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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 2020 results on Mar 17.

For the quarter, the company expects revenues between $109 million and $111 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 $110.4 million, indicating growth of 29.1% from the year-ago reported figure.

Notably, the company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 19.5%.
 

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 fourth-quarter fiscal 2020 results are likely to benefit from robust subscription revenues, driven by a solid customer adoption of Atlas.

Notably, in the last reported quarter, Atlas revenues skyrocketed more than 185% year over year, accounting for 40% of revenues. Atlas had more than 14,200 customers at the end of the fiscal third quarter.

Moreover, partnerships with the likes of Alphabet’s (GOOGL - Free Report) Google Cloud Platform (GCP) division, Alibaba’s (BABA - Free Report) data intelligence platform, Alibaba Cloud, and Microsoft (MSFT - Free Report) are likely to have enhanced the platform’s growth opportunities.

However, MongoDB’s top-line result for the fiscal fourth quarter is expected to reflect stiff year-over-year comparison for Atlas revenues.

Moreover, a higher percentage of Atlas in the revenue mix is expected to have been an overhang on gross margins. Additionally, the bottom-line number is expected to reflect on hefty investments in sales & marketing and research & development.

Key Q4 Developments

On Dec 3, 2019, MongoDB announced several new features for Atlas, making it a seamless affair for users who deploy and run the service on Amazon Web Services (AWS). These include addition of security features to Atlas. Moreover, new integrations with popular AWS tools, such as AWS CloudFormation and Amazon EventBridge make Atlas user-friendly for customers.

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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