MongoDB Inc. (MDB) delivered a strong performance in the second quarter, surpassing analysts’ expectations for both earnings and revenue. The company reported earnings of 70 cents per share, exceeding the consensus estimate of 49 cents by 42.86%. Revenue for the quarter reached $478.1 million, beating the consensus estimate by 3.03% and representing a 12.82% increase from the same period last year.
MongoDB’s CEO, Dev Ittycheria, attributed the company’s success to strong new workload acquisition and robust consumption trends for its Atlas cloud database platform. He highlighted the crucial role MongoDB plays in modern application development.
The company’s optimistic outlook for the future was reflected in its raised guidance for the third and full fiscal year. MongoDB projects third-quarter revenue in a range of $493 million to $497 million, exceeding the consensus estimate of $478.75 million. Earnings are expected to be between 65 cents and 68 cents per share, surpassing the 60-cent estimate. For the full fiscal year, MongoDB expects revenue to be between $1.92 billion and $1.93 billion, exceeding the $1.9 billion estimate, with earnings projected between $2.33 and $2.47 per share, exceeding the $2.26 estimate.
Following the positive earnings announcement, several analysts revised their price targets on MongoDB stock, indicating a strong belief in the company’s future prospects. Piper Sandler analyst Brent Bracelin maintained an Overweight rating and raised the price target from $300 to $335. B of A Securities analyst Bradley Sills also maintained a Buy rating and raised the price target from $300 to $350. Morgan Stanley analyst Sanjit Singh maintained an Overweight rating and boosted the price target from $320 to $340. Mizuho analyst Matthew Broome maintained a Neutral rating and raised the price target from $250 to $275. Finally, Oppenheimer analyst Ittai Kidron maintained an Outperform rating and raised the price target from $300 to $350.
The strong earnings results and positive analyst sentiment sent MongoDB shares soaring by 4.4% to close at $245.72 on Thursday. This performance suggests investor confidence in the company’s growth trajectory and its ability to capitalize on the increasing demand for cloud-based database solutions.
