MongoDB (MDB) experienced a substantial increase in its stock price, climbing more than 14% in after-hours trading on Monday following the company’s impressive fiscal third-quarter results, which significantly outperformed Wall Street predictions.
For the quarter ending in October, MongoDB reported adjusted earnings of $1.32 per share, reflecting a 14% increase compared to the previous year. This figure exceeded the analyst consensus of 81 cents per share as outlined by FactSet. Additionally, revenue rose by 19% to reach $628 million, surpassing the forecasted $594 million.
CEO CJ Desai, who recently assumed leadership following Dev Ittycheria’s retirement, noted the company’s robust performance was largely due to a 30% year-over-year growth in its flagship cloud database offering, Atlas. Desai emphasized the company’s commitment to achieving both revenue growth and profitability, leading to an upward revision of their financial guidance for the remainder of the fiscal year.
In a positive forecast for the upcoming fiscal fourth quarter, MongoDB expects sales to reach approximately $667.5 million, well above analysts’ projections of $626 million prior to the earnings report. This optimism follows a report earlier this month where MongoDB had already hinted at exceeding its anticipated sales and earnings.
During regular trading hours before the announcement, the stock had seen a slight decline of 1.5%, yet shares have surged over 40% year-to-date. The recent earnings report follows a previous stock rally after the fiscal second-quarter results announced in late August, which helped the company recover from earlier market struggles. Nonetheless, the stock has recently retreated from its 52-week high of 385.44 in early November.
As of now, MongoDB holds an impressive IBD Composite Rating of 97 out of 99, indicating strong growth potential and investor confidence in its future.
Overall, MongoDB’s strong earnings performance reflects not only resilience in its operations but also an encouraging trajectory for growth in the evolving tech landscape.