MongoDB Surges to All-Time Highs on Earnings Blowout and Guidance

MongoDB Inc. (NASDAQ: MDB) now looks like it should change its name to MongoStock. That’s how solid the earnings reaction has been. The shares were surging in Wednesday’s after-hours trading and hit record highs as the database software vendor gave upbeat guidance for future quarters on top of better than expected results.

MongoDB reported an adjusted loss per share of 17 cents, but that was far narrower than the consensus for a loss of 38 cents per share from Refinitiv (Thomson Reuters). Total revenue was up 71% from a year earlier to $85.5 million in its fourth quarter fiscal 2019. Its subscription revenue rose 73% to $80.6 million and its services revenue rose 37% to $4.9 million.

While MongoDB had an adjusted loss for the quarter, the company said that its gross profit was $59.9 million with a 70% gross margin (versus 75% in the year-ago period). Its adjusted gross profit was $61.0 million, representing a 71% non-GAAP gross margin.

The company is now forecasting for this year’s revenues to be in a range of $363 million to $371 million. The consensus estimate was almost $348 million.  It put its adjusted earnings to be with a loss of $59 million to a loss of $55 million. That translated to −$1.06 to −$0.98 per share. The consensus was −$1.28 per share coming into the report.

MongoDB indicated that it had $466.5 million in cash, cash equivalents, short-term investments and restricted cash as of the end of January.

Dev Ittycheria, president and chief executive officer of MongoDB, said with the report:

MongoDB’s exceptional fourth quarter performance capped a record year for the company. MongoDB is being adopted by an ever increasing number of companies across diverse industries who recognize the power of our next-generation database platform to drive business performance, increase agility and shorten time to market.

MongoDB Atlas, our fully managed global, multi-cloud database service, achieved a major milestone in the fourth quarter, surpassing $100 million in annualized revenue run rate less than three years from launch.  At approximately one third of our revenue, MongoDB Atlas’ tremendous growth highlights its compelling value to enable customers to focus on innovation and offload the operational burden of database management.

MongDB shares closed down 0.6% at $104.26 on Wednesday, but the stock was last seen trading up well over 18% at $123.95 in a prior 52-week range of $32.35 to $109.97. Its consensus price target from Refinitiv was $93.62 coming into earnings.

Shares of MongoDB were already up 24.5% year to date ahead of its blowout earnings.

The analysts that have Buy ratings are likely to increase their target prices on Thursday, and those who already have downgraded the stock after the shares blew through their target prices are likely to keep their same ratings but still increase their target prices.