As Q3 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 DigitalOcean (NYSE:DOCN) and its peers.
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.
The 5 data storage stocks we track reported a decent Q3; on average, revenues beat analyst consensus estimates by 4.3% while next quarter's revenue guidance was 1.8% above consensus. Stocks have faced challenges as investors prioritize near-term cash flows, but data storage stocks held their ground better than others, with the share prices up 21.6% on average since the previous earnings results.
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 $177.1 million, up 16.4% year on year, topping analyst expectations by 2.1%. It was a mixed quarter for the company, with strong sales guidance for the next quarter but its net revenue retention rate in jeopardy.
DigitalOcean delivered the weakest performance against analyst estimates of the whole group. The stock is up 64% since the results and currently trades at $34.8.
Is now the time to buy DigitalOcean? Access our full analysis of the earnings results here, it's free.
Best Q3: 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 $45.81 million, up 18.8% year on year, outperforming analyst expectations by 6.5%. It was a strong quarter for the company, with a solid beat of analysts' revenue estimates and a meaningful improvement in its gross margin.
The stock is up 20.1% since the results and currently trades at $23.94.
Is now the time to buy Couchbase? Access our full analysis of the earnings results here, it's free.
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 $734.2 million, up 31.8% year on year, exceeding analyst expectations by 2.9%. It was a good quarter for the company, with a decent beat of analysts' revenue estimates. Its gross margin improved and its non-GAAP operating profit outperformed expectations by a healthy margin. To add to the positives, Q4 guidance for product revenue was higher than Wall Street estimates, and the company raised its full year guidance for product revenue, gross and operating profit, and free cash flow.
Snowflake scored the fastest revenue growth in the group. The company added 34 enterprise customers paying more than $1m annually to reach a total of 436. The stock is up 10.6% since the results and currently trades at $193.98.
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 $201 million, up 6.9% year on year, surpassing analyst expectations by 3%. It was a decent quarter for the company, with a beat of analysts' revenue estimates but a decline in its gross margin.
Commvault Systems had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is up 21% since the results and currently trades at $79.
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 $432.9 million, up 29.8% year on year, surpassing analyst expectations by 7.2%. It was a strong quarter for the company, with a solid beat of analysts' revenue estimates and optimistic revenue guidance for the next quarter.
MongoDB scored the biggest analyst estimates beat and highest full-year guidance raise among its peers. The company added 117 enterprise customers paying more than $100,000 annually to reach a total of 1,972. The stock is down 7.6% since the results and currently trades at $401.08.
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The author has no position in any of the stocks mentioned