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These Earnings Winners Are Up Over 10% After Hours Thursday

By Dan Caplinger – Sep 2, 2021 at 6:04PM

Key Points

  • Markets climbed to record highs.
  • MongoDB shot upward after a strong earnings report and projections for higher sales ahead.
  • PagerDuty saw similar-sized gains in its stock after hours for nearly the same reasons.

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Several stock market indexes finished at record levels, but that wasn't the end of the good news.

Wall Street continued to celebrate the bull market, with unemployment claims numbers falling to their lowest since before the COVID-19 pandemic and stoking confidence in the economic recovery. The S&P 500 (^GSPC -1.42%) and Nasdaq Composite (^IXIC -1.55%) set new records yet again, and the Dow Jones Industrial Average (^DJI -1.11%) managed to see the biggest gains of the three benchmarks.

Index

Percentage Change

Point Change

Dow

+0.37%

+131

S&P 500

+0.28%

+13

Nasdaq

+0.14%

+22

Data source: Yahoo! Finance.

The late rush of earnings continued after the end of the regular session on Thursday, prompting some big moves in after-hours trading. Two companies in particular -- MongoDB (MDB -5.91%) and PagerDuty (PD -3.78%) -- posted gains of more than 10% after their respective financial reports. Below, we'll look more closely at why shareholders are so excited about these two tech plays.

Person in an office with hands raised in a V shape.

Image source: Getty Images.

Mongo gains for MongoDB

MongoDB shares were up 2% in the regular session, and then added  another 12% in the after-hours session as of 5 p.m. EDT. The database specialist wowed investors with its second-quarter financial results and suggested the good times could continue.

MongoDB's numbers were encouraging. Total revenue was up 44% from the year-ago period to $198.7 million, boosted largely by increasing subscription revenue. In particular, MongoDB's Atlas platform saw its sales rise 83% year over year, reflecting demand among major corporate clients to have the full power of a modern data platform to fit with their broader digital innovation strategies.

Customers are adopting MongoDB at an extremely high rate, and the company reported passing 200 million total downloads of the service from its website. More than 75 million of those downloads have come in just the past 12 months. That's more interest than MongoDB got in its first 11 years as a database company.

MongoDB also released encouraging guidance for the remainder of the year. Full-year fiscal 2022 revenue should come in between $805 million and $811 million, and those figures are far above what most investors were expecting and would represent year-over-year sales gains of about 37%. MongoDB isn't close to profitability yet, but investors are content with the top-line growth path they're seeing right now from the database specialist.

Paging big gains

PagerDuty also got a nice advance after hours. After finishing the regular session up more than 1%, the digital operations management specialist's stock got a 12% boost after releasing its second-quarter results.

PagerDuty celebrated solid top-line performance. Revenue climbed 33% year over year to $67.5 million. That seemed like largely enough to satisfy investors, given adjusted gross margin slumped about 3 percentage points to 84.2%, operating losses were substantially higher from year-ago levels, free cash flow worsened to an outflow of $12.9 million, and adjusted net losses of $0.13 per share were more than triple last year's $0.04 per share loss.

PagerDuty has done a good job of landing high-profile clients. The company now sports more than 18,000 clients, having brought on Citigroup during the period. PagerDuty was also proud about its expanded services offerings for key organizations like Autodesk, Nvidia, Datadog, and Snowflake, among others.

Investors were pleased to see expectations of further growth, with full-year fiscal 2022 revenue projected at $273 million to $276 million. Year-over-year gains of 28% to 29% would be stronger than most were looking for from PagerDuty, and the after-hour gains are bringing the company back to within spitting distance of its all-time highs from immediately after its IPO in 2019.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Dan Caplinger owns shares of Datadog, MongoDB, and Snowflake Inc. The Motley Fool owns shares of and recommends Autodesk, Datadog, MongoDB, Nvidia, PagerDuty, and Snowflake Inc. The Motley Fool has a disclosure policy.

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