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MongoDB falls despite earnings beat

Key Points
  • MongoDB beat earnings and revenue estimates.
  • The company went public in October.
The IPO of mongoDB at the Nasdaq in New York, October 19, 2017.
Source: Nasdaq

MongoDB stock fell as much as 7 percent on Tuesday after the company reported better-than-expected earnings for the third quarter of its 2018 fiscal year, which ended on Oct. 31.

  • EPS: Excluding certain items, loss of 44 cents per share, vs. loss of 48 cents per share as expected by analysts, according to Thomson Reuters.
  • Revenue: $41.5 million in revenue vs. $39.6 million as expected by analysts.

After the initial drop, MongoDB's stock price fluctuated in after-hours trading but stabilized down 5 percent from the closing price of $29 at the beginning of the earnings call.

Excluding certain items, the company's loss widened from $15.2 million to $18.5 million year over year, according to a statement. Then again, the company's revenue was up 58 percent year over year.

MongoDB was the first database company to go public in more than 20 years, CEO Dev Ittycheria said on the call. Shares of the database company's stock began trading on the Nasdaq in October. Shares were initially traded at $33. Competitors include IBM, Microsoft and Oracle, as well as cloud providers like Amazon and Google.

The company also beat analysts' estimates for guidance for the fourth quarter of its 2018 fiscal year, which ends Jan. 31, 2017. For that quarter, MongoDB expects a loss of 42 to 43 cents per share and revenue of $42-42.5 million for that quarter, according to a statement. Analysts polled by FactSet had been expecting a loss of 44 cents per share and $41.3 million for that quarter, according to StreetAccount.