Shares of database company MongoDB (NASDAQ: MDB) were up 11.8% at 2:30 p.m. EST on Thursday. There was no company-specific news, with the gains possibly driven by a broad stock market rally. The tech-heavy Nasdaq Composite index was up nearly 2% an hour and a half before close.
MongoDB stock has soared this year, up 170% year to date, thanks to rapid-fire revenue growth . The company develops the open source MongoDB database software that has been downloaded more than 40 million times, making money from services and subscription offerings. MongoDB's recent products include Atlas, a managed cloud database service, and serverless platform Stitch .
MongoDB's second-quarter revenue soared 61% year over year to $57.5 million, beating the average analyst estimate by nearly $6 million. Atlas revenue grew by 400% year over year, accounting for 18% of the company's revenue. While MongoDB is still a small player in the database market in terms of revenue, its rapid growth is certainly making waves.
MongoDB is an expensive stock, trading for nearly 18 times trailing 12-month sales. The company also isn't profitable, losing $21.1 million on an adjusted basis in the second quarter. MongoDB could grow into its valuation if it can keep up its growth rate and eventually turn a profit, but the stock will likely be volatile in the interim.
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