MongoDB ( NASDAQ: MDB ) shares fell more than 20% on Thursday as investment firm Monness, Crespi, Hardt stayed cautious, despite the company reporting better-than-expected results and guidance.
Analyst Brian White, who has a neutral rating on MongoDB ( MDB ), called the outlook for the third-quarter "uninspiring" and the fact it expanded its loss guidance for fiscal 2023 did not help shares.
"We believe MongoDB is well positioned to benefit from long-term secular trends around next-gen databases, the cloud, and digital transformation; however, losses persist, valuation is rich, the economy appears to be in a recession, equity markets are in turmoil, and the geopolitical landscape daunting," White wrote in a note to clients.
During the second-quarter MongoDB ( MDB ) lost 23 cents per share, excluding one-time items, on $303.66M in revenue.
Looking to the full-year, MongoDB ( MDB ) now expects revenue to be between $1.196B and $1.206B, compared to a previous outlook of $1.172B and $1.192B. However, it now expects to lose between 28 cents and 35 cents on adjusted basis, compared to a prior forecast of an adjusted loss between 16 cents and 31 cents per share.
Analysts expect revenue on $1.19B and an adjusted loss of 23 cents per share.
In addition, White noted that MongoDB's ( MDB ) Atlas platform saw a slowdown in growth, as it accounted for 64% of total second-quarter revenue, but revenue only grew 73% year-over-year, compared to 82% growth in the first quarter.
Quarterly billings of $303.4M also missed White's estimates of $326M.
The analyst explained that the tone of the call was "downbeat" due to reduced Atlas consumption, but MongoDB's ( MDB ) management is still going to spend generously for growth, adding to worries.
Last month, investment firm RBC said that MongoDB ( MDB ) was one of the top stock picks when the economy emerges from a possible recession .
For further details see:
MongoDB plunges as Monness, Crespi, Hardt stays cautious despite Q2 beat, guidance boost