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Database software developer MongoDB soared to record highs after announcing better than expected Q2 (Jul) earnings as the demand for NoSQL databases runs hot. MDB also raised its FY22 earnings and revenue guidance for the second time this fiscal year.

MongoDB

Mongodb Inc NASDAQ: MDB Report Earnings After Close Thursday

 ($0.24) Beat $0.39 EPS AND $198.75 Billion Beat $184.2 Billion Revenue Forecast

Earnings

MongoDB beat 2Q22 top and bottom line consensus estimates. Revenue growth not seen since 1Q21.  MDB reported a loss of $(0.24) per share, topping the consensus by $0.16. MDB's $0.21 beat in Q1 (Apr) set the tone but an impressive followup nevertheless given Q2 marks the company's second straight double-digit earnings beat. 

Revenue grew 43.7% to $198.75 mln, which beat the estimate of $184.2 million.The same quarter from last year revenue gained 39.1% yr/yr.

 

Market Reaction Mongodb Inc NASDAQ: MDB

$502.13 +100.48 +24% Market Close

Highlights

  • Customer growth of 43.5% yr/yr in Q2 MDB's cloud-based offering,
  • Atlas, again drove revenue growth, soaring 83% yr/yr, after 73% growth last quarter.
  • Atlas customers also jumped 46.3% yr/yr and 6.7% sequentially.
  • Atlas users continue to make up about 95% of total MDB users despite launching only five years ago.
  • MDB also continued adding customers with annual recurring revenue (ARR) of at least $100K.
  • MDB grew this large customer base by 6.5% sequentially, bringing the total to 1,126.

Outlook

MDB also raised its FY22 earnings and revenue guidance for the second time this fiscal year. Although MDB guided adjusted earnings for Q3 (Oct) below consensus, it raised its FY21 earnings guidance for the second straight quarter.MDB in the past has guided conservatively on earnings for its next quarter. In the past three quarters the company guide below consensus. MDB is benefitimng from the need to organize non-structured data continuing to increase.

Non-structured query language (NoSQL) does have a serious limitation over traditional structured query language (SQL) in that analytical tools cannot be applied to NoSQL formatted data. In saying that there is plenty of data for which insights are not needed. The cost of change is large for businesses to move from NoSQL databases once adopted. It is both expensive and time-consuming and runs the risk of data loss.

The huge jump in the share price implies MDB's Q2 earnings comfort investors that the rise of NoSQL is embeded in the modern tech world and that MDB looks best positioned to continue taking advantage of this trend. MongoDB is riding the cloud migration spree triggered by the virus outbreak, with data playing a significant role in digital transformation currently.

About MongoDB

MongoDB is the leading modern, general purpose database platform, designed to unleash the power of software and data for developers and the applications they build. Headquartered in New York, MongoDB has more than 26,800 customers in over 100 countries. The MongoDB database platform has been downloaded over 175 million times and there have been more than 1.5 million registrations for MongoDB University courses. Caution as always given MDB is yet to generate profit after going public more than three years ago.

From The TradersCommunity Research Desk

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