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MongoDB (MDB) Tops Estimates in Q2 Earnings, Revenues Rise

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MongoDB (MDB - Free Report) incurred second-quarter fiscal 2021 adjusted loss of 22 cents per share that beat the Zacks Consensus Estimate by 43.59%. The figure was narrower than the loss of 26 cents per share reported in the year-ago quarter.

Moreover, revenues of $138.3 million surged 39.2% year over year and also comfortably surpassed the consensus mark by 9.5%. Coronavirus had less-than-expected negative impact on top-line growth. Moreover, the company witnessed an improvement in the rate of growth at its existing Atlas customers.

MongoDB’s revenues for the fiscal second quarter benefited from higher subscription revenues, much similar to its Zacks Internet-Software industry peers like Smartsheet (SMAR - Free Report) , Cloudera (CLDR - Free Report) and Zuora (ZUO - Free Report) .

Notably, Smartsheet’s, Cloudera’s and Zuora’s subscription revenues accounted for 91.7%, 89.4% and 77.7% of their respective second-quarter fiscal 2021 revenues. While Smartsheet’s subscription revenues jumped 43% year over year, Cloudera’s and Zuora’s grew 17% and 15% each.

MongoDB’s subscription revenues contributed to 95.8% of revenues and totaled $132.5 million, up 40.7% year over year. Moreover, this Zacks Rank #3 (Hold) company’s services revenues grew 11.3% year over year to $5.8 million, representing 4.2% of revenues. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

MongoDB, Inc. Price, Consensus and EPS Surprise

 

MongoDB, Inc. Price, Consensus and EPS Surprise

MongoDB, Inc. price-consensus-eps-surprise-chart | MongoDB, Inc. Quote

User Base Jumps

MongoDB added 1,800 customers sequentially to reach 20,200 at the end of the quarter under review. Of this, more than 2,500 are direct-sales customers.

The company’s Atlas revenues soared 66% year over year, accounting for 44% of the company’s top line. Atlas had more than 18,800 customers at the end of the reported quarter, adding 2,000 customers sequentially.

Net AR expansion rate remained above 120%.

Operating Details

In the reported quarter, gross margin expanded 50 basis points (bps) on a year-over-year basis to 72.1%.

While research and development (R&D) expenses climbed 25.9% to $33.7 million, sales and marketing (S&M) expenses ascended 30.5% to $61.1 million. Moreover, general and administrative (G&A) expenses augmented 22.7% to $15.1 million.

However, as percentage of revenues, R&D expenses decreased 260 bps to 24.4%. G&A expenses declined 150 bps to 10.9%. Moreover, as percentage of revenues, S&M decreased 290 bps on a year-over-year basis to 44.2%.

Loss from operations narrowed to $10.2 million from the year-ago loss of $14.8 million.

Balance Sheet & Cash Flow

As of Jul 31, 2020, MongoDB had $974.9 million in cash, cash equivalents and short-term investments compared with $977.5 million as of Apr 30, 2020.

In the reported quarter, the company used $10 million of cash from operations and $3.8 million in capital expenditures. Free cash outflow was $15 million against free cash outflow of $13.8 million in the year-ago period.

Guidance

For third-quarter fiscal 2021, MongoDB expects revenues between $137 million and $139 million. The Zacks Consensus Estimate is pegged at $129.6 million, implying 18.4% growth from the figure reported in the year-ago quarter.

Higher percentage of Atlas in revenue mix is expected to erode gross margin, at least in the near term.

Non-GAAP loss from operations is anticipated to be $25-$27 million.

Non-GAAP net loss is predicted between 45 cents and 48 cents per share. The consensus mark is pegged at a loss of 39 cents per share, suggesting a 50% decline from the figure reported in the year-ago quarter.

For fiscal 2021, MongoDB expects revenues between $549 million and $554 million (up from the previous guided range of $520-$530 million).

The Zacks Consensus Estimate for fiscal 2021 revenues is pegged at $527.6 million, implying 25.1% growth from the figure reported a year earlier.

Non-GAAP loss from operations is estimated to be $66-$71 million.

Non-GAAP net loss is predicted between $1.21 and $1.29 per share.The consensus mark is pegged at a loss of $1.27 per share, implying a 27% decline from the year-ago figure.

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