Atlassian Corp. Plc. exceeded revenue estimates and reported slightly better-than expected earnings for the fiscal first quarter of 2017, but investors bid the stock down a little less than 2 percent in after-hours trading.

Revenues of $136.8 million for the first quarter were up 34 percent year-over-year. The operating loss – reported under International Financial Reporting Standards rules — was $5.1 million, compared with an operating profit of $7.1 million a year ago. On a non-IFRS basis, the company reported net income of $22.7 million, up from $18.4 million a year earlier. Three-quarters of new customers are buying the company’s cloud services, said co-founder Mike Cannon-Brookes.

Atlassian guided revenue expectations for the second quarter ending Dec. 31 to between $142.5 million and $144.5 million and said earnings should come in at about three cents per share. Both were in line with current estimates.

Atlassian said it added more than 4,700 customers in the quarter to finish with 65,673 customers under subscription or maintenance agreements. That’s a 27 percent increase over the previous year. Excluding customers picked up with the acquisition of StatusPage in July, the customer count grew a still-robust 24 percent.

Atlassian was one of the hottest tech initial public offerings of 2015. With a rare combination of a high-growth rate and profitable business, the company raised its offering price twice to $21 before going public in December. It closed its first day at $27.78 but has hardly budged since then, finishing Thursday at $28.31.

The company has been doubling down on its enterprise business this year with the launch of JIRA Service Desk capabilities for external customer service and support, real-time collaborative editing for its Confluence workflow system, the addition of Amazon Web Services support for JIRA Software Data Center and Bitbucket Data Center, and the launch of a beta test version of its HipChat Data Center chat tool. Confluence has more than 30,000 users and HipChat is generating more than a billion messages every seven weeks, the company said.

Executives said the Atlassian ecosystem continues to be of its strongest assets. There are more than 2,000 add-on modules available in the Atlassian Marketplace and more than 10,000 developers working on the company’s platforms. “We always want to encourage a vibrant ecosystem and I think we’ve done that really well,” Cannon-Brookes said.