“We become incrementally more positive on Atlassian as the company reaches a pivotal moment in its cloud transition. When the company announced its target to grow Cloud revenue (~$1.5bn) ~50% yoy in both FY23 and FY24 at its analyst day in April we saw risk to the durability of such goals as we enter a more challenging macro backdrop. After breaking down the assumptions baked into this outlook, we gained confidence from the assumptions’ weight toward FY24 as TEAM can reach these targets with only ~3% yoy growth from migration revenue in FY23, based on our analysis."