MongoDB (NASDAQ: MDB) stock continued to be green in the extended trading session on Wednesday after releasing strong first-quarter Fiscal 2023 results. The multi-purpose database platform provider increased by 6.7% after closing 1.97% higher on the day.
Results in Detail
The software company reported adjusted earnings of $0.20 per share, compared with the Street’s estimated loss of $0.08 per share. It recorded a loss of $0.06 per share in the same quarter last year.
Furthermore, the company recorded a whopping year-over-year growth of 57% in revenues, which came in at $285.4 million. Results were driven by strong demand across all its services, especially Atlas. The consensus estimate was pegged at $268.6 million.
For the quarter, subscription revenue stood at $274.6 million, up 57% year-over-year. Meanwhile, services revenue of $10.9 million reflected a rise of 54%.
Further, revenues at Atlas, the company’s database managing cloud service, jumped 82% and represented 60% of total quarterly revenues.
Notably, Enterprises are increasingly transforming mission-critical services to the cloud, driving demand for Atlas. As of April 30, 2022, Atlas recorded more than 33,700 customers, with the inclusion of 2,200 customers in the first quarter.
Furthermore, the company reported an adjusted gross margin of 75% compared with 72% in the prior-year period recorded.
As of April 30, 2022, cash, cash equivalents, short-term investments and restricted cash came in at $1.8 billion. Additionally, MongoDB generated $11.6 million of cash from operations during the quarter, while free cash flow stood at $8.4 million.
CEO’s Comments
Looking forward, the CEO of MongoDB, Dev Ittycheria, said, “MongoDB enables developers to build mission-critical applications that drive better user experiences, enable new capabilities and improves operational efficiency, and our Q1 results give us increased confidence in our ability to capture the large market opportunity over the long term.”
Guidance
For Fiscal Q2 2023, the company expects revenue in the range of $279 million to $282 million, compared with the consensus estimate of $280.9 million. Adjusted loss per share of $0.31 to $0.28 is anticipated versus analysts’ expectations of a loss of $0.12 per share.
For Fiscal 2023, revenue is expected in the range of $1.172 billion to $1.192 billion, compared with the consensus estimate of $1.19 billion. The company expects adjusted loss per share in the range of $0.31 to $0.16, compared with the Street’s loss expectations of $0.28 per share.
Wall Street’s Take
Consensus among analysts is a Strong Buy based on 11 Buys and three Holds. The average MongoDB price target of $415 implies 71.62% upside potential from current levels. Meanwhile, shares have lost 15.92% over the past year.
Website Traffic
The earnings results were evident on TipRanks’ new tool that measures visits to MongoDB’s website. Pre-earnings, we were able to see insights into the company’s performance in the quarter ended April 30, 2022.
According to the tool, a website traffic uptrend was visible. In Fiscal Q1 2023, total estimated visits on MongoDB’s website showed an increasing trend, on a global basis, representing an 18.29% jump from the prior-year quarter and 10.57% from the prior quarter.
The predictions that were based on TipRanks’ website visits data turned out to be correct, with MongoDB reporting upbeat results in Fiscal Q1 2023.
Ending Words
MongoDB has navigated the current difficult macroeconomic environment, thanks to a robust customer base and better operating efficiency. Investors buying the dips may choose to add the stock to their portfolio, considering management’s long-term objectives of acquiring a large market share with solid capabilities.
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