MongoDB Set to Announce Strong Q1 Earnings with Bullish Estimates
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: seekingalpha
- Earnings Announcement: MongoDB is set to release its Q1 2023 earnings on May 28th after market close, with consensus EPS estimate at $1.18, reflecting an 18% year-over-year increase, and revenue expected at $663.79 million, up 20.9%, indicating strong growth potential.
- Historical Performance: Over the past two years, MongoDB has consistently beaten both EPS and revenue estimates 100% of the time, which has bolstered investor confidence in its future performance and growth trajectory.
- Estimate Revision Trends: In the last three months, EPS estimates have seen 6 upward revisions and 21 downward revisions, while revenue estimates experienced 20 upward and 10 downward revisions, indicating market uncertainty regarding the company's future performance.
- Positive Market Outlook: Citi holds a bullish view on MongoDB's AI growth, suggesting that the strength of its platform and the application of AI technologies will continue to drive its growth narrative, despite uncertainties surrounding its transition process.
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Analyst Views on MDB
Wall Street analysts forecast MDB stock price to rise
28 Analyst Rating
24 Buy
4 Hold
0 Sell
Strong Buy
Current: 325.680
Low
380.00
Averages
468.85
High
550.00
Current: 325.680
Low
380.00
Averages
468.85
High
550.00
About MDB
MongoDB, Inc. is a developer data platform company. Its developer data platform is a globally distributed operational database integrated with a set of data services that allow development teams to address the growing variety of application requirements. Its customers can implement its developer data platform as a managed service offering, or they can choose a self-managed option. Its MongoDB Atlas is its managed multi-cloud database-as-a-service (DBaaS) offering that includes an integrated set of databases and related services. Atlas Vector Search allows the integration of an operational database and vector search in a unified, fully managed platform. MongoDB Enterprise Advanced is its proprietary self-managed commercial offering for enterprise customers that can run in the cloud, on-premises or in a hybrid environment. It also provides professional services for its customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Atlas Platform Growth: The Atlas platform achieved a 29.4% annual revenue growth rate, reaching a $2 billion run rate, with a 19% increase in customers to 66,400, highlighting its critical role as it now constitutes 75% of MongoDB's total revenue.
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- Atlas Platform Growth: The Atlas platform achieved a 29.4% annual revenue growth rate, reaching a $2 billion run rate, with a 19% increase in customers to 66,400, highlighting its critical role as it now constitutes 75% of MongoDB's total revenue.
- Upgraded Annual Forecast: The company raised its fiscal 2027 adjusted EPS guidance to between $5.95 and $6.14, with revenue expectations adjusted to $2.92 billion to $2.96 billion, reflecting confidence in future growth despite cautious market sentiment regarding Atlas.
- Market Sentiment Shift: Following a volatile trading session where shares initially dropped 17% before rebounding 40%, retail investor sentiment shifted from 'bullish' to 'extremely bullish', indicating strong interest in MongoDB's prospects despite concerns over the Atlas platform's outlook.
See More
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- Nextpower Acquisition: Nextpower's stock surged 13% following its announcement of acquiring battery storage company Prevalon Energy for approximately $365 million, while also raising its full-year revenue guidance, indicating its strategic expansion in the renewable energy sector.
- Dell Technologies Surge: Dell Technologies' shares jumped 29% after raising its full-year guidance, projecting adjusted earnings of $17.90 per share and revenue between $165 billion and $169 billion, significantly exceeding analyst expectations, showcasing strong market demand recovery.
- American Eagle's Poor Performance: American Eagle Outfitters' shares dropped 13% as comparable sales at its American Eagle banner fell 2% in Q1, with second-quarter guidance disappointing analysts, highlighting the sales pressure and intensified competition it faces.
See More
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- Earnings Performance: MongoDB reported strong Q1 results, yet its shares plummeted, indicating market concerns regarding future growth despite the positive earnings.
- Outlook Revision: The company raised its future performance outlook, reflecting confidence in business growth; however, the market's negative reaction led to downward pressure on the stock price.
- Analyst Ratings: Despite the stock decline, analysts maintain Buy/Outperform ratings with price targets exceeding $400, suggesting confidence in the company's long-term potential.
- Market Reaction: Investors are worried about the sharp drop in stock price, likely due to uncertainties in the overall market environment and doubts about the company's future profitability.
See More
MongoDB Reports Strong Q1 Results, Stock Surges
- Guidance Upgrade: MongoDB raised its FY27 total revenue guidance to $2.92 billion to $2.96 billion, exceeding the Street's $2.90 billion estimate, indicating strong demand for modernizing legacy applications, with Atlas revenue growth projected at 23%-25%.
- Stock Volatility: Following a more than 20% surge in post-market trading on Thursday, MongoDB's shares fell 2% in early Friday trading, reflecting market caution regarding the company's future growth, particularly amid decreased visibility into Atlas growth.
- Analyst Price Target Increases: Wedbush raised its price target from $380 to $390, while Citi Research increased its target from $450 to $455, demonstrating confidence in MongoDB's growth potential, especially in expanding AI workloads.
- Customer Growth and Profitability: MongoDB is successfully adding customers in the early stages of infrastructure modernization, with analysts noting improvements in profitability, reflecting incremental discipline and efficiencies in AI operations.
See More
Market Dynamics and Corporate Performance Analysis
- Dell's Quarter Performance: Dell reported a quarter that exceeded expectations, with shares rising over 30%, indicating strong performance across all business levels, particularly in data center servers, which is expected to boost overall market confidence.
- Costco Membership Renewal Rates Up: Costco's latest earnings report showed improved membership renewal rates in the U.S. and Canada; although market reaction was muted, record performance in its gas business is likely to enhance membership loyalty and solidify its market position.
- Anthropic Surpasses OpenAI: Anthropic raised $65 billion at a $965 billion valuation, becoming the most valuable AI startup, a significant increase from $380 billion in February, showcasing explosive revenue growth and wealth creation potential in the AI sector.
- Cybersecurity Market Volatility: Okta beat expectations in its earnings report, with shares rising over 8%, while Zscaler's stock fell due to disappointing guidance, highlighting a divergence in the cybersecurity industry that affected the performance of other companies, including CrowdStrike.
See More
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- Dell Technologies Surge: Dell Technologies' stock surged nearly 37% after raising its full-year guidance, projecting adjusted earnings of $17.90 per share and revenue between $165 billion and $169 billion, significantly exceeding analysts' expectations of $13.09 per share and $142.5 billion in revenue, indicating robust market demand and profitability.
- Computer Sector Rally: Following Dell's strong performance, shares of other computer hardware and services companies also rose, with Hewlett Packard Enterprise up over 17%, Super Micro Computer rising nearly 10%, and HP increasing almost 7%, reflecting optimistic sentiment towards the computer industry's outlook.
- American Eagle Outfitters Decline: Shares of American Eagle Outfitters dropped about 11% as comparable sales at its American Eagle banner fell 2% in Q1, missing analysts' expectations of 3.1% growth, while disappointing second-quarter operating income guidance further highlights challenges in the retail sector.
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