Please ensure Javascript is enabled for purposes of website accessibility

Weekly Tech News: MongoDB, DocuSign, and Zoom Video Earnings

By Daniel Sparks – Jun 9, 2019 at 10:01AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Two of these tech stocks jumped and one fell after earnings. Here's what investors should know.

A few high-profile technology stocks reported their quarterly earnings last week, including cloud database specialist MongoDB (MDB -9.71%), e-signature company DocuSign (DOCU -3.69%), and video communications company Zoom Video (ZM -3.98%). The stocks of all three of these companies made big moves after earnings, with two moving higher and one falling sharply.

Here's a closer look at these three cloud-based companies' earnings reports.

A diagram of three laptops connected to a blue cloud being held up by a hand.

Image source: Getty Images.

MongoDB

After crushing analyst estimates when it reported its fiscal fourth-quarter results earlier this year, MongoDB had expectations running high going into its fiscal first-quarter update. But the cloud database company has still managed to outperform analysts' high bar for the period, beating both top- and bottom-line estimates. 

Fiscal first-quarter revenue soared 78% year over year -- an acceleration compared to 71% growth in fiscal Q4. MongoDB Atlas revenue, which accounts for 35% of total revenue, soared 340% year over year.

Powering the quarter's momentum, MongoDB saw strength across all of its products and geographies, management said in the company's fiscal first-quarter earnings release.

Between Monday and Friday, shares rose a total of 21%. The bulk of these gains came in the days following MongoDB's earnings release.

DocuSign

Though e-signature specialist DocuSign beat expectations for both revenue and non-GAAP EPS, the stock still fell 12% during the trading day following the company's fiscal first-quarter earnings release. That was probably due to a deceleration in DocuSign's billings growth. Billings were up 27% year over year, down from 31% growth in the company's fiscal fourth quarter.

But investors shouldn't overlook the e-signature specialist's 37% year-over-year revenue growth -- an acceleration from 34% growth in the prior quarter -- and its 33% jump in the number of enterprise and commercial customers on its platform. In addition, free cash flow came in at $30 million, up from $9 million in the year-ago quarter. 

Zoom Video

Investors are quickly learning about Zoom Video's ability to grow its business at uncanny rates. In the company's first reported quarter as a public company, Zoom's revenue surged 103% year over year to $122 million. The performance was fueled by an impressive 120% year-over-year jump in the number of customers on its platform who each contribute over $100,000 in trailing-12-month revenue. 

"While we remain focused on strong growth," explained Zoom CEO Eric Yuan regarding the company's fiscal first-quarter earnings release, "we are also pleased that our highly efficient business model and disciplined investment approach contributed to positive non-GAAP profitability and free cash flow."

Free cash flow for the quarter was $15.3 million, up from negative-$1.1 million in the year-ago quarter.

Zoom Video's stock soared 18.4% on Friday, following the video communications company's earnings release on Thursday afternoon.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends DocuSign, MongoDB, and Zoom Video Communications. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.