MongoDB Shares Down Sharply on ‘Mixed’ Outlook
2022.09.01 16:14
MongoDB (MDB) Shares Down Sharply on ‘Mixed’ Outlook
By Senad Karaahmetovic
Shares of MongoDB (NASDAQ:MDB) are trading more than 16% in the red in early Thursday trading after the software business offered “disappointing” guidance.
MDB reported a Q2 loss per share of $0.23, which was better than the analyst estimate of a loss per share of $0.28. Revenue for the quarter came in at $303.7 million versus the consensus estimate of $284.37 million.
For this quarter, MDB sees Q3 EPS in the range of -$0.19 to -$0.16, worse than the consensus of -$0.14. Revenue is seen at $301.5 million (the midpoint of the range), better than the consensus of $294.85 million.
On a full-year basis, the company is calling for a loss per share of $0.35 to $0.28, much worse than analyst estimate of a loss per share of $0.21. Revenue is expected in the range of $1.196 billion to $1.206 billion to top the consensus of $1.19 billion.
An Oppenheimer analyst said the results and outlook are impacted by a slowdown in macro spending.
“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. 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 TAM. We see the potential for further enterprise adoption as MongoDB expands its GTM footprint and progresses on its product roadmap. Adj. est. for results/guidance,” the analyst further noted.
A Barclays analyst slashed the price target to $360 from the prior $438 to reflect deceleration.
“The short term share price reaction will likely be negative as the street had assumed that the buffers created last quarter were enough. Longer term the story remains very well intact though,” the analyst told clients in a note.
