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MongoDB (MDB) Q3 Loss Narrower Than Expected, Revenues Beat
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MongoDB (MDB - Free Report) incurred an adjusted loss of 11 cents per share in third-quarter fiscal 2022, narrower than the Zacks Consensus Estimate of a loss of 41 cents per share. The figure also improved from a loss of 31 cents per share reported in the year-ago quarter.
Revenues of $226.9 million surged 50% year over year and surpassed the consensus mark by 11.5%.
MongoDB’s subscription revenues contributed 96% to revenues and totaled $217.9 million, up 51% year over year. Services revenues increased 35% year over year to $9 million, contributing 4% to revenues.
For fiscal 2022, MongoDB now expects revenues between $846.3 million and $849.3 million compared with the earlier forecast of $805-$811 million.
Following the announcement, shares of MongoDB are trading up 20.4% in the premarket trading on Dec 7. In the past year, shares of the company have returned 51.7% compared with the industry’s decline of 24.5%.
MongoDB added 2,000 customers sequentially to reach 31,000 at the end of the quarter under review. Of this, more than 3,900 were direct-sales customers.
Atlas revenues soared 84% year over year, representing 58% of total revenues. Atlas had more than 29,500 customers at the end of the reported quarter.
The company ended the quarter with 1,201 customers, with at least $100,000 in ARR and annualized MRR, compared with 898 in the year-ago quarter.
Non-GAAP Operating Details
In the reported quarter, gross margin was unchanged on a year-over-year basis to 72%.
Research and development (R&D) expenses climbed 31.2% to $49.3 million. Sales and marketing (S&M) expenses increased 39.9% to $94.8 million. General and administrative (G&A) expenses increased 20.7% to $23.3 million.
As a percentage of revenues, R&D expenses contracted 320 bps to 21.7%. G&A expenses declined 250 bps to 10.3%. As a percentage of revenues, S&M expenses declined 310 bps on a year-over-year basis to 41.8%.
Loss from operations widened to $3.5 million from the year-ago quarter’s loss of $16 million.
Balance Sheet & Cash Flow
As of Oct 31, 2021, MongoDB had $1.8 billion in cash, cash equivalents and short-term investments and restricted cash compared with $1.8 billion as of Jul 31, 2021.
During the three months ended Oct 31, 2021, MongoDB used $5.8 million of cash in operations, $2.2 million of cash in capital expenditures and $1.2 million of cash in principal repayments of finance leases. The company reported free cash outflow of $9.2 million compared with free cash outflow of $14.9 million reported in the prior year quarter.
Key Q3 Highlights
During the reported quarter, the company rolled out MongoDB 5.1. It is the company’s first quarterly release, which is aimed at offering users time series support for sharing and improvements to Client-Side Field Level Encryption.
MangoDB continued the evolution of its industry-leading application data platform with enhancements to Atlas Search. The company rolled out a preview for new facet operator within Atlas Search. The preview is designed to make workloads (like e-commerce product catalogs and content libraries) run faster, noted the company.
Guidance
For fourth-quarter fiscal 2022, MongoDB expects revenues between $239 million and $242 million.
Non-GAAP loss from operations is anticipated to be in the range of $11-$13 million. Non-GAAP net loss per share is estimated between 21 cents and 24 cents per share.
For fiscal 2022, MongoDB expects non-GAAP loss from operations in the range of $34.4-$36.4 million. Non-GAAP net loss per share is expected between 71 and 74 cents per share.
Earlier, the company had projected non-GAAP loss from operations in the range of $62-$67. Non-GAAP net loss per share was expected between $1.13 and $1.20 per share.
Zacks Rank & Stocks to Consider
Currently, MongoDB carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the broader technology space are Arrow Electronics (ARW - Free Report) , Alphabet (GOOGL - Free Report) and Monolithic Power Systems (MPWR - Free Report) .
Arrow Electronics’ shares have gained 26.5% on a year-to-date basis. The long-term earnings growth rate for the company is currently projected at 27.4%.
Alphabet’s shares have surged 63.4% on a year-to-date basis. The long-term earnings growth rate for the company is currently projected at 25.8%.
Monolithic’s shares have rallied 39.3% on a year-to-date basis. The long-term earnings growth rate for the company is currently projected at 25%.
