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

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MongoDB (MDB - Free Report) is set to release third-quarter fiscal 2019 results on Dec 4.

In the last reported quarter, MongoDB reported non-GAAP loss of 41 cents per share that was narrower than the Zacks Consensus Estimate of a loss of 45 cents and the year-ago quarter loss of 52 cents.

Revenues of $57.5 million also topped the consensus mark of $52 million and improved 61% on a year-over-year basis. Strong top-line growth was primarily driven by robust subscription revenues.

For third-quarter fiscal 2019, revenues are expected between $59 million and $60 million. Non-GAAP loss is anticipated between 40 cents and 38 cents per share.

The Zacks Consensus Estimate for revenues currently stands at $59.7 million, reflecting year-over-year growth of 43.8%.

Let’s see how things are shaping up for this announcement.

Factors to Watch Out

MongoDB outperformed the industry on a year-to-date basis. The stock has returned 168.1% compared with the industry’s growth of 0.1%. The momentum can be attributed to the expanding customer base that is likely to drive growth in the to-be-reported quarter.

MongoDB, Inc. Price and EPS Surprise

MongoDB, Inc. Price and EPS Surprise | MongoDB, Inc. Quote


In the last reported quarter, MongoDB added 800 customers that brought the total customer count to 7,400. Atlas customer base increased from 4,400 at the end of the first quarter to 5,300 at the end of the last reported quarter.

Per management, almost 30% of customers on average every quarter are shifting their legacy workloads from traditional relational database providers to MongoDB. Moreover, existing enterprise customers are adding incremental workload to the company’s database-as-a-service solution, Atlas.

In the last reported quarter, Atlas revenues surged 400% and accounted for 18% of total revenues. Availability of Atlas in 57 different regions, and the ability to run across Amazon Web Services (AWS), Microsoft (MSFT - Free Report) Azure and Google Cloud are attracting customers.

MongoDB is adding new functionalities like graph database that are expanding Atlas’ total addressable market (TAM). Moreover, availability of enterprise features like enterprise key management are expected to expand customer base. Further, multi-document ACID support and launch of Global clusters are other positives.

However, stiff competition from relational database providers like Oracle (ORCL - Free Report) is a headwind. Moreover, heightened level of capital expenditure in the to-be-reported is a concern.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or #5) are best avoided.

MongoDB has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

A Stock with a Favorable Combination

Here is a stock you may also want to consider as our model shows that it has the right combination of elements to post an earnings beat.

lululemon athletica inc. (LULU - Free Report) has an Earnings ESP of +4.89% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.


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