MongoDB (MDB) is down 6% despite reporting a strong first report as a public company. MongoDB is the first database to go public in 20 years, is a next generation NoSQL database founded by developers tired of relational databases, allowing developers to maximize productivity.
The company sold 8 million shares at $24/share in October. The stock opened at $33 but has been trending lower ever since then.
MongoDB reported a smaller than expected adjusted third quarter net loss as revenue rose 58% to $41.5 million, more than 11% above estimates.
Revenge growth accelerated from +51% growth in the second quarter. Total customers were up 88% year-over-year to 4,900.
MongoDB uses a freemium model attract developers. MongoDB Atlas, the company's database as a service (DBaaS) offering, reported a 37% quarter-over-quarter increase in customers to 2,600. Atlas runs on the cloud computing software of Amazon (AWS), MicroSoft (Azure) and Google (GCP) and management said it was very bullish on the offering long term.
MongoDB competes with all the big software companies but the company is on an impressive growth track.
Management also offered fourth quarter revenue guidance that was just above estimates.
A recent rotation out of high multiple software seems to have been a headwind for MDB shares in recent weeks.
With a ~$1.3 billion market cap, MongoDB trades at less than 6x next year's (fiscal 2019 ending January) sales.
The stock needs to reclaim the $29 support level to improve its technical picture.