What happened
Shares of MongoDB (MDB 2.05%) charged sharply higher this week, surging as much as 12%. As of market close on Thursday, the stock was still up 10.6%.
The catalyst that sent the database-as-a-service company higher was its quarterly earnings report that significantly exceeded expectations.
NASDAQ: MDB
Key Data Points
So what
For its fiscal 2022 fourth quarter (ended Jan. 31, 22), MongoDB generated revenue of $266.5 million, an increase of 56% year over year. Perhaps as importantly, subscription revenue grew even faster, generating revenue of $258.2 million, up 58%. The company's adjusted net loss of $6.3 million was much improved, resulting in a loss per share of $0.09.
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The results were far better than investors had expected. To give the numbers context, analysts' consensus estimates were calling for revenue of $243.4 million and an adjusted loss per share of $0.31.
There were other reasons to be bullish. Management announced, "The fourth quarter marked another major milestone as we crossed $1 billion in annualized revenue run rate." This is even more notable because the benchmark comes just five years after the company first crossed the $100 million mark.
MongoDB ended the quarter with more than 33,000 customers, up 33% year over year. Of those, 1,300 are spending $100,000, an increase of 34%, while 164 are spending at least $1 million, up 67%. The fact that more lucrative customers are growing so much faster bodes well for MongoDB's future results.
Now what
Investors had other reasons to celebrate. Management forecasted first-quarter revenue in a range of $263 million to $267 million, which would represent growth of 46% at the midpoint of its guidance. The company also expects to edge closer to profitability, with an adjusted loss per share of $0.10 at the midpoint of its guidance, compared to a loss per share of $0.15 in the prior-year quarter.
It's been a rough few months for many high-growth stocks, particularly as investors soured on the prospects of companies that weren't yet profitable. MongoDB stood out from the crowd by beating expectations and supplying robust guidance, showing that not all growth stocks should be painted with the same brush.
