MongoDB (MDB - Free Report) incurred second-quarter fiscal 2022 adjusted loss of 24 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 41 cents per share. However, the figure was wider than the loss of 22 cents per share reported in the year-ago quarter.
Revenues of $198.7 million surged 43.7% year over year and also comfortably surpassed the consensus mark by 8.9%.
MongoDB’s subscription revenues contributed 96.3% of revenues and totaled $191.4 million, up 44.5% year over year. Moreover, services revenues grew 26.9% year over year to $7.4 million, representing 3.7% of revenues.
User Base Jumps
MongoDB added 2,200 customers sequentially to reach 29,000 at the end of the quarter under review. Of this, more than 3,600 were direct-sales customers.
The company’s Atlas revenues soared 83% year over year, representing 56% of total revenues. Atlas had more than 27,500 customers at the end of the reported quarter, adding 2,200 customers sequentially.
The company ended the quarter with 1,126 customers, with at least $100,000 in ARR and annualized MRR, compared with 819 in the year-ago quarter.
Non-GAAP Operating Details
In the reported quarter, gross margin contracted 20 basis points (bps) on a year-over-year basis to 71.9%.
Research and development (R&D) expenses climbed 37% to $46.2 million. Sales and marketing (S&M) expenses increased 43.3% to $87.5 million. Moreover, general and administrative (G&A) expenses increased 37.6% to $20.7 million.
As a percentage of revenues, R&D expenses contracted 110 bps to 23.2%. G&A expenses declined 50 bps to 10.4%. As a percentage of revenues, S&M expenses decreased 10 bps on a year-over-year basis to 44%.
Loss from operations widened to $11.5 million from the year-ago quarter loss of $10.2 million.
Balance Sheet & Cash Flow
As of Jul 31, 2021, MongoDB had $1.8 billion in cash, cash equivalents, and short-term investments compared with $935.6 million as of Apr 30, 2021.
During the three months ended Jul 31, 2021, MongoDB used $19.8 million of cash in operations, $1.7 million of cash in capital expenditures, and $1.2 million of cash in principal repayments of finance leases, leading to a negative free cash flow of $22.7 million, compared with a negative free cash flow of $15.0 million in the year-ago period.
Key Q2 Highlights
During the reported quarter, the company launched a number of significant product enhancements including the general availability of MongoDB 5.0 with native time series support and a preview of serverless databases in MongoDB Atlas at a two-day developer event, MongoDB.live.
MangoDB continued the evolution of its industry-leading application data platform with enhancements to Atlas Search, Atlas Data Lake, and Realm, MongoDB's end-to-end mobile data solution.
Guidance
For third-quarter fiscal 2022, MongoDB expects revenues between $202 million and $204 million.
Non-GAAP loss from operations is anticipated to be in the range of $23-$25 million. Non-GAAP net loss per share is estimated between 39 cents and 42 cents per share.
For fiscal 2022, MongoDB expects revenues between $805 million and $811 million.
Non-GAAP loss from operations is estimated to be in the range of $62-$67 million. Non-GAAP net loss per share is expected between $1.13 and $1.20 per share.
Zacks Rank & Stocks to Consider
Currently, MangoDB carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector include Microsoft (MSFT - Free Report) , Cadence Design Systems (CDNS - Free Report) , and Texas Instruments (TXN - Free Report) , all carrying a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rate for Microsoft, Cadence Design, and Texas Instruments is currently pegged at 11.09%, 11.68%, and 9.33%, respectively.
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MongoDB (MDB - Free Report) incurred second-quarter fiscal 2022 adjusted loss of 24 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 41 cents per share. However, the figure was wider than the loss of 22 cents per share reported in the year-ago quarter.
Revenues of $198.7 million surged 43.7% year over year and also comfortably surpassed the consensus mark by 8.9%.
MongoDB’s subscription revenues contributed 96.3% of revenues and totaled $191.4 million, up 44.5% year over year. Moreover, services revenues grew 26.9% year over year to $7.4 million, representing 3.7% of revenues.
User Base Jumps
MongoDB added 2,200 customers sequentially to reach 29,000 at the end of the quarter under review. Of this, more than 3,600 were direct-sales customers.
The company’s Atlas revenues soared 83% year over year, representing 56% of total revenues. Atlas had more than 27,500 customers at the end of the reported quarter, adding 2,200 customers sequentially.
The company ended the quarter with 1,126 customers, with at least $100,000 in ARR and annualized MRR, compared with 819 in the year-ago quarter.
Non-GAAP Operating Details
In the reported quarter, gross margin contracted 20 basis points (bps) on a year-over-year basis to 71.9%.
Research and development (R&D) expenses climbed 37% to $46.2 million. Sales and marketing (S&M) expenses increased 43.3% to $87.5 million. Moreover, general and administrative (G&A) expenses increased 37.6% to $20.7 million.
As a percentage of revenues, R&D expenses contracted 110 bps to 23.2%. G&A expenses declined 50 bps to 10.4%. As a percentage of revenues, S&M expenses decreased 10 bps on a year-over-year basis to 44%.
Loss from operations widened to $11.5 million from the year-ago quarter loss of $10.2 million.
Balance Sheet & Cash Flow
As of Jul 31, 2021, MongoDB had $1.8 billion in cash, cash equivalents, and short-term investments compared with $935.6 million as of Apr 30, 2021.
During the three months ended Jul 31, 2021, MongoDB used $19.8 million of cash in operations, $1.7 million of cash in capital expenditures, and $1.2 million of cash in principal repayments of finance leases, leading to a negative free cash flow of $22.7 million, compared with a negative free cash flow of $15.0 million in the year-ago period.
Key Q2 Highlights
During the reported quarter, the company launched a number of significant product enhancements including the general availability of MongoDB 5.0 with native time series support and a preview of serverless databases in MongoDB Atlas at a two-day developer event, MongoDB.live.
MangoDB continued the evolution of its industry-leading application data platform with enhancements to Atlas Search, Atlas Data Lake, and Realm, MongoDB's end-to-end mobile data solution.
Guidance
For third-quarter fiscal 2022, MongoDB expects revenues between $202 million and $204 million.
Non-GAAP loss from operations is anticipated to be in the range of $23-$25 million. Non-GAAP net loss per share is estimated between 39 cents and 42 cents per share.
For fiscal 2022, MongoDB expects revenues between $805 million and $811 million.
Non-GAAP loss from operations is estimated to be in the range of $62-$67 million. Non-GAAP net loss per share is expected between $1.13 and $1.20 per share.
Zacks Rank & Stocks to Consider
Currently, MangoDB carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector include Microsoft (MSFT - Free Report) , Cadence Design Systems (CDNS - Free Report) , and Texas Instruments (TXN - Free Report) , all carrying a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rate for Microsoft, Cadence Design, and Texas Instruments is currently pegged at 11.09%, 11.68%, and 9.33%, respectively.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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