Cloud database firm MongoDB has announced impressive results for its July quarter, surpassing expectations and achieving record-breaking figures. Total revenue exceeded forecast by almost 8% and adjusted operating margins reached an all-time high of 19%. The company’s management team has received praise for their performance, but some analysts have maintained a sell rating on the stock due to potential macro pressures that may hinder MongoDB’s goal of achieving 30% revenue growth by fiscal year 2025.
Despite this, UBS analyst Karl Keirstead commended MongoDB’s results, describing them as “very solid.” The company’s adjusted earnings surpassed Wall Street predictions by over double, and sales grew by an impressive 40% to reach $423.8 million. Subscription revenue saw a year-over-year increase of 40% to $409.3 million, while service revenue jumped 20% to $14.5 million.
One of MongoDB’s key offerings, its multi-cloud database known as Atlas, experienced significant growth, accounting for 63% of total sales and achieving a 38% year-over-year surge. Keirstead estimates that Atlas generated $289 million in sales, indicating consecutive quarters of year-over-year growth.
Impressively, MongoDB has raised its outlook for the current quarter and the full year. The company predicts adjusted profit of $2.27 to $2.35 per share, along with $1.596 billion to $1.608 billion in sales. This forecast exceeds previous expectations, with analysts previously predicting a profit of $1.59 per share on $1.56 billion in sales.
As a result of these strong results, MDB stock jumped 3% on the stock market, closing at $392.88. This year alone, the stock has nearly doubled in value, rising approximately 94% through Thursday’s close. With a strong Relative Strength Rating of 98 and a perfect IBD Digital Composite Rating of 99, MongoDB stock is consolidating with a buy point at $439, according to MarketSmith.com.
These impressive figures and positive outlook demonstrate MongoDB’s continued success in the cloud database market, as it outperforms expectations and solidifies its position for future growth.
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