MongoDB stock jumped Wednesday in reaction to its fourth-quarter earnings report that soundly beat analyst estimates on the top and bottom lines. Still, MDB stock is trading well below its record high.
The database software company late Tuesday reported an adjusted loss of 9 cents a share on revenue of $266.5 million. Analysts expected MongoDB to report a loss of 22 cents on revenue of $243.4 million, according to FactSet. But revenue jumped 56% from the year-ago period, its best growth in nine quarters.
MDB stock jumped 18.6%, closing at 334.09 on the stock market today.
"MongoDB reported a very strong fourth quarter," Mizuho Securities analyst Matthew Broome said in a note to clients. Despite a 47% year-to-date stock price decline in MDB stock, he wrote, "Our analysis indicates the company remains fairly valued relative to peers."
MDB Stock: Facing Strong Competition
However, he added, "We continue to believe the company faces strong competition from public cloud providers, which may limit its profitability over the long-term."
MongoDB provides an open-source database platform for businesses, with a subscription-based, software-as-a-service business model. The company has yet to show a profit, but revenue keeps growing at a double-digit pace each quarter.
The company expects first-quarter revenue in the range of $263 million to $267 million. The midpoint of $265 million is above analyst estimates of $253.6 million.
Further, it expects and adjusted loss in the range of 12 cents to 8 cents. MDB stock analysts expected a loss of 17 cents.
Continued Strong Customer Growth
MongoDB attributed the company's better-than-expected performance to "continued strong customer growth," now exceeding 300,000. It also reported 85% growth in its Atlas database software product, "surpassing $1 billion in annualized revenue," the company said in the MongoDB earnings release.
Moreover, said Chief Executive Dev Ittycheria, "Our success is being driven by the fact that our modern application data platform dramatically reduces friction in the development process to make it incredibly easy for developers to build compelling applications."
He added, "Our strong growth in six and seven figure customers is evidence that customers increasingly view MongoDB as a strategic platform. We are confident in our ability to capitalize on our $70 billion market opportunity and deliver strong growth for the foreseeable future."
MongDB held its initial public offering in October 2017, pricing MDB stock at $24.
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