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MongoDB Updates 1 Key Risk Factor
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MongoDB Updates 1 Key Risk Factor

General-purpose database platform provider MongoDB, Inc. (MDB) recently delivered robust fourth-quarter performance marked by double-digit growth in its top-line.

Revenue surged 55.8% year-over-year to $266.5 million, outperforming expectations by $23 million. Net loss per share at $0.09, came in narrower than the Street’s estimates by $0.12.

This outperformance is attributable to a 58% growth in the company’s Subscription revenue, coupled with a 17% growth in its Services revenue. Notably, at the end of January, MDB had more than 33,000 customers, indicating robust growth in customer count.

Furthermore, to make the cloud adoption process easier for their joint customers, MDB entered into an expanded six-year strategic collaboration agreement with Amazon Web Services (AWS).

With these developments in mind, let us take a look at the changes in MDB’s key risk factors that investors should know.

Risk Factors

According to the TipRanks Risk Factors tool, MongoDB’s top risk category is Finance & Corporate, contributing 23 of the total 66 risks identified for the stock.

However, in its recent report, the company has added one key risk factor under the Legal & Regulatory risk category. Compared to a sector average of six Legal & Regulatory risk factors, MDB has nine.

MDB highlighted that its data processing activities subject it to strict and evolving obligations associated with data privacy and information security. Consequently, any actual or perceived failure from the company to comply could result in regulatory investigations, litigation, fines, or penalties.

Such an event could mean business disruption, damage to reputation, or an impact on sales of MDB.

Hedge Fund Activity

According to TipRanks data, Wall Street’s top hedge funds have increased holdings in MongoDB by 117,200 shares in the last quarter, indicating a very positive hedge fund confidence signal in the stock based on activities of 13 hedge funds. Notably, Brad Gerstner’s Altimeter Capital Management has a holding worth about $132.34 million in MDB. Shares have jumped 14.4% over the past month.

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