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Why MongoDB Stock Tanked Today

By Evan Niu, CFA – Sep 3, 2020 at 1:22PM

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The database specialist reported fiscal second-quarter results.

What happened

Shares of MongoDB (MDB -0.61%) have tanked today, down by 9% as of 12:30 p.m. EDT, after the company reported fiscal second-quarter earnings. The results topped expectations, but the broader market is aggressively selling off and may be dragging the stock down with it.

So what

Revenue in the fiscal second quarter increased 39% to $138.3 million, which was ahead of the consensus estimate of $126.8 million. That resulted in an adjusted net loss of $12.7 million, or $0.22 per share, which was better than the $0.40 per share in adjusted losses that Wall Street was expecting.

MongoDB's leaf logo

Image source: MongoDB.

"MongoDB's strong second quarter performance reflected impressive sales execution and the growing strategic importance of our modern data platform in solving many of our customers' most complex digital transformation challenges," CEO Dev Ittycheria said in a statement. "The record number of direct sales and total customer adds in the quarter are clear proof points that our focus on getting more customers onto our platform is working."

Now what

The database technology company's guidance for the fiscal third quarter calls for revenue of $137 million to $139 million and an adjusted net loss per share of $0.45 to $0.48. Analysts are modeling for $130.7 million in sales and an adjusted net loss per share of $0.38. MongoDB raised its full-year guidance and now expects revenue of $549 million to $554 million for fiscal 2021, up from a prior forecast of $520 million to $530 million.

A slew of analysts reiterated buy (or equivalent) ratings this morning and raised price targets.

Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends MongoDB. The Motley Fool has a disclosure policy.

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