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MongoDB (MDB) Tops Estimates in Q3 Earnings, Revenues Rise

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MongoDB (MDB - Free Report) incurred third-quarter fiscal 2021 adjusted loss of 31 cents per share that beat the Zacks Consensus Estimate by 32.6%. The figure was narrower than the loss of 26 cents per share reported in the year-ago quarter.

Moreover, revenues of $150.8 million surged 37.8% year over year and also comfortably surpassed the consensus mark by 8.9%.

MongoDB’s subscription revenues contributed to 95.6% of revenues and totaled $144.1 million, up 38.8% year over year. Moreover, this Zacks Rank #3 (Hold) company’s services revenues grew 19.4% year over year to $6.7 million, representing 4.4% of revenues. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

User Base Jumps

MongoDB added 2,400 customers sequentially to reach 22,600 at the end of the quarter under review. Of this, more than 2,800 are direct-sales customers.

The company’s Atlas revenues soared 61% year over year, accounting for 47% of the company’s top line. Atlas had more than 21,100 customers at the end of the reported quarter, adding 2,300 customers sequentially.

MongoDB, Inc. Price, Consensus and EPS Surprise

 

Net ARR expansion rate remained above 120%. The company ended the quarter with 898 customers with at least $100,000 in ARR and annualized MRR compared with 688 in the year-ago quarter.

Operating Details

In the reported quarter, gross margin contracted 40 basis points (bps) on a year-over-year basis to 72%.

While research and development (R&D) expenses climbed 33% to $37.6 million, sales and marketing (S&M) expenses ascended 37.1% to $67.8 million. Moreover, general and administrative (G&A) expenses augmented 21.3% to $19.3 million.

However, as percentage of revenues, R&D expenses decreased 90 bps to 24.9%. G&A expenses declined 170 bps to 12.8%. Moreover, as percentage of revenues, S&M decreased 20 bps on a year-over-year basis to 44.9%.

Loss from operations widened to $16 million from the year-ago loss of $14.3 million.

Balance Sheet & Cash Flow

As of Oct 31, 2020, MongoDB had $966.3 million in cash, cash equivalents and short-term investments compared with $974.9 million as of Jul 31, 2020.

In the reported quarter, the company used $8.1 million of cash from operations and $5.6 million in capital expenditures. Free cash outflow was $14.9 million against free cash outflow of $13.1 million in the year-ago period.

Key Q3 Highlights

MongoDB’s Atlas became the first and only cloud database to enable customers to run an application simultaneously across Amazon’s (AMZN - Free Report) cloud platform Amazon Web Services, Alphabet’s (GOOGL - Free Report) Google Cloud and Microsoft’s (MSFT - Free Report) cloud offering, Azure.

Moreover, as part of the Department of Defense’s (DoD) Enterprise DevSecOps Initiative, MongoDB was approved and released on the IronBank, the DoD Enterprise Artifacts Repository that hosts hardened containers.

Guidance

For fourth-quarter fiscal 2021, MongoDB expects revenues between $155 million and $157 million. The Zacks Consensus Estimate is pegged at $129.6 million, implying 18.4% growth from the figure reported in the year-ago quarter.

Non-GAAP loss from operations is anticipated to be $21-$23 million. Non-GAAP net loss is predicted between 39 cents and 42 cents per share.

For fiscal 2021, MongoDB expects revenues between $574.4 million and $576.4 million.

Non-GAAP loss from operations is estimated to be $54.6-$56.6 million. Non-GAAP net loss is predicted between $1.04 and $1.07 per share.

 

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