MongoDB (MDB) Stock Surges Following Earnings, Outlook Beat; Analysts Positive

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Shares of MongoDB (NASDAQ: MDB) are up nearly 12% in premarket trading Wednesday after the company reported better-than-expected Q4 financial results and issued an upbeat Q1 revenue forecast.

MongoDB posted a fourth-quarter adjusted loss per share of 9c, compared with the loss per share of 33c in the year-ago period and a loss per share of 21c expected by the analysts. The company reported a loss per share of $1.26, compared with a $1.25 loss per share from the year-ago quarter.

Revenue was reported at $266.5 million in the period, up 56% YOY and above the consensus estimates of $243.3 million. Subscription revenue totaled $258.2 million, while service revenue generated $8.27 million.

For the current Q1, the software company expects adjusted loss per share in the range of 8c to 12c, compared with the consensus estimates of 20c loss per share. MDB expects revenue in the range of $263 million to $267 million in the first quarter, above the analyst consensus of $253.3 million.

As for the full-fiscal 2023, MongoDB expects adjusted loss per share between 29c to 51c, narrower than the expected loss per share of 64c. The company expects FY2023 revenue in the range of $1.15 billion to $1.18 billion, compared with the analyst consensus of $1.16 billion.

“Our success is being driven by the fact that our modern application data platform reduces advantages in the development process make it incredibly easy for developers to build compelling applications that create a competitive advantage,” said Dev Ittycheria, President and CEO of MongoDB.

Stifel analyst Brad Reback is positive on MDB, although he slashed the price target to $425.00 per share from the prior $550.00 to reflect recent multiple compression in the group.

“While the Atlas growth rate may moderate somewhat during F1Q23, stemming from typical seasonal consumption deceleration, we view management’s guidance as somewhat conservative based on strong Atlas usage trends and growing large-scale customer commits to the platform. Overall, we continue to view Atlas as an open-ended growth opportunity, driven by new customer additions and ARPU gains as developers turn to the company’s modern, general-purpose platform to support their future app development needs,” Reback said in a client note .

Goldman Sachs analyst Kash Rangan also lowered the price target from $545.00 to $495.00 but remains Buy-rated.

“MDB is growing in developer mindshare and its broad database platform continues to resonate in the marketplace, which should help the company be the vendor of choice as hundreds of millions of applications are built over the next few years. With Atlas, growing at 85% despite comprising 58% of revenue, we see a clear path for continued revenue momentum… We believe MongoDB is well positioned to balance strong top-line momentum while gaining operating leverage and generating FCF (after turning positive in 4Q ) in FY23,” Rangan wrote in a note to clients.

By Senad Karaahmetovic |

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