what we want to own or be the source of truth of is the status of work across that development tool chain. So that when companies are spending millions of dollars on their expensive development resources, they know what they're getting for that investment.

Next to the Agile DevOps market, strong adjacency in IT service management. We had an offering there called Jira Service Management, it's based off the same Jira offering core workflow capabilities, but obviously a variety of bespoke features, both built as well as acquired to provide a comprehensive IT service management offering. And there we are hovering -- it's largely a cross sell expansion within to our 220,000 customers. We have 40,000 Jira service management customers today. We continue to grow rapidly in our SMB space and in the enterprise space, we're replacing large legacy vendors or coexisting with other corporate IT standards. So that's our big Jira service management space.

And then the last category we look at is, what we call work management for all. Our company mission is to unleash the potential of all teams. Our goal there is that, every single knowledge worker in the world wakes up and uses one or multiple Atlassian products to work with their team and get the work done. And there we have a variety of offerings, Confluence, Trello, Jira Work Management. We're consciously attacking that enormous market category simply for the fact that we believe teamwork is so complex that different teams, different individuals, different cultures, different businesses, all work and -- track and manage work in different ways. And that actually requires different tools, different offerings to handle that different complexity. Our latest offering that we just launched to kind of glue that all together is a product called Atlas, where we brought a new product to market, knowing that it won't be just Atlassian products, but many different products that solve this thing called, how do we manage work. But what is the common thing across all of those teams was the one commonality, and we saw like kind of three common things. One was, every team has to tell someone else what work they did, like the status of their work. They have to tell someone else are they achieving their goals for that work. And the last is, they largely have to say us who is working on this stuff? And that's -- those three things are the only common, real common thing across all project management tools. And we feel it's like, let teams use whatever they want, whether it's an Atlassian product or competitive offering or a heck they're using like a piece of paper as they're writing down their tasks. But what we can provide as a common layer across everything for those three things, status communications, goals, and who's working on the team. And with Atlas we feel that's the offering that glues all of our offerings together, but also all the other offerings in the market.

Rob Oliver

I think it was about five or so years ago. I can't remember exactly when Scott and Mike on the call said, hey, we're really going to double down on the IT department, maybe four, five. And initially it struck me because, I'm like, hey, you guys really own the developer, but then we realized, like, how much other opportunities there were in there and you just talked about it with Agile DevOps and ITSM. So I want to talk about each of those a little bit, just so on the Agile DevOps side, you alluded to all of the different vendors that are serving that, whether it be Git vendors or whatever. So again, what is the strategy there? It doesn't -- you do have some competitive offerings in some cases, but it doesn't seem like your goal is displacement there. So maybe talk a little bit about that.

Cameron Deatsch

Yes. So in the Agile DevOps, our strategy there is specifically called Open DevOps in our core. And if you look to the market, there's many different DevOps vendors that think we can build of those 35 to 40 tools. They can build features of every single one of those and put it in a single box and charge $250 dollars per developer for it. We believe that is a flawed approach. We have -- our two founders are two developers at heart. They always know that developers are going to use the latest and greatest thing. The developers have no problem assembling different pieces into their development tool chain to get their jobs more productive. And that there always be assembly of best of breed across the board.

So whether a customer uses Bitbucket or GitLab or GitHub, that's fine, we integrated all three beautifully. The place that we want to own is one that status of work across that tool chain. And because of Jira's predominance, any new vendor comes to DevOps is in the developer lifecycle. We'll inherently integrate with Jira will come and build an app in our marketplace. And, of course, we have strategic partnerships with other DevOps vendors in monitoring and security and you name it. So we want to own that status of work. And by we have all those integrations that makes us very sticky. Moreover, development is more than developers. That's where the pricing model is really important. If we charge $250 per user for Jira, because that's -- we could command that for a developer, no one's ever going to pay for a product manager or a designer or a program manager or the rest of the business for that, but really an expensive seat. So we consciously priced Jira software very affordably not to maximize revenue at the developer seat, but to ensure that the entire business can come into Jira software to collaborate with the development team. And we see that's actually part of the magic as that bridge between the dev and the rest of the business organization.

So that's largely our strategy. Only other piece on that is, increasingly as these development expenses get larger and larger, become a larger slice of the overall organization's pie, companies continually say is, what am I getting for that investment? What are people working on? How is it tied to our company goals? And more importantly, how is it tied to our business outcomes? And in the enterprise, that's a very difficult thing. When you have thousands and thousands of developers, it’s very, very hard to tie shipping code to revenue, or any sort of business objective. That's where a product called Jira Align, which was an acquisition we did from a company called AgileCraft, which allows you to add hierarchy to your development structure to tie actual individual tasks and work to your company objectives.

