MongoDB (NASDAQ:MDB) shares slid. The decline came after of the database platform provider offered weak guidance on revenue that disappointed investors. The company did post earnings and revenue that beat expectations for the fourth quarter.
Barclays analyst Raimo Lenschow, who has an overweight rating on MongoDB noted the guidance “only” implies 16% growth and a “meaningful” slowdown in the company’s Atlas and Enterprise Advanced segments.
“Management has a tendency of being ultra-conservative with guidance … and the picture now seems more de-risked,” Lenschow wrote in an investor note. “However, we can see that investors will likely want to see evidence that consumption trends are improving and unused credit not becoming the new norm.”
Lenschow, who lowered his per-share price target to $257 from $264 following the results, added that MongoDB is “clearly making changes” in light of the changing global economy, which should help boost profitability, but “ultimately, the [MongoDB] story is still centered around growth.”
Looking ahead, MongoDB expects first-quarter sales to be between $344 million and $348 million, with adjusted earnings between 17 and 20 cents per share.
Wednesday, shares slumped as much as 9% as investors sold off the cloud-database provider’s stock despite what appeared to be an upbeat fiscal fourth-quarter report.
After U.S. stock markets closed, MongoDB said it earned 57 cents a share, excluding one-time items, on $361.3 million in sales for the quarter ending January 31. Those results far surpassed the estimates of Wall Street analysts, who had forecast MongoDB to earn seven cents a share on revenue of $337.9 million.
MDB shares dwindled $18.08, or7.9%, to $210.63.