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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 2020 results on Dec 9.

For the quarter, the company expects revenues between $9 million and $100 million. Non-GAAP loss is anticipated between 27 cents and 29 cents per share.

The Zacks Consensus Estimate is currently pegged at a loss of 28 cents, unchanged over the past 30 days. The consensus mark for revenues currently stands at $99.7 million, indicating growth of 53.5% from the figure reported in the year-ago quarter.

Notably, the company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 23.9%.
 

MongoDB, Inc. Price and EPS Surprise

MongoDB, Inc. Price and EPS Surprise

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

 

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

Factors to Watch

MongoDB’s third-quarter fiscal 2020 results are likely 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.

Notably, in the last reported quarter, Atlas revenues skyrocketed more than 240% year over year, accounting for 37% of revenues. Atlas had more than 13,200 customers at the end of the fiscal second quarter compared with more than 12,300 at the end of first-quarter fiscal 2020.

Moreover, the partnership with Alphabet (GOOGL - Free Report) division Google Cloud Platform (GCP) is likely to have enhanced the platform’s growth opportunities.

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 reflect higher investments related to sales & marketing and research & development.

Key Q3 Developments

On Oct 30, MongoDB announced a partnership with Alibaba’s (BABA - Free Report) data intelligence platform, Alibaba Cloud, to offer customers an authorized MongoDB-as-a-service solution.

Moreover, during the quarter, MongoDB announced an expanded partnership with Microsoft (MSFT - Free Report) , per which Atlas will be made available on Microsoft Azure Marketplace.

Further, Infosys in collaboration with MongoDB announced a new API Speed Layer solution for customers. The new solution combines the capabilities of the Infosys Microservices Acceleration Platform with Atlas.

Zacks Rank

MongoDB currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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