Rob Oliver

That's great. So that's Agile DevOps. Let's talk a little bit about ITSM, IT Service Management. This is an interesting market from my perspective, because most of us probably could game service now and we both must probably know a big player in this market. But when you get down market, it's hard to name players. It's hard -- they're not always top of mind it. And it might be because, smaller and medium sized companies really didn't need ITSM traditionally or maybe they did or maybe there's homegrown solutions. But at the end of the day, it feels to us in our conversations in the market like, this is becoming an absolute imperative digital transformation everyone has to have it. And this has been a huge success story for you guys. I mean, to your service desk, I think, it was the fastest growing product in Atlassian history. And now we feel like you have this opportunity as you move to the cloud with Jira Service Management. So talk a little bit about how you view that opportunity and how that's helped you guys to kind of expand your offerings into that group?

Cameron Deatsch

I think this is like Jira Service Management, which was Jira Service as before is a -- it's like a Harvard Business Review Case Study in how to build a -- do multi products and cross sell on to your base. What -- and I'll just talk about the initial, like, why do we build this thing to begin with? We had a customer problem, and the customer problem was, customers were complaining that it was too hard to submit tickets into Jira. Right? The form was too complex. I had to log in and navigation. Like, I just want to get a ticket in there, we have a quarterly innovation spike called Shippett, where we have a big competition internally when people and the team shipped. A very simple form that you could embed in any particular web page is an embeddable form that allowed you to very simply submit tickets into Jira. In analyzing the way we sort of come look at that. We say if we combine that with a core set of SLA capabilities for few other features, we actually have a pretty good lightweight helpdesk product. That's what we built. As we put that together, we shifted it to our customer base, called it Jira Service Desk, charged very little amount for it, and started getting rapid adoption.

And over the years, the customer use cases get more sophisticated. We start getting more and more investment behind that. We layer on the top of that. And then as you mentioned like two or three years ago, we said, you know what? We finally have -- we checked 90% of the boxes, we're in the Gartner Magic Quadrant, we're in the Forrester Wave, we're enterprise grade, let's double down on all this, both from a go to market and R&D investment. We acquired a couple of technologies that closed out the rest of the gaps, for asset management, for workflows, for forms, you name it. And now we have this comprehensive IT service management solution that inherently is being adopted by our SMB customer base at high volume. And you got it meant, like, what we are replacing there is email spreadsheets, and for those really small customers, we offer three agents free. So it's like once you just hire your first IT person, use us, we doesn't cost you anything. When you get big enough and you have your fourth IT person, you start paying us. So we have that nice seed of a bunch of free usage.

And in the large enterprise, there's basically two versions of the world out there. There's big legacy vendors that's been around for 20 years, and that's a very easy conversation. We have a much more innovative approach to go to. That's very value oriented. And then there's obviously another very large player out there, who has become the corporate IT standard. And we've run this play forever. We ran it against IBM 15 ago. It's like, we will find small pockets of use where people want to stay -- keep their IT teams close to dev. They want to move fast. They don't want to spend ton of money for customizations and workflows. And we'll get little pockets in those organizations and coexist with whatever the corporate IT standard is. Over time, we'll see more and more usage and more and more usage. And eventually, it forces the conversation of what are we going to standardize on.

Rob Oliver

We're fortunate to be able to do checks with your partner network, which I want to talk about in a minute. But when I do speak with your partners or go to partner events and it's nice to be packets of now in person. We hear from them sometimes things that you guys won't necessarily say. So I'll put the words in their mouth, which is that, we're coming for those guys. That's -- the feeling among some of your partners is that, we have an opportunity longer term here because of the value, because of how like the solution is because of the innovation and because of the model and all the other costs associated with integration and stuff, and then the total cost of ownership, a real opportunity here. And you mentioned enterprise grade, so maybe rather than just ask the question, hey, how do you compete with ServiceNow? Let me ask it this way. How do you think about those enterprise opportunities? And if there were like say, like a large Help-to-Help chain today that was like, hey, we want to standardize Jira Service Management with lessening. Is that something you guys could do?

