We all love Atlassian ... the $60B SaaS leader that came out of Australia, not SF ... with 2 co-CEOs ... that was basically bootstrapped ... that spends its $$$ on R&D, not sales

Atlassian has now crossed $2B in ARR

5 Interesting Learnings about where Atlassian is now:
#1. SEO, brand and content continue to work at scale.

Atlassian had 21m unique viewers to its website last year, up 30% year-over-year.

A vivid reminder that investments in content and brand pay dividends … forever.
#2. It’s never too late to add a Free edition -- if it's great

Atlassian was relatively late to adding free editions for some of its products, starting in March 2020 (!). But it’s working now. Sign-ups tripled

Atlassian sees Free as key engine of growth for the next decade
#3. 121% NRR overall, 130% in enterprise segment (their fastest growing).

These numbers aren’t a surprise, but they are still top-tier ... and what you should aim for as well if you sell similar products.
#4. A long path to multi-product revenue streams, but today, 40% of Atlassian's revenue comes from newer products, not Jira+Confluence — & that’s growing

A top learning from this series is that to continue strong growth past $1B in ARR, you probably need >1 core product
#5. Atlassian, too, is going more enterprise now. One of the biggest changes from IPO to $2B ARR is just how enterprise Atlassian has gone.

$50k+ customers are growing 44%
$500k+ customers are growing 56%
$1m+ customers are growing 76%.
They now have over 100 $1M+ ACV customers.

We’ve seen Slack, Asana, PagerDuty and Zoom all go much more enterprise post-IPO.
Two bonus points:

#6. Channel partners drive 63% of revenue (!)

A lot of Atlassian’s sales efficiency is driven by its channel partners doing the heavy lifting on sales — and it’s still working well at $2B in ARR. Atlassian only spends 15% of its revenue on sales & marketing.
#7. Atlassian is a cash-generating machine.

Yes, it can be done in SaaS, especially companies that are very efficient in sales and marketing like Atlassian and Zoom.

Atlassian is generating $500m+ a year in free-cash flow:
A deeper dive, our a look back at our convos with @mcannonbrookes, @jaysimons + @michaelpryor here:


• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with Jason ✨BeKind✨ Lemkin ⚫️

Jason ✨BeKind✨ Lemkin ⚫️ Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @jasonlk

13 Jan
I really don’t care at all losing all my money on any investment

So long as

The founders truly gave it all
Never quit
Didn’t just do it “on their terms”
Went wherever customers took them
Never left a lead on the table
Never stopped recruiting
Spent it like it was their money
Actually I’ve never lost money when this was all true

Where I’ve lost money:

- Founders burned money just to hit the plan
- Founders fired people they shouldn’t have
- Founders argued among themselves
- Founders blamed others
- Founders thought money would solve their problems
Where I’ve had a mediocre outcome:

- Founders didn’t want to go enterprise when customers did
- Founders didn’t drive down churn
- Founders didn’t talk to customers every single week
- Founders didn’t recruit VPs after $2m-$3m ARR
- Founders too arrogant in fundraising
Read 4 tweets
12 Jan
What's your "Moat" in SaaS? Do most SaaS companies even have a moat?

10 potential Moats:

#1. Brand.

Brand can be a big moat in SaaS.

Most customers just want to pick the app they’ve used and heard of. We all underestimated this in the earlier days of SaaS.
#2. Data.

Data lock is real. LinkedIn owns the human record. Getting your data out of Salesforce in a >structured< format is really hard.

Build more analytics, more connections, more worflows on customer data.
#3. Structured Data.

Even if data resides in many silos, structuring makes it unique.

And aggregating multiple cloud datasets into one set of data is a moat.
Read 12 tweets
11 Jan
Xero is one of the most interesting SaaS companies we don't talk about that much in the U.S. etc.

They are coming up on $1B ARR, selling to SMBs

Yet, only 17% of their revenue is in the U.S.

5 Interesting Learnings: Image
#1. All the way until $600m+ ARR, the majority of Xero’s new bookings and revenue still came from Australia and New Zealand!

The U.K. has since grown substantially to $100m ARR, but they got all the way to $500m+ selling mainly in Australia+NZ

Nail a niche Image
#2. The U.S. isn’t everything.

The U.S. remains an important but a smallish market for Xero, and isn't outperform the rest-of-the-world.

The U.S. is growing 17%, just a smidge faster than 15% overall growth -- and from a much smaller base. Image
Read 7 tweets
10 Jan
SurveyMonkey is one of the most long-lived SaaS apps, founded 21 years ago!

We all use it and have used it. It just works.

And it's now at $400m in ARR

5 Interesting Learnings:
#1. Eventually, most of us go upmarket.

SurveyMonkey was relatively slow to go enterprise, which suited it well for a long time.

But since it started to march into bigger deals more recently, growth >re-accelerated< ... from 17% at IPO to 20% today Image
#2. Enterprise is now growing 53% YoY and accounts for 29% of total revenue, so the tilt upmarket clearly worked and was the right thing

Yet, self-serve is >still< growing 11% at $400m in ARR

So don't leave the small folks behind Image
Read 7 tweets
4 Jan
Twilio has long been one of our favorite companies at SaaStr, combining B2D + B2B, long-tail, SMB + enterprise, and much more

They are >still< growing 52% at $2B+ in ARR

Here are 5 Interesting Learnings from Twilio:
#1. The Top 10 Customers at Twilio have been 15%-20% of its revenue for years.

Yet Twilio has 200,000+ active accounts.

So they work hard to make a long tail AND big whales work together in 1 company

You don't have to choose. Don't let folks force you to.
#2. NRR has come down a bit from 140%-150% around the IPO, but is still world-class at 137%.

It's a great reminder NRR does not have to come down as you scale

Accounts can remain less than fully penetrated for many, many years

All the way to $2B+ in ARR
Read 8 tweets
4 Jan
I’m no @HarryStebbings, but having done a lot of interviews of busy decacorn and unicorn CEOs, a few tips for podcasts + interviews:

#1. You’ll be surprised who you can get via outbound — >if< the pitch is strong.

Really research guest you want & find a way to appeal to them
#2. Don’t make VIP guests, or any experienced guest, do a prep call.

But do ask if they want to do one.

Some folks will decline the invite if there is too much prep work (e.g., me). Others will appreciate it, especially for top events, podcasts, etc.
#3. Send the list of questions you have for the guest over 3+ days in advance.

I do it in a Google Doc so they can make edits, add stuff.

Everyone reads it. Everyone. So they prep that way.
Read 8 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!