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HomeMarketMongoDB Shares Spike 25% as Cloud Database Provider Posts Big Earnings Beat

MongoDB Shares Spike 25% as Cloud Database Provider Posts Big Earnings Beat

MongoDB shares rose 25% to $181.40 in after-hours trading.

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MongoDB
shares are soaring in late trading Tuesday after the cloud-based database software provider posted better-than-expected results for its fiscal third quarter ended Oct. 31, including a surprise profit on an adjusted basis. The company also substantially hiked its guidance for fiscal 2023.

MongoDB CEO Dev Ittycheria said in a statement that the strong quarter was driven by improved consumption trends for the company’s flagship Atlas database software, with “continued strength in new business activity.” 

The results will be seen as a huge positive surprise for software investors, who in recent weeks have seen softer-than-expected growth from other cloud-based software players with consumption-based business models, like Amazon Web Services and Microsoft Azure.

In after-hours trading, MongoDB shares are 25% higher, at $181.40. As of the regular session close, Mongo shares had been down 73% for the year.

For the quarter, MongoDB (ticker: MDB) reported revenue of $333.6 million, up 47% from a year ago, and well ahead of both the company’s guidance range of $300 million to $303 million, and the Wall Street consensus at $303.4 million.

MongoDB posted an adjusted profit from operations of $19.8 million, up from $6.3 million in the year earlier quarter, and well above the company’s target range of a loss of $8 million to $10 million. Non-GAAP net income was $18.7 million, or 23 cents a share; the company had projected a loss of 16 to 19 cents a share, and Street consensus had called for a loss of 17 cents a share. 

Under generally accepted accounting principles, Mongo had a loss from operations of $82.9 million in the quarter, and a net loss of $84.8 million, or $1.23 a share. 

The company also provided strong guidance for the fiscal fourth quarter ending in January. MongoDB projects revenue for the period of between $334 million and $337 million with a non-GAAP profit of 6 to 8 cents a share. Previous consensus had called for $315 million in revenue and a loss of 13 cents a share.

For the full fiscal year, Mongo now sees revenue of $1.257 billion to $1.26 billion, with a non-GAAP profits of between 29 and 31 cents a share; previous guidance had called for revenue of between $1.196 billion and $1.206 billion, and a loss of between 28 and 35 cents a share.

Write to Eric J. Savitz at eric.savitz@barrons.com

Credit: marketwatch.com

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