Cameron Deatsch

Yeah. And we do it today. Like, there's plenty of big companies out there that are still on 20 old legacy vendors that are for whatever reason, they haven't innovated, they have to come to a decision, they have to make it. And we're already there, right? That big hotel chain already uses Jira software, and probably already uses Confluence, we already have relationship, we're already established and we have a very good value prop. Flexibility, inexpensive and do you believe your development teams and your IT are coming closer together in the future or staying in separate departments. Largely, they're coming closer together. If that, we have incredible technology solution for you. But that's -- when it comes to the enterprise, our strategy was never knocked on the CIO's door, asked for a $5 million check, right? Make them a big bet and then come in and deliver. The way we've always done it is, start with a small pocket here. May be most a customer, like, every Atlassian customer started never talk to an Atlassian, right? They organically adopt us for small use cases here, small use cases here. So by the time that CIO of the big hotel chain needs to come and make a decision, hopefully if we've done our job right, we already have 10 or 15 internal use cases with very happy users that we never sold to. They picked it themselves and they go to their users like, hey, the people want to use this, let's standardize on it. I think that's our play. It's not about going in and like ripping out the whatever's entrenched. Our goal there is, hey, what is -- who's the underserved audiences in our customer base within these big corporations, of which there are many, right? And make it as easy as possible for them to see value in our products.

Rob Oliver

Got it. Super helpful. Yes, please send some questions, I'll try to get to them and I’d not just dominate the Q&A myself here. But -- and let's talk lastly about that work management space. We had Asana here the other day. I think SmartSheet reported last night. When we talk about work management, I mean, there's a long list of names that are -- everybody's aspiring to own the billion knowledge workers out there, but I love these large TAMs. So talk about the competitive advantage that you guys have in work management and the success that you've had getting into the nontechnical user, which is sometimes remarkable to investors, how well you guys -- it’s a bit of an eye opener that you have as much nontechnical usage as you do.

Cameron Deatsch

Yes. So there was a Jira software, we talked developers so much, but 47% of Jira software users are non-developers, non-technical. Right? And that's because development teams don't live in isolation. Development is more than developers. Development is actually core to how businesses operate today, which means everyone needs to come in and work on those development teams. And that's for Jira software, which was for software development specifically. Our goal, our company mission is, unleashed the potential of all teams. Our goal is to get, once again, have every single knowledge work in the world, wake up and use one of our products, of which we have many to track their work. But yet even in that core software development use case there's tons of non-development use cases.

The other approach to this is like, you don't see us doing Super Bowl ads. We are on the most efficient go to market business. That's what my goal and job is to continue to build this incredibly efficient sales and marketing machine. And do that on the back of the company strategy, it depends on over investing in R&D, which allows us to build better products with higher CSAT and higher NPS, allow those products to be adopted for free or very inexpensively across large amounts of the industry, geography, regions, you name it, to attract thousands and thousands of more customers every single quarter. And we've done that, and with every single quarter we continue to expand that. And then we want offer new products. We've offered four new products in the last twelve months, all of that goal to continue to offer this -- go after this super complex thing called teamwork. Right? And we realize that actually teamwork needs multiple products. There's going to be multiple opportunities. Layered on top of that, as of two years ago work is forever changed. It's nice being in here and talking to all of you actually in person again, but it's like, we're never going back to how things were. There will always be like, there's a massive cultural transformation for how all of us are going to work together and work with our colleagues, which is going to bring in even more opportunities for us to innovate and bring new technology to the market to take on this new massive challenge. And that's what's exciting. That's what Mike and Scott, our CEOs and founder spend majority of their time talking about.

Rob Oliver

You mentioned the -- where you spend your money and with that product leading on R&D. It strikes me in another market with a company that's in a model transition to cloud, that would be understood that the margins would be under pressure a little bit and you -- but of course, nobody's giving any of the benefit down in this market. And so your stock is not getting the benefit, let's say, an Autodesk did or that Adobe did and others. But that having been said, talk about those costs associated with the transition? And where you guys are putting resources right now, clearly to product, but also to other areas as well to support this cloud move?

Cameron Deatsch

Yeah. I mean, the big investment in the last five years was building a world class SaaS platform. I think in ‘26, we roughly went public in 2016, 2017. We made the conscious strategic decision that we are a cloud first company, that our goal is that we get all of our customers to our cloud eventually. And that we had a -- we've already been in business 14 years, we had some of the biggest companies in the world using our products on premises managing their hardware. So asking them to move, trust us with your data, with your core infrastructure, with a mission critical application, it's a big ask. So we invested heavily in our cloud platform, heavily. We basically built a centralized cloud platform that provides infrastructure capabilities, identity, security, common feature and functionality, go on and on, analytics, automation. And that was a multiyear investment with a huge portion of our development base or our customer base. We two years ago made the decision, conscious decision of, hey, you know what? We're actually really ready to start moving customers over. We announced end of life of our server line of products, gave a three year time window and started migrating customers over. Of course, as those customers over, we find new things, new requirements, and we have the majority of development effort to make sure we knock down those requirements as soon as possible. Bring your own key encryption, FedRAMP, HIPAA, you name it. You're like, you name the acronym, we have that list. We're knocking off the acronyms.

