What happened
Shares of MongoDB (MDB 0.76%) were soaring today after the database software company posted strong results in its first-quarter earnings report.
As of 10:13 a.m. ET on Thursday, the stock was up 14%.
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So what
Revenue jumped 57% to $285.4 million, easily outpacing estimates at $266.5 million. Growth was driven by the performance of Atlas, its cloud-based product that allows users to simply scale up their use. Atlas revenue grew 82% to $171 million, or 60% of total revenue.
MongoDB now has more than 33,700 Atlas customers, up 33% from a year ago, and customers generating more than $100,000 in annual recurring revenue were up 30% to 1,379.
Bottom-line performance was strong as well. The company posted adjusted earnings per share of $0.20, up from a loss of $0.06 in the quarter a year ago, which also blew past expectations for a loss of $0.09 per share. Free cash flow was level with the quarter a year ago at $8.4 million.
CEO Dev Ittycheria said, "MongoDB enables developers to build mission-critical applications that drive better user experiences, enable new capabilities, and improves operational efficiency, and our Q1 results give us increased confidence in our ability to capture the large market opportunity over the long term."
Now what
Guidance was mostly in line with expectations. The company forecast revenue of $279 million to $282 million for the second quarter, representing 41.5% growth at the midpoint. For the full year, it raised its revenue guidance to a range of $1.172 billion to $1.192 billion, or equal to 35% growth at the midpoint -- the previous range was $1.151 billion to $1.181 billion.
Like other software stocks, MongoDB has fallen sharply in recent months as valuations in the sector have come down, and the stock is still down more than 50% from its peak last November. Still, the latest update should leave no doubt that the business continues to execute effectively.
