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Tech Stocks This Week: 2 Growth Stocks Report Earnings

By Daniel Sparks – Sep 7, 2019 at 9:16AM

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Both of these fast-growing companies lifted their full-year outlooks.

Not all companies report their quarterly results within typical earnings season time frames. Though we are several weeks removed from earnings season, this week included a number of interesting quarterly updates. Two reports worth calling out came from growth stocks MongoDB and Zoom Video Communications (ZM 4.87%).

Here's a look at each of these company's latest financial results.

The Zoom video platform. Image source Zoom Video Communications.

Image source: Zoom Video Communications.

MongoDB

Cloud database company MongoDB (MDB 4.76%) reported earnings on Sept. 4 after market close.

The company's fiscal second-quarter revenue increased 67% year over year. This put the top-line figure at $99.4 million, easily surpassing the $90 million to $92 million management had guided for. The company's non-GAAP (adjusted) loss per share was $0.26. This compares to an adjusted loss per share of $0.34 in the year-ago quarter.

"MongoDB's strong second quarter results are the latest indication of our growing leadership position as the modern data platform of choice," said MongoDB CEO Dev Ittycheria in the company's fiscal second-quarter earnings release. "Our best-in-class product and increasingly sophisticated go-to-market strategy are driving strong adoption for a growing number of use cases by customers of all sizes."

Atlas, the company's multicloud database service, once again saw wild growth. Atlas revenue increased 240% year over year and now accounts for 30% of revenue, though this is a notably sharp deceleration from the 340% year-over-year increase Atlas saw in fiscal Q1. 

Management increased its outlook for full-year fiscal 2020 revenue. MongoDB now expects revenue during the period to be between $390 million and $395 million, up from a previous forecast for revenue between $375 million and $381 million.

Zoom Video

Reporting its fiscal second-quarter results after market close on Sept. 5, Zoom Video Communications saw revenue during the period soar 96% year over year, to $145.8 million. Impressively, Zoom's cash flow provided by operating activities jumped from $14.4 million in the second quarter of fiscal 2019 to $31.2 million in the second quarter of fiscal 2020. Over the same time frame, Zoom's free cash flow rose from $8.2 million to $17.1 million and non-GAAP earnings per share increased from $0.02 to $0.08. 

"I am proud that we continue to build trust and create value for customers as evidenced by our strong combination of total revenue growth of 96% with increased profitability and free cash flow in Q2," said Zoom CEO Eric Yuan in the company's fiscal second-quarter earnings release.

Like MongoDB, Zoom lifted its full-year outlook. Management said it now expects fiscal 2020 revenue to be between $587 million and $590 million. Previously, Zoom guided for revenue between $535 million and $540 million. 

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

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Stocks Mentioned

MongoDB Stock Quote
MongoDB
MDB
$203.31 (4.76%) $9.24
Zoom Video Communications Stock Quote
Zoom Video Communications
ZM
$77.54 (4.87%) $3.60

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