In a little more than a year since its IPO, MongoDB (MDB +0.74%) has had an impressive run. The company, which initially priced its stock at $24 per share, soared 34% on its first day of trading and never looked back. The stock has jumped nearly 150% and is near all-time highs as of this writing, on the back of several stronger-than-expected quarterly performances. Demand has been high for its NoSQL (no structured query language) databases, which can handle both structured and unstructured data, including messy things like images and audio files.
MongoDB will have another opportunity to impress Wall Street and investors alike when it reports the results of its fiscal 2019 third quarter (which ended Oct. 31) after the market close on Dec. 4. Let's look at the company's recent performance to see if it provides any insight into what investors can expect when MongoDB reports earnings.
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Accelerating growth
For its fiscal 2019 second quarter (which ended July 31), MongoDB reported revenue of $57.5 million, up an incredible 61.5% year over year. This is all the more impressive considering that it marks an acceleration from the 49% growth the company achieved in the first quarter. The results were driven by subscription revenue that climbed 63% versus the prior-year quarter. Revenue from MongoDB Atlas, the company's cloud database-as-a-service offering, soared 400% and contributed 18% of the company's total revenue -- up from just 5% this time last year. The company's customer base also continued to climb, increasing to 7,400, up 72% year over year.
MongoDB reported numerous milestones during the quarter, including the release of MongoDB 4.0, the latest iteration of its flagship product, as well as the release of Stitch, which simplifies app development by providing direct access to MongoDB. The company also held the MongoDB World Conference in June, which hosted more than 2,000 developers, customers, partners and investors, while another 200,000 participants live-streamed the event. This illustrates the growing demand for the company's products.
What the future may hold
As a result of its continued strong performance, MongoDB raised its guidance for the full fiscal year. The company now anticipates revenue between $228 million and $230 million, which would represent an increase of about 48% year over year, and a raise from its previous guidance range of $217 million to $220 million.
For its upcoming third-quarter report, management forecasts revenue in a range of $59 million to $60 million, which would represent growth of 43.4% year over year at the midpoint. The company is predicting a loss from operations in a range of $20 million to $21 million, a significant improvement from the $27.3 million loss in the year-ago quarter. This would result in a non-GAAP loss per share in a range of $0.38 to $0.40, similar to a loss per share of $0.40 in the prior-year quarter.
While seasoned investors know not to place too much value on the opinions of Wall Street analysts, it can provide context for the overall market feeling about the company. Analysts are upbeat about MongoDB's prospects, predicting revenue of $60.25 million, an increase of 45.2% year over year, and a non-GAAP loss per share of $0.40, both of which are in line with the high end of management's guidance.
It's important to note that MongoDB has a market cap of less than $5 billion, and as such will be subject to significant volatility. With nearly 150% gains in just over a year, any slowing in its progress -- whether real or imagined -- will likely be met with a brutal sell-off. That said, MongoDB is disrupting a market that's expected to top $63 billion by 2020, giving the company a long runway. Investors should stay focused on the massive opportunity and be prepared for what's sure to be a wild ride. Watch for more when the company reports earnings on Dec. 4.
