Personal Finance

Why MuleSoft Stock Gained 25.6% in February

MULE Chart

What happened

MuleSoft (NYSE: MULE) stock climbed 25.6% in February, according to data provided by S&P Global Market Intelligence . Shares popped after the company announced fourth-quarter results that came in substantially above analysts' expectations alongside promising guidance.

MULE data by YCharts .

So what

Sales for MuleSoft's quarter ending in December climbed 60% year over year to reach $88.7 million, handily topping the $83.1 million in sales that Wall Street expected. The company delivered an earnings beat as well, a with loss of $0.12 per share for the quarter looking much nicer than the $0.19-per-share loss consensus estimate.

A cloud with small lights inside of it, concentrating as a large ball of light in the center of the cloud.

Image source: Getty Images.

Management paired the earnings beat with guidance for the current fiscal year and beyond that bolstered shareholder optimism. MuleSoft expects sales for 2018 to come in between $405 million and $415 million, representing roughly 38.5% growth at the midpoint over 2017's $296 million in sales. It also expects the business to reach over $1 billion in annual sales in 2021.

Now what

MuleSoft is successfully growing its customer base , having increased its number of large-contract customers from 30 at the end of 2016 to 45 at the end of 2017, and looks poised to see increasing demand for its software. The company's software for organizing and utilizing data across different cloud platforms is a leading solution in its category and could allow the business to shift into regular profitability as its customer base scales. Shares have climbed another 9% in March so far and trade at roughly 11 times forward sales.

10 stocks we like better than MuleSoft

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now… and MuleSoft wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of March 5, 2018

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool recommends MuleSoft. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics


Latest Personal Finance Videos

Black Friday Brings Higher Demand and Scarcer Deals

Nov 26, 2021

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More