Mulesoft Down, But Still Above Its IPO Price: Should You Buy?

Mulesoft (NYSE: MULE) the innovator behind Application Network technology, saw its stock plummet as much as 25% in the days after its recent earnings, no doubt making investors nervous about the recent IPO's future. Looking through the results, however, the numbers were mostly positive. Moreover, I think the perceived weaknesses in the report could actually be viewed as positives for long-term investors. Here's what you need to know.

In the quarter, Mulesoft grew revenues 57% to $69.2 million, handily beating estimates of $63.5 million. Non-GAAP losses per share of $0.10 also beat estimates of $0.13. The company increased its full-year revenue guidance from $271-$274 million to $279-$281 million and reiterated its EPS guidance of a loss of $0.38 – $0.40, which is relatively unchanged from previous guidance of a $0.37 – $0.40 loss.

The company expanded its customer base to 1,170, up 24% from a year earlier, and dollar-based retention came in strong at 116% -- which means existing customers spent 16% more this quarter than last year. The average subscription price was $164,000, a 31% increase from the prior year period.

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Source: Fool.com