MongoDB (MDB) shares plunged more than 20% in premarket trading Friday as soft guidance offset stronger-than-expected quarterly results.

The company, which makes money by selling add-on features and support for its open-source document-oriented database, guided fiscal second-quarter 澳洲幸运5官方开奖结果体彩网:adjusted earnings of between 46 cents and 49 cents per share, well below analysts’ forecasts of 58 cents a share. It projects 澳洲幸运5官方开奖结果体彩网:net sales in the period of $460.0 million to $464.0 million, also below the $470.4 million Street estimate.

MongoDB now expects full-year adjusted earningsܫ per share of between $2.15 and🌃 $2.30, compared with previous guidance of $2.27 to $2.49. The company pegs revenue at between $1.88 billion and $1.90 billion, versus a previous forecast of between $1.90 billion and $1.93 billion.

“We had a slower than expected start to the year for both Atlas consumption growth and new workload wins, which will have a downstream impact for the remainder of fiscal 2025,” MongoDB president and CEO Dev Ittycheria said in the company’s earnings statement.

The weak outlook follows light guidance from other enterprise software companies, including Salesforce (CRM), UiPath (PATH), and Workday (WDAY), as corporate customers spend more cautiously amid an uncertain economic environment.

For the first fiscal quarter ending April 30, the company reported adjusted earnings of 51 cents per share on revenue of $450.6 million. Analysts had expected earnings of 40 cents a share on sales of $439.7 million. While the top line grew 22% from the prior year’s equivalent quarter, it marked the third consecutive quarter where sales growth had slowed.

Monitor if Buyers Cജan Defend This Key Chart ꦺLevel

MongoDB shares have continued to move lower since a 澳洲幸运5官方开奖结果体彩网:bull trap pattern appeared on the chart in mid-February. More recently, the 澳洲幸运5官方开奖结果体彩网:50-day moving average (MA) has crossed below the 200-day MA to form a bearish 澳洲幸运5官方开奖结果体彩网:death cross, with the price breaking down below the lower trendline of a multi-month tradi𝐆ng range on Wednesday accompanied by the highest share turnover in a single day since early March.

In upcoming trading sessions, investors should monitor if buyers can defend the $238 level, an area on the chart that finds support from a 澳洲幸运5官方开奖结果体彩网:horizontal line that links key price points o☂ver the pa🦄st 20 months.

MongoDB shares were down 24% at $235.50 about tw💖o hours before the opening 🎀bell.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 澳洲幸运5官方开奖结果体彩网:warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.