Shares of database company MongoDB (NASDAQ:MDB) were up 11.8% at 2:30 p.m. EST on Thursday. There was no company-specific news, with the gains possibly driven by a broad stock market rally. The tech-heavy Nasdaq Composite index was up nearly 2% an hour and a half before close.
MongoDB stock has soared this year, up 170% year to date, thanks to rapid-fire revenue growth. The company develops the open source MongoDB database software that has been downloaded more than 40 million times, making money from services and subscription offerings. MongoDB's recent products include Atlas, a managed cloud database service, and serverless platform Stitch.
MongoDB's second-quarter revenue soared 61% year over year to $57.5 million, beating the average analyst estimate by nearly $6 million. Atlas revenue grew by 400% year over year, accounting for 18% of the company's revenue. While MongoDB is still a small player in the database market in terms of revenue, its rapid growth is certainly making waves.
MongoDB is an expensive stock, trading for nearly 18 times trailing 12-month sales. The company also isn't profitable, losing $21.1 million on an adjusted basis in the second quarter. MongoDB could grow into its valuation if it can keep up its growth rate and eventually turn a profit, but the stock will likely be volatile in the interim.