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MongoDB (MDB) to Report Q4 Earnings: What's in the Offing?

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MongoDB (MDB - Free Report) is set to report fourth-quarter fiscal 2024 results on Mar 7.

For fourth-quarter fiscal 2024, MongoDB expects revenues between $429 million and $433 million. The Zacks Consensus Estimate for revenues is currently pegged at $431.99 million, indicating growth of 19.56% year over year.

The non-GAAP income from operations is anticipated in the range of $35-$38 million. Non-GAAP net income per share is estimated between 44 cents and 46 cents. For the quarter, the consensus mark for income per share has remained steady at 46 cents in the past 30 days, indicating a decline of 19.3% 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 fourth-quarter performance is expected to have benefited from the increasing popularity of its data platform among developers. MDB has been gaining traction in the developer community due to its flexibility, scalability and ease of use, particularly for applications requiring data models or handling large volumes of data.

In third-quarter fiscal 2024, the company’s Atlas revenues soared 36% year over year, contributing 66% to total revenues. The company had more than 44,900 MongoDB Atlas customers as of Oct 31, 2023, compared with over 43,500 as of Jul 31, 2023.

Management's focus on acquiring new customers, cross-selling to existing customers and retaining them aligns with common business strategies for growth and sustainability.

The company's product innovation efforts are resonating with its customer base and adding value to its operations. This adoption of new features can lead to increased customer satisfaction, engagement and potentially higher retention rates.

In the to-be-reported quarter, the company announced the general availability of MongoDB Atlas Vector Search and MongoDB Atlas Search Nodes to make it faster and easier for organizations to securely build, deploy and scale next-generation applications at less cost.

MongoDB Atlas Vector Search simplifies bringing generative artificial intelligence (AI) and semantic search capabilities into real-time applications for highly engaging and customized end-user experiences using an organization's operational data.

MDB has 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.

MongoDB announced collaboration with AMZN to optimize Amazon CodeWhisperer to provide enhanced suggestions for application development and modernization on MDB's industry-leading developer data platform that millions of developers and thousands of customers rely on every day for business-critical applications. Trained on billions of lines of Amazon and publicly available code, Amazon CodeWhisperer is an AI-powered coding companion from AWS that generates code suggestions based on natural-language comments or existing code in developers' integrated development environments.

In the to-be-reported quarter, the company announced plans to integrate MongoDB Atlas Vector Search with Amazon Bedrock to aid organizations in building next-generation applications on AWS and its industry-leading cloud infrastructure.

Data stored in MongoDB Enterprise Advanced on self-managed servers can be automatically synced with its Atlas Edge Server on AWS Local Zones and MongoDB Atlas in the cloud to deliver real-time application experiences to edge devices with high reliability and single-digit millisecond latency.

The company continues to make significant progress in building out an AI ecosystem, anchored by the announcement of an expanded partnership with Google Cloud that enables developers to use state-of-the-art AI foundation models from Google to accelerate the use of generative AI.

The new generative AI features in MongoDB Relational Migrator, MongoDB Compass, MongoDB Atlas Charts and MongoDB Documentation reduce the time and effort developers spend on undifferentiated tasks and allow them to instead focus on hard-to-solve problems and building modern applications.

The company is benefiting from a substantial expansion of its strategic partnership agreement with Microsoft. The collaboration facilitates customers' cloud adoption journeys, with initiatives like improved accessibility to MongoDB Atlas through the Microsoft commercial marketplace. This partnership is expected to have enabled millions of developers using the Azure portal to easily discover and utilize MongoDB Atlas.

MDB and these hyperscale vendors have committed to providing a broad range of offerings to customers and enabling them to switch easily from one to another.

Customers can go to all three hyperscale consoles and sign up for Atlas. This is expected to have helped the company reach a new customer base in the to-be-reported quarter.

Currently, MongoDB carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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