atlassian corp shares dropped in the extended session thursday after the business collaboration software company’s earnings and revenue outlook fell short of wall street expectations as executives saw signs of economic weakness taking hold atlassian team shares plummeted 25 after hours following a 1 rise in the regular session to close at 17417 the company reported a fiscal firstquarter loss of 137 million or 5 cents a share compared with a loss of 4112 million or 163 a share in the yearago period adjusted earnings which exclude stockbased compensation expenses and other items were 36 cents a share compared with 37 cents a share in the yearago period revenue rose to 8074 million from 614 million in the yearago quarter analysts surveyed by factset had forecast 40 cents a share on revenue of 8063 million atlassian forecast revenue of 835 million to 855 million for the second quarter while analysts expected 8793 million on average according to factset executives also decreased their revenue guidance for the full year without providing a specific figure for overall annual revenue instead they gave color in a letter to shareholders about the different revenue segments within the company in that letter to shareholders atlassian’s cochief executives and cofounders mike cannonbrooks and scoot farquhar said that the company tracked slower conversions from free to paid subscriptions for its freemium software and slower paiduser growth from its paying customers in the quarter “the above two trends are the result of companies tightening their belts and slowing their pace of hiring in other words atlassian is not immune to broader macroeconomic impacts” they wrote “our outlook assumes these trends will persist but we’ll monitor respond and keep you updated accordingly” “we will focus our investments on strengthening our market position and scooping up toptier talent in this environment but we will balance these investments with the growth of our business and be responsive to the macroeconomic conditions” they continued “so while we’re lowering our revenue outlook for fy23 based on macroeconomic headwinds we are maintaining our midteens  operating margin outlook for the year” atlassian was worth roughly 44 billion at its closing price suggesting a loss of more than 11 billion in market capitalization if the afterhours losses hold through friday’s regular trading session atlassian shares have already declined 543 so far this year as the sp 500 index spx has declined 211