MongoDB (NASDAQ:MDB) Surprises With Q4 Sales, Stock Soars

Adam Hejl /
2022/03/08 4:15 pm EST
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Database software company MongoDB (MDB) reported results ahead of analyst expectations in the Q4 FY2022 quarter, with revenue up 55.8% year on year to $266.4 million. On top of that, guidance for next quarter's revenue was surprisingly good, being $265 million at the midpoint, 4.5% above what analysts were expecting. MongoDB made a GAAP loss of $84.4 million, down on its loss of $75.8 million, in the same quarter last year.

Is now the time to buy MongoDB? Access our full analysis of the earnings results here, it's free.

MongoDB (MDB) Q4 FY2022 Highlights:

  • Revenue: $266.4 million vs analyst estimates of $243.4 million (9.47% beat)
  • EPS (non-GAAP): -$0.09 vs analyst estimates of -$0.21
  • Revenue guidance for Q1 2023 is $265 million at the midpoint, above analyst estimates of $253.5 million
  • Management's revenue guidance for upcoming financial year 2023 is $1.16 billion at the midpoint, beating analyst estimates by 2.55% and predicting 33.4% growth (vs 47.3% in FY2022)
  • Free cash flow of $16.8 million, up from negative free cash flow of $9.2 million in previous quarter
  • Customers: 33,000, up from 31,000 in previous quarter
  • Gross Margin (GAAP): 71.5%, up from 70.1% same quarter last year

"MongoDB delivered exceptional fourth quarter results, highlighted by delivering 85% Atlas revenue growth and surpassing $1 billion in annualized revenue. Our success is being driven by the fact that our modern application data platform dramatically reduces friction in the development process to make it incredibly easy for developers to build compelling applications that create a competitive advantage," 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 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.

Sales Growth

As you can see below, MongoDB's revenue growth has been impressive over the last year, growing from quarterly revenue of $170.9 million, to $266.4 million.

MongoDB Total Revenue

This was another standout quarter with the revenue up a splendid 55.8% year on year. On top of that, revenue increased $39.6 million quarter on quarter, a very strong improvement on the $28.1 million increase in Q3 2022, and a sign of re-acceleration of growth, which is very nice to see indeed.

Guidance for the next quarter indicates MongoDB is expecting revenue to grow 45.8% year on year to $265 million, improving on the 39.3% year-over-year increase in revenue the company had recorded in the same quarter last year. For the upcoming financial year management expects revenue to be $1.16 billion at the midpoint, growing 33.4% compared to 47.3% increase in FY2022.

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Customer Growth

You can see below that MongoDB reported 33,000 customers at the end of the quarter, an increase of 2,000 on last quarter. That's in line with the customer growth we have seen over the last couple of quarters, suggesting that the company can maintain its current sales momentum.

MongoDB Customers

Key Takeaways from MongoDB's Q4 Results

With a market capitalization of $18.6 billion, more than $1.82 billion in cash and the fact it is operating close to free cash flow break-even the company is in a strong financial position to invest in growth.

We were impressed by the exceptional revenue growth MongoDB delivered this quarter. And we were also excited to see that it outperformed Wall St’s revenue expectations. On the other hand, the revenue guidance for next year indicated the growth will be slowing down. Overall, we think this was still a really good quarter, that should leave shareholders feeling very positive. The company is up 7.17% on the results and currently trades at $302.2 per share.

Should you invest in MongoDB right now? It is important that you take into account its valuation and business qualities, as well as what happened in the latest quarter. We look at that in our actionable report which you can read here, it's free.

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The author has no position in any of the stocks mentioned.