What happened
Shares of MongoDB (MDB 3.44%) were flying higher today after the database software company posted strong results in its third-quarter earnings report.
As of 12:01 p.m. ET, the stock was up 17.7%.
NASDAQ: MDB
Key Data Points
So what
MongoDB, which specializes in NoSQL database software, trounced estimates in its latest update and even reported a surprise profit.
Revenue in the third quarter jumped 47% to $333.6 million, easily beating the consensus at $303.4 million. Its cloud-based product, Atlas, again led the way with 61% growth and now makes up 63% of total revenue.
The number of customers generating more than $100,000 in annual recurring revenue jumped 29% to 1,545, and it now has 39,100 total customers, nearly all of whom are on Atlas, pricing for which starts at $9/month.
MongoDB also saw strong improvement in profitability, with adjusted operating income up from $6.3 million to $19.8 million, and adjusted earnings per share improved from $0.03 to $0.23, easily beating the analyst consensus at a loss of $0.17.
CEO Dev Ittycheria said in a press release: "The strength in our business was driven by improved Atlas consumption trends and continued strength in new business activity. Our performance reinforces the strategic importance of MongoDB's developer data platform in enabling our customers to use software and data to transform their businesses."
Now what
Looking ahead, MongoDB's guidance also delighted investors, as the company forecast revenue of $334 million to $337 million in the fourth quarter, up 26% from a year ago at the midpoint, which was better than the consensus at $314.7 million. On the bottom line, it called for adjusted earnings per share of $0.06 to $0.08, which was well ahead of expectations of a per-share loss of $0.13.
At a time when a number of software companies are struggling with macroeconomic headwinds, the results show MongoDB performing well in a difficult environment.
With the stock still down more than 70% from its peak in 2021, these strong results look like a buying opportunity, especially as the company begins to deliver meaningful profits on an adjusted basis.