That said, it's like we're not through all of that, but a lot of the hardest work there is done, which has allowed us to free up more development energy towards those three markets I described. How do we continue to lead in Agile DevOps, dig a deeper moat around Jira software through improved integrations. How do we continue to execute on that massive IT service management opportunity, which is multi-billion dollar opportunity. And of course, deliver on that company mission, which is the work management for all. The best part and I've been here for 10 years, what I love is like we are the crispest in our strategies that I've ever seen across those three markets. Historically that’s with multi products, we kind of threw it to different markets, different buyers. We really look at the three markets, we look at our product suite within each of the three markets, our buyers, our competitive differentiation and our roadmaps and we're very, very clear on what we need to do in each.

And also, like, we've been multi product for a long time, so we actually can handle that overhead of attacking three different massive markets with massive TAM. And that's the place -- that's why we're continuing to invest. We have full belief that any additional investment is going to pay returns.

Rob Oliver

Got it. Yes. No, that's great. Let's talk a little bit about the cloud migration and see uplift or the change relative to what the customers are paying. So large customers, I think, it's two times to three times increase over time. Medium customers are also going to see an uptick. Some small customers may pay a little less. So just talk a little bit and I think you used to run data. Did you used to run data at DC?

Cameron Deatsch

Yeah. So before being the CRO, I ran all of our server and data center.

Rob Oliver

Got it. So you know a lot of those folks really well.

Cameron Deatsch

They're my people.

Rob Oliver

Yeah. That are your people, exactly, and you try to cajoule them up, right? But how -- so talk a little bit about the conversations you're having there. I mean, again, that cloud uplift is, it's to be expected, right, for these transitions. But you guys are also -- as you mentioned, investing in product, I mean, there's a lot more value you can deliver your customers when you get them up. I just think even about Jira Service Desk versus Jira Service Management. Think about all the value that the customers can receive for that. So talk about those conversations and how it's impacting the pace of conversion if you will?

Cameron Deatsch

Yeah. For every single customer, it's a if – sorry, not an if, it's a when. And when are they going to be ready and when are we going to be ready for that. Like, they're all very well aware of our strategy. They're aware of why we're doing these things. And they're also aware of the various carats we put out there to help them go to cloud, as well as the sticks we offer out there to keep them that they're going to pay I they stay on, they're going to pay a premium to stay on prem over the long term. And they understand that, we're very fair across all of that. The best thing we lead with it is like, for the big customers there is a significant step up in price per user. A lot of that comes down to Atlassian's history where when I started the company, an unlimited license of Jira was $8,000 with a $4,000 renewal. Unlimited use, right? So they were always anchored especially in those very large companies with are very low, like, pennies on the dollar price per user. When you go to our cloud, it's going to be $5 or $6. That's a step change and it's not like we're fighting the value. People are just like, is it Jira software with $5 per user for your $20,000 person organization? Absolutely. The problem is, why they have been paying $070. Right? So it's a budging exercise. I'm like, okay, we can have that conversation and we provide a variety of incentives to bring it over, we have ROI models, but the biggest thing is, like, in the end, even if it's that six times seven time, like, how much do you spend on your developers? We're such a small fraction of the actual spend for the technology team. It's one of just a budgeting exercise that we help people over.

More importantly, we have very clear proof that when people move over, they're happier. They have CSAT surveys that show both. Like, you're going to have happier people. You're going to use our products more, which means you're getting more value and you're going to expand faster. Because it's just simply easier in the cloud to use new tech, use more features, and for us to understand what's being used and deliver more delightful experiences. So in the end, everyone's winning. It's largely getting through the technology hurdle of how do we get this data from here, up into here, which is something we're good at. And of course, the financial discussion, which is, how do we help build a business case? Which is not an impossible exercise.

Rob Oliver

I want to touch -- we're running out of time here. I want to touch briefly on the partner network. As Chief Revenue Officer, you've got this field force that is incredibly powerful and unique, so far as, yes, I mean, some of the, I think -- was it Accenture that was at your event? Yes, Accenture was at the user event. But for the most part, if you dig into the Atlassian network, it's 700 companies and unless you're paying attention, you might not have heard of. And they're doing, in many cases, 100% of their revenue within the Atlassian ecosystem. And so it's extremely unique and powerful. We often get calls from private companies asking to talk about it, they want to know how we analyze it and how you do it, because clearly it's something people want to replicate. So talk a little bit about the partner network, how it has contributed, how it is contributing now towards the cloud move? And then the other ways that they drive value and receive value from the Atlassian platform?

