As Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers amongst the data storage stocks, including MongoDB (NASDAQ:MDB) 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 decent Q2; on average, revenues beat analyst consensus estimates by 5.17%, while on average next quarter revenue guidance was 0.63% above consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital and while some of the data storage stocks have fared somewhat better than others, they have not been spared, with share price declining 9.58% since the previous earnings results, on average.
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 $303.6 million, up 52.7% year on year, beating analyst expectations by 7.56%. It was a solid quarter for the company, with an exceptional revenue growth and an impressive beat of analyst estimates.
"MongoDB delivered strong second quarter results, highlighted by 73% Atlas revenue growth and a record number of net additions of direct sales customers. We are seeing robust growth in new workloads being deployed on our platform, which is indicative of the critical role we play in enabling customers to build and run mission critical applications that transform their business," said Dev Ittycheria, President and Chief Executive Officer of MongoDB.
The stock is down 31.5% since the results and currently trades at $221.20.
Is now the time to buy MongoDB? Access our full analysis of the earnings results here, it's free.
Best Q2: Couchbase (NASDAQ:BASE)
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 $39.7 million, up 33.9% year on year, beating analyst expectations by 10.9%. It was a strong quarter for the company, with an impressive beat of analyst estimates and a solid top line growth.
Couchbase scored the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is down 3.76% since the results and currently trades at $14.30.
Is now the time to buy Couchbase? 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 $133.8 million, up 28.9% year on year, missing analyst expectations by 0.44%. It was a slower quarter for the company, with a decline in net revenue retention rate and a miss of the top line analyst estimates.
DigitalOcean had the weakest performance against analyst estimates and weakest full year guidance update in the group. The stock is down 13.3% since the results and currently trades at $41.45.
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 $497.2 million, up 82.6% year on year, beating analyst expectations by 6.4%. It was a strong quarter for the company, with an exceptional revenue growth.
Snowflake scored the fastest revenue growth among the peers. The company added 40 enterprise customers paying more than $1m annually to a total of 246. The stock is up 16.2% since the results and currently trades at $185.74.
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 $197.9 million, up 7.93% year on year, beating analyst expectations by 1.41%. It was a weaker quarter for the company, with a slow revenue growth.
Commvault Systems had the slowest revenue growth among the peers. The company lost 42 enterprise customers paying more than $100,000 annually and ended up with a total of 184. The stock is down 15.5% since the results and currently trades at $51.84.
The author has no position in any of the stocks mentioned