Atlassian shares plummet after hours despite record-breaking quarterly revenue

The news: Shares in Atlassian sunk in extended trading despite the software giant halving its operating loss in the second quarter and posting 21% revenue growth.

The numbers: The Australian firm posted quarterly revenue of USD1 billion ($1.52 billion) for the first time, with the group's operating loss down to USD49.1 million compared with USD99.22 million in the previous corresponding period. Net income was USD189.5 for the second quarter, up from $US114.7 million a year prior. Atlassian said it expects total revenue for the third quarter in the range of USD1.085 billion to USD1.105 billion.

The Nasdaq-listed firm saw its shares drop more than 8% in extended trading.

The context: Co-founder and co-CEO Scott Farquhar highlighted major milestones for the second quarter, with Atlassian hitting USD1 billion in quarterly revenue for the first time, as well as surpassing 300,000 customers. The quarter also saw Atlassian acquire video messaging platform Loom, which the company hopes will boost its AI offering.