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EPS of $0.93 came in better than the consensus estimate of $0.46. Revenue was $423.8 million, beating the consensus estimate of $393.68M.
Subscription revenue grew 40% year-over-year to $409.3M, while services revenue was up 20% to $14.5M.
“MongoDB delivered excellent results in the second quarter, highlighted by 40% revenue growth, continued strength in new workload acquisition and record operating margin. The ongoing success of our new business efforts for Atlas and Enterprise Advanced across our sales channels is a testament to the value of MongoDB’s run anywhere strategy which enables customers of any size to innovate faster and more efficiently,” said CEO Dev Ittycheria.
For Q3/24, the company expects EPS of $0.47-$0.50, compared to the consensus of $0.27, and revenue of $400-$404M, compared to the consensus of $389.12M.
For the full year, the company sees EPS at $2.27-$2.35, compared to the consensus of $1.55, and revenue at $1.596-$1.608B, compared to the consensus of $1.55B.
Guggenheim analysts said the company “put on a clinic” with its results.
“We take our hats off to the management team. By our estimates, if New ARR continues to further accelerate against even easier comps in F2H (which implies modest acceleration on a two-year growth stack), then the model allows for a similar or even slightly greater upside vs. guidance/consensus, as well as nearly 32% total growth in FY24,” they said in a note.
However, the analysts remain Sell-rated with the price target raised to $250 from $220 due to increased out-year forecasts.
Goldman Sachs analysts argued that “true beat and raise reflects strong execution.” They lifted the price target to $450 per share.
“Even with the true FY raise, we see upside bias to 2H as management maintains a conservative guidance posture that factors for no improvement to macro conditions,” the analysts wrote in the post-earnings report.
“Longer-term, we remain constructive on MongoDB’s ability to capture outsized share of the database market and durably sustain >20% subs growth (w/ expanding margins) given multiple secular tailwinds (NoSQL, cloud) and an emerging growth vector in Gen-AI (link), where tools and features such as Relational Migrator (e.g. app modernization) and Vector Search can be accretive to Atlas consumption growth.”
(Additional reporting by Senad Karaahmetovic)
