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MongoDB (MDB) to Report Q3 Earnings: What's in the Offing?

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MongoDB (MDB - Free Report) is set to report third-quarter fiscal 2023 results on Dec 6.

For third-quarter fiscal 2023, MongoDB expects revenues between $300 million and $303 million. The Zacks Consensus Estimate for revenues is currently pegged at $302.3 million, indicating growth of 33.28% year over year.

The non-GAAP loss from operations is anticipated in the range of $8-$10 million. Non-GAAP net loss per share is estimated between 16 cents and 19 cents per share. For the quarter, the consensus mark for loss has remained steady at 17 cents per share in the past 30 days, indicating a decline of 54.55% year over year.

Let’s see how things have shaped up for MongoDB for the upcoming announcement.

MongoDB, Inc. Price and EPS Surprise

MongoDB, Inc. Price and EPS Surprise

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

Factors to Consider

MongoDB’s fiscal third-quarter performance is expected to have benefited from robust subscription revenues. Growing customer adoption of its proprietary cloud-based platform, Atlas is expected to have been a major driver.

In second-quarter fiscal 2023, the company’s Atlas revenues soared 73% year over year, contributing 64% to total revenues. Atlas had more than 35,500 customers at the end of the reported quarter, adding 1,800 customers sequentially.

Partnerships with hyperscale vendors like Amazon’s (AMZN - Free Report) cloud division, Amazon Web Services (AWS), Alphabet’s (GOOGL - Free Report) Google Cloud Platform and Microsoft’s (MSFT - Free Report) Azure are likely to have enhanced the platform’s growth opportunities.

The hyperscale providers not only help in the scalability and interoperability of the platforms, but also provide enormous investment into tools and intellectual property, making it cheaper to access and use the cloud to extend and build out the customer’s capabilities.

MongoDB and Amazon Web Services have committed to a broad range of initiatives to make it easier for joint customers to advance their cloud adoption journey as a part of their multi-year strategic agreement. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

The direct integration of MongoDB Atlas with Google Cloud Console and Marketplace, provides integrated billing and support to customers of both companies. Google Cloud now features MongoDB Atlas in the database portion of its console, further increasing visibility and velocity with developers.

MDB also expanded its relationship with Microsoft, as part of which, MongoDB Atlas is available on Microsoft Azure Marketplace. Per the agreement, MongoDB is part of Microsoft’s strategic Partner Reported ACR co-sell program.

However, a higher percentage of Atlas in the revenue mix is expected to have been an overhang on gross margins. Additionally, the bottom-line performance is expected to have been affected by higher investments related to sales & marketing and research & development.

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