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MongoDB (MDB) Q3 Loss Narrower Than Expected, Revenues Beat
MongoDB (MDB - Free Report) incurred an adjusted loss of 11 cents per share in third-quarter fiscal 2022, narrower than the Zacks Consensus Estimate of a loss of 41 cents per share. The figure also improved from a loss of 31 cents per share reported in the year-ago quarter.
Revenues of $226.9 million surged 50% year over year and surpassed the consensus mark by 11.5%.
MongoDB’s subscription revenues contributed 96% to revenues and totaled $217.9 million, up 51% year over year. Services revenues increased 35% year over year to $9 million, contributing 4% to revenues.
For fiscal 2022, MongoDB now expects revenues between $846.3 million and $849.3 million compared with the earlier forecast of $805-$811 million.
Following the announcement, shares of MongoDB are trading up 20.4% in the premarket trading on Dec 7. In the past year, shares of the company have returned 51.7% compared with the industry’s decline of 24.5%.
MongoDB, Inc. Price, Consensus and EPS Surprise
MongoDB, Inc. price-consensus-eps-surprise-chart | MongoDB, Inc. Quote
User Base Jumps
MongoDB added 2,000 customers sequentially to reach 31,000 at the end of the quarter under review. Of this, more than 3,900 were direct-sales customers.
Atlas revenues soared 84% year over year, representing 58% of total revenues. Atlas had more than 29,500 customers at the end of the reported quarter.
The company ended the quarter with 1,201 customers, with at least $100,000 in ARR and annualized MRR, compared with 898 in the year-ago quarter.
Non-GAAP Operating Details
In the reported quarter, gross margin was unchanged on a year-over-year basis to 72%.
Research and development (R&D) expenses climbed 31.2% to $49.3 million. Sales and marketing (S&M) expenses increased 39.9% to $94.8 million. General and administrative (G&A) expenses increased 20.7% to $23.3 million.
As a percentage of revenues, R&D expenses contracted 320 bps to 21.7%. G&A expenses declined 250 bps to 10.3%. As a percentage of revenues, S&M expenses declined 310 bps on a year-over-year basis to 41.8%.
Loss from operations widened to $3.5 million from the year-ago quarter’s loss of $16 million.
Balance Sheet & Cash Flow
As of Oct 31, 2021, MongoDB had $1.8 billion in cash, cash equivalents and short-term investments and restricted cash compared with $1.8 billion as of Jul 31, 2021.
During the three months ended Oct 31, 2021, MongoDB used $5.8 million of cash in operations, $2.2 million of cash in capital expenditures and $1.2 million of cash in principal repayments of finance leases. The company reported free cash outflow of $9.2 million compared with free cash outflow of $14.9 million reported in the prior year quarter.
Key Q3 Highlights
During the reported quarter, the company rolled out MongoDB 5.1. It is the company’s first quarterly release, which is aimed at offering users time series support for sharing and improvements to Client-Side Field Level Encryption.
MangoDB continued the evolution of its industry-leading application data platform with enhancements to Atlas Search. The company rolled out a preview for new facet operator within Atlas Search. The preview is designed to make workloads (like e-commerce product catalogs and content libraries) run faster, noted the company.
Guidance
For fourth-quarter fiscal 2022, MongoDB expects revenues between $239 million and $242 million.
Non-GAAP loss from operations is anticipated to be in the range of $11-$13 million. Non-GAAP net loss per share is estimated between 21 cents and 24 cents per share.
For fiscal 2022, MongoDB expects non-GAAP loss from operations in the range of $34.4-$36.4 million. Non-GAAP net loss per share is expected between 71 and 74 cents per share.
Earlier, the company had projected non-GAAP loss from operations in the range of $62-$67. Non-GAAP net loss per share was expected between $1.13 and $1.20 per share.
Zacks Rank & Stocks to Consider
Currently, MongoDB carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the broader technology space are Arrow Electronics (ARW - Free Report) , Alphabet (GOOGL - Free Report) and Monolithic Power Systems (MPWR - Free Report) .
While Alphabet and Arrow Electronics sport a Zacks Rank #1 (Strong Buy), Monolithic carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Arrow Electronics’ shares have gained 26.5% on a year-to-date basis. The long-term earnings growth rate for the company is currently projected at 27.4%.
Alphabet’s shares have surged 63.4% on a year-to-date basis. The long-term earnings growth rate for the company is currently projected at 25.8%.
Monolithic’s shares have rallied 39.3% on a year-to-date basis. The long-term earnings growth rate for the company is currently projected at 25%.