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MongoDB’s FY21 Revenue Outlook Tops Estimates After 4Q Beat

MongoDB reported better-than-expected fourth-quarter results. Furthermore, the software company forecasted fiscal 2022 (ending January 2022) revenues that came in ahead of analysts’ expectations. Shares of MongoDB were up 1.6% in Wednesday’s pre-market trading.

MongoDB (MDB) delivered 4Q revenues of $171 million that increased 38% year-over-year and topped consensus estimates of about $157 million. Subscription revenues increased 39% year-over-year, while services revenues grew 24% year-over-year.

The company reported a 4Q loss of $0.33 per share, which fared better than analysts’ expectations for a loss of $0.39 per share. The company reported a loss of $0.25 per share in the year-ago period.

MongoDB’s CEO Dev Ittycheria said, “Our performance in fiscal 2021 demonstrated the increasingly strategic role MongoDB’s modern application data platform plays in enabling customers to use software and data to derive a competitive advantage.” He added, “As we look ahead to fiscal 2022, MongoDB is in an excellent position to benefit from the shift to the cloud and the need to build smarter and more powerful applications that transform a company’s business.”

Looking ahead, the company expects a 1Q loss in the range of $0.36-$0.39 per share, compared with consensus estimates for a loss of $0.27 per share. For fiscal 2022, the company forecasts a loss of between $1.39 and $1.55 per share. Analysts were anticipating a FY22 loss of $1.04 per share.

MongoDB projects revenues in the range of $167-170 million for 1Q, higher than consensus estimates of about $166.8 million. For fiscal 2022, the company anticipates revenues in the range of $745-$765 million, significantly higher than analysts’ expectations of $576.4 million. (See MongoDB stock analysis on TipRanks).

Following the results, Oppenheimer analyst Ittai Kidron maintained a Buy rating and a price target of $400 (28.2% upside potential) on the stock. In a note to investors, the analyst said, “We see higher OpEx [operational expenditure] investment in 2022 and the possibility of near-term margin pressure, but we believe this is justified given the massive displacement opportunity ahead.”

Overall, the rest of the Street has a bullish outlook on the stock, with a Strong Buy consensus rating based on 9 Buys and 1 Hold. The average analyst price target of $410.89 implies upside potential of about 31.7% to current levels. Shares have gained by about 107.8% over the past year.

Furthermore, TipRanks data shows that financial blogger opinions are 92% Bullish, compared to a sector average of 70%.

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