Why Is MongoDB Still Unprofitable?
A lot is going right for database software provider MongoDB (NASDAQ: MDB). Revenue soared 53% year over year in the second quarter, driven by incredible 73% growth for Atlas, MongoDB's fully managed cloud-based database platform. Atlas now accounts for 64% of total revenue, with the rest coming from enterprise-focused products and services.
But that growth came at a cost, and the market is seemingly not thrilled with the price tag. Shares of MongoDB were down nearly 25% early Thursday afternoon despite the company beating analyst estimates and raising its guidance.
Here's the thing: MongoDB isn't profitable. On a GAAP basis, it's not even close. Even adjusted for stock-based compensation, the company is losing money. And all-important free cash flow is in the red as well. MongoDB posted a GAAP net loss of $118.9 million on $303.7 million of revenue in the second quarter, up from a loss of $77.1 million in the prior-year period.
Source Fool.com
