Data storage group MongoDB delivers upbeat guidance after Q3 results top estimates

December 5, 2023 4:40 PM EST
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(Updated - December 6, 2023 8:18 AM EST) -- Shares in MongoDB (NASDAQ: MDB) dropped in U.S. premarket trading on Wednesday despite the data storage company posting better-than-anticipated third-quarter results and upbeat guidance.

New York-based MongoDB reported adjusted earnings per share (EPS) of $0.96 on revenue of $432.9 million in the three months ended on Oct. 31, topping estimates of $0.51 and $406.3M, respectively. The software company attributed the stronger performance to "winning new workloads from both new and existing customers across verticals, geographies, and customer segments."

Adjusted EPS in the current quarter is seen in a range of $0.44 to $0.46, above Wall Street forecasts of $0.37. For its 2024 fiscal period, MongoDB's guidance for both income and sales were also higher than expectations.

"I think compared from last year, this year, we don't see things getting worse, but we don't see things getting better," said Chief Executive Officer Dev Ittycheria in a call with analysts.

Analysts at Oppenheimer noted that the macroeconomic environment "remains tough," adding that growth at MongoDB's key Atlas data services unit will likely be hit by a "slowdown" during the holiday season. They flagged that other subscription revenues are also projected to decline sequentially due to elevated upfront sales from multi-year deals signed in the third quarter.

The Oppenheimer analysts concluded that they "like the [...] underlying growth drivers" at MongoDB, although they noted that shares -- which have jumped by more than 120% this year -- "are not cheap."

Yasin Ebrahim contributed to this report.

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