Cameron Deatsch

Yeah. And a lot of this was our first decade in business. We kind of outsourced the customer interaction to, like, we basically say go to the website, try and buy it if you like it. And if you need to talk to someone, go talk to a partner. That's what we did in the first decade, right? Like, there was no magic to that, it was -- we're good at building software we are not good at like doing demos and filling out RFPs, but our partners is, so we have this great partners. Those partner network and like, some of our biggest partners 10 years ago is still our biggest, like, they grew with us, they actually all grew faster than us, because not only did they ride the license growth, which is what we're tied to, but they're able to offer value add consulting on top of that. And now we have these guys -- I mean, they're currently at this [indiscernible] 10% shops and now we have 300, 400 shops, it's amazing to see. You talk to them, their number one limitation, is like the number one thing keeping you growing faster. And after they yell at me about like, hey, more marketing and all that stuff, but then they're like, it's we can't hire fast enough. They're simply tied to how many people they can hire and like that's a good constraint they have. So we continue to feed that. They are -- when the cloud transition, customers can transition themselves. The bigger and more complex customers, I strongly cajoled them to say, go get a partner. Like, you don't want to do this yourself, get a partner, and we'll bring in the right ones to help you through that, because it's a technical exercise.

On top of that there's this thing beyond the technical consulting is really how do you help teams work in different ways, the changed management, the cultural aspect, the rituals and practices, the business consulting that goes along and that increasingly these partners have built up or acquired these incredible firms to come in and help with the actual hard part, which isn't the tech, it's how do you get people to behave in different ways. And I think that's another massive opportunity. And now we're big enough the global SIs that are coming knocking, right, which is fine, but it's one of -- and I feel like play with the global SIs that can provide massive scale and customer relationships. And of course, we're increasing there, but it's one of those where we don't lose sight of these partners that get their businesses, tie it to Atlassian, deliver a ton of customer value and like that's something I absolutely just admire with them and let's continue to partner.

Rob Oliver

Yes, that's great. I want to touch briefly also on the marketplace. There's significant revenue contribution in the marketplace and apps within the marketplace. I mean, you talk about how some of these guys are growing faster than you view. It's incredibly robust ecosystem of companies and that's another way and you guys have data around like the stickiness that's created around those that use apps on top of Jira core products and other Atlassian products and maybe talk about that? And then particularly, as you now are moving to sort of standardize that as you get into the cloud a little bit.

Cameron Deatsch

Yes, the -- one of the magical things, what's got very Atlassian approach. We didn't go set outs 15 years ago to build a marketplace. The problem we solved was the roadmap, the requests as the customer base got bigger, the feature requests always outpaced our ability to deliver in a roadmap, right? There was a lot more customers, more requests, inabilities. So how do we solve that problem? Let customers and our partners build their own damn features. And how do we do that? The legend says that Mike, our CEO, on a flight home to Australia wrote the first plug in framework. So that allow you to customize, build get new capabilities on top of Jira and Confluence. Okay. I don't know if that legend's true, but we'll reinforce it again. But that is simply up. And it was like we wasn't [indiscernible] this company started building plugins and they wanted -- and they started sharing plugins which are email to us. They're like, oh, we'll build a website. Simple little website where people can publish their plugins up to that website, and we're sharing with other customers. And we started realizing that -- start talking to customers and all -- everyone started to have multiple plugins put in. They're like, yeah, but we don't trust them. It's hard to find them all those stuff. Like, great, we built the marketplace. And allowed these people to charge for their plugins. A bunch of people that were like IT admins, building plugins at their company for Jira just took their apps, started own company and are now millionaires. So it's like crazy stories. And then that's only grown ever since then. As we go to the cloud, we had to rebuild all of that magic. And in the cloud, it makes it much harder because, having someone ship their code into our infrastructure comes with some different technical challenges. The big one there is we're investing in basically platform as a service called Forge, which allows our partners, our customers to actually write custom code, deploy apps, and they host it in our infrastructure, meaning, it's secure and gets all the benefits of our cloud platform. So that's our big investment we're putting forth today. We have over 3000 apps in the marketplace. They continue to grow. It's like I said, very vibrant. And as long as our customer base continues to grow, the number of people that want to build apps for those customers will continue to grow and that's been taken care of itself.

Rob Oliver

Unfortunately, we're out of time. Hopefully, we've got a sense for the excitement of the Atlassian story. Cameron Deatsch, Chief Revenue Officer, I want to thank you very much. Good to see. I appreciate you come to the Baird conference.

Cameron Deatsch

Thank you, everyone.

Rob Oliver

Great. Thank you, everybody.

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