
Jabin Bastian 2023/06/02 3:50pm
What Happened: Shares of data warehouse-as-a-service Snowflake (NYSE:SNOW) jumped 7.42% in the morning session after MongoDB reported a beat-and-raise quarter where key metrics broadly exceeded expectations and guidance was strong. Consumption-based revenue models in SaaS such as MongoDB, Datadog, Snowflake, and certain of Cloudflare's products have been much debated--will an uneven macro hurt these companies as customers cut headcount and streamline spend or will ongoing increases in demand be reflected much faster than with traditional subscription models? MongoDB's earnings results show that demand is healthy, and while there may be cost containment efforts, they are not hindering the company's results. Additionally, there's a case to be made that demand for AI and the technology load that AI creates is a peripheral benefit to SaaS companies that enable data & analytics, infrastructure monitoring, and that are generally pickaxes for software engineers and developers. ... Continue Reading