In a recent report, MongoDB (NASDAQ: MDB), the high-priced database software stock, announced slower growth in the first quarter, leaving investors disappointed. As a result, the stock plummeted by 25.1% as of 11:44 a.m. ET.

Known for its breakneck growth rate, MongoDB's first-quarter results showed a slight deceleration. While overall revenue increased by 22% to $450.6 million, beating estimates, it marked the company's slowest revenue growth since going public.

The growth in revenue was driven primarily by MongoDB Atlas, the company's cloud-based database software option, which saw a 32% increase for the quarter. However, this marked a notable decline compared to previous periods. MongoDB Atlas accounted for 70% of the total revenue, while on-premise revenue growth remained stagnant.

On the financial side, MongoDB remained unprofitable on a generally accepted accounting principles (GAAP) basis, recording a loss of $98.2 million, expanding from $68.5 million the previous year. Additionally, adjusted operating profit dropped from $43.7 million to $32.8 million, and adjusted earnings per share fell from $0.56 to $0.51.

CEO Dev Ittycheria acknowledged the slower-than-expected start to the year, attributing the weakness to a decline in Atlas consumption growth and new customer wins. Notably, the higher-value on-premise customer segment also experienced a significant slowdown in recent quarters.

Unfortunately, things might not improve anytime soon, as MongoDB management stated that the weakness observed in the first quarter would continue to impact performance throughout the year. The company's guidance for the second quarter and full year fell below estimates, which contributed to the stock's significant decline. MongoDB now anticipates only 13% revenue growth for the entire year.

Although MongoDB's growth story is far from over, the company faces the challenge of reaccelerating revenue growth or reaching GAAP profitability to regain investor confidence and drive stock rebound.

For investors considering MongoDB as an investment option, The Motley Fool Stock Advisor analyst team did not include it among their top 10 stocks. Instead, they identified other potential stocks that they believe could generate substantial returns in the coming years.

As of now, the future of MongoDB remains uncertain, and investors will closely monitor the company's performance and strategies moving forward.

Please note that Jeremy Bowman, the author of this article, holds positions in MongoDB. The Motley Fool also has positions in and recommends MongoDB.