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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 $334M – $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 $1.257B – $1.26B from the $1.20B – $1.21B range and higher than the estimate of $1.21B.
Goldman Sachs analysts 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,” they added in a client note.
JMP analysts 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”,” the analysts said in a note.
