MongoDB suggested a coming slowdown in its second-quarter earnings report, and the news sent MDB stock plummeting Thursday.
After the close Wednesday, the database software company reported revenue of $303.7 million. That topped estimates of $284.4 million, driven by strong subscription revenue growth. It reported an adjusted loss of 23 cents, vs. expectations of a 28-cent loss. Subscription revenue was $291.6 million, an increase of 52% year over year.
But MongoDB provided third-quarter revenue guidance in the range of $300 million to $303 million. That came in below analyst estimates of $306.3 million, according to FactSet. The company expects an adjusted loss for its third quarter in the range of 16 cents to 19 cents. Analysts expected a 14-cent loss.
MDB stock plunged 25.3%, closing at 241.11 on the stock market today.
MDB Stock: Eye Out For Signs Of Weakness
"We come away incrementally cautious with an eye out for signs of weakness in the enterprise segment and expect near-term volatility until consumption trends stabilize," Oppenheimer analyst Ittai Kidron wrote in a note to clients.
He added: "Longer-term, we remain bullish on MongoDB's growth opportunity and believe the company has successfully positioned itself as an enterprise-grade database provider in a large addressable market."
Kidron maintained an outperform rating on MDB stock.
"We believe MongoDB is well positioned to benefit from long-term secular trends around next-gen databases, the cloud, and digital transformation," Monness Crespi Hardt analyst Brian White said in his note to clients. "However, losses persist, valuation is rich, the economy appears to be in a recession, equity markets are in turmoil and the geopolitical landscape daunting."
MDB stock has an IBD Composite Rating of 70 out of a possible 99.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
