44.4%. That's how fast $TEAM's remaining performance obligations grew in Q1 FY2027.

44.4%. That's how fast $TEAM's remaining performance obligations grew in Q1 FY2027. Customers are locking in bigger, longer commitments, and the company is still guiding growth lower. Long-term holders get a contract cushion. Anyone paying up for reacceleration gets a slower guide.

• Atlassian reported Q1 FY2027 on Nov 5. Revenue was $1.772B, up 24%. Subscription ARR was $6.812B, up 22.5%. Cloud revenue was $1.302B, up 30.5%.
• RPO hit $4.746B. Management attributes the growth to larger and longer customer commitments. That points to sticky contracted demand. It doesn't show ARR is speeding up.
• The guide is what the market reacted to. FY2027 subscription ARR growth is expected at about 18.5%, below Q1's 22.5%. Q2 cloud growth is guided to about 27%, below 30.5%.
• The stock closed Nov 10 at $148.60, down 4.07%. It was quoted at $149.99 pre-market on Nov 11, up 0.94% from that close.

My read is that the demand base looks solid. The growth rate is still heading down by the company's own numbers. Before I'd call the AI bull case intact, I want to see whether RPO turns into ARR or mostly reflects longer contract terms. I could be wrong on the timing, but next quarter should show which one it is.

Source:
Seeking Alpha: https://seekingalpha.com/article/4966388-atlassian-ai-growth-keeps-the-bull-case-alive

Not financial advice. For informational and educational purposes only.