As data storage stocks’ Q2 earnings season wraps, let's dig into this quarter's best and worst performers, including Commvault Systems (NASDAQ:CVLT) and its peers.
Data is the lifeblood of the internet and software in general, and the amount of data created is growing at an accelerating pace. Likewise, the importance of storing the data in scalable and efficient formats continues to rise, especially as the diversity of the data and associated use cases expand from analyzing simple, structured data to high-scale processing of unstructured data, images, audio, and video.
The 5 data storage stocks we track reported a mixed Q2; on average, revenues beat analyst consensus estimates by 2.81%, while on average next quarter revenue guidance was 0.22% under consensus. Tech stocks have been hit the hardest as investors start to value profits over growth and data storage stocks have not been spared, with share prices down 15.3% since the previous earnings results, on average.
Commvault Systems (NASDAQ:CVLT)
Originally formed in 1988 as part of Bell Labs, Commvault (NASDAQ: CVLT) provides enterprise software used for data backup and recovery, cloud and infrastructure management, retention, and compliance.
Commvault Systems reported revenues of $198.2 million, flat year on year, in line with analyst expectations. It was a mixed quarter for the company,
"We're off to a solid start to our fiscal year, highlighted by accelerated subscription revenue momentum and continued operating discipline," said Sanjay Mirchandani, President and CEO.
Commvault Systems delivered the slowest revenue growth of the whole group. The stock is down 13.3% since the results and currently trades at $67.63.Is now the time to buy Commvault Systems? Read our full report on Commvault Systems here.
Best Q2: MongoDB (NASDAQ:MDB)
Started in 2007 by the team behind Google’s ad platform DoubleClick, MongoDB offers database-as-a-service that helps companies store large volumes of semi-structured data.
MongoDB reported revenues of $423.8 million, up 39.6% year on year, beating analyst expectations by 8.42%. It was a very strong quarter for the company, with an impressive beat of analysts' revenue estimates and optimistic revenue guidance for the next quarter.
MongoDB delivered the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The company added 94 enterprise customers paying more than $100,000 annually to a total of 1,855. The stock is down 7.22% since the results and currently trades at $354.05.
Is now the time to buy MongoDB? Access our full analysis of the earnings results here, it's free.
Weakest Q2: DigitalOcean (NYSE:DOCN)
Started by brothers Ben and Moisey Uretsky, DigitalOcean (NYSE: DOCN) provides a simple, low-cost platform that allows developers and small and medium sized businesses to host applications and data in the cloud.
DigitalOcean reported revenues of $169.8 million, up 26.8% year on year, missing analyst expectations by 0.06%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and underwhelming revenue guidance for the next quarter.
DigitalOcean had the weakest performance against analyst estimates and weakest full year guidance update in the group. The stock is down 50.6% since the results and currently trades at $23.09.
Founded in 2013 by three French engineers who spent decades working for Oracle, Snowflake (NYSE:SNOW) provides a data warehouse-as-a-service in the cloud that allows companies to store large amounts of data and analyze it in real-time.
Snowflake reported revenues of $674 million, up 35.5% year on year, beating analyst expectations by 1.77%. It was a slower quarter for the company, with its net revenue retention rate in jeopardy.
The company added 29 enterprise customers paying more than $1m annually to a total of 402. The stock is up 2.08% since the results and currently trades at $159.13.
Formed in 2011 with the merger of Membase and CouchOne, Couchbase (NASDAQ:BASE) is a database-as-a-service platform that allows enterprises to store large volumes of semi-structured data.
Couchbase reported revenues of $43.1 million, up 8.41% year on year, beating analyst expectations by 3.42%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and full-year revenue guidance missing analysts' expectations.
The stock is down 7.39% since the results and currently trades at $15.28.
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The author has no position in any of the stocks mentioned