Database software company MongoDB (MDB) announced better-than-expected results in Q2 CY2024, with revenue up 12.8% year on year to $478.1 million. Guidance for next quarter’s revenue was also optimistic at $495 million at the midpoint, 3.5% above analysts’ estimates. It made a non-GAAP profit of $0.70 per share, down from its profit of $0.93 per share in the same quarter last year.
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MongoDB (MDB) Q2 CY2024 Highlights:
- Revenue: $478.1 million vs analyst estimates of $464.2 million (3% beat)
- Adjusted Operating Income: $52.52 million vs analyst estimates of $36.94 million (42.2% beat)
- EPS (non-GAAP): $0.70 vs analyst estimates of $0.48 (44.4% beat)
- The company lifted its revenue guidance for the full year to $1.93 billion at the midpoint from $1.89 billion, a 1.9% increase
- EPS (non-GAAP) guidance for the full year is $2.40 at the midpoint, beating analyst estimates by 5.8%
- Gross Margin (GAAP): 73.2%, down from 75.1% in the same quarter last year
- Free Cash Flow was -$4.00 million, down from $60.98 million in the previous quarter
- Customers: 50,700, up from 49,200 in the previous quarter
- Billings: $461.2 million at quarter end, up 21.5% year on year
- Market Capitalization: $17.26 billion
"MongoDB delivered healthy second quarter results, highlighted by strong new workload acquisition and better-than-expected Atlas consumption trends. Our continued success in winning new workloads demonstrates the critical role MongoDB's platform plays in modern application development," said Dev Ittycheria, President and Chief Executive Officer of MongoDB.
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.
Data Storage
Data is the lifeblood of the internet and software in general, and the amount of data created is accelerating. As a result, the importance of storing the data in scalable and efficient formats continues to rise, especially as its diversity and associated use cases expand from analyzing simple, structured datasets to high-scale processing of unstructured data such as images, audio, and video.
Sales Growth
As you can see below, MongoDB’s 37.4% annualized revenue growth over the last three years has been exceptional, and its sales came in at $478.1 million this quarter.
This quarter, MongoDB’s quarterly revenue was once again up 12.8% year on year. On top of that, its revenue increased $27.55 million quarter on quarter, a strong improvement from the $7.44 million decrease in Q1 CY2024. This is a sign of acceleration of growth and very nice to see indeed.
Next quarter’s guidance suggests that MongoDB is expecting revenue to grow 14.3% year on year to $495 million, slowing down from the 29.8% year-on-year increase it recorded in the same quarter last year. Looking ahead, analysts covering the company were expecting sales to grow 12.2% over the next 12 months before the earnings results announcement.
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Customer Growth
MongoDB reported 50,700 customers at the end of the quarter, an increase of 1,500 from the previous quarter. That’s in line with the customer growth we’ve observed over the last couple of quarters, suggesting that the company can maintain its current sales momentum.
Key Takeaways from MongoDB’s Q2 Results
We were impressed by how strongly MongoDB blew past analysts’ billings expectations this quarter. We were also glad next quarter’s revenue guidance came in higher than Wall Street’s estimates. That the company raised full year guidance across the board is icing on the cake. Overall, we think this was a great quarter. The stock traded up 14% to $280.26 immediately following the results.
MongoDB may have had a good quarter, but does that mean you should invest right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.