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MongoDB Earnings: What To Look For From MDB


Radek Strnad /
2022/05/31 7:05 am EDT
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Database software company MongoDB (MDB) will be reporting earnings tomorrow after market close. Here's what to expect.

Last quarter MongoDB reported revenues of $266.4 million, up 55.8% year on year, beating analyst revenue expectations by 9.47%. It was a strong quarter for the company, with an exceptional revenue growth and an impressive beat of analyst estimates. The company added 106 enterprise customers paying more than $100,000 annually to a total of 1,307.

Is MongoDB buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting MongoDB's revenue to grow 47% year on year to $267.1 million, improving on the 39.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.10 per share.

MongoDB Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 8.78%.

Looking at MongoDB's peers in the data storage segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Snowflake delivered top-line growth of 84.5% year on year, beating analyst estimates by 2.26% and DigitalOcean reported revenues up 35.9% year on year, exceeding estimates by 0.87%. Snowflake traded down 10.5% on the results, and DigitalOcean was down 5.51%. Read our full analysis of Snowflake's results here and DigitalOcean's results here.

There has been a stampede out of high valuation technology stocks and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 10.9% over the last month. MongoDB is down 35.9% during the same time, and is heading into the earnings with analyst price target of $441.8, compared to share price of $230.25.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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