Shares in Atlassian Corp. fell about 10% in after-hours trading today after the Australian collaboration software company reported a widening loss in its latest quarter report.

For its fiscal first quarter ending Sept. 30, Atlassian reported a net loss of $31.9 million, or 12 cents per share, compared with a loss of $13.7 million, or five cents per share, in the same quarter of last year.

The adjusted figures were better, with Atlassian reporting earnings per share of 65 cents, up from 36 cents the year prior on revenue of $977.8 million, up 21% year-over-year. Both adjusted earnings and revenue were beats, as analysts had expected 54 cents per share on revenue of $996.1 million.

Operating income rose in the quarter, coming in at $224.9 million, up from $147.9 million in the same quarter last year, on an operating margin of 23%, up from 18%. Atlassian had more than 265,000 customers as of the end of the quarter, up from 260,000 in the previous quarter. Customers with more than $10,000 in cloud annual recurring revenue totaled 40,103, up 18% year-over-year.

Recent business highlights include Atlassian announcing on Oct. 12 that it had entered an agreement to acquire Loom Inc., a provider of a work-focused video collaboration platform, for $975 million, its biggest deal ever.

Loom makes software that provides a way for users to record videos of their computer screens and easily share them with coworkers to provide context to their work and collaborate more easily in teams. The acquisition is said by Atlassian to elevate its collaboration experience and accelerate its mission to unleash the potential of every team.

“We are… extremely excited for Loom, a leading asynchronous video messaging platform, to join the Atlassian team,” Mike Cannon-Brookes, Atlassian’s co-founder and co-chief executive, said in the company’s earnings release. “By integrating Loom into the Atlassian Platform, distributed teams will be able to collaborate in deeply human ways across our entire suite of products.”

For its fiscal second quarter, Atlassian said it expects revenue of between $1.01 billion and $1.03 billion. At the midpoint, the forecast was dead in line with the $1.02 billion expected by analysts. Atlassian did not give a revenue outlook for its full fiscal year, saying only that it expects cloud revenue growth of 25% to 30% year-over-year and data center growth of about 31%.

Photo: Atlassian