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Key Takeaways
- Database software maker MongoDB beat estimates with its third-quarter results and issued guidance that topped expectations.
- The performance, attributed in part to customer expansion and early traction in AI workloads, is sending the company’s shares higher on Tuesday.
Database software maker MongoDB’s (MDB) stock is soaring after the company posted stronger-than-expected quarterly results and a solid forecast.
Shares of MongoDB soared nearly 25% Tuesday, a day after the company reported adjusted earnings of $1.32 per share on revenue that increased 19% year-over-year to $628.3 million. Analysts surveyed by Visible Alpha had expected $0.82 and $594.3 million, respectively.
Why This Matters
MongoDB’s strong quarterly performance comes just weeks after CJ Desai stepped in as CEO. Investors responded quickly, sending shares sharply higher and heading toward last year’s all-time high.
For the current quarter, the New York-based company sees adjusted EPS of $1.44 to $1.48 on revenue of $665 million to $670 million, both well above consensus estimates. MongoDB also raised its full-year revenue guidance to a range of $2.434 billion to $2.439 billion, up from its prior guidance of $2.34 billion to $2.36 billion.
“Q3 was an exceptional quarter,” CEO CJ Desai said. “Existing customers are expanding with us and net-new customer additions continue to show strength. Companies across industries and geographies are choosing MongoDB because we provide a unified data platform that powers mission-critical workloads today and also positions them to capitalize on the emerging AI platform shift.”
The third-quarter results come shortly after Desai took over as CEO on Nov. 10. He held positions at Cloudflare (NET), ServiceNow (NOW), and Oracle (ORCL) before joining MongoDB. Desai replaced Dev Ittycheria, who retired after leading the company for 11 years.
