MongoDB (MDB) skyrockets after crushing results, guidance estimates; analysts buoyed

December 7, 2022 5:47 AM EST
Get Alerts MDB Hot Sheet
Price: $214.57 -4.21%

Rating Summary:
    22 Buy, 10 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 17 | Down: 23 | New: 19
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Shares of MongoDB (NASDAQ: MDB) are trading almost 30% higher in pre-open Wednesday after the company reported better-than-expected earnings and outlook.

MongoDB crushed analyst estimates after reporting earnings per share of $0.23 on revenue of $333.6 million (up 47% year-over-year). Analysts were expecting a loss per share of $0.17 on revenue of $305.09M.

“The strength in our business was driven by improved Atlas consumption trends and continued strength in new business activity,” the company said in a statement.

For this quarter, MDB expects EPS between $0.06 and $0.08 on revenue of $334-337M. Analysts were looking for a loss per share of $0.14 on revenue of $315.1M. For FY2023, the adjusted EPS is seen between $0.29 and $0.31, smashing the average analyst estimate for a loss per share of $0.31.

MongoDB raised its full-year revenue forecast to $1.257-1.26 billion from the $1.20-1.21B range and higher than the estimate of $1.21B.

Goldman Sachs analyst Kash Rangan reiterated a Buy rating as Q3 results underscored "our thesis that the company is uniquely positioned to capture outsized share of one of the largest/most strategic TAMs in software.”

“At 7x EV/S (C23), we believe the risk/reward skews positive,” Rangan added in a client note.

JMP analyst Patrick Walravens upgraded MDB shares to Market Outperform from Market Perform with a price target of $215 per share. The upgrade comes after the company “delivered much better than-expected F3Q23 results as the company saw a rebound in Atlas consumption, particularly in areas that were below expectations in Q2, and continues to see "a healthy environment for new business",” Walravens said in a note.

By Senad Karaahmetovic

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