Dev Ittycheria, CEO of MongoDB
Adam Jeffrey | CNBC
Shares of MongoDB jumped 27% in extended trading on Tuesday after the database software maker surprisingly posted a profit.
Here’s how the company did it:
- Merits: 23 cents per share on an adjusted basis versus a loss of 17 cents per share as expected by analysts, according to Refinitiv.
- Revenue: $333.6 million versus $303.4 million expected by analysts, according to Refinitiv.
MongoDB’s revenue grew 47% year over year in the quarter ended Oct. 31, according to a statement. Net loss increased to $84.8 million compared to a net loss of $81.3 million in the same quarter last year.
The company said it had 39,100 customers at the end of the quarter, better than the average estimate of 38,900 among analysts polled by StreetAccount. MongoDB’s Atlas cloud database service accounts for 63% of total revenue.
“The strength of our business has been driven by improved Atlas consumption trends and continued strength in new business activity,” CEO Dev Ittycheria said in the statement. Sequential gains came in Europe’s mid-market and corporate markets in what appears to be an emerging seasonal trend, said Michael Gordon, MongoDB’s chief operations officer and chief financial officer, on a conference call with analysts.
The outperformance is welcome news for software investors who have seen troubling data points of late. Last week, Salesforce said customers are becoming more cautious in preparation for deteriorating economic conditions. The company broke with tradition and refrained from making a forecast for the coming year.
During the quarter, MongoDB said it would make it easier for developers to use pay-as-you-go pricing for the company’s cloud database on Microsoft’s Azure cloud.
Executives lifted their full-year 2023 outlook. You’re now seeing adjusted net income of 29 cents to 31 cents a share, compared to previous guidance that called for a loss of 35 cents to 28 cents a share. For revenue, MongoDB requested approximately $1.26 billion, compared to its previous guidance of $1.2 billion. Analysts polled by Refinitiv had expected an adjusted net loss of 31 cents a share on sales of $1.21 billion.
Gordon said the company expects Atlas consumption growth to consistently slow in the fiscal fourth quarter.
Before the after-hours jump, MongoDB shares fell 73% this year, underperforming the S&P 500 index, which had fallen 17% over the same period.
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