Shares of MongoDB (MDB +22.23%) soared on Tuesday after the database operator's third-quarter earnings handily exceeded investors' expectations.
By the close of trading, MongoDB's stock price was up more than 22%.
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Atlas approved
MongoDB's revenue jumped 19% year over year to $628.3 million. The gains were powered by a 30% surge in revenue for the company's highly regarded Atlas cloud database platform.
MongoDB gained 2,600 customers during the quarter, bringing its total to more than 62,500 as of Oct. 31. New CEO CJ Desai said the software star's offerings are appealing to businesses seeking tools that integrate well with artificial intelligence (AI) applications.
"Companies across industries and geographies are choosing MongoDB because we provide a unified data platform that powers mission-critical workloads today and also positions them to capitalize on the emerging AI platform shift," CEO CJ Desai said.
NASDAQ: MDB
Key Data Points
In addition to customer wins, Desai is prioritizing profitability. MongoDB's net loss narrowed to $2 million from $9.8 million in the prior-year quarter.
Moreover, the company's adjusted net income, which strips out stock-based compensation expense, restructuring costs, and other charges, rose 17% to $114.5 million, or $1.32 per share. That crushed Wall Street's estimates, which had called for per-share earnings of $0.79.
Powerful trends should fuel MongoDB's expansion
These strong results prompted management to boost its full-year financial guidance. MongoDB now expects to deliver adjusted earnings per share of $4.76 to $4.80, up from a prior forecast of $3.64 to $3.73.
"We are at a true inflection point, driven by major shifts across cloud, data, and AI," Desai said during a conference call with analysts. "MongoDB has the potential to become the generational modern data platform of this evolving era, an opportunity that comes once in a lifetime."
