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Dev Ittycheria, CEO of MongoDB
Adam Jeffery | CNBC
MongoDB shares rose 27% in extended trading on Tuesday after the database software maker surprisingly swung to a profit.
Here’s how the company did:
MongoDB’s revenue rose 47% year-over-year in the quarter that ended on Oct. 31, according to a statement. Its net loss widened to $84.8 million, compared with a net loss of $81.3 million in the year-ago quarter.
The company said it had 39,100 customers at the end of the quarter, better than the 38,900 average estimate among analysts polled by StreetAccount. MongoDB’s cloud database service called Atlas represents 63% of total revenue.
“The strength in our business was driven by improved Atlas consumption trends and continued strength in new business activity,” CEO Dev Ittycheria said in the statement. Sequential gains came in the mid-market and at enterprises in Europe in what appears to be an emerging seasonal trend, Michael Gordon, MongoDB’s operating chief and finance chief, said on a conference call with analysts.
The outperformance is welcome news for software investors, who have seen troubling data points of late. Last week, Salesforce said clients are becoming more cautious in preparation of worsening economic conditions. The company broke from tradition and avoided providing a forecast for the coming year.
Executives lifted their view for the full 2023 fiscal year. They now see adjusted net income of 29 cents to 31 cents per share, compared to previous guidance that called for a loss of 35 cents to 28 cents per share. For revenue, MongoDB called for about $1.26 billion, compared with its prior expectation of $1.2 billion. Analysts polled by Refinitiv had expected an adjusted net loss of 31 cents per share on $1.21 billion in revenue.
Gordon said the company expects Atlas consumption growth to slow consequentially in the fiscal fourth quarter.
Before the after-hours jump, MongoDB shares were down 73% this year, underperforming the S&P 500 index, which has declined 17% over the same period.
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